HomeMy WebLinkAboutE-05 Staff Report - Restated MOU AMMACONSENT ITEM
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TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: TROY L. BUTZLAFF, ICMA-CM, CITY MANAGER
FROM: AMELIA AYALA, DIRECTOR OF HUMAN RESOURCES & RISK MANAGEMENT
DATE: FEBRUARY 1, 2016
SUBJECT: APPROVAL OF AMENDED AND RESTATED MEMORANDUM OF
UNDERSTANDING BETWEEN THE CITY AND THE AZUSA MIDDLE
MANAGEMENT ASSOCIATION (AMMA)
SUMMARY:
The City’s Memorandum of Understanding (MOU) with the Azusa Middle Management Association
(AMMA) expired on July 31, 2014. Both parties have been in negotiations and have finally reached
agreement on an amended MOU. The proposed MOU provides for a cost of living adjustment and
makes other substantive changes to the terms and conditions of employment with the AMMA. This
action approves a restated and amended MOU with the AMMA with a contract term through June 30,
2018.
RECOMMENDATION:
Staff recommends that the City Council take the following actions:
1)Approve amended and restated Memorandum of Understanding between the City and the
Azusa Middle Management Association (AMMA);
2)Authorize the City Manager to execute the amended and restated Memorandum of
Understanding, in a form acceptable to the City Attorney, on behalf of the City.
DISCUSSION:
The MOU between the City and the AMMA expired on July 31, 2014. The City’s negotiating team,
consisting of the Director of Human Resources/Risk Management and Director of Finance, have been in
negotiations with the AMMA for over a year now. The parties have finally reached agreement on the
following key compensation and benefit adjustments:
APPROVED
COUNCIL MEETING
02/01/2016
Amended and Restated MOU (AMMA)
February 1, 2016
Page 2
Compensation and Benefit Adjustments
Contract Term August 1, 2014 through June 30, 2018
Cost of Living Adjustment
(COLA)
Fiscal Year 2014–2015: 2% Retroactive
Fiscal Year 2015-2016: 2% Retroactive
Fiscal Year 2016-2017: 2%
Fiscal Year 2017-2018: 1%
California Public Employees'
Retirement System (CalPERS)
Employee Contribution
Effective February 1, 2016, employees will contribute an
additional 2% towards PERS, which will equal a total of 7% PERS
contribution for AMMA members
In addition to the key compensation and benefit adjustments, the proposed MOU includes a number of
other provisions that the parties have reached agreement on. These provisions include:
New Hires Current Employees
Flexible Spending
(Monthly) Up to $1,200 (premiums only) $1,346
Sick Leave Cash Out No cash out value; allow use for PERS
service credit
25% cash out over 960 hours; 50%
to 100% cash out at retirement
Accrual Caps Sick leave Cap: 960 hours, no
conversion to cash;
Vacation Cap: 300 hours-cash out
available to lower balance
Sick leave Cap: No cap.
Vacation Cap: No cap.
The proposed MOU also includes reopener language that will enable the parties to meet to discuss
specific issues during the term of the MOU. The specific issues to be discussed include:
Issue All Employees
Retiree Medical Trust Re-opener to be held once plan is in place.
Special Pay Plan Re-opener to be held once plan is in place.
ACA-Cadillac Tax Re-opener to be held in the event City’s medical benefit is subject to ACA
Cadillac Tax.
Amended and Restated MOU (AMMA)
February 1, 2016
Page 3
FISCAL IMPACT:
The total net cost to the general fund for the aforementioned AMMA benefit adjustments is estimated at
$47,500 and the net cost to non-general fund for the aforementioned AMMA benefit adjustments is
estimated at $107,200.
Prepared by: Prepared by:
Amelia Ayala Susan Paragas
Director of Human Resources & Risk Management Director of Finance
Reviewed and Approved: Reviewed and Approved:
Louie F. Lacasella Troy L. Butzlaff, ICMA-CM
Management Analyst City Manager
Attachment:
1) Amended and Restated Memorandum of Understanding between the City and the Azusa
Middle Management Association (AMMA)
ATTACHMENT 1