2018/05/08 City Council Resolution 2018-068RESOLUTION NO. 2018-068
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROHNERT PARK
AUTHORIZING AND APPROVING AMENDMENT TWO TO THE MEMORANDUM OF
AGREEMENT BETWEEN THE CITY OF ROHNERT PARK AND THE ROHNERT PARK
PUBLIC SAFETY OFFICERS' ASSOCIATION (RPPSOA)
WHEREAS, on March 28, 2017, the City Council adopted Resolution No. 2017-035
approving and adopting a Memorandum of Agreement with the Rohnert Park Public Safety
Officers' Association (RPPSOA); and
WHEREAS, on April 24, 2018, the City Council adopted Resolution No. 2018-051
approving and adopting Amendment One to the Memorandum of Agreement with the Rohnert Park
Public Safety Officers' Association (RPPSOA); and
WHEREAS, the RPPSOA and City staff have met and conferred in good faith to amend
certain terms and conditions of the Agreement effective May 8, 2018; and
WHEREAS, staff prepared the attached Amendment Two (Side Letter Agreement dated
April 30, 2018) to the Memorandum of Agreement; and
WHEREAS, the attached Amendment Two (Side Letter Agreement dated April 30, 2018)
has been approved by representatives of RPPSOA.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Rohnert
Park that it does hereby authorize and approve Amendment Two (Side Letter Agreement dated
April 30, 2018) to the Memorandum of Agreement for the RPPSOA, effective May 8, 2018, which
is 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 AND REGULARLY ADOPTED this 81' day of May, 2018.
CITY OF ROHNERT PARK
Pam Stafford, Mayor
ATTEST:
Caitlin Saldanha, Assistant City Clerk
Attachment: Exhibit A
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Exhibit A
SIDE LETTER OF AGREEMENT
BETWEEN
THE CITY OF ROHNERT PARK
AND
THE ROHNERT PARK PUBLIC SAFETY OFFICERS ASSOCIATION
April 30, 2018
WHEREAS, the City of Rohnert Park ("City") and Rohnert Park Public Safety
Officers Association ("RPPSOA") are parties to a Memorandum of Agreement effective
April 2, 2017 through June 30, 2021 ("MOA");
WHEREAS, MOA Section 7.23(b) establishes "cost sharing" provisions agreeing
that employees in the bargaining unit will pay a portion of the City's required employer
contributions to Ca1PERS. As currently drafted, the cost sharing provisions are
implemented under Government Code Section 20516(f);
WHEREAS, the City and the RPPSOA now desire to amend the cost-sharing
provisions in Section 7.23(b)(ii) and (iii) of the MOA to implement the cost-sharing
provisions through CalPERS contract amendment process in order to establish the agreed
upon cost sharing amounts as employee contributions for all purposes, including but not
limited to Internal Revenue Code Section 414(h)(2) as permitted by law; and
WHEREAS, the City and RPPSOA desire to enter into this Side Letter of
Agreement related to Section 7.23(b) of the MOA.
NOW THEREFORE, the parties hereby agree to replace Section 7.23(b) of the
MOA in its entirety to read as follows:
7.23 Retirement Program
(b) The agreed upon employee cost sharing of employer costs described in this Section
7.23(b) (including all subsections), shall be implemented pursuant to Government Code
Section 20516.
i. RPPSOA Safety Employee Cost Sharing of Employer Costs Through June
30, 2018
Effective April 2, 2017, and through June 30, 2018, local safety members in
the bargaining unit participating in the 3% at 50 or 3% at 55 retirement plan
formulas (classic members) shall pay, through payroll deduction, the originally
required 9% member contribution, and an additional one percent (1%) of
PERSable compensation for a total contribution of ten percent (10%) toward
the cost of pension benefits. The cost sharing pursuant to this subsection (b)(i)
shall be implemented pursuant to Government Code Section 20516(f).
Page 1 of 3
RPPSOA Side Letter, April 30, 2018
ii. RPPSOA Safety Employee Cost Sharing of Employer Costs July 1, 2018
Through June 30, 2019
Effective the first day of the pay period that includes July 1, 2018, and
through June 30, 2019, local safety members in the bargaining unit
participating in the 3% at 50 or 3% at 55 retirement plan formulas (classic
members) shall pay, through payroll deduction, the originally required 9%
member contribution amount and an additional cost sharing amount of two
percent (2%) of PERSable compensation. Pursuant to this subsection (b)(ii),
employees will pay a combined total contribution amount of eleven percent
(11%) of PERSable compensation toward the cost of pension benefits. The
cost sharing established by this subsection (b)(ii) shall be implemented
pursuant to Government Code Section 20516(f) until the date authorized
through the Ca1PERS contract amendment process described in subsection
(b)(iv) below.
iii. RPPSOA Safety Employee Cost Sharing of Employer Costs Beginning
July 1, 2019, and Continuing Thereafter
Effective the first day of the pay period that includes July 1, 2019, and
continuing thereafter, local safety members in the bargaining unit participating
in the 3% at 50 or 3% at 55 retirement plan formulas (classic members) shall
pay, through payroll deduction, all amounts described in subsection 7.23(b)(ii)
above, and an additional cost sharing amount of one percent (I%) of PERSable
compensation for a total cost sharing amount of three percent (3%) of
PERSable compensation. Pursuant to this subsection (b)(iii), employees will
pay a combined total contribution amount of twelve percent (12%) of
PERSablc competrsation toward the cost of pension benefits (i.e. 3% cost
sharing plus the originally required 9% employee contribution amokinl). This
cost sharing arrangement whereby classic safety employees in the bargaining
unit pay 12% of PERSable compensation toward the cost of pension benefits
shall continue and constitute the status quo ante for all purposes and state
statutes after the expiration of this Agreement on June 30, 2021.
iv. Amendment to Ca1PERS Contract
The parties acknowledge that CAPERS mandates an election of unit members,
separate fioin ratification of this MOA, to provide for cost sharing by
Ca1PERS contract amendment pursuant to Government Code Section 20516.
As soon as administratively practicable, the City will initiate the CalPERS
contract amendment process to include the cost sharing agreements. The City
shall contact Ca1PERS to begin the contract amendment process for cost
sharing as set forth in subsection (b)(ii) above within 10 days of the City
Council's approval of the side letter establishing this subsection iv. To the
extent required by law and/or Ca1PERS rules or regulations, a second contract
amendment will be made to incorporate into the City's Ca1PERS contract the
additional cost sharing arrangement set forth in subsection (b)(iii).
Page 2 of 3
RPPSOA Side Letter, April 30, 2018
After approval and agreement from the bargaining unit and completion of the
City's amendment(s) to the CalPERS contract, employee contributions to the
employer's portion will be made and credited to each employee's account,
pursuant to law and any related CalPERS regulations. Prior to the completion
of the City's amendment(s) to the CalPERS contract incorporating the cost
sharing arrangements described in subsections (b)(ii) and/or (b)(iii), or if any
such CalPERS contract amendment(s) is not approved, the agreed upon cost
sharing shall be implemented outside of a CalPERS contract amendment as
authorized by Government Code Section 20516(f). The cost sharing described
in Section 7.23(b)(iii) shall extend beyond the expiration of this MOA and
constitute the status quo for all purposes until changed by mutual agreement of
the parties or as allowed by law. The Association and the City will take all
actions necessary to implement the pension cost sharing agreement described
in this subsection.
v. IRC Section 414(h)(2) Application to Cost Sharing By CalPERS Contract
As permitted by Internal Revenue Code Section 414(h)(2) and Government
Code Section 20516, unit members' CalPERS contributions established
pursuant to the City's CalPERS contract shall be paid with state and federal
income taxes deferred to the extent permitted by the Internal Revenue Code 26
U.S.C. Section 414(h)(2) and associated City resolutions.
This Agreement is contingent upon approval by the City Council.
For the City of Rohnert For the Rohnert Park Public
Park: Safety Officers Association:
Darrin fenkins,
City Manager
Page 3 of 3
RPPSOA Side Letter, April 30, 2018
Rick I3aics,
RPPSOA President