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2014/06/24 City Council Resolution 2014-075RESOLUTION NO. 2014 -075 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROHNERT PARK APPROVING THE TENTATIVE AGREEMENTS ON A THREE YEAR PROPOSAL AND RETIREE MEDICAL BENEFITS WITH SERVICE EMPLOYEES INTERNATIONAL UNION, LOCAL 1021 (SEIU) WHEREAS, the Service Employees International Union, Local 1021 (SEIU) has ratified the terms and conditions contained in their Tentative Agreements on a Three Year Proposal and Retiree Medical Benefits with the City of Rohnert Park (City) ; and WHEREAS, the City Council wishes to recognize and approve the terms and conditions of the Tentative Agreements on a Three Year Proposal and Retiree Medical Benefits with SEIU. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Rohnert Park that it does hereby approve the Tentative Agreements on a Three Year Proposal and Retiree with the SEIU which are attached hereto as Exhibit "A" and incorporated by this reference. BE IT FURTHER RESOLVED that the City Manager is hereby authorized and directed to execute documents pertaining to same for and on behalf of the City of Rohnert Park. DULY & REGULARLY ADOPTED this 24th day of June, 2014. :01�1- koH IN. ER 0 � ZkZN ATTEST: °Jo nne Buergler, City Clerk CITY OF ROHNERT PARK el oseph Callinan, Mayor Exhibit A: SEIU TENTATIVE AGREEMENTS ON A THREE YEAR PROPOSALAND RETIREE MEDICAL BENEFITS BELFORTE: ), 41 _ MACKENZIL: tO STAFFORD: G `�)` AHANOTU: Q CALLINAN: ��� AYES: NOES: ABSENT: ( 4 ) ABSTAIN: ( 0 ) Exhibit A to Resolution 2014 -075c CITY OF ROHNERT PARK' AND THE f% S.E.I.U. LOCAL 1021 2014 MOA NEGOTIATIONS 5 �f TENTATIVE AGREEMENT ON THREE YEAR PROPOSAL June 11, 2014 The City of Rohnert Park (the "City ") and the Service Employees International Union, Local 1021 ( "SEIU ") have negotiated and reached a tentative agreement on a successor Memorandum of Agreement ( "MOA "). No tentative agreement shall be a final agreement except as a part of a total package agreement between the parties. Both parties agree that final approval of the tentative collective bargaining agreement is subject to ratification by SEIU membership and the City of Rohnert Park City Council. 3. Holidays 3.1 Observed Holidays Employees shall receive the following twelve thirteen and one -half (12-1 -3'/2) holidays annually, specifically: "New Year's Day," January 1 The third Monday in January, "Martin Luther King Jr., Day" Friday preceding "President's Day" The third Monday in February, "President's Day" The last Monday in May, "Memorial Day" "Independent Day," July 4 The first Monday in September, "Labor Day" '�State Admission Day," Septel� The second Monday in October, "Columbus Day" "Veteran's Day," November 11 The fourth Thursday in November, "Thanksgiving Day" The day after "Thanksgiving Day" 12:00 Noon to 5:00 p.m. on Christmas Eve, December 24 (a total of four paid holiday hours) "Christmas Day," December 25 Every day proclaimed by the President, Governor or Mayor of the City as a public holiday and made applicable to City employees. Each day that the Governor declares a day of mourning or special observance as a holiday for State employees if the declaration makes it applicable to City employees. EXHIBIT A OAK #4852- 3173 -7371 v1 3.2 Floating Holiday In addition to the recognized holida s identified in Section 3.1 each eli 'ble em to ee shall be allocated one floating g oliday (equivalent to 8 hours for a full -time employee) per fiscal near on July 1st. Each employee hired prior to July I of each year shall be entitled to the floating holiday. Employees hired after July 1 will be entitled to the f` iAntiryrr hnlirlav girt .a nrA rita hariq. The floatin6r holiday must be taken prior to June 30th shall be no cash value for the floating holiday.. during. . em to ent or upon separation from the City. OAK #4852- 3173 -7371 vl 6.7 Insurance Coverage The City shall provide the insurance programs described in this Section. The City reserves the right to provide these insurance programs by self - insurance, through an insurance company or by any other method which provides the coverage outlined. Any premiums paid by the employee eligible for Section 125 will be deducted from the employee's pay on a pre -tax basis. These provisions will remain in effect during the term of the agreement unless the parties by mutual agreement agree to different insurance coverage including "cafeteria" style benefits plan. The Pafties Will Daft work togeth through the joint Labor Management Committee to diseuss options to develop and implement - x�tazcceFii�St�'re -benefits plan under — the prevision -v the internal 1?v Code seetion 125. Absent ffwtaal agFeement to an earlier date, the pai4ies will tar-g-et • (b) Health Insurance The City shall offer employees and their eligible dependents, a health insurance program under the terms set forth below: i. For the term of this agreement employees will have a choice of Kaiser Permanente (Traditional $20 Co -Pay Plan, Traditional $40 Co -Pay Plan and HSA) or Anthem Blue Cross Prudent Buyer Plan (Traditional $250 Deductable Plan and HSA) through REMIF or any other apprepfiat� comparable health plan offered by the City. ii. The City agfees -ta will contribute up to the following amount per month toward the cost of employee tower-ds medical insurance premiums for City's offered health plans an amount equal to 800 of the lowest health plan at the employee's enrollment level, exeluding tht Health Savings n, plans Enrollment Level 2014 -2015 2015 -2016 2016 -2017 Em to ee Only (Sin le) $469.00 $485.00 $500.00 Employee + 1 (Two Party) $938.00 $971.00 $1,000.00 Employee + 2 (Family) $1327.00 $1,373.00 $1,400.00 iii. The City shall provide a copy of the summary description of all health care programs offered by the City to each employee upon request. iv. Regular part-time employees may elect to participate in health insurance plans and the City will contribute a pro -rata amount (based on the allocation of the position) towards the premium. The part-time employee will be responsible for the balance of the premium through payroll deductions. If the part-time employee does not select coverage, no cash payment will be made in lieu of the insurance. OAK #4852- 3173 -7371 v1 New Section: 6.7 (c) Joint Commitment to Affordable Health Care Management Committee to review preliminary health care rates and discuss any potential changes to plan design to reduce costs Any changes to plan desiggs, including providers, will be made by mutual a Bement during the term of the MOU. However, changes necessitated by REMIF's transition from fully insured plans to self - insured plans are outside the scope of this agreement. The City is also willing to participate in discussions with SEW that could lead to the overall reduction in insurance costs. OAK #4852-3173-7371 vl 9. Salary Adjustments & Miscellaneous Pay 9.1 Salary Adjustments Salafies will not be subject to a general wage adjustment during the teFm ef this a Effective the first full pay. period in Jul 2014 all members shall receive a one -time patent of three percent (3%) of their tease salary. This is iton- pensionable. (b) Effective the first full pay period In July 2015, all members shall receive a one -time payment of three percent (3 %)of their base salary. This is non- pensionable. (c) Effective the first full pay period in Jul 2� 016,_ all members shall receive a three percent 3% increase to base salar y iii. ensionable com ensation. 9.2 Pay Day City shall distribute paychecks to employees by noon on payday. 9.3 Layoff Procedure (a) if the State of !-`.,l:f e o o i fiscal_er,si and substantial funds are extracted from the City or saless-tax -nevea.-nmes or other e sources deeline to a point whefe the City must eonsider a r-eduetien in staffing, agrees + this agreement R et and of r- s diseuss L + V address U n r salary issues (b) —The City and S.E.I.U. agree to clarify how Section 21, Layoffs and Section 22, Reinstatement in City Manager's Administrative Policy No. 1, Personnel Rules and Regulations shall apply to S.E.I.U. members. Total time employed by the City, not including temporary employment assignments, shall be used to determine the seniority of a given employee. Part- time employment shall be credited on a prorated basis. For example, half time employment during two weeks will be credited as one week of employment when determining seniority. In the event of a layoff, the City agrees to lay off employees according to seniority. The layoff order of employees within a given classification will be as follows: the employee with the least seniority will be subject to lay off first, the employee with the second lease seniority will be subject to lay off second, and so on. The employee with the most seniority will be the last employee subject to lay off within a given classification. In the event of employee reinstatement, the City agrees to reinstatement according to seniority. The reinstatement order of employees within a given classification OAK 114852- 3173 -7371 v1 will be as follows: the employee with the most seniority will be reinstated first; the employee with the second most seniority will be reinstated second, and so on. The employee with the least seniority will be the last employee to be reinstated within a given classification OAK #4852-3173-7371 vi 18. Term of Agreement 18.1 Effective Date This agreement shall is4e become effective on July 1, 24132014 through 48.2 TeirfrAnation Date This agreement will terminate on June 30, 24142017 unless extended by mutual agreement of the parties. 19. Succeeding Agreement Negotiations for the period commencing July 1, 24142017, shall begin on or before February 1, 294-420177 by which time S.E.I.U. shall submit its proposals to the City Manager. OAK #4852-3173-7371 vl Ratification Bonus Upon ratification of this Agreement by SEIU and the City of Rohnert Park, the City shall pay to each employee a ratification bonus of $500.00. This bonus will be paid in one lump sum in the first pay period for the fiscal year 20014 /15. The signing bonus is taxable, and all regular payroll taxes will be withheld. This ratification bonus is contingent upon ratification of this Agreement by SEIU prior to June 30, 2014. OAK #4852- 3173 -7371 vI FOR THE CITY 6v,ta. 6-1 (4 Timothy Davis Date Victoria Perrault Date OAK #4852-3173-7371 vl 6101W Date Date O'Donnell- Date PC 1--e �2 i 0 &IIAI DRAFT MULTI -YEAR PROPOSAL City of Rohnert Park and SEIU MOA Negotiations{ .! Retiree Medical Benefits June 11, 2014 Section 6.17 Retired, Deeeased and/or Permanently and moan„ Employees 1. Definition of Terms a. "Eligible Employee" means any regular full -time or rpZqlar art-time employee hired by the Citv before July 1. 2007. and who actively narticioates in and be eligible, to receive .a retirement allowance from Ca1PERS. b. "Retired Em to ee" or "Retiree" is a re lar full -time or regular art-time Ci employee hired before My 1,2007 who retires from the City and thereafter receives a retirement allowance from Ca1PERS. Retirement includes service retirement or disability retirement from the City of Rohnert Park. .. .A• _ 1. Definition of Terms a. "Eligible Employee" means any regular full -time or rpZqlar art-time employee hired by the Citv before July 1. 2007. and who actively narticioates in and be eligible, to receive .a retirement allowance from Ca1PERS. b. "Retired Em to ee" or "Retiree" is a re lar full -time or regular art-time Ci employee hired before My 1,2007 who retires from the City and thereafter receives a retirement allowance from Ca1PERS. Retirement includes service retirement or disability retirement from the City of Rohnert Park. Retiree Medical Language Proposal June 11, 2014 Page 2 of 9 e. "Continuous City service" is defined as being continuous regular full -time or regular part -time City employment for calculating length of continuous service and service credit endef this °° . Part-time (non- benefited) employment and approved unpaid leaves will not be used in calculating length of continuous service under this section. Any separation from City employment will void any previous accrual towards length of continuous service for purposes of this section, unless otherwise waived by the City Manager and due to extenuating circumstances. Layoffs with subsequent restoration and approved City paid leaves do not constitute separation from City service (and therefore will not void any previous accrual towards length of continuous service) for the purpose of this section. 2. Retiree Health Benefits a. Hired Before July 1, 2007 Before J anuary 15 2015 the City shall establish a Retiree Health Savings Account RHSA for each Eligible EmploMe and shall contribute $2.000.00 per year of Continuous City Service into the RI-ISA. For purposes of the service credit calculation, eligible employees shall receive service credit on a pro rata basis by month of service as of January 1, 2015. The City will ex lore rovidin alternative lan o tions to the RHSA includn 457 deferred compensation plans, and if feasible will offer such alternative plans to Eligible Employees. i. Eligible Employees Who Retire From the City on or After July 1, 2014 For Eligible EMIoyees who retire from the City of Rohnert Parr on or after July 1. 2014, Tthe City agrees to make a medical insurance premium contribution toward the applicable early retirement premium r- Medieafe eligible pi=eta;,,.,, in the amount of $500.00 per month until said Retired Employee reaches the ale of Medi -Care eligibility or elects to leave the City medical s sstem.as outlined in At-taelunent B, "Retiree Medioal insura nee Tables," as raodified a'l'ly to refleet e-hanges in the premium fates. Subject to the eligibility criteria of REMIF and /or insurance glans Eligible' Employees may participate as retirees at their own expense in the City's group health insurance. ii. Eligible Employees Who Retire Prior to January 1, 2015 elects established and funded on the date of retirement, or as near as practicable to that date. The Eligible Employee must make the election to retire prior to Janualy 1 2015 . in writing and provide a minimum of thirty, (30) days' notice to the Personnel Officer. OAK #4840 - 6047 -4651 v4 Retiree Medical Language Proposal June 11, 2014 Page 3 of ,9 Alternatively, Eligible Employees who meet the requirements set forth in Section 6.18 below may retire under the provisions of that section. :!!! 7: i TIY.TJ �eR!T.�ri�tiTiT�Ti MIN • V. Dental and Vision Benefits For Eligible Employees 4. The City agrees to provide /offer and pay to regular full -time or regular part-time employees hired before July lje- A, 2007, the premium(s) as provided for active employees for dental care, and vision care benefits for retired employees and one eligible dependents until the Retired Employee reaches the aee of Medi -Care clif-,ib lity or elects to leave the City medical system. Calculation of premium will be prorated for regular, part-time employees. 6 All dental care and vision care benefits provided under this Section 6.17(l) are subject to the characteristics of each individual benefit program. The life OAK #4840 - 6047 -4651 v4 FM7-, IS V. Dental and Vision Benefits For Eligible Employees 4. The City agrees to provide /offer and pay to regular full -time or regular part-time employees hired before July lje- A, 2007, the premium(s) as provided for active employees for dental care, and vision care benefits for retired employees and one eligible dependents until the Retired Employee reaches the aee of Medi -Care clif-,ib lity or elects to leave the City medical system. Calculation of premium will be prorated for regular, part-time employees. 6 All dental care and vision care benefits provided under this Section 6.17(l) are subject to the characteristics of each individual benefit program. The life OAK #4840 - 6047 -4651 v4 Retiree Medical Language Proposal June 11, 2014 Page 4 of 9 vi. Medical Contribution, Dental and Vision Benefits in the Event of Retired Employee's Death or Election to Leave the City Medical System. -7-. The benefits pfovided under- this seetion will continue for- sueh fetifed employees and th * ' I gistered domestie partner-, and legal dependents, if any, while said retifed employee is alive. In the event of the Retired Employee's death, coverage provided by the City to the Retired Employee will not continue for the survivors or dependent. children of the Retired Em to ee. spouse domestic partners until the spouse « domestic partner- di �� fefffis another- register •e' `a domestio paftiieFship. in addition, the id nde employee's this seetion,,A,ill eentinue for said retired or deeeased ehildr-on h qualify . an intefn 1 Revenue Serviee dependent until ..hill «0., r-eaeh the maximum age limit specified by state or- federal !aw, or- the spouse er.- I 9. Any retired employee who, after retirement from the City, becomes employed elsewhere and is covered by medical, life insur nee- health, dental or vision care benefits by his/her new employer, said coverage provided by the City to the retired employee will be considered secondary to the coverage provided by his /her new employer, his/her new employer's coverage shall be considered primary. Retired employees are required to notify the City's Human Resource Department of any additional insurance coveragefrom new employers. OAK #4840 - 6047 -4651 v4 �. OAK #4840 - 6047 -4651 v4 Retiree Medical Language Proposal June 11, 2014 Page 5 of,9 1. 3. Hired on or after July 1, 2007 (h) Beginning July 1, 2014, on a going forward basis, regular full -time or part-time City employees hired after- rwie 30 , "'n' on or after July 1, 2007 shall be eligible for the benefits described below in lieu of the benefits described in Sections 6.17(472) above: 1. Effective July 1, 2014, the City will increase the contribution from eeate $75.00 per month to $100.00 per month for active employees in paid status to a Retiree Health Savings Account (RHSA). The monthly contribution will end upon the employee's date of retirement or separation from the City. 2. The City's contribution to an employee's RHSA shall be considered vested as to an employee terminating City employment with tear- (10) five 5 or more consecutive years of City service. 3. Calculation of contribution will be prorated for regular part time employees. 4. Subject to the eligibility criteria of REMIF and/or insurance plans, employees hired after June 30, 2007 may participate as retirees at their own expense in the City's group health insurance. OAK #4840 - 6047 -4651 v4 Retiree Medical Language Proposal June 11, 2014 Page 6 of 9 ** City of Rohnert Park and SEIU, MOA Effective July 1, 2013 to June 30, 2014 ** 6476.18 Option for Eligible Employees Who Retire Prior to January 1, 2015 (a) The City agrees to make a medical insurance premium contribution- toward the applicable early retirement premium or Medicare - eligible premium as outlined in the attached "Appendix A: Insurance Premium Contribution Rate Schedule." Coverage will extend to eligible dependents. The City will provide such contributions only: 1. To regular full -time and regular part -time City employees hired before June 30, 2007 who have at least fifteen (15) years of continuous service with the City and who retire upon reaching retirement age or thereafter and are receiving a retirement allowance from CalPERS. Said employees shall be referred to as "Retired Employees." a. Employees with less than 15 consecutive years of service with the City receive no City fringe benefits, i.e., medical, dental, vision, life insurance at retirement; b. Calculation of premium will be prorated for regular, part -time employees; C. Employees must retire concurrent with termination of service with the City to be eligible for this benefit (no vesting); d. The City's share of the premium costs for all retirement benefits as described herein shall not exceed the amount described in the attached "Insurance Premium Contribution Rate Schedule," and shall not include payment of Medicare B premiums. 2. To regular full -time or regular part-time employees hired before June 30, 2007 who: a. Have at least ten (10) years of continuous service with the City; and; b. Are retired forthwith from the City of Rohnert Park service into Ca1PERS at the time of permanent or total disability, and; C. Are permanently and totally disabled from their occupation and unable to perform with reasonable continuity the material duties of their own occupation. After twenty -four (24) months if gainful employment is obtained in an occupation in which the material duties are reasonably fitted by education, training, experience and compensation to the occupation at the time of disability, the employee shall no longer be considered permanently and totally OAK #4840 - 6047 -4651 v4 Retiree Medical Language Proposal June 11, 2014 Page 7 of 9 disabled from their occupation. In such circumstances, benefits shall be discontinued. d. Said employees shall be referred to as "Retired Employees" except for the circumstance noted above in which the employee is no longer permanently and totally disabled. Coverage will extend to eligible spouse, registered domestic partner, and dependents. 3. To the surviving spouse, registered domestic partner, and legal dependents of a regular full -time or regular part-time employee hired before June 30, 2007 who died while a City employee after ten (10) or more years of continuous service with the City. Said employee shall be referred to as a "Deceased Employee." 4. The City agrees to provide /offer and pay to regular full -time or regular part-time employees hired before June 30, 2007, the premium(s) as provided for active employees at time of retirement for life insurance, dental care, and vision care benefits for retired employees and eligible dependents. Calculation of premium will be prorated for regular, part- time employees. 5. Benefits provided under this section shall be coordinated with Medi -Care, Medi -Cal, and any other welfare program available of which said benefit coverage shall be considered primary and City provided coverage in turn considered secondary. 6. All benefits provided under this section are subject to the characteristics of each individual benefit program. The life insurance to be provided will be the life insurance plan amount in effect and in accordance with the provisions of the life insurance program as of the date of employee's retirement. 7. The benefits provided under this section will continue for such retired employees and their spouse, registered domestic partner, and legal dependents, if any, while said retired employee is alive. In the event of the retired employee's death, coverage will continue for the spouse or registered domestic partners until the spouse or domestic partner dies, remarries, or forms another registered domestic partnership. In addition, the benefits provided under this section will continue for said retired or deceased employee's legal dependent children who qualify as an Internal Revenue Service dependent until said children reach the maximum age limit specified by state or federal law, or the spouse or registered domestic partner marries, or forms another registered domestic partnership whichever occurs earliest. OAK #4840- 6047 -4651 v4 Retiree Medical Language Proposal June 11, 2014 Page 8 of 9 Continuous City service is defined as being continuous regular full -time or regular part-time City employment only for calculating length of continuous service under this section. Part-time (non - benefited) employment and approved unpaid leaves will not be used in calculating length of continuous service under this section. Any separation from City employment will void any previous accrual towards length of continuous service for purposes of this section, unless otherwise waived by the City Manager and due to extenuating circumstances. Layoffs with subsequent restoration and approved City paid or unpaid leaves do not constitute separation from City service (and therefore will not avoid any previous accrual towards length of continuous service) for the purpose of this section. 9. Any retired employee who, after retirement from the City, becomes employed elsewhere and is covered by medical, life insurance, health, dental or vision care benefits by his/her new employer, said coverage provided by the City to the retired employee will be considered secondary to the coverage provided by his/her new employer, his /her new employer's coverage shall be considered primary. 10. Any spouse or registered domestic partner of a deceased employee or deceased retired employee who is receiving benefit coverage as provided under this section, becomes employed and is covered by medical, health, dental or vision care benefits by his/her employer, said coverage provided by City will be considered secondary to the coverage provided by the spouse's or registered domestic partner's employer, and his/her employer's coverage shall be considered primary. [Attach Appendix A Retiree Medical Insurance Table] OAK #4840 - 6047 -4651 v4 .. • _ UWAN �- _ [Attach Appendix A Retiree Medical Insurance Table] OAK #4840 - 6047 -4651 v4 Retiree Medical Language Proposal June 11, 2014 Page 9 of 9 FOR THE CITY Timothy Davis Date I Vi oria Perrault Date OAK #4840 -6047 -4651 v4 ( -/1-/V