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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
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.
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.
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.
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.
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