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2009/10/27 City Council Resolution 2009-111RESOLUTION NO. 2009 -111 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROHNERT PARK APPROVING THE SUMMARY OF TERMS AND CONDITIONS OF THE TENTATIVE OUTLINE OF CERTAIN CONDITIONS OF EMPLOYMENT, FRINGE BENEFITS AND SALARY ADJUSTMENTS FOR THE CONFIDENTIAL UNIT WHEREAS, the City Manager has discussed with the Confidential Unit the terms and conditions contained in its Tentative Outline of Certain- Conditions of Employment with the City of Rohnert Park ( "City "); WHEREAS, the City Council wishes to recognize and approve the Summary of Terms and Conditions of the Tentative Outline with the Confidential Unit. 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 Tentative Outline of Certain Conditions of Employment with the Confidential Unit to implement employment, wage and benefit changes. BE IT FURTHER RESOLVED that the City Council directs staff to prepare the Outline of Certain Conditions of Employment in accordance with the terms and conditions. DULY AND REGULARLY ADOPTED this 27th day of October, 2009. 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) Confidential Unit Term: Two Years (July 1, 2009 through June 30, 2011) Wages: No cost of living adjustment (COLA) during the term. Furloughs: A furlough of 160 hours (representing 80 hours per year) will be established for the term of the Outline. Implementation of the furlough will be based on FLSA status and shall be consistent with the implementation for employees represented by the Rohnert Park Employees Association (RPEA). This represents an approximate annualized reduction of 3.85 %. PERS Retirement: Effective July 1, 2011, newly -hired City employees will participate in the CAPERS 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 of the confidential unit. 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. Final language of these terms and conditions will be incorporated in an Outline of Benefits. 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 28t' .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 of Agreement. 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: ff/a � 0q For the Association: Date: 10. 2-7 - 09 RECEIVED AUG 2 7 2009 C11Y OF ROHNERT PARK