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Resolution No. 2013-044RESOLUTION NO. 2013-44 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING AND AUTHORIZING THE EXECUTION OF AN ADDENDUM TO THE MEMORANDUM OF UNDERSTANDING BY AND BETWEEN THE CITY OF VERNON AND THE VERNON POLICE OFFICERS' BENEFIT ASSOCIATION (EMPLOYEE GROUP 2) WHEREAS, the Vernon Police Officers' Benefit Association ("VPOBA") (Group 2) has been recognized as an employee organization pursuant to Resolution No. 4027; and WHEREAS, on June 19, 2012, the City Council of the City of Vernon adopted Resolution No. 2012-95 approving a Memorandum of Understanding ("MOU") executed by the VPOBA and Municipal Employee Relations Representative of the City of Vernon (the "MERR") for the period of July 1, 2012 through June 30, 2014; and 1. WHEREAS, the VPOBA and the City of Vernon desire to execute an addendum to the MOU to amend the VPOBA Retiree Medical/Dental Benefit Plan. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: SECTION 1: The City Council of the City of Vernon hereby finds and determines that the above recitals are true and correct. SECTION 2: The City Council of the City of Vernon finds that this action is exempt under the California Environmental Quality Act (CEQA), in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment. SECTION 3: The City Council of the City of Vernon hereby approves the Addendum to Memorandum of Understanding (the "Addendum") between the City of Vernon and the Vernon Police Officers' Benefit Association, in substantially the same form as the copy which is attached hereto as Exhibit A. SECTION 4: The City Council of the City of Vernon hereby authorizes the Municipal Employee Relations Representative and the Director of Human Resources to execute said Addendum for, and on behalf of, the City of Vernon and the City Clerk, or Deputy City Clerk, is hereby authorized to attest thereto. SECTION 5: The City Council of the City of Vernon hereby instructs the City Administrator, or his designee, to take whatever actions are deemed necessary or desirable for the purpose of implementing and carrying out the purposes of this Resolution and the transactions herein approved or authorized, including but not limited to, any nonsubstantive changes to the Addendum attached herein. SECTION 6: The City Council of the City. of Vernon hereby directs the City Clerk, or the City Clerk's designee, to send a fully executed MOU to Larry Gaytan, President of the Vernon Police Officers' Benefit Association. - 2 - SECTION 7: The Interim City Clerk, or Deputy City Clerk of the City of Vernon shall certify to the passage, approval and adoption of this resolution, and the Interim City Clerk,.or Deputy City Clerk, of the City of Vernon shall cause this resolution and the Interim City Clerk's, or Deputy City Clerk's, certification to be entered in the File of Resolutions of the Council of this City. APPROVED AND ADOPTED this 16`h day of April, 2013. - wit Name • T"7 " ' ""^Cormick Title: Mayor / Dana Reed Interim City Clerk / Depidty ty `_�- � APPROVED AS TO FORM: Zayn h14oussa, Deputy City Attorney - 3 - STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES ) I Dana Reed Interim City Clerk /. Deputy 94aty G1,eT4.^ f the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 2013-44, was duly passed, approved and adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Tuesday, April 16, 2013, and thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. Executed this -a day of April, 2013, at Vernon, California. (SEAL) V Dana Reed Interim City Clerk r s 1 - 4 - EXHIBIT A ADDENDUM TO MEMORANDUM OF UNDERSTANDING BETWEEN CITY OF VERNON O VERNON POLICE OFFICERS' BENEFIT ASSOCIATION July 1, 2012 through June 30, 2014 ADDENDUM TO MEMORANDUM OF UNDERSTANDING BETWEEN CITY OF VERNON AND VERNON POLICE OFFICERS' BENEFIT ASSOCIATION Parties to the Memorandum of Understanding Pursuant to Chapter 10 (section 3500 et seq) of Division 4, Title 1 of the Government Code and Resolution No. 4027, the Resolution for the administration of Employer -employee relations, the matters within the scope of representation that are set forth in this Memorandum of Understanding (MOU) have been discussed by and between representatives of the City of Vernon and the representatives of the Vernon Police Officers' Benefit Association (hereinafter "VPOBA") and except as otherwise specifically provided herein shall apply only to those defined in the aforesaid Resolution as "full-time and regular part-time employees in the Police Department except management and confidential employees" (Section 813(2) "Group 2"), otherwise known as Police Officers and Sergeants. This Addendum to the MOU constitutes a joint agreement by the Municipal Employee Relations Representative ("MERR") and the VPOBA, to be submitted to the City Council of Vernon for its determination and approval by one or more Resolutions or Ordinances as the City Council may deem fit and proper. The MERR and the Representative of the VPOBA have agreed that they will jointly urge the City Council of Vernon to adopt one or more Resolutions or Ordinances reflecting the changes in wages, hours, and other conditions of employment agreed upon in this Addendum. If approved, the terms agreed upon by this MOU shall be deemed in effect as of July 1, 2012, and shall expire at midnight on June 30, 2014. IN CONSIDERATION OF THE TERMS AND CONDITIONS HEREIN STATED, the VPOBA and the City of Vernon agree as follows: 1 ARTICLE SEVEN Section 4: Retiree Medical/Dental Benefit Plan Employees must retire from the City of Vernon under a Ca1PERS Benefit Formula (i.e. Age 50 or 57 Formula) to be eligible for Retiree Medical/Dental Benefits. The City shall pay up to $1,100 per month towards the employee's option of the City's medical and dental insurance programs for the employee and his/her eligible spouse in the classifications represented by the Vernon Police Officers Benefit Association who have been employed as sworn Peace Officers for a minimum of twenty (20) years and a minimum of 10 years of that service has been in the employment of the City of Vernon. The maximum $1,100 City contribution shall be applied only toward a city provided medical and dental premium plan payment and shall have no cash surrender value. The City's contribution toward the Retiree Medical/Dental Benefit Plan shall continue for said retired employee and eligible spouse up to the age of sixty-five (65). Upon reaching the age of sixty-five (65), the retiree and/or eligible spouse shall apply for Medicare coverage, whereupon the City's insurance shall become supplemental coverage. The City shall pay up to 100% of the cost to provide any Medicare supplemental medical and dental insurance plan offered by the City of Vernon, not to exceed $1,100 per month. The City will not be the primary insurance cagier once the retiree and/or employee reaches the age of sixty-five (65). If the retiree or eligible spouse fails to timely obtain and maintain Medicare coverage, the City shall not be required to provide any medical/dental benefits until such Medicare coverage is obtained and maintained. The maximum $1,100 City contribution shall be applied only towards a City sponsored Medicare supplemental medical and dental premium plan payment and shall have no cash surrender value. All retired employees with a minimum of ten (10) years of continuous uninterrupted service with the City may pay the City's premium cost for medical and dental insurance up to the age of sixty- five (65) after which time Medicare will become the primary insurance carrier. The retired employee may remain on the City's supplemental insurance to Medicare at his/her cost provided the retiree has timely obtained and maintains Medicare coverage. . Should the retired employee fail to pay his/her required cost of the insurance premium for the City's medical/dental benefit plan for any three (3) consecutive months of, should the coverage otherwise lapse for any reason other than City's non-payment, then the City's obligation to maintain the retiree's medical/dental benefit plan shall automatically terminate without the need for further notice. 2 CITY OF VERNON Mark Whitworth City Administrator / "MERR" Teresa McAllister Director of Human Resources Kristen Enomoto Assistant to the City Administrator Zaynah Moussa Deputy City Attorney Attest: Dana Reed Interim City Clerk Dated: SIGNATURE PAGE M VERNON POLICE OFFICERS' BENEFIT ASSOCIATION Larry Gaytan President Ignacio Estrada Vice -President Dated: OFFICE OF THE CITY CLERK 4305 Santa Fe Avenue, Vernon, California 90058 Telephone (323) 583-8811 April 30, 2013 Vernon Police Officers' Benefit Association Attn: Larry Gaytan, President 4305 Santa Fe Avenue Vernon, CA 90058 Re: Addendum to Memorandum of Understanding (Employee Group 2) — July 1, 2012 — June 30, 2014 Dear Mr. Gaytan: Transmitted herewith is a fully executed original of the Addendum to the Memorandum of Understanding approved by City Council on April 16, 2013, through Resolution No. 2013-44. If you have any questions regarding this matter, please call Mark Whitworth, at (323) 583-8811 ext. 398. Very truly yours, /feb ds Management Assi t Enclosure c: Daniel Calleros William Fox Teresa McAllister Mark Whitworth Resolution No. 2013-44 Agreement No. 13-021 E7Cclusivei5 Industrid ADDENDUM TO MEMORANDUM OF UNDERSTANDING BETWEEN CITY OF VERNON ..� VERNON POLICE OFFICERS' BENEFIT ASSOCIATION July 1, 2012 through June 30, 2014 ADDENDUM TO MEMORANDUM OF UNDERSTANDING BETWEEN CITY OF VERNON AND VERNON POLICE OFFICERS' BENEFIT ASSOCIATION Parties to the Memorandum of Understanding Pursuant to Chapter 10 (section 3500 et seq) of Division 4, Title 1 of the Government Code and Resolution No. 4027, the Resolution for the administration of Employer -employee relations, the matters within the scope of representation that are set forth in this Memorandum of Understanding (MOU) have been discussed by and between representatives of the City of Vernon and the representatives of the Vernon Police Officers' Benefit Association (hereinafter "VPOBA") and except as otherwise specifically provided herein shall apply only to those defined in the aforesaid Resolution as "full-time and regular part-time employees in the Police Department except management and confidential employees" (Section 8B(2) "Group 2"), otherwise known as Police Officers and Sergeants. This Addendum to the MOU constitutes a joint agreement by the Municipal Employee Relations Representative ("MERR") and the VPOBA, to be submitted to the City Council of Vernon for its determination and approval by one or more Resolutions or Ordinances as the City Council may deem fit and proper. The MERR and the Representative of the VPOBA have agreed that they will jointly urge the City Council of Vernon to adopt one or more Resolutions or Ordinances reflecting the changes in wages, hours, and other conditions of employment agreed upon in this Addendum. If approved, the terms agreed upon by this MOU shall be deemed in effect as of July 1, 2012, and shall expire at midnight on June 30, 2014. IN CONSIDERATION OF THE TERMS AND CONDITIONS HEREIN STATED, the VPOBA and the City of Vernon agree as follows: 1 ARTICLE SEVEN Section 4: Retiree Medical/Dental Benefit Plan Employees must retire from the City of Vernon under a Ca1PERS Benefit Formula (i.e. Age 50 or 57 Formula) to be eligible for Retiree Medical/Dental Benefits. The City shall pay up to $1,100 per month towards the employee's option of the City's medical and dental insurance programs for the employee and his/her eligible spouse in the classifications represented by the Vernon Police Officers.Benefit Association who have been employed as sworn Peace Officers for a minimum of twenty (20) years and a minimum of 10 years of that service has been in the employment of the City of Vernon. The maximum $1,100 City contribution shall be applied only toward a city provided medical and dental premium plan payment and shall have no cash surrender value. The City's contribution toward the Retiree Medical/Dental Benefit Plan shall continue for said retired employee and eligible spouse up to the age of sixty-five (65). Upon reaching the age of sixty-five (65), the retiree and/or eligible spouse shall apply for Medicare coverage, whereupon the City's insurance shall become supplemental coverage. The City shall pay up to 100% of the cost to provide any Medicare supplemental medical and dental insurance plan offered by the City of Vernon, not to exceed $1,100 per month. The City will not be the primary insurance carrier once the retiree and/or employee reaches the age of sixty-five (65). If the retiree or eligible spouse fails to timely obtain and maintain Medicare coverage, the City shall not be required to provide any medical/dental benefits until such Medicare coverage is obtained and maintained. The maximum $1,100 City contribution shall be applied only towards a City sponsored Medicare supplemental medical and dental premium plan payment and shall have no cash surrender value. All retired employees with a minimum of ten (10) years of continuous uninterrupted service with the City may pay the City's premium cost for medical and dental insurance up to the age of sixty- five (65) after which time Medicare will become the primary insurance carrier. The retired employee may remain on the City's supplemental insurance to Medicare at his/her cost provided the retiree has timely obtained and maintains Medicare coverage. Should the retired employee fail to pay his/her required cost of the insurance premium for the City's medical/dental benefit plan for any three (3) consecutive months or, should the coverage otherwise lapse for any reason other than City's non-payment, then the City's obligation to maintain the retiree's medical/dental benefit plan shall automatically terminate without the need for further notice. 2 lei Y11Y1]W11"W1130 -ft/ I AA Mark fhitworth City dmmistrator / "MERR" rr resa McAllisterector of Human Resources ZzLi::_ isten Enomoto Assistant to the City Administrator Zayn h oussa Deputy City Attorney Dated: _ L/�60 /,� SIGNATURE PAGE VERNON POLICE OFFICERS' BENEFIT ASSOCIATION ry Gaytan President Ignacio Estrada Vice -President Dated: CONTRACT/AMENDMENT SIGNATURE ROUTING FORM CONTRACT IS: ❑ FEDERAL ❑ PREVAILING WAGE ❑ COMPETIVE SELECTION & NOTICED RFP ❑ COMPETITIVE BID & NOTICED INVITATION TO BID ❑ EXEMPT FROM COMPETITIVE PROCESS (APPROVAL ATTACHED) ❑ SERVICES o MATERIALS o BUDGETED q OT BUDGETED �t� TOTAL CONTRACT VALUE: $ A Charge Aect. No(s) Amendment Value $ ❑ Contract is an Amendment to Contract No. (if Applicable) RESPONSIBLE DEPARTMENT PERSON: PHONE: �Y AUTHORIZATION: k Approved by Council on 11 —14 -90 6, (Check One) Resolution No. (if applicable) ❑ Approved by City Administrator on Note: Attach supporting documentation OAmendment Approved by _ (if applicable) ROUTING SEQUENCE: (Please Follow In Order — Do not use N/A) Initials Date (1) Responsible Department Person Checks substance of contract and assembles two (2) copies of Contract, required AA, insurance & bond documents, certifies compliance With Competitive Bidding and Purchasing Ordinance C\✓� • — /^J (2) Liability and Claims Approves insurance and sureties, if bonds required A� (3) Finance (Purchasing) , j f� (//_ j 2 ;7 /3 l Checks compliance with Competitive Bidding & Living Wage Ordinances And reflected in current budget (4) City Attorney Approves to form, bonds insurance included / r °k� contract as verifies and (5) City Signatory Signs behalf City / y all copies on of (6) City Clerk Attests signatures, numbers; files contract, insurance and bonds, and ll transmits duplicate original to contractor � d 2 Rev. 2/25113 RECEIVED MAR 2 1 2013 CITY CLERK'S OFFICE STAFF REPORT ADMINISTRATION DEPARTMENT DATE: April 16, 2013 TO: Honorable Mayor and City Council FROM: Mark C. Whitworth, City Administrator RE: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON, CALIFORNIA, APPROVING AN ADDENDUM TO AMEND THE MEMORANDUM OF UNDERSTANDING AS IT RELATES TO THE VERNON POLICE OFFICERS BENEFIT ASSOCIATION RETIREE MEDICAL/DENTAL BENEFIT PLAN Recommendation It is recommended that the City Council: 1) Find that approval of the proposed resolution approving an addendum to amend the Memorandum of Understanding as it relates to the Vernon Police Officers Benefit Association Retiree Medical/Dental Benefit Plan is exempt under the California Environmental Quality Act (CEQA) in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment. 2) Approve and adopt the attached resolution amending the Vernon Police Officers Benefits Association Retiree Medical/Dental Benefit Plan in compliance with the 2012-14 Memorandum of Understanding between the City and the Vernon Police Officers Benefit Association. 3) Authorize the City Administrator and Director of Human Resources to execute the attached Addendum to the 2012-14 Memorandum of Understanding between the City of Vernon and employees represented by the City of Vernon Police Officers Benefit Association. Background The City and the City of Vernon Police Officers Benefit Association (VPOBA) concluded labor negotiations on June 19, 2012 regarding wages, benefits and working conditions for the 2012- 2014 Memorandum of Understanding. As a product of the 2012-2014 negotiations, the City and the VPOBA agreed to continue negotiations regarding the City's Medical and Retiree Medical after the MOU was ratified and signed by both parties. Moreover, the VPOBA and the City agreed to examine all components of the City's medical and retiree medical insurance programs. If any agreements were ultimately reached and ratified by both parties relative to these specific sections, those agreements would then be incorporated into the MOU. This report recommends City Council approval of changes to Retiree Medical benefits and contract language incorporated into an agreement with the VPOBA. Attached is an addendum to the MOU for the employees represented by the VPOBA, which incorporates mutually agreed - upon provisions. The addendum covers the period of July 1, 2012 through June 30, 2014. Members of city staff, and representatives of the VPOBA, met and conferred, and reached agreement on the proposed contract language, subject to the approval of the City Council. Key provisions of the proposed agreement, presented for the Councils' approval include: • The City shall pay up to a maximum of $1,100 per month towards the employee's option of the City's medical and dental insurance programs for the employee and his/her eligible spouse. • To qualify, employees must have been employed as sworn Peace Officers for a minimum of 20 years and a minimum of 10 years of that service has been in the employment of the City of Vernon. • The premium plan payment shall have no cash surrender value. • Upon attaining the age of 65, retirees and their eligible spouses shall apply for Medicare coverage, whereupon the City's insurance shall become supplemental coverage to Medicare • All retired employees with a minimum of ten years of continuous service may continue under the City's medical and dental insurance and pay the City's premium cost. The City and the Association are continuing discussions and will be participating in a city-wide committee to examine all components of the City's Medical Insurance Programs. Fiscal Impact There is no additional fiscal impact to the adoption of the addendum as it relates to the Retiree Medical/Dental Plan. The fiscal impact remains approximately $66,800 per year and is already included in the departmental line item budget.