CITY COUNCIL AGENDA REPORT DEPARTMENT: City Manager’s Office MEETING DATE: June 20, 2017 PREPARED BY: Oliver Chi, City Manager / AGENDA LOCATION: AR-1 Lauren Vasquez, Deputy City Manager TITLE: Memorandums of Understanding with all Employee Groups; Amendment to Personnel Rules and Regulations, Appendices “A,” “B,” “C,” “D,” “G,” and “H,” to Provide for Compensation and Supplemental Benefits for Certain Employees for Fiscal Years 2017–2022, Resolution No. 2017-28 OBJECTIVE: To adopt Resolution No. 2017-28, thereby approving the negotiated five-year Memorandums of Understanding between the City and the Monrovia Firefighters’ Association (MFA), Monrovia Municipal Employees’ Association (MMEA), Monrovia Police Officers’ Association (MPOA), the Monrovia Mid-Management Group (Mid-Management), the Monrovia Management Group (Management), and Elected & Appointed Officials (E&O) BACKGROUND: During the past several months, staff has been engaged in the meet and confer process with all of the City’s represented bargaining units in an effort to negotiate updated labor agreements. Our current Memorandums of Understanding (MOUs) with MFA, MMEA, MPOA, Mid- Management, Management, and E&O are all set to expire on June 30, 2017. Based on our progress made to date, the City has been able to reach agreement with all bargaining units on new labor agreements that extend for a five-year period through June 30, 2022. In addition, all of the City’s bargaining units are in the process of formally adopting the drafted MOUs, with certification scheduled pending City Council consideration of the proposed agreements. ANALYSIS: In total, the proposed MOUs for all bargaining units constitute equitable, fair, and responsible labor contracts. The negotiated agreements achieve key priorities identified by both the City and by our employee groups, and include the following key proposed changes: . Five-year agreements with all employee groups through June 30, 2022 . Establishment of a formal IRS Section 125 cafeteria plan for all employee groups through which medical insurance plans can be purchased . Adjust the City’s contribution towards the cafeteria plan for all employee groups except sworn members of the MPOA, as follows: o FY 2017/18 – increase from $800 / month to $930 / month o FY 2018/19 – increase from $930 / month to $1,060 / month o FY 2019/20 – increase from $1,060 / month to $1,190 / month o FY 2020/21 – increase from $1,190 / month to $1,320 / month o FY 2021/22 – increase from $1,320 / month to $1,450 / month . Adjust the City’s contribution towards the cafeteria plan for sworn members of the MPOA, as follows: o FY 2017/18 – increase from $1,250 / month to $1,290 / month AR-1 o FY 2018/19 – increase from $1,290 / month to $1,330 / month o FY 2019/20 – increase from $1,330 / month to $1,370 / month o FY 2020/21 – increase from $1,370 / month to $1,410 / month o FY 2021/22 – increase from $1,410 / month to $1,450 / month . End the City’s practice of paying for vision and dental insurance costs for each employee. Addition of language which prohibits the our bargaining units from identifying any of the funds provided through the Section 125 cafeteria plan from being recognized as regular rate of pay. Transition of all employee groups away from the defined benefit retirement health program by ensuring that all new employees are enrolled in a defined contribution retirement health program. Modest adjustments to ancillary benefits, including the educational incentive pay program, leave time accrual rate normalization between groups, and modest incentive pay changes. Of particular note, all of the adjustments included in the proposed MOUs have been carefully costed out, and the labor agreements under consideration increase personnel costs on average by 0.5% of payroll annually. ENVIRONMENTAL IMPACT: There are no environmental impacts associated with this action. FISCAL IMPACT: The total average annual cost of implementing the proposed agreements with MFA, MMEA, MPOA, Mid-Management, Management, and E&O is approximately $151,374. This equates to an average annual increase in personnel costs of 0.5%. Furthermore, all applicable costs related to the implementation of the terms contained in the new labor agreements have been incorporated into the approved Fiscal Year 2017/19 Budget. OPTIONS: The following options have been developed for City Council consideration: 1. Approve implementation of the negotiated agreements with MFA, MMEA, MPOA, Mid- Management, Management, and E&O. 2. Do not approve the proposed agreements and direct staff to continue negotiation efforts. RECOMMENDATION: Staff recommends that the City Council select Option 1, thereby approving the implementation of negotiated agreements with MFA, MMEA, MPOA, Mid-Management, Management, and E&O. COUNCIL ACTION REQUIRED: If the City Council concurs, the appropriate action would be a motion to adopt Resolution No. 2017-28. RESOLUTION NO. 2017-28 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MONROVIA, CALIFORNIA, AMENDING PERSONNEL RULES AND REGULATIONS, APPENDICES “A,” “B,” “C,” “D,” “G,” AND “H,” TO PROVIDE FOR COMPENSATION AND SUPPLEMENTAL BENEFITS FOR CERTAIN EMPLOYEES FOR FISCAL YEARS 2017–2022 RECITALS WHEREAS, Resolution No. 77-24 adopted a personnel system for the administration of elected and appointed employee compensation and benefits and such system provides for a classification and pay plan to equitably compensate employees of the City; and WHEREAS, it is in the best interests of the City to adjust from time to time the salaries and benefits of employees of the City so as to retain qualified and competent personnel for the administration of City affairs. NOW, THEREFORE, BE IT RESOLVED, that Appendices “A,” “B,” “C,” “D,” “G,” and “H” of Resolution No. 77-24, the Personnel Rules and Regulations are hereby amended to adjust supplemental benefits for certain employees as indicated in the attached documents. PASSED, APPROVED AND ADOPTED on this 20th day of June, 2017. Tom Adams, Mayor City of Monrovia ATTEST: APPROVED AS TO FORM: Alice D. Atkins, CMC, City Clerk Craig A. Steele, City Attorney City of Monrovia City of Monrovia MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF MONROVIA AND THE MONROVIA FIREFIGHTERS’ ASSOCIATION JULY 1, 2017 – JUNE 30, 2022 MEMORANDUM OF UNDERSTANDING MONROVIA FIREFIGHTERS’ ASSOCIATION FISCAL YEARS 2015-2017 APPENDIX A No. SECTION I GENERAL............................................................................................ A-1 SECTION II RECOGNITION.................................................................................... A-1 SECTION III MANAGEMENT RIGHTS & RESPONSIBILITIES................................ A-1 A. Management Rights.................................................................. A-1 SECTION IV EMPLOYEE ORGANIZATIONAL RIGHTS & RESPONSIBILITIES ............................................................................ A-2 A. Dues Deduction ........................................................................ A-2 B. Indemnification.......................................................................... A-2 C. Time Off for Meeting and Conferring......................................... A-3 D. Time Off for Association Business ............................................ A-3 SECTION V WORK STOPPAGE PROHIBITION ..................................................... A-3 A. Prohibited Conduct ................................................................... A-3 B. Association Responsibility......................................................... A-4 SECTION VI GRIEVANCE PROCEDURES .............................................................. A-4 A. General..................................................................................... A-4 B. Purpose of Grievance Procedure.............................................. A-4 C. Matters Subject to Grievance Procedure................................... A-4 D. Probationary Employees........................................................... A-4 E. Grievance Procedure................................................................ A-4 F. Conduct of Grievance Procedure.............................................. A-6 G. Information to be Provided........................................................ A-6 H. Consolidation of Grievances ..................................................... A-7 SECTION VII DISCIPLINARY ACTIONS ................................................................... A-7 A. Definition................................................................................... A-7 B. Notice ....................................................................................... A-7 C. Response to Charges ............................................................... A-7 D. Final Notice............................................................................... A-8 E. Representation ......................................................................... A-8 F. Right to Appeal ......................................................................... A-8 G. Appeal Procedures ................................................................... A-8 No. SECTION VIII HOURS OF WORK .............................................................................. A-9 SECTION IX SALARIES & COMPENSATION........................................................ A-10 A. Salaries................................................................................... A-10 B. Application of Salary Ranges .................................................. A-11 C. Special Assignments..............................................................