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2009/10/27 City Council Resolution 2009-110RESOLUTION NO. 2009 -110 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROHNERT PARK APPROVING THE SUMMARY OF TERMS AND CONDITIONS OF THE TOTAL TENTATIVE AGREEMENT WITH THE ROHNERT PARK EMPLOYEES' ASSOCIATION (RPEA) WHEREAS, the Rohnert Park Employees' Association ( "RPEA ") has ratified the terms and conditions contained in its Total Tentative Agreement with the City of Rohnert Park ("City"); WHEREAS, the RPEA has not yet finalized its agreement (e.g., Memorandum of Understanding) with the City; and WHEREAS, the City Council wishes to recognize and approve the Summary of Terms and Conditions of the Total Tentative Agreement with the RPEA. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Rohnert Park that it does hereby authorize and approve the terms and conditions contained in the attached Summary of Terms and Conditions of the Total Tentative Agreement with the RPEA to implement employment, wage and benefit changes. BE IT FURTHER RESOLVED that the City Council directs staff to prepare the Memoranda of Agreement in accordance with the terms and conditions. DULY AND REGULARLY ADOPTED this 27th day of October, 2009. ATTEST: sg POitNIP CITY OF ROHNERT PARK Mayor BELFORTE: AYE CALLINAN: AYE MACKENZIE: AYE STAFFORD: AYE BREEZE: AYE AYES: (5) NOES: (0) - ABSENT: (0) ABSTAIN: (0) Summary of Terms and Conditions of Agreementl Rohnert Park Employees Association Term: Two Years (July 1, 2009 through June 30, 2011) Wages: No cost of living adjustment (COLA) during the term of this Agreement. Furloughs: A furlough bank of 160 hours (representing 80 hours per each year of the Agreement) will be established for the term of the Agreement. Employee's monthly salary will be reduced by a percentage equal to approximately eight (8) hours per month between November 1, 2009 and June 30, 2011, representing a total of 160 hours. Use of the unpaid furlough bank hours shall not result in overtime costs for the City. This represents an approximate annualized reduction of 3.85 %.2 PERS Retirement: Effective July 1, 2011, newly -hired City employees will participate in the Ca1PERS 2% at 55 retirement program. Current employees participate in the 2.7% at 55 retirement program. Retirement Side Letter: The attached Side Letter Agreement between the City and RPEA extended certain benefits to employees retiring on or before August 28, 2009. The terms and conditions of the side letter shall be extended to all eligible employees. "Me, too" Agreement: If any salary or compensation increases are provided to other bargaining units during the period of this Agreement, recognizing that such agreements may not be exactly the same but comparable, RPEA will receive comparable compensation. 1 The purpose of the summary of terms and conditions is to provide an outline of the amendments to enable timely implementation of salary and benefit changes. The City does not intend this language to be final or to be used for purposes of clarifying management -labor issues. Final language of these terms and conditions will be incorporated in Memoranda of Agreement with the consent and agreement of employee bargaining units. 2 Implementation of the furloughs for FLSA - exempt. employees will differ from the implementation for non - exempt employees. The City shall meet and confer with RPEA about the implementation of the furloughs for this category of employees. The City of Rohnert Park and Rohnert Park Employees Association (RPEA) Side Letter Agreement August 26, 2009 The City and the Association have met and conferred regarding the retiree health care benefits for employees retiring on August 28, 2009 pursuant to a "Golden Handshake," (Government Code Section 20903). Retiring employees are eligible for retiree medical benefits as defined in the Section 6.19 of the Memorandum of Agreement. As the contribution level for retiree health care benefits is linked to the contribution for active employees, future City cost sharing levels for both employees and retirees are subject to modification. To address potential modification of contributions for employees retiring on or before August 28, 2009, the parties agree to the following: • For employees retiring on or before August 28I' .pursuant to the "Golden Handshake" agreement, the City agrees to "freeze" the City's formula for retiree health benefit in effect at the time of retirement for the period of time that the retiree continues to be eligible for, and receive, retiree medical benefits. For example, if the City will be providing the retiree with a contribution towards premium costs, equivalent to 80% of the lowest cost health plan at the employee's enrollment level up to employee + one dependent at the time of retirement, the City will maintain this formula for eligible medical plans, regardless of modifications that may occur to active employee contribution rates in future Memoranda ofAgreement. Provision of the contribution requires that the retiree meets all other eligibility requirements for participation in the medical plan. • The provisions of this Side Letter Agreement are limited to employees retiring on or before August 28, 2009 and shall not be applicable or precedent setting for current retirees or employees who may retire after that date. For the City: Date: 8/a 110q For the Association: dM11 46 Date: 10. 2-7 - 0 [DECEIVED AUG 2 7 2009 CITY OF PnHNFRT DAOk