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Home My WebLink AboutResolution No. 12-7346 RESOLUTION NO. 12 -7346 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY AMENDING THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF DOWNEY AND THE DOWNEY POLICE OFFICERS' ASSOCIATION (June 30, 2008 — June 30, 2015) BY ADOPTING THE SIDE LETTER OF AGREEMENT WHEREAS, on July 13, 2010, the City Council of the City of Downey adopted Resolution No. 10 -7205 for the purpose of adopting the Memorandum of Understanding (MOU) between the City and the Downey Police Officers' Association (DPOA); and Subsequent to the adoption of the MOU, the City of Downey and the DPOA agreed to changes to the MOU that are reflected in a Side Letter of Agreement between the City and the DPOA ( "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 DPOA. SECTION 3. The City Clerk shall certify to the adoption of this resolution. APPROVED AND ADOPTED this 10 day of July, 2012. ROLE C. BROSSMER, Mayor ATTEST: (./ ADRIA M. JIMENEZ, bMC 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 , C (1A1 ' = IA M. JIMENE , CM City Clerk EXHIBIT A SIDE LETTER OF AGREEMENT CITY OF DOWNEY AND DOWNEY POLICE OFFICERS' ASSOCIATION The City of Downey ( "City ") and the Downey Police Officer's Association ( "DPOA ") hereby agree to this Side Letter of Agreement to the Memorandum of Understanding ( "MOU ") between them that is in effect from June 30, 2008, through June 30, 2013. WHEREAS, the wages, hours and other terms and conditions of employment of classifications represented by DPOA are expressed in the MOU for the period covering June 30, 2008 through June 30, 2013; and WHEREAS, the City is experiencing financial hardship and asked DPOA 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 111 - BASIC COMPENSATION PLAN - Section 1, is hereby amended to read as - follows: Section 1. Effective the pay period that includes July 1, 2014, all represented classifications shall receive an across the board base salary increase of four and one - quarter percent (4.25 %). 2. Article X - 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 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 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 XI — 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. 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 two percent (2 %) of PERS reportable compensation, for a total of six percent (6 %), 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 20516t0, 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 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 June 30, 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 August 13, 2012 or by an authorized extended date prior to August 31, 2012. 3. Employee must retire from the City by August 31, 2012 (last day worked). 4. The CaIPERS effective date of retirement date is on or before September 1, 2012. 6. Article XXIV - TERM OF MEMORANDUM OF UNDERSTANDING his amended to read as follows: "The term of this Memorandum of Understanding shall commence on June 30, 2008 and shall expire on June 30, 2015." 3 7. Article XIX — MISCELLANEOUS is amended by the Addition of Section 3, which shall provide as follows: Section 3. 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 June 30, 2015. 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. IN WITNESS WHEREOF, the parties hereby execute this agreement as follows: City of Down : olice Officers' City of Downey Ass f iatio . Mike Pope, John Oskoui President Assistant City Manager Dated: J7 , I -D az' Z Dated: 2 5 7 f 4