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R 3904 RESOLUTION NO. 3904 A RESOLUTION OF THE CITY COUNCIL OF THE CITY 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 extending the Arroyo Grande Police Officers' Association current Memorandum of Understanding two more years which includes some 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 authorized, a copy of said amendment entitled "Side Letter of Agreement, Modification to Memorandum of Understanding" being attached hereto, marked Exhibit "A", and incorporated herein by this reference. 2. The terms of this Resolution as contained in Exhibit "A" shall become effective July 1, 2006. On motion of Council Member Costello, seconded by Council Member Dickens, and on the following roll call vote, to wit: AYES: Council Members Costello, Dickens,Arnold, Guthrie and Mayor Ferrara NOES: None ABSENT: None the foregoing Resolution was passed and adopted this 14th day of February, 2006. RESOLUTION NO. PAGE 2 ..., ../' // ,-'- ./ , _.-~f ... .~ /' ;r~"<;" ~/ --<,/t4.(7./( ~._"-j"" ...,....../.. TONY F~~RARA, MAYOR ATTEST: fJJ/L~/tSL- , CITY CLERK APPROVED AS TO CONTENT: q;--~ ~ . 0.: '_'- STEVEN ADAMS, CITY MANAGER APPROVED TO AS FORM: Exhibit "An 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 the AGPOA as follows: ARTICLE 1. TERM OF MEMORANDUM OF UNDERSTANDING The term of the Memorandum of Understanding shall be extended to June 30, 2008. Meet and confer sessions for Fiscal Year 2008/09 shall commence no later than March 15, 2008. ARTICLE 2. Sworn 07/01/06 07/01/06 07/01/07 01/01/08 Non-Sworn 07/01/06 07/01/06 07/01/07 01/01/08 ARTICLE 6. SALARY SCHEDULES 3% COLA 2% Equity 3% COLA 2% COLA 3% COLA 2% Equity 3% COLA 2% COLA MEDICAL INSURANCE PREMIUMS 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. Side Letter of Agreement Page 2 B. For the period of July 1, 2006 through December 31, 2006, the City shall pay the monthly medical plan insurance premiums for each employee and all of his/her eligible dependents participating in the plan to a maximum of $345.67 with respect to an employee enrolled for self alone, $691.35 for an employee enrolled for self and one family member, and $898.76 for an employee enrolled for self and two or more family members. C. For the period of January 1, 2007 through December 31, 2007, the City shall pay the amount in effect on December 31, 2006, plus 75% of any increase to the premium for the base plan available to the City. D. For the period of January 1, 2008 through June 30, 2008, the City shall pay the amount in effect on December 31, 2007, plus 75% of any increase to the premium for the base plan available to the City. E. In no event shall the amount of the City's contribution to medical care premiums exceed 100% of the cost of providing the insurance coverage. F. Should the base HMO plan dissolve in 2007, the City shall then increase the rates paid to the basic PPO level rates. G. Upon providing the City written proof that medical insurance coverage is in force through coverage provided by another source, an employee may opt out of the City's medical insurance plan and receive payment at the employee only level. consistent with any rules or restrictions on the City by the medical plan provider. H. In the event either a new employee or an existing employee is unable to obtain coverage in the City's designated base (HMO) plan, the City shall increase the rate paid for the affected employee to the basic PPO level. This will not impact the rates paid to other employees. 1. Medical insurance is available for retirees through the City at the retiree's own expense until the retiree is eligible for Medicare. J. The City will maintain health benefits through CalPERS for calendar year 2006. ARTICLE 19. UNIFORM AND EQUIPMENT ALLOWANCE The uniform allowance shall be increased from '$800 to $900 annually effective July 1, 2006. The uniform allowance shall be increased from $900 to $1,000 annually effective July 1, 2007. Side Letter of Agreement Page 3 ARTICLE 44. PERS RETIREMENT Sworn: A. 1. G.C. Section 21363.1. The PERS 3% at Age 55 Retirement Plan is provided for sworn personnel, with the City paying back to each sworn employee an amount equal to the 9% deduction from the sworn employee's paycheck for PERS retirement. 2. G.C. Section 21362.2. Effective July 1, 2008, the City shall provide the 3.0% @ Age 50 Retirement Plan for safety employees, provided that: 1) the specified plan is still available on the implementation date; 2) there is no requirement for the City to establish and maintain a two-tier retirement program as a result of State legislative or initiative action which had been approved by the effective date of the implementation of this plan, which would require the City in the future to maintain separate retirement plans for non-safety employees by providing a plan to existing employees that will no longer be available for future newly hired employees; and 3) Employees will pay 2.5 percentage points of the employee's 9% PERS contribution and the City will pay the remaining 6.5 percentage points. a. If, due to one of the three provisos stated above, the 3.0% @ 50 Safety Retirement Plan is not implemented, there will be a reopener on or about April, 2008 between the City and POA to negotiate a possible increase in base salary in lieu of the implementation of the plan. . Any such salary increase shall not exceed the City's anticipated costs based upon the PERS actuarial study for Miscellaneous employees dated April 13, 2005 (said costs being a maximum of 2.4%). Non-Sworn: B. 1. G.C. Section 21354. The PERS 2% at Age 55 Retirement Plan is provided for non-sworn personnel, with the City paying back to each non- safety employee an amount equal to the 7% deduction from the non- safety employee's paycheck for PERS retirement. 2. G.C. Section 21354.4. Effective July 1, 2008, the City shall provide the 2.5% @ 55 Miscellaneous Retirement Plan for non-safety employees, provided that: 1) the specified plan is still available on the implementation date; 2) there is no requirement for the City to establish and maintain a two-tier retirement program as a result of State legislative or initiative action which had been approved by the effective date of the implementation of this plan, which would require the City in the future to maintain separate retirement plans for non-safety employees by providing a plan to existing employees that will no longer be available for future Side Letter of Agreement Page 4 newly hired employees; and 3) Employees will pay 2.5 percentage points of the employee's 8% PERS contribution and the City will pay the remaining 5.5 percentage points. a. If, due to one of the three provisos stated above, the 2.5% @ 55 Miscellaneous Retirement Plan is not implemented, there will be a reopener on or about April, 2008 between the City and POA to negotiate a possible increase in base salary in lieu of the implementation of the plan. Any such salary increase shall not exceed the City's anticipated costs based upon the PERS actuarial study for Miscellaneous employees dated April 13, 2005 (said costs being a maximum of 2.4%). ~d4:') For City of Arroyo Grande F Arroyo Grande Police o r ers' Association OJ;- J. -'1-0& J.. - q -() c:, 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 Resolution No. 3904 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 14th day of February 2006. WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 14th day of February 2 06.