Wednesday, March 5, 2014

Oro Valley Police MOU Rich With Fringe Benefits


This evening, the Oro Valley Town Council will consider approving a 2 year memorandum of understanding ("MOU") with the police department.  We wrote about this agreement, in general, on Monday.  The earnings increase based on that MOU are 6% increase in base earnings. That is valued at $500,000.  Then, there are step increased automatically granted in the subsequent years.  In addition, certain police employees are eligible to receive added compensation if, for example, they are school resource officers.

There are also non earnings benefits mandated by the agreement.  The following is a list of these. It is attachment B of the police memorandum of understanding which the council will consider this evening.
  1. "Compressed and/or flexible work week, where practical, for many assignments
  2. Assigned take home vehicles at the discretion of the Police Chief.
  3. Paid Holidays [currently 13 (thirteen) per year-12 (twelve) @ double time if worked/ 1 (one) birthday off], and any additional holidays that may be approved by the Town Council.
  4. Leave benefits as outlined in Town policy.
  5. One hundred percent of the members' medical insurance premium paid by the Town based on wellness program participation. A $10 per pay period premium would be charged to any employee who did not participate in the Town's biometric program, once the program is initiated.
  6. No less than eighty percent (80%) of the additional monthly premium cost for members' dependent medical insurance premium paid by Town.
  7. One hundred percent of the members' dental insurance premium paid by the Town.
  8. No less than eighty percent (80%) of the additional monthly premium cost for members' dependent dental insurance premium paid by the Town.
  9. Retired members have the option of continuing medical insurance coverage at a rate made avai lab le to them through participation of the Town in rate negotiations. This includes members retired due to early, regular or disability who are not eligible for Medicare.
  10. One hundred percent of Life Insurance premium paid by the Town for a policy that pays out one year of the member' salary. 
  11. Supplemental Life Insurance available for member where member may purchase additional Life Insurance up to five times the member's annual sa lary at a rate made available to them through participation of the Town in rate negotiations. 
  12. Supplemental Life Insurance available for spouse and children at a rate made available to them through participation of the Town in rate negotiations. 
  13. One hundred percent of the member's long-term disability insurance premium is paid by Town for non-A.S.R.S. participant members. 
  14. One hundred percent of the members' mid-term (bridge) disability insurance premium paid by the Town. 
  15. One hundred percent of the members' workers compensation insurance premium is paid by the Town.
  16. Extensive employee assistance program (EAP) is paid by the Town. 
  17. Tuition Reimbursement for members at a rate of 100% reimbursement from the Town for tuition for job-related college credit courses, up to a maximum of $2,000 per member per fiscal year.
  18. Town sponsored "section 125 plan" (Pre-Tax contributions for medical/dental/supplemental life insurance premiums).
  19. Town sponsored "Section 125 Plan" (Pre-Tax contribution for Dependent Care Reimbursement Accounts up to five thousand dollars per year). 
  20. Town sponsored 457 Deferred Compensation Plans (Pre-Tax contributions). 
  21. Town sponsored supplemental insurance products. 
  22. Supplemental Vision Care Benefits. 
  23. Supplemental Commuter insurance paid by Town through AMRRP. 
  24. Town administered payroll deduction for OVPOA/FOP/100 Club."
Our opinion is that it financially worthwhile to be a cop in Oro Valley.  A one-time 6% salary bump and then automatic annual pay increases.   There are phenominal fringe benefits.  Few companies pay for the entire health insurance premium. Few offer dental premiums.  Few offer take home cars at the boss' discretion.  Few pay for long-term disability insurance.  Add to this the direct payment for uniform allowances. Add to this the opportunity to earn overtime.  All of this locked in for 2 years, handcuffing a future council from doing anything about this until 2017.

In fact, this agreement is so one-sided for the cops that we wonder what they wanted that they didn't get.

In our opinion: "Its good to be a cop in Oro Valley."  It is not wonder that police in other communities  are jealous! 

What do you think?
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4 comments:

Richard Furash, MBA said...

This is out of control spending and indicative of this council. I hope that one of the council members makes a motion to limit the agreement to one year. I just do not see why it is in the communities interest to have a 2 year agreement, especially one that is so one-sided. I guess eventually I will get to vote on this at the ballot box this summer. Let's make sure that we keep a record of the vote. My bet is 4-3 for approval, as is with no modifications. I sure don't call that oversight, which the council is suppose to perform.

Richard Furash, MBA said...

I have negotiated many service worker union contracts in the private sector and this benefit package is grossly "way-over-the-top" and I agree with Chuck that town council management and oversight is severely lacking. I cannot imagine many OV residents have this rich a package for themselves or their families, nor do I believe for one minute that it takes this luxury set of benefits to retain a quality work force. This is simply political cronyism at its apex and the town residents are, as always, taking it in the shorts to continue enabling the incest laden relationship between the OVPD union and the Mayors Posse. When will we stand up and announce "enough is enough"?


PS: Does anyone know if the "take home car benefit" is charged as taxable income to the employee? In the private sector, company provided transportation is taxable.


PS2: Do the other OV service worker employees have a similar benefit package? If not, they to are getting the shaft.

Richard Furash, MBA said...

As a retired public employee, I can tell you that the above package is gold plated.


I support fair compensation, but this is over the top.


100% medical + dental is outrageous.


and don't forget my favorite, FREE TAKE HOME vehicle.

Richard Furash, MBA said...

The "4" sure are making our decision easy come election day!