R 4279 RESOLUTION NO. 4279
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE APPROVING A THIRD 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 third side letter of agreement amending the
Arroyo Grande Police Officers' Association 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
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 June 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: None
the foregoing Resolution was passed and adopted this 25 day of May 2010.
RESOLUTION NO. 2 12 7q
PAGE 2
TONY FE o r MAYOR
ATTEST:
j u26 P.R-
KELLY T E, CITY CLERK
APPROVED AS TO CONTENT:
ST EN ADAMS, CITY MANAGER
APPROVED AS TO FORM:
TIM THY MEL, CITY ATTORNEY
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, 2011.
2. Article 2 shall be amended to delay 4.5% of the 5.5% "Cost of Living
Adjustment" (COLA) for sworn personnel and 5.5% of the 6.5% COLA for
non -sworn personnel effective June 25, 2010 to instead make 4.5% for
sworn personnel and 5.5% for non -sworn personnel effective on June 23,
2011 and 1% shall remain effective on June 25, 2010 as identified in
Attachments 1 and 2 of this Agreement. If the 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 revenues, 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 19 shall be amended to read as follows:
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.
4 Article 20 shall be amended to read as follows:
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 $537.39 with
respect to an employee enrolled for self alone, $983.03 for an
employee enrolled for self and one family member, and $1,258.85
for an employee enrolled for self and two or more family members.
C. For the period of January 1, 2011 through June 30, 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.
5. Article 41 shall be amended to replace the language added by the Side
Letter of Agreement effective May 1, 2009 to instead read as follows:
Effective May 1, 2009, one Sergeant's position in the Police Department
will become unfunded. The parties agree there shall be no additional loss
of filled positions due to layoff represented by AGPOA prior to June 30tH
2011 and no loss of funded sworn positions represented by AGPOA prior
to 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.
For City of Arroyo Grande Arroyo Grande Police Officers' Association
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. 4279 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
25 day of May 2010.
. WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 1 day of
June 2010.
4 .1 l KETIIRE, CITY CLERK