Approved Agreements and Contracts 2025/09/23 Police Department Employment Retainer Bonus

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                                   mem MUSKEGON
                           Agenda Item Review Form
                          Muskegon City Commission

Commission Meeting Date: September 23, 2025             Title: Police Department Employment Retainer
                                                        Bonus


Submitted by: Timothy Kozal, Public Safety              Department: Public Safety
Director


Brief Summary:
In recognition of the City of Muskegon Police Officer's tremendous work performed amidst
extraordinary circumstances and to ensure the Muskegon Police Department continues to retain
compassionate, professional, ethical and community-focused officers for the enhancement of
quality of life for all residents and visitors, the City of Muskegon is proposing to give current officers a
one-time $5,000 Employment Retainer Bonus.

Detailed Summary & Background:

The Muskegon Police Department, like many departments nationwide, has experienced staffing
shortages. Despite these challenges, our officers and command staff have continued to provide
exceptional service to the community.

To recognize their dedication, the City of Muskegon proposes providing a one-time Employment
Retainer Bonus of $5,000 to all current sworn officers and command staff (66 employees Fetal. The
bonus will be distributedin two installments of $2,500 each:

     e The first installment will be paid during the second pay period in October 2025.

     e The second installment will be paid during the second pay period in June 2026.



Funding for this initiative will come from the Police Department's salary budget, which currently
allocates for 71 sworn officers.



Goal/Action ltem:
2027 Goal 1: Destination Community & Quality of Life

Is this a repeat item?:
Explain what change has been made to justify bringing it back to Commission:

Amount Requested:                                        Budgeted Item:
$330,000                                                 Vise    & Kile                N/A

Fund(s) or Accouni(s):                                   Budget Amendment Needed:
101-30-703                                          Yes           No     a N/A

Recommended Motion:
| move to approve the one-time $5,000 Employment Retainer Bonus for all eligible sworn officers of
the Muskegon Police Department.


Approvals:                                          Name the Policy/Ordinance Followed:
Immediate Division
Head

information
Technology

Other Division Heads

Communication

Legal Review            S|
                                                                                     2025-80CL
                                                                                             )



                             MEMORANDUM OF AGREEMENT

       This Memorandum of Agreement (“Memorandum”) effective on September 24, 2025 (the
“Bffective Date”) by and between the City of Muskegon (“Employer”) and the Fraternal Order of
Police Labor Council (“Union”) representing the City of Muskegon Police Officers (the Employer
and Union together herein as the “Parties”) provides terms for a retention incentive for experienced
Muskegon Police Department Officers,

                                         NO PRECEDENT


This memorandum is established in response to the open Police Officer vacancies currently
existing at the Muskegon Police Department and resulting staffing shortage. This Memorandum is
not intended to set a precedent for similar circumstances in the future.

                                                SCOPE
                                                                             \


This Memorandum covers all Muskegon Police Officers bargaining unit members.
                                            AGREEMENT:               ,

 In recognition of the City of Muskegon Police Officer’s tremendous work performed amidst
 extraordinary circumstances and to ensure the Muskegon Police Department continues to retain
 compassionate, professional, ethical and community-focused officers for the enhancement of
 quality of life for all residents and visitors, the Parties agree to the following terms:

     1. Actively employed regular full-time sworn patrol officers in the Mu skegon Police
         Department                  plet   probatior
                                        the ed
         receive a one-time Employment Retainer Bonus, in, two
         subject to normal withholding and subject to the terms and co
             a, Regular full-time patrol officers that have received, or will be receiving the one-
                 time lateral signing bonus are not eligible for the retention bonus.

      2. Employees have the option to receive the two installments of $2,500 as either cash
         payments or 100% contribution into a 457(b) deferred compensation program,




          who become éligible for the bonus between January 1, 2027 and December 31, 2027 shall
          be paid the first installment no later than January 20, 2028.
         5. Employees must remain actively employed in a full-time sworn patrol officer position at
            the City of Muskegon Police Department and maintain their police officer license for
            eight (8) months following receipt of the Retainer Bonus (commitment period) or they
            will be required to reimburse the City the entire Retainer Bonus amount subject to the
                following exceptions:

                a, Anemployee who separates employment prior to the commitment period end date
                    due to disability or death will not be required to reimburse the City for any portion of
                   the Retainer Bonus.
                b, When an Employee’s employment is involuntarily terminated for cause during the
                   commitment period, the Employee will be required to reimburse the City a prorated
                    portion of their retainer bonus on months remaining in the commitment period,
                c, An Employee who retires with a full service retirement, in accordance with the City’s
                    pension plan and provides a 30-day written notice,

          6. Any Employee who is obligated to reimburse any or all of the retainer bonus authorizes
                the City to deduct the amount owed from the Employee’s final paycheck up to the
                maximum extent allowed by law. If the Employee’s final paycheck is insufficient to
                 cover the amount owed, the Employee agrees to reimburse the City for the full amount
                 owed within fourteen (14) calendar days from the end of their employment.

          7, Any disputes regarding the interpretation or application of this Agreement shall be
                 resolved pursuant to the applicable grievance procedure contained in the Parties’
                 collective bargaining agreement.

              8. Employees may elect not to receive the retainer bonus by signing the waiver form
                 attached in Exhibit B. This election is final.

              9, Unless the parties mutually agree to extend this MOU, this MOU will expite by its own
                 terms on December 31, 2027.

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                                            Exhibit A



                                        City of Muskegon


                   Employment Retainer Bonus Payment Option Waiver Form



Name:



Waiver Statement
                                                     ?




My signature below certifies that I choose one of the following payment options for my Employment
Retainer Bonus.



Signature:


Date:



Payout Options — please choose ONE of the following options.
        o   Cash                     100% cash payment made directly to employee.
                                     Payment is made AFTER all applicable taxes.
        o   Mission Square
                                     100% payment made to a 457(b) deferred compensation
        o   Empower                  program.            :


        o   MERS                      Contribution is made BEFORE applicable taxes,
                                             Exhibit B




                                         City of Muskegon


                          Employment Retainer Bonus Waiver Form




Name;



Waiver Statement


My signature below certifies that I am voluntarily waiving receipt and payment of the Employment
Retainer Bonus, I understand that this waiver is permanent and cannot by revoked,


Signature:


Date:

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