08.h. Police Officers Association MOUMEMORANDUM
TO: CITY COUNCIL
FROM: STEVEN ADAMS, CITY MANAGER @
SUBJECT: CONSIDERATION OF RESOLUTION APPROVING A SIDE LETTER OF
AGREEMENT TO 'THE ARROYO GRANDE POLICE OFFICERS'
ASSOCIATION MEMORANDUM OF UNDERSTANDING
DATE: MAY 8,2012
RECOMMENDATION:
It is recorr~mended the City Council adopt a Resolution approving a Side Letter of
Agreement to the Arroyo Grande Police Officers' Association (POA) Memorandum of
Understanding (MOU) extending it one year with a reopener clause.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The existing terms of the Agreement result in an increased projected cost in FY 2012-13
of approximately $72,000 due to anticipated increases in niedical and retirement costs.
However, these costs are based on existing salary and benefits. No increases are
proposed. Approval of the extension may avoid a significant amount of staff time
required for labor negotiations.
BACKGROUND:
The existing MOU between the City and the POA is due to expire on June 30, 2012. A
request was recently received from the POA to extend the terms of the existing
agreement for an additional year. The City Council approved a similar Resolution at the
last meeting. However, there was one error in wording regarding existing medical plans
that staff would like to correct.
ANALYSIS OF ISSUES:
The existing strategy to address the projected FY 2012-13 budget shortfall identifies
$50,000 in savings from requiring employees to pay increases in medical costs and
$350,000 in savings from efficiencies or employee concessions. Staff is currently
pursuing these savings through a proposal to consolidate police operations with the City
of Grover Beach. Therefore, it is recommended the City agree to the extension under
the condition the MOU be reopen for negotiations if the police consolidation effort is
Agenda Item 8.h.
Page 1
CITYCOUNCIL
CONSIDERATION OF RESOLUTION APPROVING A SIDE LETTER OF
AGREEMENT TO THE ARROYO GRANDE POLICE OFFICERS' ASSOCIATION
MEMORANDUM OF UNDERSTANDING
APRIL 24,2012
PAGE 2
unsuccessful. The attached Resolution requires all terms to be reopen if police
consolidation is not approved by August 1'' or earlier if a decision is made by either City
Council not to proceed.
The original Resolution adopted by the City Council at the last meetiqg only listed one of
the HMO plans available, which deviated from the laqguage in the existing MOU. The
proposal has been voted on and agreed to by the POA.
ALTERNATIVES:
The following alternatives are provided for the Council's consideration:
- Adopt resolution approving the Side Letter of Agreement;
- Modify the resolution as appropriate and approve;
- Do not adopt the resolution;
- Provide direction to staff.
ADVANTAGES:
Approval of the Resolution avoids costly and unnecessary labor negotiations if savings
to address the budget shortfall can be achieved through consolidation efforts, but at the
same time maintains the ability to meet and confer on employee concessions if they
become necessary.
DISADVANTAGES:
The delay will result in a late start of negotiations if the police consolidation efforts are
unsuccessful.
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, May 3, 2012. The Agenda
and report were posted on the City's website on Friday, May 4, 2012. No public
comments were received.
Agenda Item 8.h.
Page 2
RESOLUTION NO.
A RESOLU'TION OF THE ClTY COUNCIL OF THE ClTY
OF ARROYO GRANDE APPROVING A SIDE LETTER OF
AGREEMENT TO THE ARROYO GRANDE POLICE
OFFICERS' ASSOCIATION 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 side letter of agreement amending the Arroyo Grande
Police Officers' Association current Memorandum of Understanding, 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 Arroyo
Grande Police Officers' Association ("AGPOA") is hereby approved, a copy of
said amendment entitled "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 May 9, 2012.
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 May, 2012.
Agenda Item 8.h.
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RESOLUTION NO.
PAGE 2
TONY FERRARA, MAYOR
ATTEST:
KELLY WETMORE, ClTY CLERK
APPROVED AS TO CONTENT:
STEVEN ADAMS, ClTY MANAGER
APPROVED AS TO FORM:
TIMOTHY J. CARMEL, ClTY ATTORNEY
Agenda Item 8.h.
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RESOLUTION NO.
PAGE 3
Exhibit "A"
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 Arroyo Grande Police
Officers' Association ("AGPOA") do hereby agree to modify the current Memorandum of
Understanding ("MOU") between the City and AGPOA as follows:
Article 1 shall be amended to extend the term of the Memorandum of
Understanding through June 30, 2013. Meet and confer sessions for Fiscal
Year 2013-14 shall commence no later than March 15, 2013. All terms of the
MOU will be immediately reopen for negotiation if: 1) the city councils of Arroyo
Grande and Grover Beach do not adopt an agreement to consolidate full police
operations by August 1, 201 2; or 2) if the City Council of either Arroyo Grande or
Grover Beach make a decision not to proceed with full consolidation of police
services at any time prior to August 1, 201 2.
2. Article 20.D shall be amended to read as follows:
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 established by CalPERS on an annual
basis. Effective January 1, 2012 the City's contribution under PEMHCA
shall be $1 12. Effective January 1, 201 3 the City's contribution under
PEMHCA shall be $1 15.
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, 201 2 through December 31, 201 2, 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, and $1,420.90 for any employee enrolled for self and two or
more family members.
Agenda Item 8.h.
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RESOLUTION NO.
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D. From January 1, 201 3 through June 30, 2013, the City will pay the current
flex dollar amount plus 100% of the increased cost in dental and vision
insurance and the lowest cost HMO plan (currently the Blue Shield
NetValue HMO plan or the Blue Shield HMO plan) available through
PERS in San Luis Obispo County. If a lower cost HMO plan is made
available by PERS in San Luis Obispo County, then the City and the POA
will meet to discuss if the benefits are comparable.
E. A portion of the flex dollar allowance ($1 12.00) 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. Ernployees who waive medical coverage under the
Cafeteria Plan because helshe 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.
For City of Arroyo Grande Arroyo Grande Police Officers' Association
Date Date
Agenda Item 8.h.
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