Laserfiche WebLink
REPORT <br />To the Honorable Mayor and City Council <br />From the City Manager <br /> <br />February 8, 2016 <br /> <br />SUBJECT <br />Memorandum of Understanding between the City and the Redwood City Police Officers <br />Association (POA) and Memorandum of Understanding between the City and the <br />Redwood City Police Supervisors Association (PSA) <br /> <br />RECOMMENDATION <br />By motion, (1) approve tentative agreements with the Redwood City Police Officers <br />Association (POA) and the Redwood City Police Supervisors Association (PSA); (2) <br />authorize the City Manager to integrate the tentative agreement language into and <br />execute a successor Memorandum of Understanding between the City and the <br />Redwood Police Officers Association; and (3) authorize the City Manager to integrate <br />the tentative agreement language into and execute a successor Memorandum of <br />Understanding between the City and the Redwood City Police Supervisors Association <br />(PSA) <br /> <br />BACKGROUND <br />In Spring of 2015, the City entered negotiations with the Police Officers Association <br />(POA) and the Police Supervisors Association (PSA) because the Memorandum of <br />Understandings between these associations and the City were expiring on August 31, <br />2015. In 2011, prior to the most recent negotiation, the City worked collaboratively with <br />the POA and PSA to implement strategies to address escalating pension and benefit <br />costs, including the establishment of a second-tier pension formula for new employees, <br />and cost-sharing for health care and pension costs. The City’s goal was to maintain a <br />compensation program that was both fiscally sustainable in the long term and <br />competitive in the market place in order to attract and retain a qualified workforce. <br /> <br />While the economy has seen significant improvement, resulting in a more positive <br />financial outlook for the City, several financial uncertainties and threats continue to <br />exist: rising health care costs (i.e. benefits and worker’s compensation costs), increased <br />rates for CalPERS unfunded liability payments, and potential loss of Excess Education <br />Augmentation Revenue Funds (“ERAF”) funds distributed to the City. These <br />uncertainties warrant a cautious approach to compensation strategies. In reaching <br />agreement with the POA and PSA, the City considered cost of living increases, turnover <br />rates and salary survey data from comparable bay area cities. <br /> <br /> <br />6.1.C. - Page 1