Placentia POA took a look at the City's finances prior to commencing negotiations and had the unfortunate realization of the City's bleak financial condition.  Despite the City's finances, the Police Association leadership was able to convince the City that it needed to place more priority in retention of its police officers who had recently been a leaving to other agencies.  The end result was a three-year contract.  The biggest movement came in medical insurance.  The POA was successful in having the City move from its traditional private sector model of health insurance to CalPERS for medical.  Along with the switch came an increase of over $300.00 per month making the maximum City contribution $1,151.00.  The contract provides a salary increase in year one of between 2.5% and 4% depending on the Consumer Price Index for Los Angeles and Orange County.  In the second year of the contract an additional increase of between 2.5% and 4% will occur, again depending on CPI. 

A team approach was developed to determine the compensation increase for year three.  The City will survey the community to determine the viability of a tax revenue increase to fund public safety.  If a positive response comes out, the City will place such a measure on the ballot for the voters and of course the Police Officers Association will support the measure.  In the event of new revenue being approved by the voters, the officers would receive in the third year of the contract an increase of between 3% and 8% depending on their compensation position in Orange County compared to the other police agencies at this time.  Additionally, reopeners in the medical insurance are provided for each year with the City picking up at a minimum one half of any increases in the CalPERS insurance rates.