R 4274 RESOLUTION NO. 4274
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE APPROVING A THIRD SIDE LETTER OF
AGREEMENT TO THE SERVICE EMPLOYEES INTERNATIONAL
UNION LOCAL 620 MEMORANDUM OF UNDERSTANDING
WHEREAS, the City Council of the City of Arroyo Grande ( "City") deems it in the
best interest of the City to approve a third side letter of agreement amending the
Service Employees International Union Local 620 current Memorandum of
Understanding, which includes modifications to salaries and benefits, as
hereinafter provided.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo
Grande that:
1. An amendment to the Memorandum of Understanding ( "MOU ") with the
Service Employees International Union Local 620 ( "SEIU ") is hereby
approved, a copy of said amendment entitled "Third Side Letter of
Agreement, Modification to Memorandum of Understanding" is attached
hereto, marked Exhibit "A ", and incorporated herein by this reference.
2. This Resolution shall become effective as of March 1, 2010.
On motion of Council Member Costello seconded by Council Member Fellows,
and on the following roll call vote, to wit:
AYES: Council Members Costello, Fellows, Guthrie, and Mayor Ferrara
NOES: None
ABSENT: Council Member Arnold
the foregoing Resolution was passed and adopted this 27 day of April 2010.
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RESOLUTION NO. ya.7q1
PAGE 2
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TONY FER'or a , MAYOR
ATTEST:
KELLY W TM 'hE, CITY CLERK
APPROVED AS TO CONTENT:
S Iii N ADAMS, CITY MANAGER
APPROVED TO AS FORM:
TI THY J. MEL, CITY ATTORNEY
Exhibit "A"
THIRD SIDE LETTER OF AGREEMENT
MODIFICATION TO MEMORANDUM OF UNDERSTANDING
For valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the City of Arroyo Grande ( "City ") and the Service Employees
International Union ( "SEIU ") do hereby agree to modify the current Memorandum
of Understanding ( "MOU ") between the City and SEIU as follows:
1. Article 1 shall be amended to extend the term of the Memorandum of
Understanding through June 30, 2011.
2. Article 7.H shall be amended to delay 4% of the 5% "Cost of Living
Adjustment" (COLA) for all represented classifications effective on June
25, 2010 to instead have 4% be effective on June 23, 2011 and 1% shall
remain effective on June 25, 2010 as shown in Attachments 1 and 2 of
this Agreement. If the final results of the City's financial audit for FY 2009-
10 identify revenues in excess of $100,000 over original budgeted
amounts for the Street Fund and General Fund, exclusive of Local Sales
Tax, the MOU may be reopened for the purpose of discussing and
considering accelerating the effective date of a portion of, or entire, COLA
amount.
3. Article 7.1 shall be amended to read as follows:
OTHER ADJUSTMENTS
If a COLA is. provided to any other labor group in FY 2009 -10
. greater than 1% or earlier than June 25, 2010 or in FY 2010 -11
greater than 4% for management or Fire, 4.5% for AGPOA sworn,
or 5.5% for AGPOA non - sworn, or earlier than June 23, 2011,
increases for all employees represented by Union will be adjusted
to be equal to the timing and /or greatest percentage amount of
those increases. This provision shall not apply to inequity
adjustments for individual classifications that are deemed
necessary due to salary compaction issues with other
classifications.
4. Article 9 shall be amended to add the following:
9.9 Water Treatment and Distribution Certification Pay
Effective June 25, 2010, employees in classifications of
Maintenance Worker I, II, and 111, Water Services Worker, Public
Works and Parks Lead Person, Sports Facility Coordinator, and
Public Works and Parks Supervisor shall receive special pay of 1%
of their base salary for each Water Treatment Operator Certification
from the California Department of Public Health T1 through T3
received and maintained and Water Distribution Operator
Certification D1 through D4 received and maintained up to a
maximum of 7% for employees permanently assigned to the Water
Services Section and 2% for employees assigned to other
maintenance operations. Employees shall receive special pay for
each certification obtained only as long as each individual
certification is maintained. Employees may receive up to a total
maximum of 7.5% for Educational Pay and Water Treatment and
Distribution Certification Pay when combined. Employees shall not
receive both Educational Pay and Water Treatment and Distribution
Certification Pay for the same education completed. In such case
that education completed to obtain Water Treatment and
Distribution Certifications qualify an employee to receive
Educational Pay, the employee shall receive whichever is highest
between the two special pay amounts.
5. Article 10 shall be amended to read as follows:
ARTICLE 10. MEDICAL INSURANCE
10.1 Medical Insurance Benefits
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 CaIPERS for calendar
year 2010.
10.2 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
established by CaIPERS on an annual basis. Effective January 1,
2010, the City's contribution under PEMHCA shall be $105.00.
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. For the period of January 1, 2010 through
December 31, 2010, the flex dollar allowance shall be $550.26 with
respect to an employee enrolled for self alone, $1,008.74 for an
employee enrolled for self and one family member, and $1,291.27
for any employee enrolled for self and two or more family members.
C. For the period of January 1, 2011 through June 20, 2011, the flex
dollar allowance shall be the amount in effect on December 31,
2010 plus 75% of any increase to the medical premiums for the
base plan and 100% of any increase to the dental and vision
insurance premiums.
D. A portion of the flex dollar allowance ($105.00 for 2010) 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.
6. Article 11 shall be amended to make New Year's Eve a full day paid
holiday rather than a'A day paid holiday.
7. Article 14 shall be amended to eliminate Section 14.5 Furloughs.
8. Article 24 shall be amended to replace the language added by the Side
Letter of Agreement effective June 9, 2009 to instead read as follows:
A layoff of one Public Works Inspector position shall take effect on July 1,
2009. An additional layoff of one Child Care Coordinator position may
take effect on or after July 1, 2010 if deemed necessary by the City
Council. The parties agree there shall be no additional loss of filled
positions due to layoff represented by SEIU Local 620 between the
effective date of this Side Letter of Agreement and June 30, 2011 unless
at any time during that period the City's FY 2009 -10 or FY 2010 -11
General Fund Ending Fund Balance is projected to be reduced by 30% or
more from the FY 2008 -09 actual General Fund Ending Fund Balance due
to action by State, County or Federal Government, an economic downturn
in the local economy, the impacts of a catastrophic event or natural
disaster, or any other unforeseen events outside the control of the City; or
in the event the City's FY 2009 -10 or FY 2010 -11 General Fund revenues,
excluding transfers, are projected to be reduced 5% or more from the
budgeted amounts for that year due to action by State, County or Federal
Government, an economic downturn in the local economy, the impacts of
a catastrophic event or natural disaster, or any other unforeseen events
outside the control of the City.
If any of these conditions occur, the Union shall be granted an opportunity
to meet and consult with the City to discuss proposed alternatives to
address the budget shortfall. If, in the judgment of the City, it becomes
necessary to make a reduction in force not possible through attrition
between the effective date of this Side Letter of Agreement and June 30,
2011, temporary and permanent part-time employees will be subject to
layoff prior to permanent full -time employees within the same division or
department performing similar duties or tasks.
For City of Arroyo Grande For Local 620, Service
Employees International Union,
Arroyo Grande Chapter
Date Date
OFFICIAL CERTIFICATION
I, KELLY WETMORE, City Clerk of the City of Arroyo Grande, County of San Luis
Obispo, State of California, do hereby certify under penalty of perjury, that the attached
Resolution No. 4274 is a true, full, and correct copy of said Resolution passed and
adopted at a Regular meeting of the City Council /Redevelopment Agency of the City of
Arroyo Grande on the 27 day of April 2010.
WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 29 day of
April 2010.
nr n r
KITTY ' "TON, DEPUTY CITY CLERK