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HomeMy WebLinkAboutReso 57-18 POA tentative agreement• • • J A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, APPROVING THE TENTATIVE AGREEMENT FOR A SUCCESSOR MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF MORRO BAY AND THE MORRO BAY PEACE OFFICERS' ASSOCIATION, INC. FOR THE PERIOD OF JULY 11 2018 THROUGH JUNE 30, 2020 THE CITY COUNCIL Morro Bay, California WHEREAS, the City of Morro Bay (City) has, and continues to, recognize the Morro Bay Peace Officers' Association, Inc. (MBPOA) as the sole exclusive employee organization for those City employees designated as being in the Law Enforcement Unit, including the classifications of Police Officer, Senior Officer, Corporal and Sergeant, for all matters concerning wages, hours and working conditions; and WHEREAS, the most recent Memorandum of Understanding (MOU) between the City and the MBPOA expired on June 30, 2018; and WHEREAS, the City labor relations representatives and MBPOA labor representatives successfully met and conferred to negotiate a successor MOU between the parties, pursuant to both the Meyers-Milias-Brown Act (MMBA) (Government Code Sections 3500-3511), and the City's Employer -Employee Relations Resolution No. 74-69, and have jointly prepared and executed the attached Tentative Agreement for a Successor MOU between the City and the MBPOA, for the period July 1, 2018 through, and including, June 30, 2020, which has been ratified by the MBPOA but remains subject to City Council determination and approval, which is made a part hereof by this reference; and WHEREAS, MMBA Section 3505.1 provides: "If a tentative agreement is reached by the authorized representatives of the public agency and a recognized employee organization, or recognized employee organizations, the governing body shall vote to accept or reject the tentative agreement, within 30 days of the date it is first considered, at a duly noticed public meeting. If the governing body adopts the tentative agreement; the parties shall jointly prepare a written memorandum of understanding;" and NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, the City Council accepts, approves and adopts the Tentative Agreement for a Successor MOU between the City and the MBPOA for the period of July 1, 2018 through and including June 30, 2020, a copy of which is attached hereto as Exhibit 1, and directs the parties to jointly prepare a written memorandum of understanding reflecting same to be brought back for City Council approval at a later date. Resolution No. 5 7- 18 Page 2 PASSED AND ADOPTED, by the City Council of the City of Morro Bay, at a regular meeting thereof held on the 10th day of July 2018, by the following vote: AYES: Irons, Davis, Makowetski, McPherson NOES: None ABSENT: Headding ABSTAIN: None L. IRONS, Mayor ATTEST: f✓1NS o� ANA SWANSON, City Clerk H TENTATIVE AGREEMENT Per California Government Code Section 3505.1 .Between The City of Morro Bay and Morro Bay Peace Officers' Association Inc. The current Memorandum of Understanding ("MOU") and related MOU Amendments between the City and the Morro Bay Peace Officers' Association Inc. ("MBPOA") expired by their own terms on June 30, 2018 ("MBPOA MOU 2016-18"). The parties began meeting on April 30, 2018 regarding a successor MOU. The parties reached an oral tentative agreement on the terms for a successor MOU, the deal points of which are set forth below and affirmed by the execution of this formal written Tentative Agreement by the parties' labor representatives. By executing this Tentative Agreement, the MBPOA further represents that this Tentative Agreement has been ratified by the MBPOA. This Tentative Agreement, however, shall not become effective until accepted, approved, and adopted by the City of Morro Bay City Council per California Government Code Section 3505.1, which provides: "lf a tentative agreement is reached by the authorized representatives of the public agency and a recognized employee organization or recognized employee organizations, the governing body shall vote to accept or reject the tentative agreement within 30 days of the date it is first considered at a duly noticed public meeting. A decision by the governing body to reject the tentative agreement shall not bar the filing of a charge of unfair practice for failure to meet and confer in good faith. if the governing body adopts the tentative agreement, the parties shall jointly prepare a written memorandum of understanding." All terms and conditions of the prior MBPOA MOU 2016-18 and any Amendments thereto shall be maintained unless expressly modified or changed herein until the successor MBPOA MOU is accepted, approved and adopted by City Council. 1. ARTICLE b — UVITIiii0LD1NG OF ASSOCIATION DUES AND INSURANCE The parties agree to a re -opener to negotiate the impacts of the United States Supreme Court decision in Janus v. AFSCME ((2018} 585 U.S. _) and the recently enacted AB 119 and SB 866 and any changes to be made accordingly in the MBPOA MOU. 2. ARTICLE 7 -TERM (Replace existing language] Two year contract July 1, 2018 to June 30, 2020. biBPdh Tv10U 20l &-20 TENTATIVE AGP.LEhgENT The parties agree to a re -opener to work on initiating a process in which the Unit members can donate to a time bank for Association business. ARTICLE 13 — 6EREAtFEME1VT (Replace existing lankxua> a with the foilawinM) Employees shaft be permitted to utilize three (3j days of paid bereavement leave, per occurrence, in the case of the death of members of the employee's immediate family (as defined in the Personnel Rules) where the funeral service will be held in state and five (5) days paid bereavement leave for funeral services held out-of-state. The three or five days shall be regardless of shift length, subject to a maximum of 12 hours per day. Any necessary extra time shall be taken from the employee's accrued sick leave. In cases where sick leave is exhausted, vacation time shall be charged. Paid leave beyond the initial three or five days is subject to department approval. 15.1.1 City agrees to increase its current cafeteria plan contributions by 1% effective July 1, 2018. 15.4 Parties agree to update this section to reflect that stated City contributions remain effective through June 30, 2019, but with a reopener to discuss any health provider rate changes effective calendar year 2019. 5. ARTICLE 18 —SALARIES (Replace existing languasel A. Far Unit members employed as of July 1, 2018, the City wit! pay aone-time, lump sum signing bonus payment of $600 to be paid the next full pay period after City Council approval and adoption of this Tentative Agreement. The lump sum payment shall not be PERSable compensation and shall be treated as off -salary schedule as defined under Section 571 of the California Code of Regulations. B. Effective retroactive to the pay period including July 1, 2018 for those employees still employed by the City upon City Council adoption of this Tentative Agreement, Longevity Pay shall be rolled into salary for all Unit classifications and eliminated as a separate pay item per the attached revised salary schedule. Article 19-Special Pay Practices Subsection 19.11 is thereby null and void moving forward and shall be deleted from the successor MBPOA MOU, C. Effective retroactive to the pay period including July 1, 2018 for those employees still employed by the Gty upon City Council adoption of this Tentative Agreement, the City shalt provide a Cost of Living Adjustment (COLA) increase to base salaries for all Unit classifications by 2% per the attached revised salary schedule. D. Effective the first full payroll period after City Council approval of a Ca(PERS Contract Amendment pursuant to Government Code section 20516 providing for payment by classic members (Tier 1 & Tier 2) of an additional 1% to CalPERS as cost sharing for a total classic employee contribution of 10% and PEPRA members (Tier 3) paying the statutorily mandated employee contribution rate of one half of the total normal cost or 13% of the employer cost, whichever is higher, the City shall provide an additional 1% COLA increase to base salaries for all Unit classifications. h4BP0A'v10U 20I %-20 TENTATIVE AGREEi4fENT � E. Effective July 1, 2019, the City shall provide a 2% COLA increase to base salaries for all Unit classifications with a condition precedent being that the City meets the following economic thresholds on three key revenue sources (Property Tax, Sales Tax and TOT) based on 10-year budget forecasts shown below: o Total major General Fund Revenues (Property Tax, Sales Tax and Transient Occupancy Tax) must meet or exceed the combined forecasted amount of $9,395,906 (matches 10-year forecast presented to Council in February 2017), These figures are based on current tax rates, Increased tax rates would not count towards increased revenue receipts for this purpose (currently 1% Property Tax, 1.0% City Sales Tax, 10% TOT), o The CaIPERS investment rate of return (i.e. "Discount Rate") to take effect in FY18-19 does not drop below rates announced on Dec 22, 2016, causing the City's contribution to CaIPERS to increase more than $100,000 beyond the current budgeted amounts for the General Fund. o The City does not become responsible, during FY18/19, for any state/federally imposed unfunded mandates from any external source(s) that require significant unplanned / un- forecasted General Fund expenditures) of more than $300,000 in a fiscal year, including significant natural disasters affecting the City. Any such expenditure will be counted as a reduction in the combined revenue amount discussed in this section on which the various conditions are based, resulting either in a lower employee bonus or reduction in the intended COLA increase to 1% or 0%, o For timing purposes, the COLA adjustment shall take effect on July 1, 2019 if the City determines, based on revenues received as of June 1, 2019, that it is reasonable to assume the combined receipts will meet or exceed the stated thresholds. If meeting the stated thresholds is not a reasonable assumption as of June 1, 2019, then the parties agree to wait for actual receipts to be posted which are normally by the end of August. If the thresholds are met at the time actual receipts are received, then the City agrees to implement the 2% COLA retroactive to July 1, 2019. o If total major General Fund Revenues are less than $71,000 below the forecasted amount (i.e. more than $9,32Z,906), then the COLA will still be 2%, effective July 1, 2019. if total major General Fund Revenues are between $71,000 and $141,999 below the forecasted amount (i.e. between $9,253,907 - $9,335,194), then the COLA will be 1%, effective July 1, 2019. If total major General Fund Revenues are $142,000 or more below the forecasted amount (i.e. less than $9,253,906), then there will be no COLA effective July 1, 2019, o If the conditions precedent described above are satisfied, and total major General Fund Revenues for FY ZO18/19 are above forecast, then in addition to the 2% COLA, 20% of the amount above the forecast amount will be divided equally by the number of full-time equivalent (FTE) employees then working at the City and paid to Unit members in the form of a one-time lump sum payment which shall not be PERSable compensation and shall be treated as off -salary schedule as defined under Section 571 of the California Code of Regulations. MBPOA htOtJ 2Q18-20 TENTATIVE AGREEAfENT 3 F. Effective the first full payroll period FY 2019/20 and subject to the same conditions precedent being that the City meets the economic thresholds in Subsection E above, and only after City Council approval of an additional CalPERS Contract Amendment pursuant to Government Code section 20516 providing for payment by classic members (Tier 1 & Tier 2) of another additional 1% to CalPERS as cost sharing for a total classic employee contribution of 11% and PEPRA members (Tier 3) paying the statutorily mandated employee contribution rate of one half of the total normal cost or 14% of the employer cost, whichever is higher, the City shall provide an additional 1% COLA increase to base salaries for all Unit classifications. Morro BaV Peace Officers' Association, Inc. Greg Gruich, President iv1BP0A MOU Z018-20 TENTATIVE AGitEEMENT 4 City of Morro Bay Tins, City Manager Sergeant Corporal Special Assignments: Detective School Resource Officer Senior Officer Police Officer I II u11,1►(t17�7 $ 78,089 $ 81,943 $ 86;093 $ 90,398 $ 94,918 $ 99,664 $ 66,357 $ 69,675 $ 73,159 $ 76,817 $ 80;658 $ 847691 65,747 $ 69,034 $ 72,486 $ 76,111 $ 79,916 $ 834912 $ 62,6I6 $ 65;746 $ 69,034 $ 72,485 $ 76,I10 $ 79,9I5 MBPOA MOU 2QI S?0 TENTATI VE AGREEMEN"f' S