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HomeMy WebLinkAboutCity Council - 2012-46 RESOLUTION NO. 2012-46 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH AMENDING THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY AND THE HUNTINGTON BEACH MANAGEMENT EMPLOYEES' ORGANIZATION (MEO),BY ADOPTING THE SIDE LETTER OF AGREEMENT WHEREAS, on May 21, 2007, the City Council of Huntington Beach adopted Resolution No. 2007-33 for the purpose of adopting the Memorandum of Understanding (MOU) between the City and the Huntington Beach Management Employees' Organization(MEO); Subsequent to the adoption of the MOU, the City of Huntington Beach and MEO agreed to changes,corrections, and clarifications to the MOU that are reflected in a Side Letter of Agreement between the City of Huntington Beach and MEO ("Side Letter of Agreement") attached hereto as Exhibit A and incorporated herein by this reference. NOW,THEREFORE,IT IS HEREBY RESOLVED by the City Council of the City of Huntington Beach as follows: Section 1. The Side Letter of Agreement attached hereto as Exhibit A is approved and adopted. Section 2. The Side Letter of Agreement amends the MOU between the City of Huntington Beach and MEO. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 2 0 t h day of August, 2012. Mayor REV AND APPROVED 'IN[ AT D"AND APPROVED Ci NIAliter /17 ir`e`ctor of Human Resources DROVED AS TO FORM: 1 � City Attorn Exhibit "A" - Resolution No. 2012-46 City of Huntington Beach SIDE LETTER AGREEMENT The Management Employees Organization ("MEO') and the City of Huntington Beach ("City') hereby agree to this side letter to the 12/20/06 — 12/19/08 Memorandum of Understanding ("MOU'), as amended by previous Side Letters, including the 12/17/07, 03/15/10, 11/7/11 and 03/05/12 Side Letters. The City and MEO agree that the following provisions of the MOU are amended to read as follows: ARTICLE I -TERM OF MOU The Term of the MOU is extended through December 20, 2012. ARTICLE XI— Retirement Benefits Public Employees' Retirement System Reimbursement and Reporting 1. Employee's Contribution Effective October 1, 2012, each employee, hired prior to December 21, 2012, covered by this Agreement shall be reimbursed once bi-weekly in the amount specified herein of the employee's base salary as a pickup of the employee's contribution, or portion of such contribution, to the Public Employees' Retirement System. The above PERS pickup is not base salary, but is done pursuant to Section 414(h) (2) of the Internal Revenue Code. Beginning of the Pay Employer Paid Member Employee Paid Share Period that includes: Contribution October 1 2012 1.25% - Miscellaneous 6.75% October 1 2012 2.25% - Safety 6.75% a.) Employees hired on or after December 21, 2012, shall not be reimbursed under this section, but shall pay 100% of the Employee share under the Safety (9%) or Miscellaneous (8%) retirement plan. Two-Tier Retirement i. If all other impacted units agree, and subject to CalPERS policy and procedures, the Association agrees to the implementation of a 2nd Tier MISCELLANEOUS Retirement Benefit Formula of 2% at 55 during the term of this agreement. The City and MEO shall meet and confer on any lesser retirement formula. All employees hired after the date of implementation of the 2nd Tier Retirement Benefit Formula shall pay 100% of the employee-share of CalPERS. ii. If all other SAFETY units agree, and subject to CalPERS policy and procedure, the Association agrees to the implementation of a 2"d Tier SAFETY Retirement Benefit Formula of 3% at 55 during the term of this agreement. The City and MEO shall meet and confer on any lesser retirement formula. All employees Exhibit "A" - Resolution No. 2012-46 hired after the date of implementation of the 2Id Tier Retirement Benefit Formula shall pay 100% of the employee-share of CalPERS. ARTICLE XII— LEAVE BENEFITS A. Leave With Pay 1. General Leave b. Eligibility and Approval General Leave must be pre-approved except for illness, injury or family sickness, which may require a physician's statement for approval. General Leave accrued time is to be computed from hire date anniversary. Employees shall not be permitted to take general leave in excess of actual time earned. Effective the beginning of the pay period which includes November 1, 2011, and continuing until the end of the pay period which includes December 20, 2012, employees shall not accrue General Leave in excess of seven hundred (700) hours. Employee's will not earn General Leave hours in excess of seven hundred (700) hours and shall not be paid the cash value of any additional hours beyond seven hundred (700) in their paycheck for the full duration of the time provided herein. Employees may not use their General Leave to advance their separation date on retirement or other separation from employment. Effective the end of the pay period which includes December 20, 2012, the parties agree to return to the original language contained in Article XII, Section I — General Leave, (b.) Eligibility and Approval of the MEO Memorandum of Understanding as of December 20, 2007. is All General Leave accruals exceeding 640 hours as of December 20, 2012, will not be eligible for cash-out, for cash out at separation or for overage payment. Employees separating City service through December 20, 2012 shall be limited to 640 hours of General Leave as final pay out. Side-Letter Implementation MEO agrees that these items (CaIPERS Pickup and Two Tier) will NOT sunset at the expiration of the MOU extension period and will remain in effect until a successor agreement is reached. The parties further agree to continue to meet and confer regarding additional items to be considered for inclusion within a successor MOU, including but not limited to, Article IX — Hours of Work/Administrative Leave, Article X— Health and Other Insurance Benefits, Article XIII (C) — Rules Governing Layoff, Reduction in Lieu of Layoff and Re-employment. The parties agree that the execution of this side-letter agreement may not be challenged by the Association or any employee it is recognized to represent through the City's grievance Exhibit "A" - Resolution No. 2012-46 procedure or in any other forum unless the challenge is based upon a factual allegation that the Agreement was the product of fraud, intentional misrepresentation or unlawful coercion on the part of City representatives. IN WITNESS WHEREOF, the parties have caused this SIDE LETTER AGREEMENT to be executed by and through their authorized officers on �& Huntington Beach City of Huntington Beach Management Employees' Organization Scott Field FrecYA. i on President ` Ci Manager Dated: / Dated: C-D Tom Graham Michele Warren Vice President Director of Human Resources r Dated: Dated: APPROVED AS TO FORM: 4nnifer . McGrathy Attorney Dated: Res. No. 2012-46 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, JOAN L. FLYNN the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a regular meeting thereof held on August 20, 2012 by the following vote: AYES: Shaw, Harper, Dwyer, Hansen, Carchio, Bohr, Boardman NOES: None ABSENT: None ABSTAIN: None Cit Jerk and ex-officio rk of the City Council of the City of Huntington Beach, California