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CC 2013-08-27_08.d. MOU with AGPOAMEMORANDUM TO: CITY COUNCIL FROM: STEVEN ADAMS, CITY MANAGER flt' SUBJECT: CONSIDERATION OF MEMORANDUM OF UNDERSTANDING WITH THE ARROYO GRANDE POLICE OFFICERS' ASSOCIATION DATE: AUGUST 27, 2013 RECOMMENDATION: It is recommended the City Council adopt: 1 ) a Resolution approving a Memorandum of Understanding (MOU) with the Arroyo Grande Police Officers' Association (POA) and repealing Resolution Nos. 4380 and 4451 impacting said employees; and 2) a Resolution for paying and reporting the value of the employer paid member contributions to the California Public Employees' Retirement System (CalPERS). FINANCIAL IMPACT: The proposed changes will result in approximately $45,000 in savings in FY 2013-14 when compared to the terms of the existing MOU. It will result in an actual reduction of approximately $30,000 in the FY 2013-14 budget. Savings will increase in future years. BACKGROUND: The Arroyo Grande Police Officers' Association (POA) Memorandum of Understanding (MOU) expired on June 30, 2012. On May 8, 2012, the City Council approved a Side Letter of Agreement to the MOU extending it one year. However, the Side Letter of Agreement included a reopener clause stating the MOU would be reopened if the proposal to consolidate police operations was not successful by August 1, 2012. The City received notification dated May 30, 2012 from the City of Grover Beach City Manager that their Council had decided to reject the police consolidation proposal. As a result, the City initiated the meet and confer process with the POA on June 14, 2012. The City declared impasse on February 6, 2013 and both parties participated in both mediation and the factfinding process. The Impartial Chair of the Factfinding Panel issued the Factfinding Panel's report on August 7, 2013, which has been agreed to by the POA and recommended by staff (See Attachment 1 ). Item 8.d. - Page 1 CITY COUNCIL CONSIDERATION UNDERSTANDING ASSOCIATION AUGUST 27, 2013 PAGE2 OF RESOLUTION APPROVING A MEMORANDUM OF WITH THE ARROYO GRANDE POLICE OFFICERS' ANALYSIS OF ISSUES: The changes to the MOU that are recommended include the following: 1. The term of this agreement shall be from July 1, 2012 through June 30, 2014. 2. Unlimited sick leave accumulation shall be replaced with a cap of 1,000 hours. 3. The amount of sick leave that can be cashed out at retirement shall be reduced from 480 to 450 hours. 4. The maximum amount of compensatory time that can be accumulated shall be reduced from 160 to 150 hours. 5. Non-sworn employees shall pay the final 1 % of the employee share of CalPERS costs. The Resolution for paying and reporting the value of the employer paid member contributions will implement this change. 6. Uniform allowance shall be reduced from $300 to $150 per year. 7. The flex dollar allowance shall be reduced on September 1, 2013 to be $626.33 with respect to an employee enrolled for self alone, $1, 156.61 for an employee enrolled for self and one family member, and $1,483.43 for any employee enrolled for self and two or more family members through December 31, 2013. 8. For the period of January 1, 2014 through June 30, 2014, the flex dollar allowance shall be reduced to $557.52 with respect to an employee enrolled for self alone, $1,018.99 for an employee enrolled for self and one family member, and $1,304.52 for any employee enrolled for self and two or more family members, plus any increase in costs for dental and vision plans effective January 1, 2014. ALTERNATIVES: The following alternatives are provided for the Council's consideration: Adopt the recommended Resolutions; Modify as appropriate and adopt the Resolutions; Do not adopt the Resolution and direct staff to instead prepare a resolution to impose the "last, best and final" offer; or Provide other direction to staff. ADVANTAGES: Approval of the proposed MOU will result in immediate savings to the existing budget and increased savings in the future by better managing the City's salary and benefit costs. It will help implement the recommendations of a recent Grand Jury report by reducing accumulation of leave balances and the unfunded liability that results. It will implement concessions and changes consistent with the other labor groups. Lastly, approval of the MOU will put in place an agreement for the remainder of the fiscal year, thereby eliminating the need for further negotiations at this time. Item 8.d. - Page 2 CITY COUNCIL CONSIDERATION OF RESOLUTION APPROVING A MEMORANDUM OF UNDERSTANDING WITH THE ARROYO GRANDE POLICE OFFICERS' ASSOCIATION AUGUST 27, 2013 PAGE3 DISADVANTAGES: Savings is less than the City's original goal and is not sufficient to address the existing budget shortfall. ENVIRONMENTAL REVIEW: No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted in front of City Hall on Thursday, August 22, 2013 and on the City's website on Friday, August 23, 2013. No comments were received. Attachments: 1. Factfinding Panel Report Item 8.d. - Page 3 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ADOPTING A MEMORANDUM OF UNDERSTANDING FOR EMPLOYEES REPRESENTED BY THE ARROYO GRANDE POLICE OFFICERS' ASSOCIATION AND REPEALING RESOLUTION NOS. 4380 and 4451 WHEREAS, the City Council deems it to be in ·the best interest of the City of Arroyo Grande and its employees represented by the Arroyo Grande Police Officers' Association that compensation be fixed for all full-time non-management employees as herein provided; and WHEREAS, the City has established compensation and working conditions through the meet and confer process with the designated employee representatives as set forth in Exhibit "A"; entitled Memorandum of Understanding between the City of Arroyo Grande and the Arroyo Grande Police Officers' Association ("POA MOU"), a copy of which is attached hereto and incorporated herein by this reference. NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Arroyo Grande that the POA MOU is hereby approved. This Resolution shall become effective July 1, 2012. BE IT FURTHER RESOLVED that this Resolution shall repeal those sections of Resolution Nos. 4380 and 4451, which established salary and benefits for full- time employees represented by the Arroyo Grande Police Officers' Association. On motion of Council Member , seconded by Council Member , and on the following roll call vote, to wit: AYES: NOES: ABSENT: the foregoing Resolution was passed and adopted this 2013. day of Item 8.d. - Page 4 RESOLUTION NO. PAGE2 TONY FERRARA, MAYOR ATTEST: KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: STEVEN ADAMS, CITY MANAGER APPROVED TO AS FORM: TIMOTHY J. CARMEL, CITY ATTORNEY Item 8.d. - Page 5 OF 2012/2014 (Two Year) MEMORANDUM OF UNDERSTANDING BETWEEN ARROYO GRANDE POLICE OFFICERS' ASSOCIATION AND CITY OF ARROYO GRANDE EXHIBIT A Item 8.d. - Page 6 ARTICLE 1: ARTICLE 2: ARTICLE 3: ARTICLE 4: ARTICLE 5: ARTICLE 6: ARTICLE 7: ARTICLE. 8: ARTICLE 9: ARTICLE 10: 'ARTICLE 11: ARTICLE 12: ARTICLE 13: ARTICLE 14: ARTICLE 15: ARTICLE 16: ARTICLE 17: ARTICLE 18: 2012/2014 AGPOA I CITY OF ARROYO GRANDE MEMORANDUM OF UNDERSTANDING TABLE OF CONTENTS TERM OF MEMORANDUM ............................................................ 1 SALARY SCHEDULES ................................................................. ~ 1 APPLICATION OF SALARY STEPS .............................................. 1 ADVANCEMENT IN PAY ................................................................ 2 SPECIAL TY PAY ............................................................................ 3 VACATION LEAVE ......................................................................... 4 HOLIDAY LEAVE ........................................................................... 5 SICK LEAVE ................................................................................... 6 BEREAVEMENT LEAVE ................................................................ 7 FAMILY LEAVE ..............................•............................................... 7 MILITARY LEAVE .......................................................................... 8 EDUCATIONAL PAY ...................................................................... 8 MEDICAL LEAVE ........................................................................... 9 EMERGENCY LEAVE ........................................................ ~ ........... 9 JURY DUTY .................................................................................... 9 HOURS OF WORK AND OVERTIME ............................................ 9 CALLBACK PAY ................... ~ ...................................................... 10 UNIFORMS AND EQUIPMENT .................................................... 11 Item 8.d. - Page 7 ARTICLE 19: ARTICLE 20: ARTICLE 21: ARTICLE 22: ARTICLE 23: ARTICLE 24: ARTICLE 25: ARTICLE 26: ARTICLE 27: ARTICLE 28: ARTICLE 29: ARTICLE 30: ARTICLE 31: ARTICLE 32: ARTICLE 33: ARTICLE 34: ARTICLE 35: ARTICLE 36: 2012/2014 AGPOA I CITY OF ARROYO GRANDE MEMORANDUM OF UNDERSTANDING TABLE OF CONTENTS (continued) MEDICAL INSURANCE ................................................................ 11 CAFETERIA PLAN ....................................................................... 11 DENT AL PLAN ............................................................................. 12 LIFE INSURANCE ........................................................................ 13 VISION INSURANCE .................................................................... 13 DISABILITY INSURANCE ............................................................ 13 RETIREMENT ............................................................................... 13 RETIREMENT BENEFITS ............................................................ 13 EDUCATION ................................................................................. 16 NIGHT DIFFERENTIAL PAY ........................................................ 16 STANDBY STATUS ....•................................................................. 16 PAYCHECKS ................................................................................ 17 PAYROLL DEDUCTIONS ............................................................ 17 ANNIVERSARY DATES ............................................................... 17 USE OF PRIVATE VEHICLE/ MILEAGE RATE ........................... 17 PE_RSONNEL FILES ..................................................................... 18 PROBATIONARY PERIOD ........................................................... 18 RESIGNATION ............................................................................. 18 Item 8.d. - Page 8 ARTICLE 37: ARTICLE 38: ARTICLE 39: ARTICLE 40: ARTICLE 41: ARTICLE 42: ARTICLE 43: ARTICLE 44: ARTICLE 45: ARTICLE 46: ARTICLE 47: ARTICLE 48: ARTICLE 49: ARTICLE 50: ARTICLE 51: ARTICLE 52: 2012/2014 AGPOA I CITY OF ARROYO GRANDE MEMORANDUM OF UNDERSTANDING TABLE OF CONTENTS (continued) TRANSFERS ................................................................................ 18 PROMOTION ................................................................................ 19 TEMPORARY POSITIONS ........................................................... 19 DEMOTION .............................................................. , ..................... 19 LAYOFF ........................................................................................ 19 GRIEVANCE PROCEDURE ......................................................... 20 MANAGEMENT RIGHTS .............................................................. 23 ASSOCIATION ACTIVITIES ......................................................... 24 ASSOCIATION ACCESS TO WORK LOCATIONS ..................... 25 ASSOCIATION USE OF CITY VEHICLES ................................... 25 ASSOCIATION MEET AND CONFER REPRESENTATION ........ 25 NO STRIKE/ LOCKOUT ............................................................... 25 NONDISCRIMINATION ................................................................ 26 MOU IMPLEMENTATION ............................................................. 26 MAINTENANCE OF BENEFITS ................................................... 26 POLICY CONFLICTS ................................................................... 26 Item 8.d. - Page 9 ARTICLE 1. 2012/2014 MEMORANDUM OF UNDERSTANDING BETWEEN THE REPRESENTATIVES OF THE CITY OF ARROYO GRANDE AND THE ARROYO GRANDE POLICE OFFICERS' ASSOCIATION TERM OF MEMORANDUM OF UNDERSTANDING The term of the Memorandum of Understanding shall be from July 1, 2012, through June 30, 2014 (two year). Meet and confer sessions for Fiscal Year 2014-2015 shall commence no later than March 15, 2014. ARTICLE 2. SALARY SCHEDULES CLASSIFICATION Police Sergeant Senior Police Officer Police Officer Support Services Supervisor Support Services Technician SALARY RANGE 41 35 31 29 21 The City and the Police Officers' Association agree that all position classifications represented by the Association shall receive salaries as represented in Exhibit "A" for sworn employees and Exhibit "B" for non-sworn employees as of July 1, 2012. ARTICLE 3. APPLICATION OF SALARY STEPS All employees entering the permanent, full-time employ of the City shall be paid at the first step of the salary range, unless otherwise determined by the Police Chief and City Manager, established for his/her position classification. Salary step increases, as provided herein, are not automatic but are based on performance and merit. Employees shall be placed on the step designated by the City Manager for initial full-time permanent employment and qualify for increase in compensation or advancement to the next higher step of his/her salary range in the following manner: Police employees may qualify for advancement to the second or next step, after completion of 12 months service, upon the recommendation of the Police Chief and approval of the City Manager. Employees may qualify for advancement to the third or next step, after the completion of one· year of service at his/her third step, upon recommendation of the Police Chief and approval by the City Manager. Item 8.d. - Page 10 MEMORANDUM OF UNDERSTANDING -2012/2014 AGPOA AND CITY OF ARROYO GRANDE PAGE2 ARTICLE 3. APPLICATION OF SALARY STEPS (continued) Employees may qualify for advancement to the fourth or next step, after the completion of one year of service at his/her third step, upon recommendation of the Police Chief and approval by the City Manager. Employees may qualify for advancement to the fifth or next step, after completion of one year of service in his/her fourth step, upon recommendation of the Police Chief and approval by the City Manager. A performance report on each employee recommended for advancement shall be submitted to the City Manager by the Police Chief prior to final action on such recommendation. ARTICLE 4. ADVANCEMENT IN PAY The salary range as set forth for each classification is divided into fwe (5) steps, which shall be interpreted and applied as follows: A. The first step is the minimum rate and normally shall be the hiring rate. B. The second step is granted to employees who are eligible for this adjustment after completion of twelve (12) full calendar months of satisfactory service in a classification and not prior to the completion of a probationary period. The adjustment shall be· made only if granted by the Police Chief and subject to the approval of the City Manager. C. The third step shall be granted to an employee who has given satisfactory service in a given classification for one (1) full additional year from granting of previous step increase only if granted by the Police Chief and subject to the approval of the City Manager. D. The fourth step shall be granted to an employee who has given satisfactory service for one (1) full additional year by the Police Chief arid subject to the approval of the City Manager. E. The fifth step shall be granted to an employee who has given satisfactory service for one (1) full additional year by the Police Chief and subject to the approval of the City Manager. An employee must always continue to maintain an acceptable level of performance and shall be evaluated by the Police Chief annually. Item 8.d. - Page 11 MEMORANDUM OF UNDERSTANDING -2012/2014 AGPOA AND CITY OF ARROYO GRANDE PAGE3 ARTICLE 5. SPECIALTY PAY A. In addition to the base rate of pay, determined under this MOU, employees engaged in specialty assignments shall receive Specialty Pay as herein defined. The Specialty Pay is to be included in all computation of overtime or other benefits. · B. FTO Pay shall be defined as "an employee who is designated to train another employee pursuant to a P.O.S.T. -approved entry/promotional on- site training program (commonly referred to as a Field Training Program)." The designated trainer shall be paid a Specialty Pay of an additional five per cent (5%) of base salary when assigned to and working with a trainee. C. Emergency Medical Dispatch (EMD) Pay. In addition to the base rate of pay determined under this MOU, employees in the classifications of full-time Support Services Supervisor and full-time Support Services Technician shall receive an additional 2.5% of base salary as Emergency Medical Dispatchers, provided those employees possess current EMD certification. Specialty pay on this status is to be included in all computation of overtime or other benefits. D. Motor Officer Pay: Officers assigned to motor service on a full-time basis shall receive an additional 2.5% of base salary. Officers assigned to motor service on a part-time basis shall receive an additional 2.5% of base salary while assigned to, and working in, the Traffic Enforcement Motorcycle Program. E. Bilingual Pay. An employee who is functional in Spanish, other language, or American Sign Language (ASL), the use of which has been determined by the Police Chief, with the concurrence of the City Manager, to be of benefit to the City shall be paid $50.00 per month. The employee must be able to verbally communicate basic information relevant to the routine tasks for their classification. An employee who is fluent and can conduct detailed interviews and interrogation, effectively and accurately record statements, and translate spoken and written communications effectively shall be paid $100.00 per month. Fluency shall be certified by a test administered through the City Manager's Office. An employee shall request bilingual pay on a form approved by the City Manager. The Police Chief, with the approval of the City Manager, shall determine which employees, what mix of languages, and which job functions may be eligible for bilingual pay based upon accessibility of the employee to the public, or other factors that could affect the use of these skills for public Item 8.d. - Page 12 MEMORANDUM OF UNDERSTANDING -2012/2014 AGPOA AND CITY OF ARROYO GRANDE PAGE4 ARTICLE 5. SPECIAL TY PAY (continued) benefit. Nothing in this section shall preclude the use by an employee of foreign language skills in the work place for the public benefit even if the employee is not receiving bilingual pay. F. Officers assigned to the canine assignment shall be scheduled seventy-two (72) regular hours of their eighty (80) hour bi-weekly schedule. The remaining eight (8) hours of their schedule shall be compensated at straight time in exchange for the proper care and maintenance of the animal. ARTICLE 6. VACATION LEAVE A. The purpose of annual vacation leave is to enable each eligible employee to annually return to his/her work mentally and physically refreshed. Employees shall take a minimum of eighty (80) vacation hours' leave per year after the first year of service. B. Each eligible employee shall be required to have served the equivalent of one (1) year of continuous service with the City in order to be eligible for his/her full annual vacation leave. However, in the event an employee so chooses, he/she may, after six (6) continuous months of service, take vacation le-ave not to exceed forty (40) working hours with his/her supervisor's approval. C. Employees who terminate employment shall be paid at termination; and upon return of all City-owned property, if any, a lump sum for all accrued vacation leave earned prior to the date of termination. D. Vacation leave with pay shall be earned in accordance with the following schedule: 1 year 80 hours 6.67 hours per month 2 years 96 II 8.00 II II II 3 years 104 II 8.67 II II II 4 years 112 II 9.34 II II II 5 years 120 II 10.00 II II II 6 years 120 II 10.00 II II II 7 years 128 II 10.67 II II II 8 years 128 II 10.67 II II II 9 years 136 II 11.34 II II II 10 years 136 II 11.34 II II II 11 years 144 II 12.00 II II II .- 12 years 144 II 12.00 II II II 13 years 152 II 12.67 II II II 14 years 152 II 12.67 II II II 15 years 160 II 13.34 II II II Item 8.d. - Page 13 MEMORANDUM OF UNDERSTANDING -2012/2014 AGPOA AND CITY OF ARROYO GRANDE PAGES ARTICLE 6. VACATION LEAVE (continued) E. Employees may accrue vacation leave up to the maximum hours listed below, dependent upon years of service as a regular full-time employee: Years of Service On January 1 1 -5 5+ -10 10+ -15 15+ Maximum Vacation Hours That Can Be Accrued on January 1 80 120 160 200 F. In the event an employee's accrued vacation leave exceeds the maximum allowed, the employee shall be paid at his/her January 1st hourly wage rate for those hours accrued in excess of the maximum allowable. Exception to this paragraph may be approved by the Police Chief upon employee request. ARTICLE 7. HOLIDAY LEAVE A. Shift/Operations Employees: 1. Employees will be provided eight (8) hours of pay per month in lieu of holiday leave or shall be granted one (1) eight (8) hour work day per calendar month for a holiday. Such monthly holiday shall be designated on the employee's work schedule. 2. Employees shall also receive an additional twelve (12) hours of leave per year, which may be granted as time off or as straight-time pay during December. Such pay shall be paid on the first payday in December. B. Administrative Employees: The following days shall be paid holidays for Police Department employees assigned to non-shift administrative support duties: 1. Independence Day 2. Labor Day 3. Veterans' Day 4. Thanksgiving 5. Day following Thanksgiving 6. Christmas Eve, half day 7. Christmas 8. New Year's Eve, half day Item 8.d. - Page 14 MEMORANDUM OF UNDERSTANDING -2012/2014 AGPOA AND CITY OF ARROYO GRANDE PAGES ARTICLE 7. HOLIDAY LEAVE (continued) 9. New Year's Day 10. Martin Luther King Day 11 . Lincoln's Birthday 12. President's Day 13. Memorial Day 14. One and one-half days per Fiscal Year of the employee's choice with Supervisor approval (Floating Holiday) When any of the above-listed holidays fall on Saturday, it will be recognized on Friday. If it falls on Sunday, it will be recognized on Monday. For all employees who regularly worked on Saturday and/or Sunday, the holiday will be specified by the above-listed dates. In case a holiday falls on an employee's regularly scheduled day off, he/she shall have the option to take such a holiday on an alternate day, as selected by the employee and approved by the Police Chief. C. Special Holidays: ARTICLE 8. Every day designated by the President, Governor, or Mayor for public observance as a special, nonrecurring single event, such as the death of a national leader or end of a war shall be a City-paid holiday. SICK LEAVE All full-time, permanent employees shall accrue eight (8) hours of sick leave, with pay, for each month of service, with unlimited accumulation. Effective September 1, 2013, the maximum accumulation of earned sick leave shall be 1,000 hours. An employee will not accumulate any additional sick leave until such time that his/her accumulated balance falls below 1,000 hours. Upon retirement an employee may choose to be paid for 50% of unused sick leave, to a maximum of 480 hours at his/her current rate of pay. Effective September 1, 2013, that amount shall be reduced to 450 hours. The remainder of unused accumulated sick leave will be forwarded to Cal PERS to be used towards retirement credit per the City's contract with CalPERS. On December 1st of each year, an employee has the option of being paid straight time for 25% of his/her unused sick leave for the preceding twelve (12) months, transferring the 25% credit to vacation or leaving the 25% credit in sick leave. Employees may transfer sick leave on a voluntary basis to a fellow employee who has exhausted all his/her sick leave and vacation leave due to an extended illness or injury. Item 8.d. - Page 15 MEMORANDUM OF UNDERSTANDING -201212014 AGPOA AND CITY OF ARROYO GRANDE PAGE7 ARTICLE 8. SICK LEAVE (continued) The transfer shall be based on each employee's hourly rate of pay and shall not exceed twenty-four (24) hours of sick leave based on the hourly rate of pay of the receiving employee. The transfer shall be requested on a form provided by the City, be completed by both employees who mutually request such transfer, and submitted for approval to their Department Directors and the City Manager for final approval. The requesting employee must indicate how many hours they will need for their leave. The receiving employee shall not be obligated to repay any transferred leave to the contributing employee, and contributing employee understands that such transfer shall be deemed as if used and will be subject to all other provisions applicable. Under no circumstances may the requesting employee receive more donated hours in their sick bank than actually used for their leave. ARTICLE 9. BEREAVEMENT LEAVE A five (5) day leave to a maximum of forty (40) working hours with pay shall be available to employees who suffer the death of a relative (defined as: spouse, parent, child, sister, brother, grandparent or grandchild, aunt, uncle, the corresponding relative by marriage, or any other person residing in the same household) for the purpose of attending the funeral and making other arrangements at the time the loss occurs. This leave is not chargeable against accrued sick or vacation leave.' In order to receive this benefit, domestic partners must be registered with the Secretary of State. ARTICLE 10. FAMILY LEAVE Pursuant to the State and Federal Leave Acts, the following is provided for all employees who have been employed a minimum of twelve (12) months and have worked at least 1,250 hours during the 12-month period preceding leave: 1. Up to twelve (12) weeks (60 workdays) unpaid leave in a twelve (12) month period. Intermittent leave is allowed. 2. Leave may be taken for: 1) birth of and care of newborn child; 2) placement of child with employee for adoption or foster care; 3) to care for spouse, child, or parent having serious health condition; 4) employee's own serious health condition. 3. The employee's insurance including medical, dental, vision, and life insurance will be maintained under the same conditions as if the employee were still working. 4. Request for leave must be made 30 days prior to leave, if foreseeable. Item 8.d. - Page 16 MEMORANDUM OF UNDERSTANDING -2012/2014 AGPOA AND CITY OF ARROYO GRANDE PAGES ARTICLE 10. FAMILY LEAVE (continued) 5. Employee may use accrued vacation, holiday, or personal leave during family leave. Sick leave may be used for employee and/or immediate family illness or disability. 6. Upon return to work, employee will be restored to same or equivalent position with equivalent benefits. · All other provisions of the State CFRA and Federal FMLA apply. ARTICLE 11. MILITARY LEAVE Employees taking military leave with the National Guard or Reserves shall be entitled to full City pay and benefits as required by State statute. All military leave in excess of thirty (30) calendar days per year, if granted by the City, shall be without City pay or City-paid benefits and shall be for a period not to exceed forty-eight (48) working days per calendar year. The employer may retain his/her City benefits, such as medical insurance, by paying all premiums. The City may elect to replace the employee in his/her position in the event employee takes more than forty-eight (48) working days per calendar year. ARTICLE 12. EDUCATIONAL PAY A. All unit employees may qualify for a two and one-half percent (2%%) salary increase above their position classified range upon receipt of a two-year degree, in a field relative to their police job classification, from an accredited junior college or college or Intermediate P.O.S.T. Certificate, upon approval of the Police Chief and City Manager. B. All unit employees may qualify for a five percent (5%) salary increase above their position classified range upon receipt of a four-year degree, in a field relative to their police job classification, from an accredited college or Advanced P.O.S.T. Certificate, upon approval of the Police Chief and City Manager. C. Exceptions: When position classifications require an Associated Arts or Bachelor of Science/Bachelor of Arts Degree, no educational pay shall be paid to an employee holding such a position. No A.A. or B.A./B.S. degrees will be requested by the City for current positions represented by AGPOA unless otherwise agreed through the meet and confer process. D. A five percent (5%) increase in salary is the maximum increase permitted under Educational Pay. Item 8.d. - Page 17 MEMORANDUM OF UNDERSTANDING -2012/2014 AGPOA AND CITY OF ARROYO GRANDE PAGE9 ARTICLE 13. MEDICAL LEAVE Medical Leave without pay may be granted for the purpose of recovery from prolonged illness or injury, to restore health, or for pregnancy, upon employee's written request to the Police Chief and City Manager, subject to submission of medical evidence satisfactory to establishing the employee's medical need. ARTICLE 14. EMERGENCY LEA VE Emergency leave without pay may be granted to any permanent employee who, upon written request to the Police Chief and City Manager, demonstrates that the leave is necessary for personal reasons or will serve to improve his/her abilities. Emergency leaves may be granted up to a maximum of one (1) year. Upon expiration of an approved emergency leave, the employee shall be reinstated in the position held at the time leave was granted. Failure on the part of the employee on leave to report promptly upon leave expiration shall be cause for discharge. In the event that a disagreement arises as to whether or not such emergency leave will be granted, the matter will be moved to expedited hearings under the grievance procedure. During the period that an employee is on emergency leave, he/she shall be entitled to continue his/her insurance coverage with the City, as if pursuant to the provisions of COBRA, at his/her own expense. ARTICLE 15. JURY DUTY Employees shall be granted leave with full pay and no loss in benefits, when called for jury duty, if the employee remits to the City any and all jury fees for such jury duty. It is understood that the employee may retain any travel pay granted by the court. The employee shall be responsible for notifying his/her supervisor as soon as possible upon receiving notice to appear for jury duty, make every reasonable effort to keep his/her supervisor advised as to the anticipated length of service, and return to work immediately following the end of jury duty service. ARTICLE 16. HOURS OF WORK AND OVERTIME A. The normal work schedule for full-time employees shall be eight (8) hours per day or forty (40) hours per week. However, upon written agreement between the City and the Association, an alternative work schedule may be implemented to meet the work requirements of the Police Department. Any such alternative work schedule must include eighty (80) scheduled work hours per two (2) week period (biweekly). The City reserves the right to revert to the normal work schedule described ·herein should working conditions, staffing, and/or workload so require (as determined by the Police Chief). Item 8.d. - Page 18 MEMORANDUM OF UNDERSTANDING -201212014 AGPOA AND CITY OF ARROYO GRANDE PAGE10 ARTICLE 16. HOURS OF WORK AND OVERTIME (continued) B. Overtime shall be paid at the rate of one and one-half (1 and %) times the employee's regular base hourly rate of pay for: 1) authorized time worked on the day of an assigned shift that is in excess of the designated number of hours for that workshift, or 2) authorized time worked beyond forty (40) hours per week or, in the event of an alternative work schedule, eighty (80) hours biweekly. Time worked for purposes of computing the standard work period for purposes of this paragraph shall include holidays, sick leave, paid vacation, bereavement leave, and compensatory time-off, and shall be calculated at a· maximum of eight (8) hours per day or, in the event of an alternative work schedule, the maximum time designated for a workday for that work schedule. Unpaid time-off shall not be used for computing time worked. Overtime shall be computed at the nearest quarter (X) hour. Unless otherwise stated in this Memorandum of Understanding, overtime shall be paid only for actual time worked. C. At the request of any employee eligible for overtime pay, his/her supervisor will provide that, in lieu of cash payment for any overtime, he/she may have the choice of time off with pay at the rate of one and one-half (1 and %) hours for each hour of overtime worked. Compensatory time off shall be taken at the option of the employee with the consent of the immediate supervisor and Police Chief. The limit for accrued compensatory time off is 160 hours. Effective September 1, 2013, the limit for accrued compensatory time off shall be reduced to 150 hours. Employees with current accruals above 150 hours will not lose those hours, but they shall not accrue any additional compensatory time off until their balance falls below 150 hours. Upon separation from employment, an employee is entitled to receive cash compensation for any unused compensatory time. ARTICLE 17. CALLBACK PAY Callback is defined as that circumstance requiring an employee to unexpectedly return to work after the employee has left work at the end of the employee's work day or work week. An employee called in early to start his/her work shift, without prior reasonable notice, will also receive time and one-half (1 %) overtime pay for all extra hours worked, with a minimum call-out of two (2) hours. If an employee receives a second callback within the two hour window of their first call, then the employee shall only receive additional pay for the time worked beyond the two hours. Item 8.d. - Page 19 MEMORANDUM OF UNDERSTANDING-2012/2014 AGPOA AND CITY OF ARROYO GRANDE PAGE 11 ARTICLE 18. UNIFORMS AND EQUIPMENT A. The City shall provide appropriate uniforms, safety equipment and maintenance of said items for employees required to wear a uniform as part of their duties. The type and style of the uniforms and equipment, along with the frequency of the maintenance, shall be determined by the Police Chief. B. The City shall provide annual cash allowances of $300 for ancillary uniforms and equipment items to the employees required by the Police Chief to wear a uniform in the course of their duties. Effective September 1, 2013, the cash allowance shall be reduced to $150. The allowance shall be paid in July of each year. The uniform allowance will be paid on the first Friday after the first regular pay date in July. ARTICLE 19. MEDICAL INSURANCE A. The base medical plan shall be defined as the Health Maintenance Organization (HMO) program available to the City. If availability of an HMO to the City. is discontinued by the medical plan provider, the base plan will become the basic PPO plan available to the City by the existing medical plan provider. B. The City will maintain health benefits through CalPERS for calendar year 2013 and 2014. ARTICLE 20. CAFETERIA PLAN A. Effective January 1, 2009, the City shall contribute an equal amount towards the cost of medical coverage under the Public Employee's Medical and Hospital Care Act (PEMHCA) for both active employees and retirees. The City's contribution toward coverage under PEMHCA shall be the minimum contribution amount ~~tablished by CalPERS on an annual basis. Effective January 1, 2013, the City's contribution under PEMHCA shall be $115.00. Effective January 1, 2014 the City's contribution under PEMHCA shall be $119. B. Effective January 1, 2009, employees participating in the City's full flex cafeteria plan shall receive a flex dollar allowance to purchase group health coverage for medical, dental, and vision under the City's Cafeteria Plan. C. For the period of July 1, 2012 through December 31, 2012, the flex dollar allowance shall be $602.28 with respect to an employee enrolled for self alone, $1, 108.51 for an employee enrolled for self and one family member, Item 8.d. - Page 20 MEMORANDUM OF UNDERSTANDING -201212014 AGPOA AND CITY OF ARROYO GRANDE PAGE12 D. ARTICLE 20. CAFETERIA PLAN (continued) and $1,420.90 for any employee enrolled for self and two or more family members. E. For the period of January 1, 2013 through August 31, 2013, the flex dollar allowance shall be $650.38 with respect to an employee enrolled for self alone, $1,204.71 for an employee enrolled for self and one family member, and $1,545.96 for any employee enrolled for self and two or more family members. F. For the period of September 1, 2013 through December 31, 2013, the flex dollar allowance shall be $626.33 with respect to an employee enrolled for self alone, $1, 156.61 for an employee enrolled for self and one family member, and $1,483.43 for any employee enrolled for self and two or more family members. G. For the period of January 1, 2014 through June 30, 2014, the flex dollar shall be $557 .52 with respect to an employee enrolled for self alone, $1,018.99 for an employee enrolled for self and one family member, and $1,304.52 for any employee enrolled for self and two or more family members, plus any increase in costs for dental and vision plans effective January 1, 2014. H. A portion of the flex dollar allowance ($115.00 for 2013 and $119 for2014) is identified as the City's contribution towards PEMHCA. This amount will be adjusted on an annual basis as the PEMHCA minimum contribution increases. Remaining flex dollars must be used by employees to participate -in the City's health plans. Employees who waive medical coverage under the Cafeteria Plan because he/she provided the City with written proof that medical insurance coverage is in force through coverage provided by another source, consistent with any rules or restrictions on the City by the medical plan provider, can take flex dollars for the amount provided to employees enrolled for self alone (taxable income), deposit it into their 457 plan, or use it to purchase voluntary products. No remaining flex dollars may be redeemed. ARTICLE 21. DENTAL PLAN The City shall provide for all employees in classifications represented in this Memorandum of Understanding a dental plan of the City's choice. The City shall pay up to the full family premium. The City may select an alternate dental insurance plan provider during the term of this M.O.U. providing that: A. Any new plan maintains equivalent benefits to the employees; and B. At least twenty-one (21) days advanced notice of plan changes are provided to the POA. Item 8.d. - Page 21 MEMORANDUM OF UNDERSTANDING -201212014 AGPOA AND CITY OF ARROYO GRANDE PAGE13 ARTICLE 22. LIFE INSURANCE The City shall provide a $40,000 Term Life Insurance Policy to each employee, full cost for said policy to be paid by the City. ARTICLE 23. VISION INSURANCE The City shall provide a Vision Care Plan for bargaining unit members. The City shall contribute the full family premium. The City may select an alternate vision care provider during the term of the M.O.U. providing that: A. Any new plan maintains equivalent benefits to the employees; and B. At least twenty-one (21) days advanced notice of plan changes are provided to the POA. ARTICLE 24. DISABLITY INSURANCE The City shall pay for California State Disability Insurance for non-sworn personnel. Benefits are payable by the State of California after a seven (7) day waiting period following the onset of the illness or date of injury. _ Effective January 1, 2004, the City will pay the premiums for the new Family Temporary Disability Insurance for non-sworn personnel. Should there be any future rate increases to State Disability Insurance and/or Family Temporary Disability Insurance plans after July 1, 2004, the City and the POA agree to meet and confer to discuss responsibility for payment of such increases. ARTICLE 25. RETIREMENT The City is a contracting agency with the Public Employees' Retirement System of the State of California, to which the City and the employees both contribute. This is carried on in conjunction with Social Security. Participation is mandatory for all full-time City employees. ARTICLE 26. RETIREMENT BENEFITS A. CalPERS Retirement Contributions 1. A) G.C. Section 21362.2. The CalPERS Public Safety Officer 3% @ 50 Retirement Plan shall be provided for sworn personnel hired prior to December 9, 2011. Sworn employees under this plan shall pay the full nine percent of the employee share of CalPERS. Item 8.d. - Page 22 MEMORANDUM OF UNDERSTANDING -2012/2014 AGPOA AND CITY OF ARROYO GRANDE PAGE14 ARTICLE 26. RETIREMENT BENEFITS (continued) 8) G.C. Section 21363.1. The CalPERS Public Safety Officer 3% @ 55 Retirement Plan shall be provided for sworn employees hired between December 9, 2011 and December 31, 2012, CalPERS "Classic" members hired on or after January 1, 2013, and those eligible for reciprocity hired on or after January 1, 2013. Sworn employees under this plan shall pay the full nine percent (9%) of the employee share of CalPERS. C) G.C. Section 7522.25. The CalPERS Public Safety Officer 2.7%@ 57 Retirement Plan shall be provided for new sworn employees hired on or after January 1, 2013 who are not CalPERS "Classic" employees and are not eligible for reciprocity. Sworn employees under this plan shall pay at least 50% of the total normal cost rate (currently11.5%) of the employee share of CalPERS. 2. A) G.C. Section 21354.4. The CalPERS 2.5% at Age 55 Retirement Plan shall be provided for non-sworn employees hired prior to December 21, 2012. Effective July 22, 2011, all non-sworn employees will pay seven of the eight percent employee share of the CalPERS retirement benefit costs. The City will pay the remaining one percent. Upon City Council adoption of the agreement and the completion of the contract amendment with CalPERS, all non-sworn employees shall pay the full eight percent (8%) of the employee share of CalPERS. B) G.C. Section 21354. The CalPERS 2.0% at Age 55 Retirement Plan shall be provided for non-sworn employees hired between December 21, 2012 and December 31, 2012, CalPERS "Classic" members hired on or after January 1, 2013, and those eligible for reciprocity hired on or after January 1, 2013. Non-sworn employees under this plan shall pay the full seven percent (7%) of the employee share of CalPERS. C) G.C. Section 7522.20. The CalPERS 2%@ 62 Retirement Plan shall.be provided for new non-sworn employees hired on or after January 1, 2013 who are not CalPERS "Classic" employees and are not eligible for reciprocity. Non-sworn employees under this plan shall pay at least 50% of the total normal cost rate (currently 6.25%) of the employee share of CalPERS. 3. G.C. Section 20636 (c)(4) pursuant to Section 20691. The employee portion of the CalPERS contribution, made by the City, shall be reported to CalPERS as income. The City will be responsible for the increased CalPERS contribution as a result of the reporting change. Item 8.d. - Page 23 MEMORANDUM OF UNDERSTANDING -2012/2014 AGPOA AND CITY OF ARROYO GRANDE PAGE15 ARTICLE 26. RETIREMENT BENEFITS (continued) 4. G.C. Section 21024 and 21027. Employees may buy back, attheirexpense, retirement service credit for prior military service as permitted by CalPERS. 5. A) GC Section 20042. Retirement benefits are based on the highest single year compensation. B) GC Section 20037. For employees hired on or after December 9, 2011, retirement benefits are based on the highest average annual compensation earnable by a member during three consecutive years of employment. 6. GC Section 20965. Employees will receive credit for unused sick leave. 7. GC Section 21548. The spouse of a deceased member, who was eligible to retire for service at the time of death, may elect to receive the Pre- Retirement Optional Settlement 2 Death Benefit. 8. Effective January 1, 2013, the Public Employee's Pension Reform Act of 2013 (PEP RA) will apply to all sworn and non-sworn employees, as well as for employees transferring from other CalPERS or reciprocal agencies. B. Retirement Defined Retirement is defined as the termination of employment at an age when the employee would qualify for an allowance under the California Public Employees Retirement System (CalPERS) and the City's Personnel Regulations. C. Retiree Medical 1. Employees who retire from City service will be allowed to purchase medical insurance coverage through the City. 2. GC Section 22892. Effective January 1, 2009, the City's contribution shall be an equal amount for both employees and annuitants, which shall be the minimum contribution amount established by CalPERS on an annual basis. During calendar year 2012, that amount shall be $112 per month, calendar year 2013 shall be $115 per month, and calendar year 2014 shall be $119 per month. The City's contribution shall be adjusted annually by the CalPERS Board to reflect any change in the medical care component of the Consumer Price Index, provided that the City is participating in the CalPERS Health Plan. 3. Effective January 1, 2009, the City shall provide a supplemental contribution to employees that are: 1) employed on a full-time basis as of June 30, 2008 Item 8.d. - Page 24 MEMORANDUM OF UNDERSTANDING -2012/2014 AGPOA AND CITY OF ARROYO GRANDE PAGE16 4. ARTICLE 27. ARTICLE 26. RETIREMENT BENEFITS (continued) and who have been employed with the City on a full-time basis for five (5) years or more at the time of retirement; or 2) employed on a full-time basis after June 30, 2008 and who have been employed by the City on a full-time basis for ten (10) years or more at the time of retirement. The supplemental contribution shall be equal to the difference between the minimum contribution amount established by Cal PERS as set forth above in Article 26, Section C.3 and the following amounts: · For single annuitant coverage: For annuitant+ 1 dependent: For annuitant + 2 or more dependents: EDUCATION $165.36 $300.81 $361.86 The City shall pay tuition and book fees for all classes leading to an undergraduate or graduate degree in a job-related field at an accredited school/college for all unit employees, upon approval of the Police Chief. Reimbursement for educational costs may be granted for employees participating in non-collegiate job-related continuing education/training courses/programs. Payments for all classes must be approved by the Police Chief in advance. Payments to employees will be made after the employee provides evidence of completion of the course/program with a grade C or better or the course/program is passed when a pass/fail grading system is utilized. Reimbursement shall be limited to $1,200 per . fiscal year and shall apply only to expenses for classes completed during the fiscal year in which the reimbursement is being requested. No carryovers are allowed. ARTICLE 28. NIGHT DIFFERENTIAL PAY The City shall pay $.50 (50 cents) per hour additional wages for each hour worked in a shift that begins at or after 2:00 p.m. Shifts beginning at or after 5:00 a.m. shall be considered day shifts and will not be subject to the differential. ARTICLE 29. STANDBY STATUS A. When placed on "emergency standby" by the Police Chief, or his designee, police employees will be granted one-eighth (1 /8) of an hour overtime pay for each hour while on "emergency standby." An employee will be given a minimum of one-half (1/2) hour overtime when placed on "emergency standby." "Emergency standby" is the condition in which the employee is immediately available by telephone or pager to respond to the station for duty. Item 8.d. - Page 25 MEMORANDUM OF UNDERSTANDING -2012/2014 AGPOA AND CITY OF ARROYO GRANDE PAGE17 ARTICLE 29. STANDBY STATUS (continued) B. Police employees subpoenaed to appear in court outside their regularly scheduled working hours will be granted four (4) hours minimum overtime for a morning or afternoon appearance, or actual overtime beyond the four (4) hour minimum if their appearance is required in both the morning and afternoon of the same day. If subpoenaed to appear on off-duty hours and notice of cancellation of the subpoena is received prior to twenty-four (24) hours of the time for appearance, no overtime will apply; however, if notice of the cancellation is received within the twenty-four (24) hours prior to the time for appearance, the employee will be granted two (2) hours minimum of overtime. ARTICLE 30. PAYCHECKS The City will pay regular checks on a biweekly basis. The paychecks will be provided to the Police Department for distribution to employees by 3:00 p.m. the day prior to the designated payday unless technical difficulties occur which are beyond the control of the City. In any event, paychecks will be provided no later than 5:00 p.m. on the City's designated payday. However, no check may be deposited into a financial institution to be recorded by the issuing bank prior to the date of the designated payday. ARTICLE 31. PAYROLL DEDUCTIONS Requests for changes in and cancellation of Association dues shall be promptly processed by the Association and put into effect by the City at the employee's request. Deductions for dues shall be made twice monthly by the City and remitted to the Association monthly. Requests for deductions shall be made on City-approved authorization cards. The Association agrees to indemnify and hold the City harmless from any liabilities that may arise as a result of the application of this article. ARTICLE 32. ANNIVERSARY DATES All current employee anniversary dates shall be as contained in the current City records. All employees hired after July 1, 1986 shall have an anniversary date the same as date of hire. ARTICLE 33. USE OF PRIVATE VEHICLE I MILEAGE RATE No worker shall be required as a condition of obtaining or continuing City employment, to possess or provide a private vehicle for use in connection with his/her City employment. The City shall reimburse employees at the rate established by the City Council for use of personal vehicles when such employees agree to such use upon stated request of the City. Transportation to and from work shall not be reimbursed. Item 8.d. - Page 26 MEMORANDUM OF UNDERSTANDING -2012/2014 AGPOA AND CITY OF ARROYO GRANDE PAGE18 ARTICLE 34. PERSONNEL FILES An employee or his/he_r designee may inspect his/her personnel file and obtain copies of any and all items in that file at employee expense. A copy of all materials placed in an employee's personnel file shall be provided to the employee upon the employee's request. The employee may have placed in his/her personnel file any signed and dated statement of clarification or disagreement to any item or article contained within his/her personnel file. ARTICLE 35. PROBATIONARY PERIOD All appointments shall be tentative and subject to a probationary period of twelve (12) months. The Police Chief, with 'the consent of the City Manager, may extend the probationary period for specified cause(s) that shall be provided in writing to an employee. All probationary employees who are being placed on an extended probationary period shall be given written notice of the extension prior to the expiration of their probationary period. In the event no such notice is given, the employee shall be considered to have successfully completed his/her probationary period. An employee who is in a position that is reclassified shall not be required to complete an additional probationary period. The probationary period shall be regarded as a part of a continuing testing process and shall be utilized for closely observing the employee's work, for securing the most effective adjustment of a new employee to his or her position, and for rejecting any probationary employee whose performance does not meet the required standards of work. The Police Chief, with the consent of the City Manager, may release the probationary employee from City employment without cause at any time during the probationary period. ARTICLE 36. RESIGNATION An employee wishing to leave his/her employment with the City in good standing shall file with his/her supervisor a written resignation stating the effective date of his/her resignation and the reason for leaving. The resigning individual shall file such written resignation at least two (2) weeks in advance of the effective termination date and participate in an exit interview conducted by the City prior to issuance of the final paycheck. ARTICLE 37. TRANSFERS Transfer of an employee to a position within the employee's current range shall not affect the employee's salary range. Transfer of an employee to a position within a higher range shall be considered a promotion. Transfer of an employee to a lower range shall be considered a demotion. Item 8.d. - Page 27 MEMORANDUM OF UNDERSTANDING -2012/2014 AGPOA AND CITY OF ARROYO GRANDE PAGE19 ARTICLE 38. PROMOTION Promotion of an employee to a higher range shall result in an increase in salary. The employee's salary shall be placed in the salary range of the new position which would result in at least a five percent (5%) increase in salary compared to the employee's existing salary position. Promotion of the employee may be made with the consent of the City Manager without testing or opening the position for consideration of all non-employees. All current employees shall be given consideration for a position opening that will be filled by promotion. An employee promoted to a new position shall serve a twelve (12) month probationary period in that position. In the event the promoted party is removed from the position to which promoted, the employee shall be considered demoted but shall be returned to the range from which promoted. No change in step shall occur as a result of an employee passing the promoted position probationary period. An employee's promotion date will become their anniversary date for the purposes of performance evaluations and step increases. ARTICLE 39. TEMPORARY POSITIONS The Police Chief may temporarily promote an employee only after entering into a written agreement of the terms of such temporary promotion with the employee. ARTICLE 40. DEMOTION Transfer of an employee to a lower class shall result in reduction of salary. The employee's salary shall be placed in the identical step in the lower class that the employee enjoyed in the class from which demotion was made.- Demotion can be made for cause, which shall be provided to the employee in writing by the Police Chief prior to any action taking place. Demotion for disciplinary reasons may be appealed through the grievance procedure by the demoted employee. Demotion for other reasons is not appealable. ARTICLE 41. LAYOFF Whenever, in the judgement of the City, it becomes necessary to make a reduction in force, said reduction whenever possible shall be accomplished through attrition. Workers subject to a reduction in force shall be given at least thirty (30) calendar days' notice prior to the effective date of the layoff. The Association shall receive concurrent notice and may be granted an opportunity to meet and consult with the City to discuss the proposed alternatives to a reduction in force. Item 8.d. - Page 28 MEMORANDUM OF UNDERSTANDING -2012/2014 AGPOA AND CITY OF ARROYO GRANDE PAGE 20 ARTICLE 41. LAYOFF (continued) When one or more workers performing in the same class in the Police Department are to face a reduction in force, the Police Chief and an AGPOA representative shall confer on the basis on which personnel shall be selected for layoff. If a laid-off employee's position, or a similar position to which the City determines the former employee is suited, becomes available within nine (9) months of layoff, said former employee shall be recalled. If the job in a lower classification becomes available and a former employee is qualified in the judgement of the City, he/she may be rehired in the lower classification's position opening. ARTICLE42. GRIEVANCE PROCEDURE Purpose: A. This grievance procedure shall be the exclusive process to resolve grievances as the term is defined herein below: B. The purposes of this procedure are: Definitions: 1. To resolve grievances informally at the lowest level; and 2. To provide an orderly procedure for reviewing and resolving grievances promptly. A. Grievance means "a complaint by an employee concerning the interpretation or application of the provisions of this Agreement or of rules or regulations governing personnel practices or conditions, which complaint has not been resolved satisfactorily in an informal manner between the employee and his/her immediate supervisor." B. As used in this procedure, the term immediate supervisor means "the individual so designated by the Police Chief who assigns, reviews, and directs the work of an employee." Time Limits: Each party involved in a grievance shall act quickly so that the grievance may be resolved promptly. Every effort should be made to complete action within the time limits contained in the grievance procedure; but with the written consent of all parties, the time limitation for any step may be extended. Item 8.d. - Page 29 MEMORANDUM OF UNDERSTANDING -2012/2014 AGPOA AND CITY OF ARROYO GRANDE PAGE 21 ARTICLE 42. GRIEVANCE PROCEDURE (continued) STEP 1 The grievance initially shall be personally discussed between the employee and his/her immediate supervisor. Within ten (10) calendar days, the immediate supervisor shall give his/her decision or response. STEP2 A. If the grievance is not informally resolved to the satisfaction of the grievant in Step 1, a formal grievance may be initiated. A formal grievance must be initiated no later than: 1. Thirty (30) calendar days after the event of circumstances occasioning the grievance; or 2. Within ten (10) calendar days of the· Step 1 de~ision rendered in the informal grievance procedure, whichever is the latter. B. However, if the Step 1 informal grievance procedure is not initiated within the period specified in subsection (1) above, the period in which to bring the· grievance shall not be extended by subsection (2) above. C. A Step 2 grievance shall be initiated in writing on a form prescribed by the City and shall be filed with the person designated by the Police Chief as the first level of appeal. The employee may be represented by a representative of his/her choice. D. The grievant shall cite the specific provision(s) of the then currently effective Memorandum of Understanding, ordinance, resolution, Department General Order orwritten rule claimed to have been violated, set forth the facts that purportedly constitute such violation, and the specific remedy sought. E. Within ten (10) calendar days after the initiation of the Step 2 grievance, the first level of appeal person shall investigate the grievance and give his/her decision in writing to the grievant. STEP3 A. If the grievant is not satisfied with the decision rendered pursuant to Step 2, he/she may appeal the decision within ten (10) calendar days to the Police Chief or his/her designated representative. The employee may be represented by a representative of his/her choice. Item 8.d. - Page 30 MEMORANDUM OF UNDERSTANDING -2012/2014 AGPOA AND CITY OF ARROYO GRANDE PAGE 22 ARTICLE 42. GRIEVANCE PROCEDURE (continued) B. The Police Chief or his designated representative shall respond in writing within ten (10) calendar days to the grievant. If the Police Chief or his/her designated representative determines it is desirable, he/she may hold a meeting with the grievant and/or his/her representative or otherwise investigate the matter with the objective of resolving the grievance at the lowest possible level. The grievant may decline to participate in the meeting. STEP4 A. If the grievant is not satisfied with the decision rendered pursuant to Step 3, he/she may appeal the decision within ten (10) calendar days to the City Manager. The employee may be represented by a representative of his/her choice. · B. The City Manager shall respond in writing within twenty-eight (28) calendar days to the grievant. If the City Manager or his/her designated representative determines it is desirable, he/she may hold a meeting with the grievant and/or his/her representative or otherwise investigate the matter with the objective of resolving the grievance at the lowest possible level. The grievant may decline to participate in the meeting. STEPS A. If the grievant is not satisfied with the decision rendered pursuant to Step 4, he/she may, within ten (10) calendar days, invoke the right to have the grievance resolved by binding arbitration. B. If the notice from the employee requesting arbitration is endorsed by an authorized Association representative, the Association will bear fifty percent (50%) of the cost of the services of the arbitrator. If the notice is not so endorsed by the Association's representative, then the employee must bear half of the cost of the arbitrator. The City shall be responsible for the remaining fifty percent (50%) of the cost for the services of the arbitrator. C. The Association's representative and the City Manager, or his representative, shall meet to select a single, qualified, impartial, local arbitrator; but they may agree to use the services of a state agency or arbitration service if a mutually acceptable local arbitrator is unavailable or if both parties are unable to agree upon an acceptable local arbitrator. Item 8.d. - Page 31 MEMORANDUM OF UNDERSTANDING -2012/2014 AGPOA AND CITY OF ARROYO GRANDE PAGE 23 ARTICLE 42. GRIEVANCE PROCEDURE (continued) D. The arbitration shall be convened as soon as is possible after the notice, and the decision of the arbitrator shall be final and binding on all concerned parties. ARTICLE 43. MANAGEMENT RIGHTS The City retains all its exclusive rights and authority under State law and City ordinances and expressly and exclusively retains its management rights, which include but are not limited to: • • the exclusive right to determine the mission of its constituent departments, commissions, boards; • + set standards and levels of services; • + determine the procedures and standards of selection for employment and promotions; • • direct its employees; + • determine the methods and means to relieve its employees from duty because of lack of work or other lawful reasons; • + maintain the efficiency of governmental operations; • + determine the methods, means, and numbers and kinds of persons by which government operations are to be conducted; • + determine methods of financing; • + determine style and/or types of City-issued equipment to be used; • + determine and/or change the facilities, methods, technology, means, organizational structure and composition of the work force, and allocate and assign work by which the City operations are to be conduc~ed; + • determine and/or change the number of locations, relocations, and types of operations, processes, and materials to be used in carrying out all City functions, including, but not limited to, the right to contract for or subcontract any work, labor, services, or operations of the City; Item 8.d. - Page 32 MEMORANDUM OF UNDERSTANDING -2012/2014 AGPOA AND CITY OF ARROYO GRANDE · PAGE 24 ARTICLE 43. MANAGEMENT RIGHTS (continued) • • assign work to and schedule employees in accordance with requirements as determined by the City and to establish and change work schedules and assignments upon reasonable notice; • • establish and modify productivity and performance programs and standards; • • discharge, suspend, demote, reprimand, withhold salary increases and benefits, or otherwise discipline employees in accordance with applicable law. The Association recognizes that the City has, and will continue to retain whether exercised or not, the unilateral and exclusive right to operate, administer, and manage its municipal services and work force performing those services in all respects, subject to this Memorandum of Understanding; provided, however, that the exercise of such rights does · not preclude employees or their representatives from conferring or raising grievance about the practical consequences that decisions on these matters may have on wages, hours, and other terms and conditions of employment. Nothing in this Management Rights clause modifies the scope of representation defined on the Meyers-Milias-Brown Act. ARTICLE 44. ASSOCIATION ACTIVITIES A. The Association shall provide the Police Chief and City Manager with a list of all authorized AGPOA representatives and the list shall be kept current. B. An employee and/or his/her AGPOA representative may, when and to the extent necessary, take official City time.without loss of compensation in order to participate in the investigation and processing of a grievance, as provided for in this MOU, upon notification and approval of the immediate supervisor or his/her designee. C. The Police Chief and City Manager will approve one employee and/or AGPOA representative to take official City time to investigate and process a grievance, when and to the extent necessary, and only if it will in no event adversely affect the operational, security, or safety requirements of the City. It is understood that the employee and/or AGPOA representative shall make every reasonable effort to perform any of the above activities on off-duty time. Item 8.d. - Page 33 MEMORANDUM OF UNDERSTANDING -2012/2014 AGPOA AND CITY OF ARROYO GRANDE PAGE 25 ARTICLE 45. ASSOCIATION ACCESS TO WORK LOCATIONS A. The City agrees that the authorized AGPOA representative shall be granted access to work location(s) to participate in investigation and processing of grievances per the grievance procedure of the MOU or to observe working conditions, upon approval of the Police Chief and City Manager, when to the extent necessary. B. The Association shall provide the Police Chief and City Manager with a list of all authorized AGPOA representatives, and the list shall be kept current by the Association. C. Upon notification and approval of the City Manager or his/her designee, an authorized AGPOA staff member is permitted to communicate with the employee(s) and/or AGPOA representatives on official City time without said employee(s) and/or AGPOA representatives' loss of compensation. It is not the intent of this section to allow general Association meetings on City time but, rather, to allow investigation and discussion of working conditions, grievances, and safety issues. D. It is understood that every reasonable effort shall be made to perform the above activities on off-duty time. ARTICLE 46. ASSOCIATION USE OF CITY FACILITIES A. The Association may, with prior approval of the City Manager, be granted the use of City facilities for meetings of Association members, provided space is available. No use fee will be charges. 8. The City agrees to furnish bulletin board space of reasonable size for posting of AGPOA materials. ARTICLE 47. ASSOCIATION MEET AND CONFER REPRESENTATION Three (3) AGPOA representatives shall constitute the maximum number of employees for meet and confer sessions with City representatives on City time during representatives working hours for the purpose of meeting and conferring in good faith without loss of pay or any benefits. ARTICLE 48. NO STRIKE/NO LOCKOUT The Association agrees that during the term of the Memorandum of Understanding, neither the Association or the employees it represents will engage in, encourage, sanction, support, or suggest any strikes. The employer agrees that it will not lockout any of its employees during the term of this Memorandum of Understanding. Item 8.d. - Page 34 MEMORANDUM OF UNDERSTANDING -2012/2014 AGPOA AND CITY OF ARROYO GRANDE PAGE 26 ARTICLE49. NONDISCRIMINATION The City shall pursue a policy of affirmative action, equal opportunity, and equal promotional opportunity for all workers in accordance with applicable law. No Association member shall be discriminated against by the City because of his/her efforts in carrying out this Memorandum of Understanding or because of political, religious, union or nonunion affiliation of belief, race, color, age, sex, national origin, handicap, marital or military status, or sexual preference; nor shall any members of the Association discriminate against any employee or official of the City based upon the foregoing reasons. ARTICLE 50. MOU IMPLEMENTATION Both parties agree that the terms of this Memorandum of Understanding supersede provisions of all other practices, Memorandum of Understanding, resolution, and rules of the City that conflict with provisions of this Agreement. ARTICLE 51. MAINTENANCE OF BENEFITS All benefits enjoyed by unit employees as of July 1, 2012, and any side letter agreements currently in effect or reached after that date, shall remain in full force and effect unless modified by a subsequent Memorandum of Understanding or by mutual agreement, in writing, of the parties. Exhibit "A" through Exhibit "C" are attached and incorporated as part of this Memorandum of Understanding. ARTICLE 52: POLICY CONFLICTS The policies and provisions contained herein shall supersede, in all material respects, all conflicting or inconsistent policies and provisions contained in the City of Arroyo Grande Personnel Regulations and the City of Arroyo Grande Administrative Policies and Procedures. Item 8.d. - Page 35 MEMORANDUM OF UNDERSTANDING -2012/2014 AGPOA AND CITY OF ARROYO GRANDE .PAGE 27 REPRESENTATIVES OF CITY OF ARROYO GRANDE DEBORAH GLASSER CHIEF NEGOTIATOR BEAU PRYOR CITY NEGOTIATOR KAREN SISKO CITY NEGOTIATOR REPRESENTATIVES OF ARROYO GRANDE POLICE OFFICERS' ASSOCIATION MICHAEL M GILL CHIEF NEGOTIATOR ._ ___ _ SHANE DAY NEGOTIATOR,C-OA \ . ' . ' I ' I VINcEJOH?sON NEGOTIATOR, AGPOA Item 8.d. - Page 36 Exhibit "A" CITY OF ARROYO GRANDE SCHEDULE OF SALARY RANGES-POLICE SWORN -07/01/2012 RANGE A B c D E 31 4855 5096 5356 5621 5903 Police Officer 32 4977 5229 5487 5761 6048 33 5099 5359 5623 5905 6200 34 5232 5490 5764 6052 6356 35 5362 5628 5908 6202 6515 SR. Police Officer 36 5494 5767 6054 6361 6677 37 5632 5913 6206 6518 6845 38 5770 6059 6363 6679 7016 39 5916 6210 6520 6847 7190 40 6060 6364 6683 7019 7369 41 6215 6523 6850 7195 7554 Police Sergeant 42 6369 6687 7022 7372 7741 43 6529 6856 7199 7558 7936 44 6691 7027 7380 7750 8135 Item 8.d. - Page 37 RANGE A 21 3716 22 3811 23 3906 24 4005 25 4106 26 4208 27 4311 28 4419 29 4531 30 4640 31 4756 32 4881 33 5001 NON-SWORN 07/01/12 SCHEDULE OF SALARY RANGES-POLICE B c D E 3902 4101 4304 4517 Support Svc. Tech. 4000 4202 4411 4630 4104 4306 4520 4747 4206 4416 4634 4867 4307 4521 4750 4987 4417 4635 4868 5112 4526 4753 4992 5242 4638 4870 5119 5372 Exhibit "B" 4755 4995 5244 5504 Support Services Supv. 4873 5121 5375 5644 4996 5248 5511 5786 5124 5378 5647 . 5927 5252 5513 5791 6078 Item 8.d. - Page 38 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE FOR PAYING AND REPORTING THE VALUE OF THE EMPLOYER PAID MEMBER CONTRIBUTIONS TO THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM WHEREAS, the City Council of the City of Arroyo Grande ("City") has the authority to implement Government code Section 20636(c)(4) pursuant to Section 20691; and WHEREAS, the City Council of the City of Arroyo Grande has a written labor policy or agreement which specifically provides for the normal member contributions to be paid by the employer, and reported as additional compensation; and WHEREAS, one of the steps in the procedure to implement Section 20691 is the adoption by the City Council of the City of Arroyo Grande of a Resolution to paying and reporting the value of said Employer Paid Member Contributions (EPMC); and WHEREAS, the City council of the City of Arroyo Grande has identified the following conditions for the purpose of its election to pay EPMC: •This benefit shall apply to all Police Officers' Association (POA) non-sworn positions in the Miscellaneous Group. • This benefit shall consist of paying 0% of the normal member contributions as EPMC, and reporting the same percent (value) of compensation earnable (excluding Government Code Section 20636(c)(4)) as additional compensation. • The effective date of the resolution shall be August 30, 2013. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo Grande elects to pay and report the value of EPMC, as set forth above. On motion of Council Member , seconded by Council Member , and on the following roll call vote, to wit: AYES: NOES: ABSENT: the foregoing Resolution was passed and adopted this day of '2013. Item 8.d. - Page 39 RESOLUTION NO. PAGE2 TONY FERRARA, MAYOR ATTEST: KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: STEVEN ADAMS, CITY MANAGER APPROVED AS TO FORM: TIMOTHY J. CARMEL, CITY ATTORNEY Item 8.d. - Page 40 ATTACHMENT 1 IN THE MATTER OF THE F ACTFINDING BETWEEN THE PARTIES BEFORE JOE H. HENDERSON CITY OF ARROYO GR.Ai'lDE, Employer, and FINDINGS AND RECO~TIATIONS PERB Case No. LA-IM-13-M ARROYO GRANDE POLICE OFFICERS ASSOCIATION, Date of Hearing: July 12, 2013 Union. Attorneys for the City: DAPHNE M. ANNEET Burke, Williams & Sorensen LLP 444 S. Flower Street. Ste.2400 Los Angeles, CA 90071-2953 DEBORAH GLASSER City Appointed Factfinder Attorneys for the Association/PO A: MICHAEL McGILL Lackie Damrneier McGill & Ethir 367 South Second Avenue Upland, CA 91786 F ACTFINDING PANEL Sgt. MICHAEL SMILEY Association Appointed Factfinder JOE H. HENDERSON . Impartial Factfinding Chair PO Box 1828 Santa Rosa, CA 95402 (707) 838-9910 Item 8.d. - Page 41 I. INTRODUCTION The City of Arroyo Grande (City) employs approximately I 30 employees and has an annual operating budget of approximately $20 million ($13.3 million in the general fund). The City has experienced significant budget challenges over the past several years as a result of the economic recession. By 2011, in the face of a significant budget shortfall and ongoing structural deficit, the City was forced to pursue concessions. The City was able to reach agreement with every employee group, except the Arroyo Grande Police Officers Association (POA). The current dispute arises from the POA's refusal to accept any concessions during the contract negotiations for a successor agreement (FY 2012/13). The negotiations and mediation process has continued for almost a year. The POA has 27 members. The top salary for a police officer is $6,356/month. For members '\J/ith a family, the City provides a generous fully paid HMO medical plan, along with vision and dental, in the amount of $1,463/ month, among other employee benefits. The initial meeting was on July 12, 2013, the hearing, because of the schedules of the parties involved a meeting in person was not able to be scheduled. The meeting was held by "Go to Meeting" technology. The participants were Panel members Deborah Glasser for the City from her office in San Rafael, for the association Sgt. Mike Smiley from Arroyo Grande, and The Chair Joe H. Henderson from his office in Santa Rosa: The advocates Michael McGill for the Association from his office in Upland, for the City Daphne Annett from her office in Los Angeles, the City Manager participated by telephone from bis Residence in Arroyo Grande. At the conclusion of the hearing, the parties agreed to submit post-hearing briefs. The post-hearing briefs were submitted the Factfinding Panel then met by conference call on Friday July 26, 2013. Item 8.d. - Page 42 H. BACKGROUND The Memorandum of Understanding (MOU) between the POA and the City expired ·on June 30, 2012. On May 8, 2012, the City Council approved a Side Letter of Agreement to the MOU extending it one year with a reopener clause. At that time, the City was in discussions with the City of Grover Beach on a proposal to consolidate police services. The City expected that the proposal, if accepted, wuuld have generated the savings needed to address the majority of the City's budget shortfall projected for FY 2012-13. In the event the proposal was rejected, the Side Letter of Agreement provided for a reopener. On May 30, 212, the City received notification that the City of Grover Beach rejected the police consolidation proposal. On June 14, 2012, the City Manager sent a memorandum to the POA President, Shane Day, indicating that the City was exercising its right to request a reopening of negotiations. During the period of August 2012 to January 2013, the City submitted six proposals to the POA. The POA also submitted six proposals to the City. While the City sought to achieve concessions from the POA in an amount that reflected POA's "fair share" of the savings that the other employee groups had already agreed to, POA consistently presented proposals that contained new money costs. On January 10, 2013, the City submitted its "last, best and final offer." On February 6, 2013, the City declared impasse. The City agreed to submit the dispute to the State Mediation and Conciliation Service. On February 14, 2013, the POA agreed to mediation. The mediation took place on May 3, 2013. The parties reached a mediated settlement on May 3, 2013. However, on May 20, 2013, the union membership rejected the mediator's recommended settlement offer. After being advised that one additional modification would result ln. ratification, the mediator presented a Item 8.d. - Page 43 second amended mediator's recommended settlement offer, which the City accepted on May 28, 2013. On June 10, 2013, the union failed to ratify the agreement. During the mediation process, on April 8, 2013, the POA requested factfinding. The appointment of a factfinder was put on·hold pending the completion of the mediation process. On June 17, 2013, the City requested the appointment of a factfinder. PERB notified the parties of the appointment of Joe H. Henderson on June 21, 2013. III. THE STATUTORY CRITERIA Government Code Section 3505.4 mandates that the Panel consider and apply the follov.ing criteria in making its findings and recommendations: (d) In arriving at their findings and recommendations, the factfinders shall consider, weigh, and be guided by all the follov.ing criteria: (1) State and federal laws that are applicable to the employer. (2) Local rules, regulations, or ordinances. (3) Stipulations of the parties. ( 4) The interests and welfare of the public and the financial ability of the public agency. (5) Comparison of the wages, hours, and conditions of employment of the employees involved in the factfinding proceeding with the wages, hours, and conditions of employment of other employees performing similar services in comparable public agencies. (6) The Consumer price index for goods and services, commonly known as the cost of living. (7) The overall compensation presently received by the employees, including direct wage compensation, vacations, holidays, and other excused time, insurance and pensions, medical and hospitalization benefits, the continuity and stability of employment, and all other benefits received. (8) Any other facts, not confined to those specified in paragraphs (1) to (7). inclusive, which are normally or traditionally taken into consideration in making the findings and recommendations. (e) The procedural right of an employee organization to request a factfinding panel cannot be expressly or vohmtarily waived. Item 8.d. - Page 44 IV. ISSUES SUBMITTED TO THE FACTFINDING PANEL 1. Term 2. MedicaJ Insurance 3. Vacation Cash Out 4. Salary 5. Sick Leave Cap 6. Sick Leave (Retirement) 7. Hours of Work & Overtime 8. Retirement PERS 9. Uniform Allowance 10. Education 11. Night Differential Pay V. PANEL CONFERENCE CALL JULY 26, 2013 The City submitted a revised position during the Panel meeting by conference call on July 26, 2013. The proposal submitted was: City of Arroyo Grande Arroyo Grande Police Officers' Association Fact-finding Panel Recommendation July 22, 2013 1. The term of this agreement shall be from July 1, 2012 through June 30, 2014. 2. The City would drop the salary decrease 3. Establish a cap of 1,000 hours on sick leave accumulation. 4. Reduce the amount of sick leave that can be cashed out at retirement from 480 to 450 hours. 5. Reduce the maximum amount of compensatory time that can be accumulated from 160 to 150 hours. 6. Non-sworn employees shall pay the final 1% of the employee share of PERS costs. 7. Reduce uniform allowance to $150 per year. 8. The flex dollar allowance shall be adjusted immediately to be $626.33 with respect to an employee enrolled for self alone, $1,156.61 for an employee enrolled for self and one family Item 8.d. - Page 45 member, and $1,483.43 for any employee enrolled for self and two or more family members through December 31, 2013. 9. For the period of January l, 2014 through June 30, 2014, the flex dollar allowance shall be $557.52 with respect to an employee enrolled for self alone, $1,018.99 for an employee enrolled for self and one family member, and $1,304.52 for any employee enrolled for self and two or more family members, plus any increase in costs for dental and vision plans effective January 1, 2014. The above offer of settlement was discussed by the panel. The Association Panel member conferred \v:ith his team. The Association panel member then stated his concurrence "'ith the proposed settlement. VI. PANEL RECOMMENDATION: The parties having concurred on the City's latest offer, the Panel Recommended its acceptance. Deborah Glasser, for the City ------~--~--~--- Sgt. Mike Smiley, for the Association------------- JOe H. Henderson, Impartial c~ ,k,., ~ '&!./ :;(13 Item 8.d. - Page 46 8. The flex dollar allowance shall be adjusted immediately to be $626.33 ._;,ith respect to an employee enrolled for self alone, $1,156.61 for an employee enrolled for self and one family member, and $1,483.43 for any employee enrolled for self and two or more family members through December 31, 2013. 9. For the period of January 1, 2014 through June 30, 2014, the flex dollar allowance shall be $557.52 with respect to an employee enrolled for self alone, $1,018.99 for an employee enrolled for self and one family member, and $1,304.52 for any employee enrolled for self and two or more family members, plus any increase in costs for dental and vision plans effective January 1, 2014. The above offer of settlement \\'3.S discussed by the panel. The Association Panel member conferred "ith his team. The Association panel member then stated his concurrence \\ith the proposed settlement. VI. PANEL RECOMMENDATION: The parties having concurred on the City's latest offer, the Panel Recommended its. acceptance. -" ; : ..... Deborah Glasser, for the Cit),il li 10../:.;{.,{__, )~~;~,~~/le~-~- Sgt. Mike Smiley, for the Association------------- Joe H. Henderson, Impartial Chair.---'------------- Item 8.d. - Page 47 8. The flex dollar allowance shall be adjusted immediateiy to be $625.33 with respect to an employee enrolled for self alone, 51,156.61 for an employee enrolled for self and one family member, and SL483.43 for any employee enrolled for self and two or more famiiy members through December 31, 2013. :<. For the period of Januarv 1, 2014 through June 30, 2014, the flex doliar allowance shall be 5557.52 with respect to an employee enrolled for self alone, Sl,018.99 for an empioyee enrolled for self and one family member. and $1.304.52 for any employee enrolled for self and two or more family members, plus any increase in costs for dental and vision plans effective January 1, 2014. Tht' abo'e offer llf senkment \\·as discu:;sed h~ th.: pane·!. The-;\ssociatiun PJnd member conkrred \\"ith his team. The Association panel member then stated his c0ncurrencc with the proposed settlement. VI. PA'.'JEL RECOMME:'\DATIOl\: The p<irties haYing concurred on the' Ciry·::; latest uffer. thtc> Pand Rl!commcndt:<l its <i1..:t:eptancc. Denorah Gl.isscr. for the Cit; --··----·--------····-------·-- / S \l .. s '} -h .. ~~··< gt. . · 11\c . mt c~·. fort i: :\s~oc1at1on __ · .· .;;-?~'~--,,.... --·-------,..-. : / ·~ Joe H. lichdcrson. Jmranial ChJir. ---'"·--·-----··---·-··---·- Item 8.d. - Page 48