HomeMy WebLinkAboutResolution No. 12-7347 RESOLUTION NO. 12 -7347
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY AMENDING
THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF DOWNEY
AND THE DOWNEY FIREMEN'S ASSOCIATION (December 31, 2012 -
December 31, 2014) BY ADOPTING THE SIDE LETTER OF AGREEMENT
WHEREAS, on June 13, 2011, the City Council of the City of Downey adopted
Resolution No. 11 -7270 for the purpose of adopting the Memorandum of Understanding (MOU)
between the City and the Downey Firemen's Association (DFA); and
Subsequent to the adoption of the MOU, the City of Downey and the DFA agreed to
changes to the MOU that are reflected in a Side Letter of Agreement between the City and the
DFA ( "Side Letter Agreement ") attached hereto as Exhibit A and incorporated herein by this
reference.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DOWNEY DOES
HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The Side Letter of Agreement attached hereto as Exhibit A is approved
and adopted.
SECTION 2. The Side Letter of Agreement amends the MOU between the City of
Downey and the DFA.
SECTION 3. The City Clerk shall certify to the adoption of this resolution.
APPROVED AND ADOPTED this 10 day of July, 2012
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ROGE C. BROSSMER, Mayor
ATTEST: Ci/V1L,
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ADRIA M. JIMENEZ, CMC
City Clerk
HEREBY CERTIFY that the foregoing Resolution was adopted by the City Council of
the City of Downey at a regular meeting thereof held on the 10 day of July, 2012, by the
following vote, to wit:
AYES: Council Members: Guerra, Marquez, Vasquez, Gafin, Mayor Brossmer
NOES: Council Members: None
ABSTAIN: Council Members: None
ABSENT: Council Members: None L..- /lift
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A RIA M. JIMENEZ, C
City Clerk
EXHIBIT A
SIDE LETTER OF AGREEMENT
CITY OF DOWNEY
AND
DOWNEY FIREMEN'S ASSOCIATION
The City of Downey ( "City ") and the Downey Firemen's Association ( "DFA ") hereby agree to this
Side Letter of Agreement to the Memorandum of Understanding ( "MOU ") between them that is
in effect from July 1, 2010 through December 31, 2012.
WHEREAS, the wages, hours and other terms and conditions of employment of classifications
represented by DFA are expressed in the MOU for the period covering July 1, 2010 through
December 31, 2012; and
WHEREAS, the City is experiencing financial hardship and asked DFA to modify those wages,
hours and other terms and conditions of employment set forth in the MOU to assist the City; and
WHEREAS, the Parties have recently met and informally discussed modifying the terms of the
MOU and reached an agreement;
NOW THEREFORE, the Parties have agreed to amend the MOU as follows:
1. Article III - BASIC COMPENSATION PLAN - Section 1, is hereby amended to read as
follows:
Section 1.
There are no across the board base salary increases scheduled for represented classes
during the term of this Memorandum of Understanding. However, the City and
Association agree that they shall meet and confer in December 2013 to discuss any
changes to wages. Any changes to wages must be by mutual agreement.
2. Article V — MINIMUM MANNING — Section 1 is hereby amended to read as follows:
Section 1. Minimum fire suppression platoon strength shall be as specified in this
Section. It is the intent of the City to maintain current levels of sworn personnel and
current minimum manning standards throughout the term of this Agreement. Before any
change in minimum Fire Suppression Platoon strength is made by the City, the City shall
meet and confer in good faith with the Fire Association regarding such change or
changes.
3 Engine Companies with: 1 Captain or qualified relief
1 Engineer or qualified relief
1 Firefighter
1 Truck Company with: 1 Captain or qualified relief
1 Engineer or qualified relief
2 Firefighters
2 Paramedic Vehicles with: 2 Certified Firefighter/Paramedics
3. Article XI - HEALTH DENTAL AND LIFE INSURANCE - Section 1, Medical Insurance, is
hereby amended to read as follows:
Section 1.
A. Effective July 1, 2012 to September 30, 2012, the City shall provide medical
insurance benefits as follows:
Downey Self- Funded Plan:
a. Increase in the Annual Deductible for In- Network/Out -Of- Network from $100
(per person) /$250 (per family) to $500 (per person) /$1000 (per family).
b. Reduce in Out of Network co- insurance rate from 80% to 70 %.
c. Increase the maximum Out of Pocket, excluding the prescription benefit out -
of- pocket, from In-Network/Out-Of-Network $250 (per person) /$500 (per
family) to $2,500 (per person) /$5,000 (per family).
d. Increase in prescription cost from $3 for generic products (Tier 1); $5 for
preferred brand products (Tier 2), and $0 mail order to:
• 30 day supply: $10 generic /$15 brand /$45 non - formulary brand
• 90 day supply by mail order: $ 20 generic /$30 brand /$90 non - formulary
brand.
e. Increase office visit co- payment from $0 to $20.
f. The City shall continue to contribute one hundred percent (100 %) of the cost
of coverage for an employee plus his qualified dependent(s) in this plan.
Kaiser:
a. Increase Co -Pay from $5 to $10.
b. The City shall continue to contribute one hundred percent (100 %) of the
premium cost to provide coverage for an employee plus his or her qualified
dependent(s) in this plan.
B. Effective for coverage beginning October 1, 2012, the City shall contract with
CaIPERS for the provision of medical insurance benefits under PEMCHA:
1. The City shall contribute 100% of the premium cost of any plan selected by the
employee to provide coverage for the employee and his or her qualified
dependents, except that if the employee selects the PERSCare plan, the
employee must pay the difference between the PERSCare premium and the next
highest premium.
2. If the City's cost of providing health care benefits is projected to exceed $7.8
million for FY 2013 -14, the City and the Association agree to meet and confer in
June 2013 to discuss further changes to this Section. If so, the City and the
Association agree that the maximum contribution to the medical premium that
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the City can impose, following exhaustion of the meet and confer process, is the
difference between the $7.8 million and the projected cost of FY 2013 -14
medical insurance , not to exceed twenty percent (20 %) of the premium.
3. The parties shall, by mutual agreement, make any necessary and legal
modifications to the retiree medical benefits provisions in the MOU necessary for
conversion to the PEMCHA program that are consistent with the benefits set
forth in Article XI, Section 6.
C. [The existing provisions of subsection B of the MOU shall remain unchanged and
shall be "renumbered" as Subsection C]
4. Article XII — RETIREMENT is hereby amended to read as follows:
Section 4. Retirement Formula and Contributions.
1. Employees hired prior to the effective date the City's contract with CaIPERS is amended
on or after July 1, 2012, shall be provided the 3% at 50 retirement formula, as set forth in
California Government Code Section 21362.2.
a. Effective the pay period that includes July 1, 2013, employees shall begin to have
deducted, on a pre -tax basis, four percent (4 %) of PERS reportable compensation,
pursuant to California Government Code Section 20516(0.
b. Effective the pay period that includes July 1, 2014, employees shall have deducted
an additional one and one half percent (1.5 %) of PERS reportable compensation, for
a total of five and one -half percent (5.5 %), on a pre -tax basis, pursuant to
Government Code Section 20516 (0.
c. Should an employee be mandated by a change in law or other action to contribute
any portion of the required employee contribution to CaIPERS, the City shall take all
action necessary to reduce the deduction then being made pursuant to California
Government Code Section 20516(0, above, by the amount of the mandated
employee contribution.
d. The City shall take action, if necessary, to pass a resolution setting forth that all
deductions or contributions under this Section shall be regarded as a pick -up of
retirement costs pursuant IRC 414(h)(2).
2. Employees hired on or after the effective date the City's contract with CaIPERS is
amended on or after July 1, 2012, shall be provided the 3% at 55 retirement formula,
pursuant to California Government Code Section 21363.1.
a. Employees covered hereunder shall pay, on a pre -tax basis, the 9% required
employee contribution to CaIPERS.
b. The City shall take action, if necessary, to pass a resolution setting forth that
all deductions or contributions under this Section shall be regarded as a pick -up of
retirement costs pursuant IRC 414(h)(2).
5. Supplemental Employee Retirement Plan (SERP). The City shall offer a SERP program that
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provides eligible employees with a monthly income supplement to their regular CaIPERS
retirement pension benefit or other retirement income. The SERP program is limited to
employees who are at least age 50 and have completed twenty -five (25) years of full -time
continuous City service by December 31, 2012 and who meet the following Eligibility
Guidelines:
1. Employee must be eligible to retire from CaIPERS.
2. Employee must submit a letter of resignation and SERP enrollment package by the
deadline of November 1, 2012 or by an authorized extended date prior to
December 31, 2012.
3. Employee must retire from the City by December 31, 2012 (last day worked).
4. The CaIPERS effective date of retirement date is on or before January 1, 2013.
6. Article XXV - TERM OF MEMORANDUM OF UNDERSTANDING his amended to read as
follows:
"The term of this Memorandum of Understanding shall commence on July 1, 2010 and
shall expire on December 31, 2014."
7. Article XX — MISCELLANEOUS is amended by the Addition of Section 3, which shall
provide as follows:
Section 6. No Layoffs. The City hereby acknowledges that unit members have made
concessions in wages, hours and /or working conditions when not otherwise required to
do so, and agrees that, as valid consideration for said concessions, it hereby waives its
right to, and otherwise agrees that it shall not, lay off from City employment any
bargaining unit employee from the effective date of this Agreement to December 31,
2014. Nothing in this provision shall impact the City's management right to eliminate or
not fill positions.
Side -Letter Implementation
The parties agree that the execution of this side - letter agreement may not be challenged by the
Association or any employee it is recognized to represent through the City's grievance
procedure or in any other forum unless the challenge is based upon a factual allegation that the
Agreement was the product of fraud, intentional misrepresentation, or unlawful coercion on the
part of City representatives.
The parties further agree that they shall continue to meet and confer regarding language clean
up issues in the Memorandum of Understanding and that both parties shall exchange any such
language clean up issues by September 15, 2012. The language clean up issues shall not
include substantive changes or changes that have an economic impact. Upon completion of the
meet and confer process regarding language clean up, the parties agree to submit a
comprehensive Memorandum of Understanding for ratification by the Association and adoption
by the City Council that will incorporate this Side Letter Agreement.
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IN WITNESS WHEREOF, the parties hereby execute this agreement as follows:
City of Downey Firemen's Association City of Downey
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Steve Davis, John Oskoui
President Assistant City Manager
Dated: ? / i3 ; , " i Dated:
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