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HomeMy WebLinkAboutResolution No. 14-C12RESOLUTION NO. 14-C12 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA APPROVING THE FEBRUARY 24, 2014, SIDE LETTER AGREEMENT TO THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY AND THE AZUSA CITY EMPLOYEES ASSOCIATION EFFECTIVE JULY 1, 2010 THROUGH JUNE 30, 2014 WHEREAS, the City Council acknowledges 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 clarifies how much "New Members" contribute towards their retirement costs, includes a one-time $1,500 lump sum payment that equates out to 2.3614% based on the base salary of all ACEA covered employees who will receive the payment, a $59 per month increase to their flex benefit amount, a $25 per year increase to those positions receiving an equipment allowance, temporary suspension of the tuition reimbursement program and the computer loan program and continues their MOU until June 30, 2014, and WHEREAS, the 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. PASSED APPROVED and ADOPTED, this 24`h day of February, 2014. /P" 4z, A,(. /foseph Romero Rocha Mayor ATTEST: i J fr a nce Cornejo, Tr. City Clerk STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF AZUSA ) I HEREBY CERTIFY that the foregoing Resolution No. 14-C 12 was duly adopted by the City Council of the City of Azusa at a special meeting thereof, held on the 24`h day of February, 2014, by the following vote of Council: AYES: COUNCILMEMBERS: GONZALES, CARRILLO, MACIAS, ALVAREZ NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: ROCHA SIDE LETTER OF AGREEMENT BETWEEN THE CITY OF AZUSA AND AZUSA CITY EMPLOYEES ASSOCIATION REGARDING THE CONTINUATION OF THEIR CURRENT MOU THROUGH JUNE 30, 2014, INCORPORATING THE CHANGES FROM THE SIDE LETTER OF AGREEMENT APPROVED JULY 16, 2013, WITH CERTAIN AGREED TO CHANGES The City of Azusa ("City") and the Azusa City Employees Association ("ACEA") have a Memorandum of Understanding ("MOL'") that commenced on July 1, 2010 and was set to end on June 30, 2011. The City and ACEA entered into a Side Letter Agreement approved by City Council Resolution Number 12-051 on July 16, 2012, amending Sections of the MOU and extending the MOU until June 30, 2013. The Parties now wish to enter into this new 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, 2014. 2. 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% ra, 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. In accordance with the Public Employees' Pension Reform Act (PEPRA) provisions. "New Members" are required to pay their CaIPERS Member Contribution Rate, currently 6.75% of their salary. The "New Member" benefit formula, 2% at Age 62 for Miscellaneous Employees and all other related PEPRA provisions went into effect bylaw on January 1, 2013. "New Members" — are new hires who are brought into CaIPERS for the first time on or after January 1, 2013. and who have no prior membership in any California public retirement system; a new hire who is brought into CaIPERS membership for the first time on or after January 1. 2013, and who is not eligible for reciprocity with another California public retirement system; or a member who first established CaIPERS membership prior to January 1, 2013, and who is rehired by a different CaIPERS employer after a break in service of greater than six months are also considered "New Members." CaIPERS refers to all members that do not fit within the definition of a "New Member' as "Classic Members." The City agrees that as long as "New Members" pay their Member Contribution Rate they will not contribute 5% of their salary toward the Employer Contribution Rate as all other ACEA covered employees have agreed. 3. Section 21. in the MOU shall be amended to read as follows: The employees agree to a temporary suspension of Tuition Reimbursement from March 1. 2014 to .lune 30. 2014. Employees who have been utilizing the Tuition Reimbursement Program immediatel} prior to this suspension ma} continue to participate in the program. No new participants will be considered until the end of this suspension. 4. 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 March 1, 2014 to June 30. 2014. All current loans and terms remain in place. No new participants will be considered until the end of this suspension. 5. Section 11.5 in the MOU shall be amended to read as follows: 11.5 Equipment Allowance The City shall provide a personal Equipment Allowance of two hundred thirty five dollars (5235) per authorized employee in the classifications listed below for up to two (2) pairs of safety shoes/boots or garment per year as required by the department head. Those members of the association who are employed less than the fiscal year shall have their Equipment Allowance prorated: Building Inspector. Building Technician (if required by their Supervisor to be out in the field), Business Resource Officer, Community Improvement Inspector, Community Improvement Supervisor, Engineering Associate. Engineering Assistant, Engineering Assistant 11. Engineering Technician, Information Technology Analyst. Park Maintenance Crew Supervisor. Park Maintenance Supervisor, Park Maintenance Worker I. Park Maintenance Worker II, Park Maintenance Worker III. Purchasing Assistant. Senior Information Technology Analyst, Senior Plans Examiner, and Urban Forester 6. Section 1 1 2. in the MOU shall be amended to read as follows: 11.2. Bilingual Pay The City shall pay an additional $100 per month to personnel demonstrating a proficiency in a foreign language if they are assigned and required to speak and translate a foreign language in performance of their duties. An additional payment of $100 per month shall be paid to those who are proficient in writing in the foreign language as well. Such payment is conditional upon demonstration of foreign language proficiency by a qualified third -party examiner mutually agreed upon by both the City and the Association. Employees may apply for bilingual pay at any time: however, examinations shall be conducted semi-annually. 7. Section 10.2. shall be added to the MOU and read as follows: 10.2. Lump Sum Payment Effective the first paycheck of the month following Council approval, the city shall compensate each current ACEA covered employee hired prior to February 12, 2014, with a one-time lump sum cash payment of $1.500. The one time lump sum cash payment will not be subject to PERS retirement benefits. 8. Section 15.2. in the MOU shall be amended to read as follows and Section 15.2.1. of the MOIJ shall be deleted: 15.2. Amount of Monthly Benefit As of March 1, 2014, the Flexible Benefit Plan amount is one thousand three hundred forty six dollars $1.346. Effective March 1, 2014, the City will increase the Flexible Benefit Plan to one thousand three hundred forty six dollars ($1,346) per month for each employee. This plan can be used by the employee to pay, to the extent available, for qualified benefits as determined by the IRS. The employee understands that, in the event the total premiums and/or expenses for qualified benefits selected by him/her exceed the amount of the FBP, the excess shall be deducted from pre-tax wages of the employee. 3 9. Except as modified in this Side Letter of Agreement. the terms and conditions of the Side Letter Agreement approved by the City Council on July. 16. 2012, and the MOU shall remain in effect as provided therein. Signatures on next page FOR THE CITY: Ci Manager Dated: Z- / -& FOR THE AZUSA CITY EMPLOYEES ASSOCIATION: Dated: 7--\'2-07 .Iq al