2 Resolution Approving a Memorandum of Understanding between the City of Livingston and the Livingston Police Supervisory Unit for the Period of July 1, 2015 through June 30, 2018.

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STAFF REPORT

AGENDA ITEM: Resolution Approving a Memorandum of Understanding between the City of Livingston and the Livingston Police Supervisory Unit for the period of July 1, 2015 through June 30, 2018

MEETING DATE: October 20, 2015

PREPARED BY: Odi Ortiz, Assistant City Manager/Finance Director

REVIEWED BY: Eddie Duque, City Manager

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RECOMMENDATION:

Adopt Resolution No. 2015-_, approving a Successor Memorandum of Understanding between the City and the Livingston Police Supervisory Unit for the period of July 1, 2015 through June 30, 2018.

BACKGROUND:

The City of Livingston, through its Interim City Manager, the City Attorney’s office, and the Police Supervisory Employee Association OE3 Unit engaged in labor negotiations for several months and have reached a tentative agreement for a three (3) year Memorandum of Understanding, covering the period July 1, 2015 – June 30, 2018.

The tentative agreement includes:

1. Elimination of the temporary five percent (5%) pay cut and vacation cash out freeze effective June 30, 2015.

2. Three and one half percent (3.5%) base wage/salary increase upon execution of agreement with employee paying two percent (2%) of the PERS employee contribution; three percent (3%) base wage/salary increase with employee paying an additional one percent (1%) of the PERS employee contribution effective July 1, 2016; three percent (3%) base wage/salary increase with employee paying an additional one percent ( 1%) of the PERS employee contribution effective July 1, 2017.

3. Cap City medical contribution as shown in Exhibit A to the Memorandum of Understanding.

In efforts at minimizing benefit costs and managing the uncertainties associated with medical benefit cost increases, many public agencies have implemented medical premium caps (ceiling limits) to city paid premiums or employee medical contributions. These limits/contributions assist with proper budget projections, limit expenditure uncertainties, and assist in minimizing/reducing unfunded liabilities-Other Post-Employment Benefits (OPEB).

4. A $200 work boot reimbursement every two years upon execution of agreement.

5. Adding CalPERS PEPRA language to the MOU- All employees hired on or after January 1, 2013, who are considered "new members" under the Public Employees’ Pension Reform Act (PEPRA), will be provided a CalPERS benefit formula of 2% at 62 for Miscellaneous and 2% at 57 for Safety. In addition, "new members" shall be subject to the contribution requirements in Section 7522.30(a) and (c) of the PEPRA. Accordingly, "new members" shall pay 50% of the normal costs of their pension benefit and the City shall not pay any of the required employee contribution for "new members."

6. Add an option to cash out the Insurance In-Lieu pay to be paid to the non-participating members.

7. A One-Time $2,000 lump sum payment upon execution of agreement.

The Police Supervisory unit tentatively agreed to the above terms on September 18, 2015, and this date should be the effective date the City will use for the first raise.

The Memorandum of Understanding was not finalized by the union at the time this staff report was prepared and, therefore, the MOU will be completely ratified once the City’s legal counsel and Police Supervisory OE3 unit approve the format and contents.

DISCUSSION:

The terms of the current Memorandum of Understanding shall cover the period July 1, 2015 – June 30, 2018, with the changes mentioned above, unless modified, changed, or otherwise altered by force of law or by mutual agreement between the parties of this agreement.

FISCAL IMPACT:

Cost estimates are based on four members in this unit with one current vacancy. Increase in ongoing personnel cost is estimated as follows:

1. $15,902 (100%) general fund during Fiscal Year 2015-2016.

2. $7,350 (100%) general fund during Fiscal Year 2016-2017. This is in addition to added cost of $7,102 in year 2015-2016.

3. $7,640 (100%) general fund during Fiscal Year 2017-2018. This is in addition to $7,102 added cost in years 2015-2016 and $8,150 in 2016-2017.

ATTACHMENTS:

1. Resolution No. 2015-

2. Memorandum of Understanding between the City of Livingston and the Livingston Police Supervisory OE3 Unit for the period of July 1, 2015 through June 30, 2018.

RESOLUTION NO. 2015-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LIVINGSTON APPROVING A MEMORANDUM

OF UNDERSTANDING BETWEEN THE CITY OF LIVINGSTON AND THE LIVINGSTON POLICE SUPERVISORY EMPLOYEE UNIT

WHEREAS, the City of Livingston, through its Interim City Manager and City Attorney’s office, has negotiated new terms which will alter or change the existing Memorandum of Understanding, as it applies to the Livingston Police Supervisory Unit; and

WHEREAS, the terms of the proposed Memorandum of Understanding between the City of Livingston and the Police Supervisory Unit are effective July 1, 2015 through June 30, 2018; and

WHEREAS, the attached revised MOU makes the following changes:

1. Temporary Base Salary Reduction of 5% to end effective June 30, 2015.

2. Approves modifications to MOU sections 6.8, 6.9, and 18.3: Salary/wage increases and retirement benefits as follows;

A) 3.5% salary/wage increase and a 2% employee contribution into CalPERS upon execution of MOU.

B) 3% salary/wage increase and additional 1% employee contribution into CalPERS effective July 1, 2016.

C) 3% salary/wage increase and additional 1% employee contribution into CalPERS effective July 1, 2017.

D) Add the following language to comply with CalPERS PEPRA guidelines; All employees hired on or after January 1, 2013, who are considered "new members" under the Public Employees Pension Reform Act (PEPRA), will be provided a CalPERS benefit formula of 2% at 62 for Miscellaneous and 2% at 57 for Safety. In addition, "new members" shall be subject to the contribution requirements in Section 7522.30(a) and (c) of the PEPRA. Accordingly, "new members" shall pay 50% of the normal costs of their pension benefit and the City shall not pay any of the required employee contribution for "new members."

F) One-time lump sum payment of $2,000 to each member upon execution of agreement.

3. Approves modifications to MOU section 18.1: Medical benefits. Effective July 1, 2015, the City of Livingston shall contribute the monthly amounts toward the total premium for medical plans as outlined on MOU section 18.1 (see medical cap-limits); the employee is responsible for the balance (excess) of the premium cost, if any. Members opting-out of medical plan would have an option to receive a monthly cash payment of $400 or via a deferred compensation incentive.

4. Approves modifications to MOU Safety Equipment section 19.2: Upon execution of agreement and every two years thereafter, the City will reimburse $200 a year to each member for a pair of work boots.

WHEREAS, the City Council now desires to formally approve those changes in the Memorandum of Understanding that have been negotiated and approved by the parties.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Livingston that it hereby approves the three (3) year Memorandum of Understanding between the City of Livingston and the Police Supervisory Employee Unit, in a form approved by the City Attorney, and substantially in the form attached hereto as Exhibit A, for the period of July 1, 2015 through June 30, 2018.

Passed and adopted this 20th day of October, 2015, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

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Rodrigo Espinoza, Mayor of the City of Livingston

ATTEST:

I, hereby certify that the foregoing Resolution was regularly introduced, passed, and adopted at a regular meeting of the City Council of the City of Livingston this 20th day of October, 2015.

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Antonio Silva, City Clerk of the City of Livingston

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