HomeMy WebLinkAbout15-091 - Resolutions RESOLUTION NO. 15-091
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 SAN BERNARDINO PUBLIC
EMPLOYEES ASSOCIATION
WHEREAS, Representatives of the City of Rancho Cucamonga (City) and the San
Bernardino Public Employees Association — Teamsters Local 1932 (SBPEA) have met and
conferred pursuant to the provisions of the Meyers-MiIias-Brown Act (California Government
Code §3500, et seq.) with regard to terms and conditions of employment; and
WHEREAS, Representatives of the City and SBPEA 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 SBPEA 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. 15-091 - Page 1 of 2
PASSED, APPROVED, AND ADOPTED this 17" day of June 2015.
AYES: Alexander, Kennedy, Michael, Spagnolo, Williams
NOES: None
ABSENT: None
ABSTAINED: None
e nis Michael, Kiayor
ATTEST:
Q,14 U,4
J nice C. Reynolds, City Oferk
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" day of June 2015.
Executed this 18`" day of June 2015, at Rancho Cucamonga, California.
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J ce C. Reynolds, City C 9 rk
RESOLUTION NO. 15-091 - Page 2 of 2
SIDE LETTER OF AGREEMENT
BETWEEN THE CITY OF RANCHO CUCAMONGA AND
THE SAN BERNARDINO PUBLIC EMPLOYEES ASSOCIATION
The City of Rancho Cucamonga ("City") and the San Bernardino Public Employees Association
— Teamsters Local 1932 ("SBPEA") 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 2, 6, 28, 40, 41 and 42
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 2: COST OF LIVING ADJUSTMENT
There shall be no east of living adjustment (0%) fE�r the teFm of thjs��
Effective the first full pay period in July of 2017 All SBPEA covered employees will receive a
2% base salary increase
SECTION 6: 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 group, subject to the limitation that
no such monthly funding by the City shall exceed the following:
$995.60
B. EMPLOYEES HIRED AFTER JULY I. 1994
The City shall provide employee and family health insurance for all full-time continuous
employees within the bargaining group 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 the first full pay period after approval of the MOU by the City Council, 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.
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.
SECTION 28: RE'rIREMENT BENEFIT
Unit members whe do not meet the definition E)f "new membef" under the Galk;qmia Pab4ie
Employees� Pension R-et;nrin, Aiet Rf 2013 (PEPRA) (these unit membefs shall be referred to as
o5 retirement o
C _ C
e 55 retiFement plan
•'\ and ..hall be pf 'a a 1 benefits d ib L.d I
2134.4 2.3%. a55 11 FormiilR
,
1374 4t Level 1959
a
eightpays Ow narinal
C IPEnc .. embeFeentriba4 . pe, nom«, oT
^, effipleyees shall pay ene bpoint 0
PPP&Otive 'A'ith the fiEst full pay period in july 2015, employees NN411 ajsOpay4wo-peree+A
ucJc-[-rt]GSI-vclpvT
O
Cit. pays six pefeent /60/\ F h I CAPERS Member ib
Effective the first full pay period in july 2016, employees will pay an additional twR
pe t /20%\ of their DERSable eempensatien _a Leif n
0and City0
B. Tiff 2 Employees HiFed Between Septembef 1� 2010 and july 3� 2011
c 21334.4 2.5% at 55llamlt
§ 21374 4th Leer.959 Smp�j"m
Until the first rill pay pefied ' r I 20t c C' pays seven peFeent (Ion of the Reffflal
C-a.'PP.R-S rAemhercofitfibution; employee pays one epoint (11%)b
membef [IC)gil0 per Resolution pCTf
Effiective the first full pay period-in July 2015, empioyees wip pay an additional !Nvo
nerrent (20/) f ttie' DCDc titY atheiF then 1DDD0
fflpmllef
total ef three peFeent ^0 ), and City pays five pereent 0
n Fc 1 ..
(7ULA r their DCDC..blo d theiF C
/
p ), and Gity pays thFee percent o
of the normal
C. Tier 3 Employees Hired between july 4, 2011 and PeceinbeF 31, 2012, and Employees
Deemed "Cl, Fnembefs hiFedon-or after 7anuary 1 2013
c 21354 20% " "3I Ig�,1
1 71
4th Level 1959 Safvivor
§ 200:-37 YF Final CompensatielF,
City pays six:pereent O
one peFeentage point (I 0
) of the C-alPFRS membeF eeniFibution per Resolution 11 063.
Effective the fifst ftill pay period in july 2015, employees will pay an additional twe
nP (2%) r their DCDQ..ble eornpensatioii towards .L_:_ n_mr-nn Fnp _1_ -
0
) of the neFinal 0 J
and employee
P,14�eotivp, the 4�rst full pay peFied in jul), 2016, employees will pay an additienal twe
ReFeent ef ffigir DCDC til ,J their !' InCDS merAbef
Y
p
) of the nomial CAPERS Memberp
D. 1t is understood that Hil P.Rntributionst- -
paid by t YTI as a ' d ' Parts n L bI
G abeve shall be cadeulated haspd- upon the full base salaFy of the employee, plus any
additional DCDC.,t.k ...P .,
r era--rerrrt-tt3 ei=tetttfrettit6fk5
(EPN4G).
P. The Gity pays 9PN4C- far the varieus "Tiers" as outlined above and repoi4s the value of
b
sand shall be peeial compensation
repor >
agree that the Gity has ne additienal obligation or eo-1,.q should C-,FI'PPR-S, flie State oF the
me det.,_...ine otheF
The Gity shall adopt necessaFy resolutions related te the
b
fifst PHII pay peried in Aily of 2015 and the first full pay peried in in july of 2016.
The City adopted a FesolutieR providing that all empleyee CalPFRS eent-ibiltions shall be
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 lan commonly referred to as
the 2.5% at aae 55 retirement plan (""Fier 1" 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 Faired Before September 1 2010
& 21354.4 2.5% at 55 Full Formula
S 21574 4th Level 1959 Survivor
20042 1 Yr Final Compensation
1. Citv pays the normal eieht 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 ranee for at least 365 days prior to the first full pay period in Jul 2� 015
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 CAPERS 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 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 an additional two percent(2%) of their PERSable compensation
toward the Ca1PERS employer 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
employer contribution effective the date they are hired promoted or reclassified
4. Effective the first frill pay period in July 2016 any individual who has been at the top
step of their ranee for at least 365 days prior to the first full pay period in Julv 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 ranee for fewer than 365 days
prior to the first full pay period in July 2016, and receive a merit increase between the
first fill 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 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 CAPERS
employer contribution effective the date thev are hired promoted or reclassified
B. Tier 2 — Employees Hired Between September 12010 and July 3 2011
21354.4 2.5% at 55 Full Formula
5 21574 4th Level 1959 Survivor
20042 1 Yr Final Compensation
1. Citv pays seven percent (7%) of the normal CaIPERS member contribution employee
Pays one percentage point (1%) 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 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 two percent (2%) of their PERSable compensation toward
the CalPERS employer contribution for a total of one percent (I%) 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 emplover 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 l 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 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 CaIPERS emplover 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 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 313, 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 one percent (1%) of the member contribution and four percent
(4%) of the emplover contribution
Emplovees hired, promoted or reclassified after July 1 2016 covered under this tier,
shall pay four percent ON of their PERSable compensation toward the CaIPERS
emplover contribution effective the date they are hired promoted or reclassified for a
total of one percent (I0/ of the member contribution and four percent (4%) of the
emplover contribution.
C. Tier 3 —Emplovees Hired on or After July 4 2011
$ 21354 2% O 55 Full Formula
21574 4th Level 1959 Survivor
S 20037 3 Yr Final Compensation
1. City pays six percent (6%) of the normal CalPERS member contribution: employee
pays one percentage point (I%) of the CaIPERS member contribution per Resolution
11-063.
2. 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 Julv 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 CaIPERS emplover contribution for a total of one percent (1%) of the member
contribution and two percent (2%) of the emplover contribution
All individuals who have been at the top step of their ran(-,e 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 0%) of the member contribution and two percent (2%) of the
employer contribution.
Employees hired, promoted or reclassified atter Ihly 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 ranee for at least 365 days prior to the first full pay period in July 2017
and receives a merit step increase effective the first full pay period in Julv 2016 per
MOU Section 3B, shall pay an additional two percent (2%) of their PERSable
compensation toward the CAPERS 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 range for fewer than 365 days
prior to the first full pav period in July 2016. and receive a merit increase between the
first fill pav period in Julv 2016. and the first full pav period in July of 2017 per MOU
Section 313shall pav an additional 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 four percent
(4%) of the employer contribution
Employees hired, promoted or reclassified after .July 1 2016 covered under this tier,
shall pav four percent (4%) of their PERSable compensation toward the CalPERS
emplover contribution effective the date they are hired promoted or reclassified for a
total of one percent 0%) of the member contribution and four percent (4%) of the
employer contribution.
D. It is understood that all contributions paid by the employee as described in Parts A throuUh
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 "'biers" 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 Citv 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(8
F. There shall be no sunset date to any provision in Section 28.
G. 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
2014-20178 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 I. 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).
H. 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 40: DEFERRED COMPENSATION
Effective the first fill pay period in July 2016. the City will match dollar for dollar up to $25 pe
month in deferred compensation for any SBPEA covered employee who pays up to $25 into
deferred compensation through payroll deductions (Example if an employee puts $25 per month
of the pay 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 Citv will match dollar for dollar up to $50 per
month in deferred compensation for any SBPEA covered employee who pays up to $50 into
deferred compensation through payroll deductions
SECTION 40 41: ADOP riOv OF MOU
This memorandum, between representatives of the City and the San Bernardino Public Employees
Association, was adopted on September 17, 2014.
SECTION 44- 42: EFFECTIVE DATE
The provisions of this memorandum of understanding are effective July 1, 2014 and shall continue
for a three four-year period, ending June 30. 2-01-7 2018
For The City of Rancho Cucamonga: For the San Bernardino Public Employee
Association:
i
Gillison Brett Lance
City Manager SBPEA Teamsters Local 1932 President
7 i-
Date / Dat
/�7iG�u� �drf—v
Michael Moore
SBPEA Teamsters Local 1932
Business Representative
_4Z,I
Dat E
Duly approved and adopted by the City Council at a public meeting this date of f Aune 2015.
City Clerk