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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. • RESOLUTION NO. ya.7q1 PAGE 2 / 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