08.f. Police Officers Assoc MOUMEMORANDUM
TO: CITY COUNCIL
FROM: STEVEN ADAMS, CITY MANAGER @
SUBJECT: CONSIDERATION OF RESOLUTION APPROVING A SIDE LEITER OF
AGREEMENT TO THE ARROYO GRANDE POLICE OFFICERS'
ASSOCIATION MEMORANDUM OF UNDERSTANDING
DATE: APRIL 24,2012
RECOMMENDATION:
It is recommended 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.
FINANCIAL IMPACT:
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 medical and retirement costs.
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.
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
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.
Agenda Item 8.f.
Page 1
CITY COUNCIL
CONSIDERATION OF RESOLUTION APPROVING A SIDE LETTER OF
AGREEMENT TO THE ARROYO GRANDE POLICE OFFICERS' ASSOCIATION
MEMORANDUM OF UNDERSTANDING
APRIL 24,2012
PAGE 2
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 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, April 19, 2012. 'The Agenda
and report were posted on the City's website on Friday, April 20, 2012. No public
comments were received.
Agenda Item 8.f.
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RESOLUTION NO.
A RESOLUTION 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 1, 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 April, 201 2.
Agenda Item 8.f.
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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.f.
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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:
1. 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, 2012; 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 $112.
Effective January 1, 2013 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, 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, and $1,420.90 for any employee enrolled
for self and two or more family members.
Agenda Item 8.f.
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RESOLUTION NO.
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D. From January 1, 201 3 through June 30, 201 3, 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) 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. Employees 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.f.
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