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HomeMy WebLinkAboutResolution No. 12-C51RESOLUTION NO. 12-051 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA APPROVING THE JULY 16, 2012 SIDE LETTER AGREEMENT TO THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY AND THE AZUSA CITY EMPLOYEES ASSOCIATION EFFECTIVE JULY 1, 2010 THROUGH JUNE 30, 2011 WHEREAS, the City Council acknowledges the Azusa City Employees Association as the recognized employee organization representing those personnel occupying the positions identified in the Memorandum of Understanding (MOU) between the City and the Azusa City Employees Association (ACEA), and WHEREAS, the ACEA and City Staff have met and agreed to a side letter agreement (Agreement) that includes permanent and temporary compensation reductions and continues their MOU until June 30, 2013, and WHEREAS, ACEA has taken this step to assist the City and during its current fiscal challenges, and WHEREAS, the Agreement outlining all aspects of this cost saving agreement between the City of Azusa and the ACEA, is attached. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Azusa does hereby approve the Agreement attached hereto and does direct the representatives of management to affix their signatures thereon. The City Clerk shall certify the passage of this Resolution. APPROVED AND PASSED this 16'h day of July, 2012. N. J seph R. Rocha, Mayor I HEREBY CERTIFY that the foregoing Resolution wash duly passed by the City Council of the City of Azusa at a regular meeting thereof held on the 16' day of July, 2012. AYES: COUNCILMEMBERS: GONZALES, MACIAS, HANKS, ROCHA NOES: ABSENT: COUNCILMEMBERS:NONE SIDE LETTER OF AGREEMENT BETWEEN THE CITY OF AZUSA AND AZUSA CITY EMPLOYEES ASSOCIATION REGARDING THE CONTINUATION OF THEIR CURRENT MOU THROUGH JUNE 30, 2013 WITH CERTAIN AGREED TO CHANGES The City of Azusa ("City") and the Azusa City Employees Association ("ACEA") have a Memorandum of Understanding ("MOU") that commenced on July 1, 2010 and was set to end on June 30, 2011. The Parties now wish to enter into this Side Letter of Agreement to memorialize the following changes agreed to by both sides: 1. Section 1. in the MOU shall be amended to read as follows: The term of this Memorandum of Understanding (MOU) shall commence July 1, 2010 and shall continue in full force and effect until June 30, 2013. Section 20. in the MOU shall be amended to read as follows: The City shall continue its contract with the California Public Employees' Retirement System (CaIPERS) for the 2% @ 55 full formula plan. The City shall also maintain the increased level of the 1959 Survivor Benefit. The City shall continue to pay both the "employee" and "employer" share of the cost. Effective the first full pay period after July 16, 2012, the employees agree to contribute 5% towards the "employer" share of the cost of the Ca1PERS retirement benefit. 3. Section 25. in the MOU shall be added to read as follows: and the New Years Day holiday as scheduled by the Citv. This will result in emnlovees being placed in an authorized unpaid leave status. Emplovees may use vacation, floating holidays, compensatory time, or remain in an unpaid leave during this furlough period. This addition to the MOU is effective July 16, 2012 and ends on June 30, 2013. 4. Section 21. in the MOU shall be amended to read as follows: The emnlovees agree to a temporary suspension of Tuition Reimbursement from July 16 2012 to June 30, 2013. Employees who have been utilizing the Tuition Reimbursement Program immediately prior to this suspension may continue to participate in the program. No new participants will be considered until the end of this suspension. S. Section 11.4. in the MOU shall be amended to read as follows: The employees agree to a temporary suspension of Deferred Compensation (Employer Paid) effective the first full pay period after July 16 2012 through the pay period that includes June 30, 2013. No employees will receive the $45 Employer Paid benefit during this period. 6. Section 12. in the MOU shall be amended to read as follows: The employees agree to a temporary suspension of the Computer Loan Program from July 16, 2012 to June 30, 2013. All current loans and terms remain in place No new participants will be considered until the end of this suspension 7. Section 16.4. in the MOU shall be amended to read as follows: Sick leave shall not be construed as a right which an employee may use at his or her discretion, but shall be allowed only in case of necessity or actual sickness or disability. Sick leave must be exhausted before compensatory time off or vacation leave may be used for sick leave reasons. A yearly evaluation period for the use of sick leave was established beginning on the first payday on or after January. At the end of the time period, the Finance Department will analyze and report to the various employees the amount of sick leave earned, less the amount used, and the net accrued during the calendar year. Employees agree that effective July 16, 2012, through June 30, 2013 the cash conversion found in Section 16.4.6.2 and the cash conversion found in Section 16.4.7.2 are temporarily suspended. No cash out of sick leave to current emplovees will be allowed during this temporary suspension. 8. Section 16.5.1 and 16.5.2 in the MOU shall be amended to read as follows: 16.5.1 Required Usage and Carryover An employee shall be required to use one half (%2) of his/her annual vacation accrual yearly and shall be able to carry over one half ('/2) of one year's vacation accrual from one year to the next, cumulatively, up to a maximum of fifty two (52) times the then -current pay period rate of vacation accrual. Vacation accrual in excess of the aforementioned maximum shall be paid off in four equal annual payments during the term of the MOU; and future accrual which exceeds the aforementioned maximum, shall be paid to the employee as it is accrued. In special cases where it has not been possible, due to work load and other factors, for the employee to use his/her vacation before reaching the maximum, it shall be within the department head's authority to authorize cash payment in lieu of time off. Employees agree that effective the first full nay period after July 16 2012 through the pay period that includes June 30. 2013, the automatic pavment of Vacation accrual above the maximum accrual amount is temporarily suspended as well as the _department head's authority to authorize cash payments in lieu of time off. Employees may accrue above the maximum accrual cap during this temporary suspension. 16.5.2 Cash -In Policy An employee may convert into pay up to 50% of his or her annual vacation accrual. An employee may convert into pay accrued vacation in excess of 50% of his or her annual accrual with the approval of the Department Head or City Manager Employees agree that effective July 16, 2012 through June 30 2013 the Cash -In Policy is temporarily suspended The City Manager will consider requests from employees based on emergency situations, and those requests will be weighed against the City's current financial situation. 9. Except as modified in this Side Letter of Agreement, the terms and conditions of the MOU shall remain in effect as provided therein. Signatures on next page FOR THE CITY: Dated: FOR THE AZUSA CITY EMPLOYEES ASSOCIATION: :J Dated: