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Resolution No. 2013-072RESOLUTION NO. 2013-72 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING AMENDMENT NO. 1 TO THE MEMORANDUM OF UNDERSTANDING BY AND BETWEEN THE CITY OF VERNON AND THE VERNON FIREMEN'S ASSOCIATION REGARDING RETIREE MEDICAL BENEFITS WHEREAS, the Vernon Firemen's Association ("VFA") has been recognized as an employee organization and have met and conferred with the Municipal Employee Relations Representative ("MERR") of the City of Vernon ("Ci_ty"); and WHEREAS, on June 19, 2012, the City Council of the City of Vernon adopted Resolution No. 2012-94 approving a Memorandum of Understanding ("MOU") executed by the VFA and the MERR for the period of July 1, 2012 through June 30, 2014; and WHEREAS, pursuant to Article Seven, Section 4 of the MOU, the City and the VFA agreed to continue negotiations regarding the City's Retiree Medical benefits after the MOU was ratified and signed by both parties; and WHEREAS, the City and the VFA have executed Amendment No. 1 to the MOU (the "Amendment") regarding retiree medical benefits, which incorporates mutually agreed -upon provisions; and WHEREAS, the City Council of the City of Vernon desires to approve the Amendment. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: SECTION l: 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 073113345 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 Amendment No. 1 to the Memorandum of Understanding (the "Amendment") between the City of Vernon and the Vernon Firemen's 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 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 Amendment attached. herein. SECTION 5: The City Council of the City of Vernon hereby directs the Interim City Clerk, or his/her designee, to send a fully executed Amendment to Dean Richens, President of the Vernon Firemen's Association. 2 073113445 2 073113445 SECTION 6: 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 6th day of August, 2013. Name: r^'. M rhael. Mr_Cormirl� Title: Mayor Yy ATTEA : ''Dana Reed' Interim City Clerk / Deputy City Clerk. APPROVED AS TO FORM: V-.--. ZayrAaj K. Moussa, Deputy City Attorney 3 073113445 STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES ) Dana Reed I, Interim City Clerk / ,D.ep..u.ty--amity ClerC cif the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 2013-72, 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, August 6, 2013, and thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. Executed this < day of August 6, 2013, at Vernon, California. f r;� (SEAL) I/` Dana Reed Interim City Clerk /;_-Deputy City Clerk 4 073113445 EXHIBIT A AMENDMENT NO. 1 TO MEMORANDUM OF UNDERSTANDING BETWEEN CITY OF VERNON VERNON FIREMEN'S ASSOCIATION July 1, 2012 through June 30, 2014 AMLNDMENT NO. I TO MEMORANDUM OF UNDERSTANDING BETWEEN CITY OF VERNON AND VERNON FIREMEN'S ASSOCIATION Parties to the Memorandum of Understanding, Pul'suant to Chapter 10 (section 3500 e/ scq) of Division 4, 'I'itle I of the Government Code. and Resolution No. 4027.. the Resolution for the administration of employer -employee relations. the matters yvithin the scope of representation that are set forth in this Memorandum of IlnderstandI1112 (MOU) have hcen discussed by and bemcen representatives of the City of Vernon and the representatives ol'thc Vernon Firemen's Association (hereinafter "VFA") and except as otherwise specifically provided herein shall apply only to those defined in the aforesaid Resolution as -ja]ll full-time and reLIular part-time employees in the Dire Department except management Cn7ployeeti .. This Amendment to the MOU constitutes a joint agreement by the Municipal Employee Relations Representati\c ("MFRR") and the VFA, 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 VFA 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 Amendment. if approved, the terms agreed upon by this Amendment to the MOU shall be deemed in effect as of.lul_y 1, 2012. rind shall expire at midnight on ,tune 30, 2014. The terms z:igreed upon by this Amendment to the Mot I shall not impact the joint agreement by the City and the VIA to continue negotiations regarding, active employee medical benefits.. currently set forth in Article 7, Section 3 of the MOU. If any agreements are ultimately reached and ratified 1)1the parties relative to employ�cc medical benefits, those agreements will then be incorporated into the MOU. lf„ however. tl-lerc is no mutual agreement reached betvecen the VI,A and the City io amend the employee medical hcnelltS set forth in the MOIJ. the terms of those benefits containecl 11.1 the MOtJ shall remain in full force and effect. IN CONSIDl RA'i ION OF THE TERMS AND CONDITIONS HEREIN STATED. the VFA and the CitN of Vernon agree that Article Seven. Section 4 ol' the MOt i is replaced in pertinent part as folIov%S: ARTICLE SEVEN Section 4: retiree Medical/Dental Benefit Plan Employees must retire from the City of Vernon under a CaIPFRS Benefit Formula (i.e. Age 50 or 57 Formula) to be clir.!ihlc for Retiree Medical/Dental Benefits. The City shall pad up to $1,100 per month towards the employee's HMO medical and dental insurance premium for the employee and his/her eligible spouse in the classifications represented by the Vernon I'iremen's Association who have been employed for a minim►nm of twenty (?Oj \'ears 01' continuous service with the City of Vernon. The maximum $1.100 Citv contribution shall be applied only, toward a city provided HMO medical and dental premium plan payment and shall have no cash surrender value. ]'he ('Ity's contrihui.ion toward the Retiree I-IMO Medical/Dental Benefit Plan shall continue for said retired employee and eligible spouse up to the age of sixty-five (65). lJpon reaching the age of sixty-five (65). tile: 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 ] 00°/, of the cost to prm I& any Medicare supplemental medical and dental insurance plan offiered by the City oI' 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 -live (65). tf 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 ape of'sixty- five (65) alter 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 mcclicaUdcnt,.xl benefit plan for any three (>) consecutive months or. should the coverage otherwise 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 terminatc without the need for further notice. lSigonatures Begin on Next Page]. CITY OF VE'RNON Clf' Administrator i -MFRR- Teresa McAllistel, DII-CCt0l- 01'I IL1111,111 RCSOLII-CeS Kristen I'llonloto Assistant to the (-'It% Administrator Wall MoLISSl DCPLIIV('Ity Attornc� SIGNATURE PAGE V E R N�O I R/E' M E N A,��Q, 0' Dean(Richtsns President Todd liewilt Vice -President APPR0VF,D AND ADOPTED BY THE CITY COUNCIL ON RESOLUTION No. Attest: Dana Reed Interim City Clerk Dated: PER ty of v rtio OFFICE OF THE CITY CLERK 4305 Santa Fe Avenue, Vernon, California 90058 Telephone (323) 583-8811 August 8, 2013 Vernon Firemen's Association Attn: Dean Richens, President 4305 Santa Fe Avenue Vernon, CA 90058 Re: Amendment No. 1 to Memorandum of Understanding —July 1, 2012 — June 30, 2014 Dear Mr. Richens: Please find enclosed a copy of the fully executed Amendment No. 1 to the Memorandum of Understanding approved by City Council on August 6, 2013, through Resolution No. 2013-72. If you have any questions regarding this matter, please call Mark Whitworth, at (323) 583-8811 ext. 398. Very truly yours, Deborah R. Juarez Records Management Assistant Enclosure c: William Fox "Teresa McAllister Mark Whitworth Resolution No. 2013-72 Agreement No. 13-065 E Cclusivefy Industriaf AMENDMENT NO. 1 TO MEMORANDUM OF UNDERSTANDING BETWEEN CITY OF VERNON AND VERNON FIREMEN'S ASSOCIATION July 1, 2012 through June 30, 2014 AMENDMENT NO. 1 TO MEMORANDUM OF UNDERSTANDING BETWEEN CITY OF VERNON AND VERNON FIREMEN'S ASSOCIATION Parties to the Memorandum of Understanding PUPSuant to Chapter 10 (section 3500 el seq) of I)Ivislon 4, Title I of the (ioverllment ('ode. and Resolution No. 4027, the Resolution tor- the administration ol' employer -employee relations, the matters within the scope ol'representation that are set lortll in this Memorandum of llnderstandin0 0/1"1) 11,1\c [)Cell discussed by and between representatives of the City of Vernon and the representatives of the Vernon Firemen's Association (hereinafter "VFA") and except as otherwise specifically provided herein shall apply only to those defined in the aloresaid Resolutloll as full-tilliC and rc2ular part-time employees in the Dire Department except management employees." phis Amendment to the MOU constitutes a joint agreement by the Municipal Fillployce Relations Representative ("MFRR") and the VFA, to be submitted to the ('itv Council of, Vernon for it determination and approval by one or more Resolutions or Ordinances as the City ('ouncil may deCm lit and proper. The MFIRR and the Representative of the VFA have agreed that they will jointly ►►roc the (,itv ('ouncil ot' Vcrnou to adopt one or more Resolutions or Ordinances reflecting the chamoes in wages, hours, and other conditions of employment agreed upon in this Amendment, [f approved, the terms agreed upon by this Amendment to the MOU shall be deemed in effect as of.luly 1, 2012, and shall expire at midnight on .lone 30. 2014. The terms aorccd upon by this Amendment to the MOt I shall not impact the joint agreenicnt by the ('ity and the VI"A to continue negotiations regarding active employee medical benefits. currently set forth in .Article 7, Section of the MOl 1. (l* any agreements arc ultimately reached and ratified by the parties relative to employee medical benefits, those agreements will then he incorporated into the MOU. It; however, there is no mutual agreement reached between the VIA and the ('ity to amend the employec medical benefits set forth in the MC)U. the terms of those bcncfits contained in the MOU shall remain in full force and effect. IN CONSIDI'RA I ION OF TI IF TFIRMS AND CONDITIONS I IFREIN STA I VD. the VIA and the City of Vernon agree that Article Seven. Section 4 of the MOU is replaced in pertinent part as lollows: ARTICLE SFNTN Section 4: Retiree Medical/Dental Benefit Plan Fillployecs must retire fi,om the City of Vernon under a Call'FRS Benefit Formula (i.e. Age 50 or 57 Formula) to be eligible for Retiree Medical/Dental Benefits. -lhe CitN shall patiup to $1.100 per month towards the employee's IIMO medical and dental insurance premium for the emplo)ee and his/her eligible spouse in the classifications represented by the Vernon Firemen's Association who have been employed for a minimum of twenty, (20) years Of continuous service with the City of Vernon. The maximum $1.100 City contrihution shall he applied onl:� toward a city provided I IMO medical and dental premium plan payment and Shall have no cash surrender value. The City*s contrihution toward the Retiree IIMO Medical/Dental Benelit Plan shall continue for said rctircd employec and eligible spouse up to the age of sixty-five (65). Upon reachin�� the age of sixty-tiyc (05), the retiree and/or eligible spouse shall apply for Medicare coverage, whcrcupon the C'ity's insurance shall become supplemental coverage. The City shall pay up to 100'% of the cost to providc any Medicare supplemental medical and dental insurance plan offered by the (`ity of Vernon, not tocxcecd $1,100 per month. Hie City will not be the primary insurance carrier once the retiree and/or employee reaches the age of sixty-five (65). 11' the retiree or eligible spouse fails to timely obtain and maintain Medicare coverage, the City shall not he required to provide any mcclicalidental 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 Often (10) years ol' continuous uninterrupted service with the City may pay the City's premium cost Ior medical and dental insurance up to the age ofsixt}- five (65) after which time Medicare will become the primary insw-ance carrier. The retired employec may renu►in 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 hcnefit plan for any three (3) consecutive months or. should the coverage othervvisc lapse for anv 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 1,61- further notice. jSi3Onatures Begin on Next Pact. CITY OF XT R N 0 N CIK CI crcsa McAllister DIIVCtOr ()I'l ILHIM11 IZC,'OLII'CCS kristell I'lloilloto Assistant to the Ot\ Administrator /auall Nlotlslll,,l I)CI)Llt\ City Atturn�v SIGNATURE PAGE VERN(�'IRIFMEVS" President Todd Flewtit Vice -President APPROV 1: D,AND ADOPTI CMINCII. ON August 6, 2013, Pj,'R RFSOH ITION No. 2013-72 Attu Dana [��d Interim Ot\ Clerk Dated: `' �__A / J �`r OF �'Eq1^ �� y'I011h 0 i A��t nll 4n "o�oi t .f/ IeP `m'V£LY IN�J6 u J4a STAFF REPORT CITY ADMINISTRATION Cl-'NCL RKYSf r'4 DATE: August 6, 2013 TO: Honorable Mayor and City Council FROM: Mark C. Whitworth, City Administrator RE: A RESOLUTION OF THE CITY COUNC OF THE CITY OF VERNON, CALIFORNIA, APPROVING AMENDMENT NO. 1 TO THE, MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF VERNON AND THE VERNON FIREMEN'S ASSOCIATION AS IT RELATES TO RETIREE MEDICAL BENEFITS Recommendation It is recommended that the City Council: I ) Find that adoption of the resolution proposed in this staff report is exempt under the California Fnvironmental Quality Act (CFQA) in accordance with Section 15061(b)(3), the general rule that CFQA only applies to projects that may have an effect on the environment. 2) Adopt the attached resolution approving Amendment No. I to the 2012-2014 Memorandum of Understanding between the City and the Vernon Firemen's Association regarding Retiree Medical Benefits. Background The City and the Vernon Firemen's Association (VFA) 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 VFA agreed to continue negotiations regarding the City's Medical and Retiree Medical after the MOU was ratified and signed by both parties. Moreover, the VFA 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 VFA. Attached is an amendment to the MOU for the employees represented by the VFA, which incorporates mutually agreed -upon provisions. The amendment covers the period of .July 1, 2012 through June 30, 2014. Members of city staff and representatives of the VFA 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 include: • The City shall pay up to a maximum of $1,100 per month towards the employee's HMO medical and dental insurance premium for the employee and his/her eligible spouse. • To qualify, employees must retire from the City with a minimum of twenty (20) years of continuous service with 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 employees who retire from the City with a minimum of ten years of continuous service may continue under the City's medical and dental insurance plan and pay the City Is premium cost. The City and the Association are continuing discussions and will be participating in a citywide committee to examine all components of the City's Medical Insurance Programs. Fiscal Impact Because of the 2012-2013 Early Retirement Incentive Program, staff does not anticipate additional retirements prior to June 30, 2014, when the 2012-2014 MOU with the VFA will expire. Therefore, no fiscal impact is anticipated. Should any employees retire under the proposed Retiree Medical provision, the maximum fiscal impact would be $13,200 per retiree per year.