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Home My WebLink About11/04/2003, C5 - ADDENDUM TO THE MEMORANDUM OF AGREEMENT BETWEEN THE CITY AND THE SAN LUIS OBISPO POLICE STAFF OFFIC 1 council M=d=Dftkt- -03. j acEnba RepoRt 'e.N. c� CITY OF SAN LUIS OBISPO FROM: Monica Moloney, Director of Human Resources Prepared by: Karen Jenny, Risk Manager)-) SUBJECT: ADDENDUM TO THE MEMORANDUM OF AGREEMENT BETWEEN THE CITY AND THE SAN LUIS OBISPO POLICE STAFF OFFICERS' ASSOCIATION CAO RECOMMENDATION. Adopt a resolution approving an Addendum to the Memorandum of Agreement between the City and the San Luis Obispo Police Staff Officers' Association. DISCUSSION The 2002-04 Memorandum of Agreement (MOA) between the City of San Luis Obispo and the San Luis Obispo Police Staff Officers' Association (SLOPSOA) included a re=opener to discuss changes to the City's contribution to the cafeteria plan for health insurance. After one meeting, a tentative agreement was reached with SLOPSOA that mirrors a recent tentative agreement with the Police Officers' Association (POA). Because of frequent transfers between associations it is reasonable to keep the City contribution at or near the same level between these two associations. This ensures that transfers are not viewed negatively due to a decrease in contribution to health premiums when a Police Officer is promoted to a position covered by SLOPSOA. The details of the tentative agreement for a three-tiered cafeteria contribution are as follows: Effective Effective Current July 2003 December 2003 Employee Only $290 $373 $415 Employee+1 $540 $663 $754 Family $690 $885 $995 The increase in the City's contribution is slightly more than the average increase in premiums from 2002 to 2003. For 2004,the increase represents a cost-sharing of the average premium increases,with the City picking up 80% of the increase and the employee absorbing 20%. Future contributions to health insurance premiums will be negotiated as part of the overall negotiations for a successor MOA beginning July 1,2004. CS " � j Council Agenda Report—San Luis Obispo Police Staff Officers' Association Page 2 Addendum to the Memorandum of Agreement FISCAL IMPACT The cost of the increase to the cafeteria plan contribution for fiscal year 2003-04 fiscal year is approximately $16,000. Funding for this is available within existing amounts projected for MOA adjustments in 2003-04. ALTERNATIVES Because the addendum complies with previous Council direction, is similar to tentative agreements recently reached with other units (including the POA), and demonstrates the City's and SLOPSOA's willingness and ability to craft a mutually satisfactory agreement in a timely and collaborative manner, no alternatives are presented for Council consideration. ATTACHMENTS Resolution Addendum G:Wgenda Reports\Addendum To SLOPSOA MOA For Cafeteria Contribution.Doc /1�� RESOLUTION NO. (2003 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO ADOPTING AND RATIFYING AN AMENDMENT TO THE MEMORANDUM OF AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE SAN LUIS OBISPO POLICE STAFF OFFICERS' ASSOCIATION FOR THE PERIOD OF JULY 19 2002—JUNE 309 2004 BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. The Addendum to the Memorandum of Agreement between the City of San Luis Obispo and the San Luis Obispo Police Staff Officers' Association, attached hereto as Exhibit"1" and incorporated herein by this reference, is hereby adopted and ratified. SECTION 2. The Finance Director shall adjust the Personnel Services appropriation accounts to reflect the negotiated compensation changes. SECTION 3. The City Clerk shall furnish a copy of this resolution and a copy of the executed Addendum approved by it to: Steve Tolley, San Luis Obispo Police Staff Officers' Association President and Monica Moloney, Director of Human Resources. Upon motion of , seconded by and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this 4th day of November, 2003. Mayor David F. Romero ATTEST: Lee Price, City Clerk r Resolution No. (2003 Series) Page 2 APPROVED AS TO FORM: Jon well, City Attomey Cs r� Exhibit "1'• ADDENDUM TO THE 2002-04 MEMORANDUM OF AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE SAN LUIS OBISPO POLICE STAFF OFFICERS' ASSOCIATION I. PURPOSE OF THIS ADDENDUM Article 28 of the 2002-04 Memorandum of Agreement(MOA) allowed negotiations to be re- opened regarding the City's contribution to the cafeteria plan for 2003. This addendum confirms the agreement of the parties to modify the MOA. Except as modified below, all other terms and conditions shall remain in full force and effect. -II. MODIFICATION OF CONTRIBUTION TO CAFETERIA PLAN Article 12, Health Care Insurance, Sections 11.1, 12.2 and 12.3 are modified as follows: '12.1 CONTRIBUTION City shall contribute the monthly amounts as set forth below for Cafeteria Plan benefits for each regular, full-time employee covered by this agreement. Less than full-time employees shall receive a prorated share of the City's contribution. The following contribution will be effective in July, 2003, for insurance covering the month of August, 2003: Employee $373.00 Employee Pius One $663.00 Family $885.00 Effective in December, 2003, for insurance covering the month of January, 2004, the contribution will be as follows: Employee $415.00 Employee Plus One $754.00 Family $995.00 The Cafeteria Plan amount is inclusive of mandatory dental and vision coverage. Employees shall be eligible for the City contribution set forth above based on the number of dependents they enroll in the PERS Health Benefit Program. Employees Addendum to 2002-2004 Memorandum of Agreement Page 2 San Luis Obispo Police Staff Officers' Association opting out of health coverage as provided for below shall also receive payment at the employee-only level.. 12.2. INSURANCE COVERAGE PERS Health Benefit Program The City has elected to participate in the PERS Health Benefit Program with the "unequal contribution option" at the PERS minimum contribution rates. The City's contribution toward retirees shall be increased by five(5%) percent per year of the City's contribution for the active employees until such time as the contributions for employees and retirees are equal. The City's contribution will come out of that amount the City currently contributes to employees as part of the Cafeteria Plan. The cost of the City's participation in PERS will not require the City to expend additional funds toward health insurance beyond what is already provided. In summary, this cost and any increases will be borne by the employees. Health.Insurance Coverage Optional_Participation Employees with proof of medical insurance elsewhere are not required to participate in the PERS Health Benefit Program and may receive the unused portion of the City's contribution (after dental and vision is deducted) in cash in accordance with the City's Cafeteria Plan. Those employees will not receive the City's minimum PERS Health benefit contribution. CITY OF SAN LUIS OBISPO SAN LUIS OBISPO POLICE STAFF OFFICERS' ASSOCIATION Monica Moloney Steve Tolley, President, SLOPSOA Director of Human Resources Karen Jenny, Risk Manager Joe Hazouri, Board Member Kris Dutra, Board.Member G:Woas\Police Staff Of$cers\Addendum To 2002-04 SLOPSOA MOA.Doc ��