HomeMy WebLinkAboutDepartment Head Unit - 091813 a - - -
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MEMORANDUM OF UNDERSTANDING I
Department Head Unit
2013 - 2015 I
This Memorandum of Understanding is entered into pursuant to the Meyers-Millias-Brown Act(Califomia �
Government Code Section 3500, et. seq.) and applicable ordinances and resolutions of the City of Ukiah,
between the City of Ukiah (hereinafter City) and the Department Head Unit (hereinafter Unit). As a
result of ineet and confer sessions, the City and Unit have agreed to the following understandings.
1. 5% Reduction
The City Council has asked for a 5% ongoing reduction in salary and/or benefits to enable the
Department Head Unit to reduce its dependency on the General and Enterprise Funds by 5%, or
$62,142. Effective the first full pay period following adoption of the MOU, the Department Head Unit
will reduce salary/benefits in the amount of $62,142 as follows:
1. Elimination of 11% Merit Pay ($94,213.19); I
2. Elimination of the corresponding PERS costs on the 11% Merit Pay ($22,962); and �'
3. Management Incentive Pay will become non-PERS reportable ($12,037).
Management Incentive Pay hours may either be taken as time off or cashed out. I
� SUBTOTAL SAVINGS = $129,212 I
To reduce the total City savings closer to the targeted $62,142, the following is proposed: �
4. Effective the first full pay period following adoption of the MOU, City to increase monthly health
insurance contribution from $596.67 to $1,529.00 per month, per Department Head (+ $67,070).
TOTAL CITY SAVINGS = $62,142
2. Barqaininq Unit Paritv Aqreement
Agreement to the 5% reduction is predicated on an equivalent ongoing reduction is accepted by the
following bargaining units/members: City Manager, Fire Unit, Police Unit, Police Captains, Public
Safety Chief, Management Unit and Miscellaneous Unit.
• As of December 31, 2013, or at any point during the term of this agreement, should the reduction
be less than a 5% equivalent for any of the identified bargaining unit/members, the City shall I
adjust the reduction for the Department Head Unit to a reduction equivalent to an amount equal to i
the lesser of any reduction for any one of the identified bargaining members. ;
. The restoration of any reduction shall be calculated at an equivalent dollar amount and applied to
the monthly health contribution for each Department Head Unit member.
. Should furloughs be agreed upon with any unit, each member of the Department Head unit shall
receive the equivalent amount of vacation hours added to their accrual. If this addition of vacation
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hours occurs, the vacation "maximum accrual" shall be increased by the same amount equal to
the additional hours.
. Furthermore, the City shall retroactively refund in a lump sum payment to each Unit member an
equivalent amount equal to the lesser reduction amount from when the initial reduction was
applied to the effective date of the lesser reduction.
. It is further understood that the City shall retroactively refund in a lump sum payment to each
Department Head Unit member the dollar amount equivalent to the time lapse between the date
the unit agreed to the reduction in comparison with the date the last unit agreed to a reduction.
. FOR EXAMPLE: Should this new MOU be adopted on August 7, 2013, and the last Unit to agree
to a reduction is adopted on October 2, 2013, Unit members would receive the lump sum payment
for four (4) bi-weekly pay periods.
. In accordance with CaIPERS law, this one-time payment will not be reported as "pay rate" or
"special compensation" and will not be reported to CaIPERS for the purposes of pension
calculations.
3. Cost Sharina Aareement
For FY 2013-14 and FY 2014-15, the Unit agreed to concessions and the City agreed to restore and
refund an amount equivalent to a portion of revenue if actual revenues exceed adopted budgeted
revenues in the General Fund according to the formula listed in the sections below. Given that the
formula is based on fiscal year audited revenues, the provisions of this section shall remain in full
effect beyond the two year term of this agreement until the audit is completed and available for the
purposes of implementing this section of the MOU.
This provision provides for the restoration and refund of the concession amount should the total
audited revenues of each fiscal year corresponding to the term of this agreement exceed the adopted
budgeted revenues of the General Fund for Fiscal Year 2013-14 by $100,000 or more.
. The City shall restore an amount equivalent to a percentage calculated by taking the difference in
audited revenue for each corresponding year of this MOU and the base year revenue adopted in
the FY 2013-14 General Fund Budget and dividing the absolute value by the adopted General
Fund FY 2013-14 identified deficit. This shall occur the first full pay period following the City
Council's receipt of the audit.
EXAMPLE:
(Audited GF Revenue' - Base Year Adopted FY 13-14 GF Revenue`) _ "% of Concession
Adopted FY 2013-14 GF Deficit
Retumed"
' Audited GF Revenue for the corresponding agreement year
Z Base Year GF Revenue as identified in adopted the FY 13-14 Budget
�$14,375,555), Page ES-6 i
GF Deficit as adopted in FY 13-14 Budget ($978,894)
, . The restoration shall be applied to the monthly health contribution at an amount equivalent to the
calculated percentage multiplied to the base salary of each Unit member up to an amount that
shall not exceed the concession amount.
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. Furthermore, the City shall refund in a lump sum payment to each Unit member the concession
amount in part retained by the City over each corresponding fiscal year of the term of this MOU if
audited revenues exceed the base year revenue. The lump sum payment shall be equal to the i
calculated percentage from the formula above multiplied by the base salary received during the
same term.
• In accordance with CaIPERS law, this payment will not be reported as "pay rate" or "special
compensation" and will not be reported to CaIPERS for the purposes of pension
calculations.
This language reflects the current 2013-14 Fiscal Year City of Ukiah budget methodology. If the City
changes the way revenue is accounted, the Unit will be notified in writing and the City shall meet and
confer with the Unit to develop equivalent methodology for determining General Fund revenue.
Audited revenue is subject to review by the Unit and City staff. Any discrepancies will be identified
by the Unit and shall be submitted to the City. Discrepancies identified by the Unit will be reviewed
by the City and shall be applied for the purposes of this provision as agreed to by the City and
Unit.
The audited revenues are typically found on "Schedule 1 — General Fund Schedule of Revenues,
Expenditures and Changes in Fund Balances — Budget and Actual for the Year Ended June 30,
" in the Audited Financial Statements.
Year 1- Example 1 (9/12 of a vear based on the 9/18/2013 MOU adoqtion date)
$14,456,000 $14,376,000 *_ $80,000 = 0°/a Concession
Restored
$978,894
+ Rounded for purpose of illustration
Year 1 — Example 2
$14,876,000 $14,376,000 = $500,000 5108 or
= 51.08% of
$g�g ggq Concession
Restored ($23,807)
Year 2 — Example 1
$14,436,000 $14,376,000 = $60,000 _ 0% Concession
Restored
$978,894
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Year 2 — Examqle 2 �
- 7151 or71.51%
$15,076,000 $14,376,000= $700 000 ($44,438) of
Concession
$978,894 = restored, which
includes the 51.08%
in the Year 1
Example.
4. Medical Premium Adiustment �
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Effective 7-1-2014, and each fiscal year thereafter, the City will increase each Unit Member's monthly
health contribution dollars in a flat dollar amount equal to the percentage increase in the City's health,
dental, or vision insurance premiums over the prior plan year at the coverage level they are enrolled
in. Health contribution dollars for Unit Member's not covered by the City's health plans will be
increased at the single party coverage level.
Example:
Increase i
Coverage 2012 2013 Percent to Health ,
Level Premiums Premiums Increase Contribution
Sin le $551.65 $606.82 10.00% $55.17
2-Part $1,158.52 $1,274.37 10.00% $115.85
Famil $1,655.06 $1,820.57 10.00% $165.51
5. Retiree Medical Insurance Repuirements
The minimum years of City service required to continue participation in the City's medical, dental and/or
vision insurance plans upon retirement will be increased from 7 years to 10 years, effective 7-1-2014, in
orderto comply with REMIF retiree health insurance eligibility requirements, standardized for all REMIF
cities.
6. Pension Reform Act of 2013 (PEPRA►
The Public Employees' Pension Reform Act of 2013 (PEPRA)and related Public Employees' Retirement
Law (PERL) amendments in Assembly Bill (AB) 340 became law on September 12, 2012, and the
provisions were effective January 1, 2013.
The Department Head Unit and the City agree to implement all PEPRA provisions, and all applicable
amendments thereto. Effective January 1, 2013 Department Head employees defined by PEPRA as
"new members" shall pay 50% of the total normal cost for the new Miscellaneous pension formula
2%@ 62, which is currently 6.75% of reportable compensation, with a three-year final compensation
period. "Classic members" (employees hired prior to January 1, 2013) will retain the 2.7% @ 55
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Miscellaneous PERS formula, 8% member contribution (EPMC), with a one-year final compensation
period.
The PEPRA defines a "new member' as : a) A new hire who is brought into CaIPERS membership for
the first time on or after January 1, 2013, and who has no prior membership in any California public
retirement system; b.) A new hire who is brought into CaIPERS membership for the first time on or after
January 1, 2013, and who is not eligible for reciprocity with another California public retirement system;
3.)A member who first established CaIPERS membership prior to January 1, 2013, and who is rehired by
a different CaIPERS employer after a break in service of greater than six months.
7. Separation Apreement Provision I
If the City terminates the employment of a Department Head without cause, including but not limited
to lay off or elimination of position, and the Department Head is willing and able to perform his/her job
duties, then the Department Head shall be placed on administrative leave to maintain current pay
and benefits for up to six (6) months while seeking other employment options. At the employee's
election any remaining balance of the 6 month administrative leave shall be paid in a lump sum
payment within (30) days of the request for payment.
For a period of six (6) months following termination, the City shall pay its share of costs to continue
health, dental, and vision insurance for the Department Head and all dependents
8. Term of Aareement
The Term of this Agreement begins on September 18, 2013, and continues for two (2) years, or
September 18, 2015. If something less than an equivalent 5% reduction is agreed to by other
bargaining units after September 1, 2013, the Department Head UniYs reduction shall be revised to
be equivalent to the lowest percentage (%) reduction of any of the bargaining uniYs.
9. CONTINUATION I
The City and the Unit agree that all conditions of employment established by City policy, including all
conditions affecting wages, hours, and working conditions that are not specifically addressed in this
Memorandum of Understanding shall continue in effect and shall not be affected by the terms of this
Memorandum of Understanding.
The value or availability of the benefits provided in the Memorandum of Understanding as originally
worded or as amended from time to time may depend on their tax treatment by the state or federal
government or the decisions of other government agencies or departments, such as, but not limited
to, the Public Employees Retirement System. The City will endeavor to obtain the most favorable
treatment legally possible from these other governmental entities. However, the City makes no
representation concerning the value of such benefits to unit members or how they will be tar,ed or
otherwise treated by other agencies or departments. The City's obligations under this Memorandum
of Understanding are limited to the direct cost of providing the salary and benefits as described in the
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Memorandum of Understanding. The City shall have no additional financial obligation, even if the tax
or other treatment of such salary or benefits by other agencies or departments reduces or eliminates
their value to the employee.
This Memorandum of Understanding is ratified and adopted pursuant to the recommendations of the '
following representatives this 18th day of September, 2013.
CITY OF UKIAH D A UNI_Tr
IT� � / ,
_�,/_.,.�--L��- / ._ --
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Jane Chambers arl t�
City Manager ir t�f�'I ning
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L_—�f,
Tim Eriksen ,
Director of Public Works/City Engineer
3�./MOU/DE PTH EAD2013-2015
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CITY OF UKIAF#
SUMMARY BY ACTeVITY OR �F4JNCT�ON
FISCAL YEAR 2073-2014 BUDGET
i� 7/1/20013 NET NET 6/30/2014
FUND FUND FUND REVENUE EXPENSE INCOME TR4NSFERS FUND
� # NAME BALANCE (LOSS) W(OUT) BALANCE
r G eneral Fund 500,000 14,375,555 15,35A,449 (978,894) 978,894 500,DOD
GR Strategic Reserve 4,566,739 -0- 19,000 (978,894) 3,56A,844
� R Other Grant& Restricted Use Funds �,zaa,ota 3,307,177 e,�ss,sao (1,859,463) - (fi15,648)
E,W,S lJtllltle5 28,294,826 27,123,887 34,128,685 (7,004,778) 2,193,186 23,483,234
! I_{=, A, P, 1VI, B, �, CC Other Business Activities -o- z,a�a,so� 4,457,880 (1,879,573) -0- (1.879,573)
I I Intemal Service Funds 957,894 2,979,553 3,476J94 (497,241) (37,000) ?23,653
' C Ca ital Pro'ect Funds 3,492,473 i�z.nz ae�,ss� pos,52s) �,000 2,789,948
��i Otel CI Uf1d5 39,055,947 50,536,651 63,485,125 (12,948,474) 2,163,186 28,27�,659
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UTILITY AND OTHER BUSINESS ACTIVITIES DETAIL
E �.IBCffIC Uilllty 14,832,369 15,422,680 19,328,640 (3,905,960) - 10,92Fi,409
' VV Watef U[ility 2,292:835 5,974,163 4,247,439 1,726,724 (250,040) 3,769,559
{ S SOwef Utllity 11,387.962 5,727,044 10,552,586 (4,825,542) 2,443,186 9,005,606 I
i LF Solld WaSte DispOSal (251,779) 1D0,025 1,352,370 (1,252,345) (1,504,124)
G A AirpOrt 288,764 1,627,335 1,756,355 (129,020) 15�3,744
P Pafking 162,740 107,741 179,126 (71,385) 9'1,355
'� M Museum 207,638 �J3,282 345,281 (251,999) (50,361)
� B GOIf (1,015,519) 187_,307 192,307 - (1,015,519)
L Street Lighting 408,228 176,095 328,989 (152,894) 255,334
CC Confe�ence Center (12,411) 29�,522 313,452 (21,930) (34,34�) I
Total Ulility And Other 6usiaess Activities Detait 28,294,826 29,702,194 38,588,545 (8,884,351) 2,�93,186 21,603 661 '
Refer to ihe"Combining Fund Schedule"for a listing of the funds in each category I
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Schedule I
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CITY OF UKIAH
GENERALFUND
SCHE�ULE OF REVENUES,EXPENDITURES AN�CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30,2012
Variance With
FinalBUdget- I,
BudgeteA Amounts Positive 'I
Original Final General (Negative) '
REVENUES
Taxes:
pmpeAy $ 745,056 $ 1,245,056 $ 1,213,479 $ (37,577)
Sales and use fi.333,756 6,333,756 6,465,410 131,654
Propertytransfer 33,700 33,700 24,770 (8,930)
Transientoccupancy 691,108 691,708 775,547 84,439 I
Business license 315,291 315,291 325,fi74 10,383
Franchise 535,400 547,400 567,486 20,08fi I
Licenses antl pertnits 131,800 131.800 434,492 302,692
Fines,forteitures,and penatties 52,662 52,662 46,960 (5,702)
Fmm otheragencies 1,374,988 7,374,988 1,350,289 (24,699)
Use of money and property 829,571 829,571 856,746 26,575
Chargesfarcurrentservices 892204 892,204 7,146,590 254,386
Other 1,000 1,000 4,498 3,498
Total Revenues 7 7,936,536 12,448,536 13211,341 762,805
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EXPENDITURES
Curtent:
General govemment 7,728,729 2,231,319 1,617,593 473,726
Public safety 8.183,289 8,511,076 8,660,148 (149,072) I
Streets and roads 927,897 942,327 1,067,896 (145,575) '
Parksandrecreation 1,840,654 1,845,fi54 1,970,035 (124,367) �I
Communirydevelopment 98,255 225,755 67,839 157,916 '
Debt service 5,546 5,546 38 5,508 I
CapiWl oWay 149,329 173,641 46,593 127,048 II
Total E�enditures 12,933,693 13,935,312 13,650,142 285,170 �
Excess(Deficiency)of Revenues Over Expenditures (997,157) (7,486,776) (438,801) 1,047,975
OTHER FINANCING SOURCES IUSESI I
Transfers in 1,022219 7.022,219 1,065,910 43,691
Total Other Financing Sources(Uses) 7,022,219 1,022,219 7,065,91� 43,691
Net Change In Funtl Balances 25,062 (464,557) 627,109 1,091,666 ��
Fund Balances,July 7, 6,237,800 6,237,800 6,237,8�a -
Fund Balances,June 30, S 6,262,862 S 5,773,243 S 6,864,9U9 S 7,091,666
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