June 15, 2004

SUBJECT: Amendment to Memorandum of Understanding (MOU) with the Public Safety Officers Association (PSOA) Regarding the July 2003 Contract (Health Insurance) Reopener

REPORT IN BRIEF

Tentative agreement has been reached with the Public Safety Officers Association (PSOA) regarding the July 2003 contract reopener.  If this agreement is approved by Council, it will amend a provision of the existing Memorandum of Understanding (MOU).  This report recommends approval of this agreement and the MOU provision amendment.

BACKGROUND

The 1997-2006 MOU with PSOA was approved by the City Council on May 15, 2001, with an expiration date of June 30, 2006.  Included in the MOU was a provision that the contract would re-open in July 2003 regarding medical, dental, and long-term disability benefits for bargaining unit members.  Discussions with PSOA have occurred over the last several months and culminated with a tentative agreement reached on May 10, 2004.

DISCUSSION

The City and PSOA have met regularly since January 2003 to discuss the contract re-opener.  A tentative agreement had been reached in mid-2003; however, the PSOA membership failed to ratify.  Discussion continued through May 2004, at which time there was a joint recommendation by the City and PSOA to close the current re-opener, and to re-open again in July 2005 concerning medical insurance for bargaining unit members.

FISCAL IMPACT

The conclusion of the July 2003 contract re-opener and the inclusion of a new re-opener in July 2005 for medical insurance have no fiscal impact for Fiscal Year 2004-2005.  At this time, it is unknown if the re-opener in July 2005 will have a fiscal impact in future fiscal years.

PUBLIC CONTACT

Public contact was made through posting of the Council agenda on the City’s official notice bulletin board, posting of the agenda and report on the City’s web page, and the availability of the report in the Library and the City Clerk’s Office.

ALTERNATIVES

1.      Approve adoption of the tentative agreement made between the City and PSOA, and the amendment to the MOU; and authorize the Director of Human Resources to execute the agreement on behalf of the City.

2.      Do not approve adoption of the tentative agreement and amendment to the MOU.

RECOMMENDATION

Alternative #1; approve adoption of the tentative agreement made between the City and PSOA, and the amendment to the MOU; and authorize the Director of Human Resources to execute the agreement on behalf of the City.

Prepared by:

Tammy M. Parkhurst

Senior Management Analyst

Reviewed by:

Mark Gregersen

Director, Human Resources

Reviewed by:

Mary Bradley

Director, Finance

Approved by:

Amy Chan

City Manager

Attachments

A.     Amendment No. 1 to the Public Safety Officers Association Memorandum of Understanding, dated July 1, 1997 – June 30, 2006