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R 4444 RESOLUTION NO. 4444 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 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 Costello, seconded by Council Member Brown, and on the following roll call vote, to wit: AYES: Council Members Costello, Brown, Guthrie, Ray, and Mayor Ferrara NOES: None ABSENT: None the foregoing Resolution was passed and adopted this 24th day of April, 2012. • • RESOLUTION NO. 4444 PAGE 2 TONY j= • RA, MAYOR ATTEST: ak/ /LA / //:>I _I1Z KELLY ET% •RE, CITY CLERK APPROVED AS TO CONTENT: STE EN ADAMS, CITY MANAGER APPROVED AS TO FORM: (-- A TIMO Y J. C EL, CITY ATTORNEY RESOLUTION NO. 4444 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, 2012. 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 CaIPERS 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 $115. 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. RESOLUTION NO. 4444 PAGE 4 D. From January 1, 2013 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) 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 ($112.00) 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 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. 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. 4444 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 24th day of April 2012. WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 25th day of April, 2012. KELLY ET 1''RE, CITY CLERK •