R 4299 RESOLUTION NO. 4299
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE AMENDING THE SERVICE EMPLOYEES
INTERNATIONAL UNION, LOCAL 620'S THIRD SIDE LETTER
OF AGREEMENT TO INCLUDE FULL WATER CERTIFICATION
PAY FOR THE PUBLIC WORKS SUPERVISOR, STREETS
DIVISION
WHEREAS, the City Council of the City of Arroyo Grande ( "City ") deems it in the best
interest of the City to approve an amendment to the Third Side Letter of Agreement with
the Service Employees International Union, Local 620, City Council Resolution No.
4274, to include full water certification pay for the Public Works Supervisor, Streets
Division;
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Arroyo
Grande that:
1. An amendment to the Third Side Letter of Agreement with the Service
Employees International Union, Local 620 ( "SEIU ") is hereby approved by
modifying paragraph 4 and the amendment to Section 9.9 of Article 9 of the
Memorandum of Understanding to provide full water certification pay up to a
maximum of 7% for the position of Public Works Supervisor, Streets Division. A
copy of the modified "Amended Third Side Letter of Agreement, Modification to
Memorandum of Understanding" is attached hereto, marked Exhibit "A ", and
incorporated herein by this reference.
2. This modification to the Third Side Letter of Agreement, as provided herein, shall
be deemed effective as of March 1, 2010.
On a motion by Council Member Fellows, seconded by Council Member Costello, and
by the following roll call vote to wit:
AYES: Council Members Fellows, Costello, Ray, Guthrie, and Mayor Ferrara
NOES: None
ABSENT: None
the foregoing Resolution was passed and adopted this 10 day of August 2010.
RESOLUTION NO. 1199'
PAGE 2
TONY ,MAYOR
ATTEST:
KELLY ET , . RE, CITY CLERK
APPROVED AS TO CONTENT:
ST EN ADAMS, CITY MANAGER
APPROVED AS TO FORM:
DAVID . R � CM ASST. C ' ATTORNEY
Exhibit "A"
AMENDED 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 1, 11, and III, 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 the Public Works Supervisor, Streets Division, 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 '% 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. 4299 is a true, full, and correct copy of said Resolution passed and
adopted at a Regular meeting of the City Council of the City of Arroyo Grande on the
10` day of August 2010.
WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 11 day of
August 2010.
/A_' _ A. . / 4
KELLY ET ORE, CITY CLERK
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