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Home My WebLink About15-090 - Resolutions RESOLUTION NO. 15-090 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA APPROVING A SIDE LETTER AGREEMENT BETWEEN THE CITY OF RANCHO CUCAMONGA AND THE RANCHO CUCAMONGA CITY EMPLOYEES ASSOCIATION WHEREAS, Representatives of the City of Rancho Cucamonga (City) and the Rancho Cucamonga City Employees Association (RCCEA) have met and conferred pursuant to the provisions of the Meyers-Milias-Brown Act (California Government Code §3500, et seq.) with regard to terms and conditions of employment; and WHEREAS, Representatives of the City and RCCEA have agreed upon and presented to this City Council a Side Letter Agreement (see attached Side Letter Agreement) that Amends the Current Memorandum of Understanding effective July 1, 2014, to June 30, 2017, related to adding an additional year to the MOU. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA HEREBY RESOLVES that said Side Letter Agreement with the RCCEA is hereby approved and the City Manager is hereby authorized to sign said Side Letter Agreement on behalf of the City of Rancho Cucamonga, and the City Clerk to attest thereto. RESOLUTION NO. 15-090 - Page 1 of 2 PASSED, APPROVED, AND ADOPTED this 17'h day of June 2015. AYES: Alexander, Kennedy, Michael, Spagnolo, Williams NOES: None ABSENT: None ABSTAINED: None Ken'nis Michael, Mayor ATTEST: anice C. Reynolds, City d6rk I, JANICE C. REYNOLDS, CITY CLERK of the City of Rancho Cucamonga, California, do hereby certify that the foregoing Resolution was duly passed, approved and adopted by the City Council of the City of Rancho Cucamonga, California, at a Regular Meeting of said City Council held on the 17'h day of June 2015. Executed this 18'" day of June 2015, at Rancho Cucamonga, California. J# �e C. Reynolds, City lerk RESOLUTION NO. 15-090 - Page 2 of 2 SIDE LETTER OF AGREEMENT BETWEEN THE CITY OF RANCHO CUCAMONGA AND THE RANCHO CUCAMONGA CITY EMPLOYEES ASSOCIATION The City of Rancho Cucamonga("City")and the Rancho Cucamonga City Employees Association ("RCCEA") have a Memorandum of Understanding ("MOU") that commenced on July 1, 2014 and is set to end on June 30, 2017. The Parties now wish to enter into this new Side Letter of Agreement to memorialize the changes to Sections 1, 2, 7, 30, 44 and 45 resulting in an additional year to the MOU and some additional compensation and benefits as agreed to by both sides. The following sections shall amend and replace the corresponding sections currently in the MOU: SECTION 1: EFFECTIVE DATE The PFOViSiORS of this MOU are effpetive Ai1y 1 2014 and shall cantinue fer a !hree year , ending june 30 2017-. The provisions of this MOU are effective July 1 2014 and shall continue for a four-year period ending June 30, 2018 SECTION 2: COST OF LIVING ADJUSTMENT There ,hall be no est fl us ( ) i- b adjustmentc r c Effective the first full pay period in July of 2017 All RCCEA covered employees will receive a 2% base salary increase SECTION 7: HEALTH INSURANCE A. EMPLOYEES HIRED BEFORE JULY 1, 1994 The City shall provide employee and family health insurance for all existing full-time continuous salaried employees within the bargaining groups, subject to the limitation that no such monthly funding by the City shall exceed the following: $995.60 B. EMPLOYEES HIRED AFTER JULY 1, 1994 The City shall provide employee and family health insurance for all full-time continuous employees within the bargaining groups who have been hired on or after July 1, 1994, subject to the limitation that no such monthly funding by the City shall exceed the following: $700 Effective with the July 24, 2014 paycheck, this amount will increase by $50 to a total of $750 per month. Effective with the first full pay period in July of 2015, this amount will increase by $50 to a total of$800 per month. Effective with the first full pay period in July of 2016, this amount will increase by $50 to a total of$850 per month. Effective with the first full pay period in July of 2017 this amount will increase by $50 to a total of$900 per month. C. CASH IN-LIEU PAYMENT Represented employees who had waived coverage under a City-paid medical insurance plan, and were receiving a cash in-lieu payment in the amount of$200 per month for single coverage or $300 per month for family coverage as of September 30, 2012, may continue to receive this cash in-lieu payment as long as they remain eligible. To be eligible, an employee must provide proof of other medical insurance coverage and must have provided a signed waiver. Beginning October 1, 2012. and for the remaining term of this MOU, no other represented employees shall be eligible for this benefit. Employees not receiving cash in-lieu as of September 30, 2012, may still waive coverage by providing the proof of insurance and signed waiver as noted above, but will not receive a cash in-lieu payment. (10-17-12 Amendment) SECTION 30: RETIREMENT BENEFIT Employees' Pension Refafffi Aet of 201' (DEDD A\ (these unit rnbeFs _tall be ._f_ _d to as "classic » the 2.5% at a 55 Fetifefnent Y ("Tier er7 "Tier 1" and "T:eF 2"\> 0/n the 755retirement-Pian / at age ("Tier P)and shall be provided 1. benefits as d '1. d 1. I ewi A Tier 1 Efnpleyees 14ifed Before September 1 2010 § 21354.4 2.5° at 55 Full PA;:rmilA § 21574— 4th Level 1959 c § 20042 1 Yr Final Ge Until the first fiall pay period in July 2015, Gity pays the nofmal 0 G AIDERS FneMber`ontribu ion Resolution 11 063 E.ff etiye 1..I.. i 2093 Y I Je .,,.hallone pereentage point (1,%) of the _-- _l FaIPERS mi.leye contributien, in addition to h paFtien C L meniber ucocizvcmwro-.r. Effeetive with the first full pay peried in My 2015, employees will also-pay4vie-peFeern 0 16) of their PERSable tewafds their CaIPERS member and Cot ..ree..t /604\ f h I r 1� IRRC nn -hCHn "h > / Effeetive the first ftill pay period in july 2016, emplayees will pa�, an additional fwR pereent o ofthe;.. RCRSable compensation __d h i n IRr contribution for a iota! ef four peFeent 0 and City p ) of the lieFffial relRCRe Member ee..tr:h. ' R Tie 7 C...«le..ees Hired Between Ce«te.....h 1 201 n ,J T 1 yg, 2011 —X21374 4th Level 1959 Survive Until the fifst Aill pay peFied in 0 CAPERS member eentributien; emplayee pays one pefeentagge-pe-nit fnembeF : per 11 063. -Pg--aetive the first PHII pay period 'in july 2015 pereent 0 of the;.. RCRCehle cempensation __d_ .1 - CAPERS contribution for.. total efthree percent (3%) eAra y Y 0/F /e \ fl- Rofffial r \ J ., r..1RCRC nne....he. oantrihwiRm r'ff et:..e the F._ f IIr 7 I' 7.ied in 7..1.. 2016, employees .. :n ___ an _dr.i_ -1 twe neFeent /70G\ of the:.. RRRC..hle eompensinion towards .Leif G_rRr- eentr:l...t:e« Fer.. total of fiye..eree..t /CO/\ and n' payshfoe percent/20/\ F L HermaI reIRCRC Member..ent..:h G. "tier 2 R.„.,reJees uon r After in!), n 2011 § 21g54 a @ 55 Full Forniula- § 4th revel 19co�or § 20037 3 Yr Final Compensation Gity pays six pefeent 0 one pereentage point 0 ) ef the G-RIPP.R.8 meniber contribution pef Resolution 11 063. Rff-eti, e the Ar..t f I1r i period .. 2015,i TL. employees will _a-:II an _ddn.e_ -_, two eentr:h..t:e« / J r:t.. r«egs fe.._ percent \ I ent (4%) f h I GAPERS Member \ and employee pays three percent 0 Effective the first full pay period in july 2016, employees Will pay an additiona! tWO percent o of theirRCRC..hle ...Ye tom,afds their n IRrRo (City YeJ PeFeent \ J A employee pays five peFeent (5%) f h neFffial r IRCRC member oentf"l \ 1 D. it is undefsteed that all eentfibutions paid by the employee as deseribed in Pal4s A b C above shall be ealeulated based upen the full base salary of the enM4oyee—, Vk&-any ..dd4:. nal PPRS. ble compensation, and aft), C pl , cr PaidMember Contributions (ED A EPMGr J r ration The aFties . - that a the ehtent permitted by law, this is speeial .tion and shell be T' t � nnn Y a as h , Seetien 571(a)(1)(F) as Value of Employer Paid Membef Contributions. The pafties also ni agree that the ty additional obligation should r PF-RS, L State J 7.as n a . na TRS Bete Fmine otherwise. The City shall adept neeessary resolutions elated to the cl_ .__-_ in FPMG -rc_ ctive. the first fill nw pried in in!), c2015 d the first full pay pd i in r I f2016 The City adopted a resolution provimding4hat-�� ded cteden etax basis to theextent d L 1 C e r' regulation, Thereshallben et date to anyprevision Section 30 Unit members who do not meet the definition of "new member" under the California Public Employees' Pension Reform Act of 2013 (PEPRA) (those unit members shall be referred to as "classic members") are enrolled in either the CalPERS retirement plan commonly referred to as the 2.5% at age 55 retirement plan ("Tier I" and "Tier 2") or in the 2% at age 55 retirement plan ("Tier 3") and shall be provided the benefits as described below: A. Tier 1 — Employees Hired Before September 1 2010 $ 21354.4 2.5% at 55 Full Formula $ 21574 4th Level 1959 Survivor 20042 1 Yr Final Compensation 1. Citv pays the normal eight percent(8%) CalPERS member contribution per Resolution 11-063. 2. Effective 7/1/13 employees shall pay one percentage point (1%) of the CalPERS emplover contribution. 3. Effective the first full pay period in July 2015 any individual who has been at the top step of their range for at least 365 days prior to the first full pay period in July 2015 and receives a merit step increase effective the first full pay period in July 2015 per MOU Section 3A shall pay an additional two percent (2%) of their PERSable compensation toward the CalPERS employer contribution for a total of three percent 3% . All individuals who have been at the top step of their range for fewer than 365 day prior to the first full pay period in July 2015 and receive a merit increase between the first full pay period in July 2015 and the first full pay period in July of 2016 per MOU Section 3A, shall pay an additional two percent (2%) of their PERSable compensation toward the CalPERS emplover contribution effective the date they receive their merit increase for a total of three percent (3%) Employees hired, promoted or reclassified after July 1 2015 covered under this tier, shall pay three percent (3%) of their PERSable compensation toward the CalPERS emplover contribution effective the date they are hired promoted or reclassified 4. Effective the first full pay period in July 2016 any individual who has been at the top step of their range for at least 365 days prior to the first full pay period in July 2016 and receives a merit step increase effective the first full pay period in July 2016 per MOU Section 3B, shall pay an additional two percent (2%) of their PERSable compensation toward the CalPERS employer contribution for a total of seven percent 5% . All individuals who have been at the top step of their range for fewer than 365 days prior to the first full pay period in July 2016 and receive a merit increase between the _first full pav period in July 2016 and the first full pay period in July of 2017 per MOU Section 3B. shall pay an additional two percent (2%) of their PERSable compensation toward the CalPERS employer contribution effective the date they receive their merit increase for a total of five percent(5%) Employees hired, promoted or reclassified after July 1 2016 covered under this tier shall pay five percent (5%) of their PERSable compensation toward the CalPERS employer contribution effective the date they are hired promoted or reclassified B. Tier 2 — Employees Hired Between September 1 2010 and July 3 2011 § 21354.4 2.5% at 55 Full Formula 5 21574 4th Level 1959 Survivor & 20042 1 Yr Final Compensation 1. City pays seven percent (7%) of the normal CalPERS member contribution; employee pays one percentage point 0%) of the CalPERS member contribution per Resolution 11-063. 2. Effective the first full pay period in July 2015 any individual who has been at the to step of their range for at least 365 days prior to the first full pay period in July 2015 and receives a merit step increase effective the first full pay period in July 2015 per MOU Section 3A, shall pay two percent (2%) of their PERSable compensation toward the CalPERS employer contribution for a total of one percent (1%) of the member contribution and two percent (2%) of the employer contribution All individuals who have been at the top step of their ranee for fewer than 365 days prior to the first full pay period in July 2015 and receive a merit increase between the first full pay period in July 2015 and the first full pay period in July of 2016 per MOU Section 3A, shall pay two percent (2%) of their PERSable compensation toward the CalPERS employer contribution effective the date thev receive their merit increase for a total of one percent (1%) of the member contribution and two percent (2%) of the employer contribution. Employees hired, promoted or reclassified after July 1 2015 covered under this tier, shall pay two percent (2%) of their PERSable compensation toward the CalPERS employer contribution effective the date they are hired promoted or reclassified for a total of one percent (1%) of the member contribution and two percent (2%) of the emplover contribution. 3. Effective the first full pay period in July 2016 any individual who has been at the top step of their range for at least 365 days prior to the first full pay period in July 2016 and receives a merit step increase effective the first full pay period in July 2016 per MOU Section 36, shall pay an additional two percent (2%) of their PERSable compensation toward the CalPERS employer contribution for a total of one percent (1%) of the member contribution and four percent (4%) of the employer contribution All individuals who have been at the top step of their ran ve for fewer than 365 days prior to the first full pay period in July 2016, and receive a merit increase between the first full pay period in July 2016, and the first full pay period in July of 2017 per MOU Section 3B, shall pay an additional two percent (2%) of their PERSable compensation toward the CalPERS employer contribution effective the date they receive their merit increase for a total of one percent (I%) of the member contribution and four percent (4%) of the employer contribution. Employees hired, promoted or reclassified after July 1 2016 covered under this tier, shall pay four percent (4%) of their PERSable compensation toward the CalPERS employer contribution effective the date they are hired promoted or reclassified for a total of one percent (1%) of the member contribution and four percent (4%) of the employer contribution. C. Tier 3 — Employees Hired on or After July 4 2011 S 21354 2% na 55 Full Formula & 21574 4th Level 1959 Survivor § 20037 3 Yr Final Compensation 1. City pays six percent (6%) of the normal CAPERS member contribution; employee pays one percentage point (I%) of the CalPERS member contribution per Resolution 11-063. 2. Effective the first full pay period in July 2015, any individual who has been at the to step of their range for at least 365 days prior to the first full pay period in July 2015 and receives a merit step increase effective the first full pay period in July 2015 per MOU Section 3A shall pay two percent (2%) of their PERSable compensation toward the CalPERS employer contribution for a total of one percent (1%) of the member contribution and two percent(2%) of the employer contribution All individuals who have been at the top step of their range for fewer than 365 days prior to the first full pay period in July 2015 and receive a merit increase between the first full pay period in July 2015, and the first full pay period in July of 2016 per MOU Section 3A shall pay two percent (2%) of their PERSable compensation toward the CalPERS employer contribution effective the date they receive their merit increase for a total of one percent (1%) of the member contribution and two percent (2%) of the employer contribution. Employees hired, promoted or reclassified after July 1 2015 covered under this tier, shall pay two percent (2%) of their PERSable compensation toward the CalPERS employer contribution effective the date they are hired promoted or reclassified for a total of one percent (1%) of the member contribution and two percent (2%) of the employer contribution. 3. Effective the first full pay period in July 2016 any individual who has been at the top step of their range for at least 365 days prior to the first full pay period in Jul 2y 017 and receives a merit step increase effective the first full pay period in July 2016 per MOU Section 313, shall pay an additional two percent (2%) of their PERSable compensation toward the CalPERS employer contribution for a total of one percent 0%) of the member contribution and four percent (4%) of the employer contribution All individuals who have been at the top step of their range for fewer than 365 days prior to the first full pay period in July 2016 and receive a merit increase between the first full pay period in July 2016 and the first full pay period in July of 2017 per MOU Section 313, shall pay an additional two percent (2%) of their PERSable compensation toward the CalPERS em to er contribution effective the date they receive their merit increase for a total of one percent (1%) of the member contribution and four percent (4%) of the employer contribution Employees hired, promoted or reclassified after July 1 2016 covered under this tier, shall pay four percent ON of their PERSable compensation toward the CalPERS employer contribution effective the date they are hired promoted or reclassified for a total of one percent 0%) of the member contribution and four percent ON of the employer contribution. D. It is understood that all contributions paid by the emplovee as described in Parts A through C above shall be calculated based upon the full base salary of the employee, plus any additional PERSable compensation and any Employer Paid Member Contributions (EPMC). E. The City pays EPMC for the various "Tiers" as outlined above and reports the value of EPMC payments as special compensation The parties agree that to the extent permitted by law, this is special compensation and shall be reported as such pursuant to Title 2 CCR Section 571(a)(1)(F) as Value of Employer-Paid Member Contributions The parties also agree that the City has no additional obligation or costs should CalPERS the State or the IRS determine otherwise. The City adopted a resolution providing that all employee CalPERS contributions shall be deducted on a pre-tax basis to the extent permitted by law or IRS regulation All employee payments of the employer share are done pursuant to Government Code Section 20516(1) There shall be no sunset date to any provision in Section 30 F. The California Public Employees' Pension Reform Act of 2013 (PEPRA) - As it may from time to time exist, the PEPRA shall in its entirety be given full force and effect. Any provision in the 2014-201-78 MOU which contradicts any provision of the PEPRA shall be deemed null and void, with the contrary PEPRA provision(s) being given full force and effect. Therefore, no provision of PEPRA shall be deemed to impair any provision of the 2014-201-78 MOU or any MOU, Agreement, Rule or Regulation predating the 2014-201-78 MOU. PEPRA includes, but is not limited to, the provisions described below: Unit members hired on and after January 1, 2013, deemed to be a"new member"as defined in Government Code § 7522.04, shall individually pay an initial Member CALPERS contribution rate of 50% of the normal cost rate for the Defined Benefit Plan in which said "new member"is enrolled, rounded to the nearest quarter of 1%, or the current contribution rate of similarly situated employees, whichever is greater. Unit members who are "new members"and miscellaneous employees on and after January 1, 2013, shall be enrolled in the 2% @ 62 retirement formula (Govt. Code § 7522.20). Unit members who are "new members" on and after January 1, 2013, shall have ` final compensation" measured by the highest average annual pensionable compensation earned by the member during a period of at least 36 consecutive months (Section 7522.32.), and their retirement benefits shall be calculated based on"pensionable compensation" (Section 7522.10) rather than "compensation earnable" (Section 20636). G. In addition, the City has adopted the PARS Retirement Enhancement Plan generally described as .5% (one-half percent) at 55 or at 60, depending upon the employee's hire date, for all miscellaneous employees hired on or prior to December 31, 2012. To be eligible, employees must be at least age 56, have ten (10) years of full-time continuous service and retire from the City. This benefit will be paid to qualified retirees in addition to any CalPERS benefits to which they are entitled. SECTION 44: DEFERRED COMPENSATION Effective the first full pay period in July 2016 the City will match dollar for dollar up to $25 per month in deferred compensation for any RCCEA covered employee who pays up to $25 into deferred compensation through payroll deductions (Example: if an employee puts $25 per month of the pav they earned into deferred compensation then the City will match the amount up to the $25 maximum. and pay $25 towards that employee's deferred compensation) Effective the first full pay period in July 2017 the City will match dollar for dollar up to $50 per month In deferred compensation for any RCCEA covered employee who pays up to $50 into deferred compensation through payroll deductions These provisions are in addition to any other deferred compensation provisions in this MOU SECTION 44 45: ADOPTION of MOU This memorandum, between the City and the Rancho Cucamonga City Employees Association representing the Mid-Manager, Supervisory/Professional and General Employees bargaining units, was adopted on June 26, 2014. For The City of Rancho Cucamonga: For the Rancho Cucamonga City n Employees Association: o n . Gillison Andrew iller City Manager President RCCEA Date / Date Duly approved and adopted by the City Council at a public meeting this date of fLOJime 2015. Cit Clerk