HomeMy WebLinkAboutStaff Report 4.B 07/06/2015Agenda Item #4.B
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DATE: July 6, 2015
TO: Honorable Mayor and Members of the City Co cil through City Manager
FROM: Dianne Dinsmore, Human Resources Director i
SUBJECT: Resolution Correcting the Memoranda of Understanding Between the City of
Petaluma and the Petaluma Professional and Mid - Managers Association For
Employees of Unit 4 (Professional), Unit 9 (Mid - Managers), and Unit 11
(Confidential) Ratified by the City Council June 15, 2015
RECOMMENDATION
It is recommended that the City Council adopt the attached Resolution Correcting the
Memoranda of Understanding Between the City of Petaluma and the Petaluma Professional and
Mid - Managers Association For Employees of Unit 4 (Professional), Unit 9 (Mid - Managers), and
Unit 11 (Confidential) Ratified by the City Council June 15, 2015.
BACKGROUND
On June 15, 2015, the City Council ratified the Memoranda of Understanding between the City
of Petaluma and the Petaluma Professional and Mid - Managers Association (the "Parties ") for
employees of Unit 4 (Professional), Unit 9 (Mid - Managers), and Unit 11 (Confidential). The
MOUs presented to the Council contained an error that incorrectly reflected the Parties
agreement regarding Health Benefits — Active Employees, found at Section 26 (Unit 9) and
Section 27 (Units 4 and 11).
In addition, Senior Planner was erroneously listed as both an Active and an Inactive
Classification in the Unit 9 MOU.
DISCUSSION
The MOUs ratified at the June 15, 2015 Council meeting (shown as Exhibits to the Resolution)
contained an error that incorrectly reflected the Parties agreement regarding Health Benefits —
Active Employees, found at Section 26 (Unit 9) and Section 27 (Units 4 and 11). The Council
report itself accurately reflected the Parties agreement. The report read:
The amounts of the City's contribution for health premiums for employees and their
covered family members are capped at the contribution levels established effective
January 1, 2014.
Further, Section 26.1 (Unit 9) and 27.1 (Units 4 and 11) Active Employees — PEMHCA
Contribution is correct.
However, Section 26.2 (Unit 9) and 27.2 (Units 4 and 11) are not. The language in the expired
MOU regarding the City's additional contribution for health premiums is what the Parties agreed
to. It reads:
Additional Contribution Capped at 2014 Rate
The amount of the City's additional contribution for current employees and their covered
family members shall be capped at the contribution levels established effective January 1,
2014. The City will not contribute any additional funds toward heath premiums after
December 31, 2014.
In an attempt to provide clarity to employees as to the actual dollar amount, rather than the
statement that the additional contribution was capped at the 2014 rate, the MOUs presented to
the City Council erroneously stated only one contribution level, that of employee + two or more
employees. In addition, the rate listed was for the total City contribution, Additional
Contribution plus PEMHCA.
The 2014 Health Plan Contribution Rates memorandum distributed to all employees contains the
breakdown as follows:
MW-Q Contribution Formula Annlied
The correct Additional Contribution levels as shown in the 2014 memorandum are $575.95,
$1,264.95, and $1,678.34. The City continues to be obligated to pay PEMHCA at the rate
established by Ca1PERS, which will be $122 per month per employee effective January 1, 2015
and $125 per month beginning January 1, 2016.
It is recommended that Sections 26.1 and 26.2 (Unit 9) and Sections 27.1 and 27.2 (Units 4 and
11) submitted to the Council June 15, 2015, be replaced with the following language which
accurately reflects the agreement of the Parties.
Active Employees — PEMHCA Contribution
The City currently provides health benefits through the California Public Employees'
Retirement System (Ca1PERS) Health Benefits Program under the Public Employees'
Medical and Hospital Care Act (PEMHCA). The City's employer contribution for each
employee's health benefits shall be the minimum required by PEMHCA. The City pays this
contribution directly to Ca1PERS. This amount is established annually by PERS and is the
minimum amount the airencv must pay on behalf of the emplovee for medical insurance.
It is separate and apart from the annual health insurance rates and the additional
contribution noted in Section 27.2.
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2014 Health
Additional Benefit
PEMHCA
Total 2014 City
Rate
(2014 Health Plan
Contribution
Contribution Rate
Coverage
minus PEMHCA Rate
(Added to
of $119.00 times .95 %)
Additional
Benefit
Employee
$725.26
575.95
$119.00
$694.95
Employee + 1
$1,450.53
1,264.95
$119.00
$1,383.95
Employee + 2 or more
$1,885.68
1,678.34
$119.00
$1,797.34
The correct Additional Contribution levels as shown in the 2014 memorandum are $575.95,
$1,264.95, and $1,678.34. The City continues to be obligated to pay PEMHCA at the rate
established by Ca1PERS, which will be $122 per month per employee effective January 1, 2015
and $125 per month beginning January 1, 2016.
It is recommended that Sections 26.1 and 26.2 (Unit 9) and Sections 27.1 and 27.2 (Units 4 and
11) submitted to the Council June 15, 2015, be replaced with the following language which
accurately reflects the agreement of the Parties.
Active Employees — PEMHCA Contribution
The City currently provides health benefits through the California Public Employees'
Retirement System (Ca1PERS) Health Benefits Program under the Public Employees'
Medical and Hospital Care Act (PEMHCA). The City's employer contribution for each
employee's health benefits shall be the minimum required by PEMHCA. The City pays this
contribution directly to Ca1PERS. This amount is established annually by PERS and is the
minimum amount the airencv must pay on behalf of the emplovee for medical insurance.
It is separate and apart from the annual health insurance rates and the additional
contribution noted in Section 27.2.
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Additional Contribution
The amount of the City's additional contribution for current employees and their covered
family members shall be $575.95 for employee only, $1,264.95 for employee plus one, and
$1,678.34 for employee plus two or more These amounts do not include the City PEMCHA
contribution identified in 27.1. The City's additional contribution shall not exceed these
amounts unless and until a different amount is negotiated by the parties.
In addition, Senior Planner was erroneously listed as both an Active and Inactive Classification
in the Unit 9 MOU. Senior Planner is an allocated position in the current and 2015/16 fiscal
years, and therefore is active. It is recommended that Senior Planner be removed from the list of
Inactive Classifications in Exhibit A of the Unit 9 MOU submitted to the Council June 15, 2015.
FINANCIAL IMPACTS
There is no change to the costing presented in the June 15, 2015 Council report, which reflected
the agreement reached between the parties.
ATTACHMENTS
Resolution
® Items listed below are large in volume and are not attached to this report, but may be viewed
in the City Clerk's office.
• Exhibit A, MOUs for Units 4, 9 and 11 for FY 2014 -2016
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ATTACHMENT 1
RESOLUTION CORRECTING THE MEMORANDA OF UNDERSTANDING BETWEEN
THE CITY OF PETALUMA AND THE PETALUMA PROFESSIONAL AND MID -
MANAGERS ASSOCIATION FOR EMPLOYEES OF UNIT 4 (PROFESSIONAL), UNIT
9 (MID- MANAGERS), AND UNIT 11 (CONFIDENTIAL) RATIFIED BY THE CITY
COUNCIL JUNE 15, 2015
WHEREAS, the City of Petaluma ratified the Memoranda of Understanding between the
City of Petaluma and the Petaluma Professional And Mid - Managers Association for Employees
of Unit 4 (Professional), Unit 9 (Mid - Managers), and Unit 11 (Confidential); and
WHEREAS, the MOUs presented to the Council contained an error that incorrectly
reflected the agreement reached by the parties regarding Health Benefits — Active Employees,
found at Section 26 (Unit 9) and Section 27 (Units 4 and 11); and
WHEREAS, Senior Planner was erroneously listed as both an Active and Inactive
Classification in the Unit 9 MOU; and
WHEREAS, Senior Planner is an allocated position in the current and 2015 /16 fiscal
years, and therefore is active; and
WHEREAS, the City Manager, pursuant to Section 28 of the Charter of the City of
Petaluma, and as the City's Municipal Employees' Relations Officer (Resolution No. 5375
N.C.S.), is required and empowered to make a recommendation to the City Council on matters
related to employees' compensation; and
WHEREAS, the City Manager has reviewed and concurs with said corrections to the
Memoranda of Understanding for Unit 4, 9 and 11 and does recommend that the City Council
approve these corrections.
NOW, THEREFORE, BE IT RESOLVED that the language in Section 26.1 and 26.2
(Unit 9) and Section 27.1 and 27.2 (Units 4 and 11) of the Memoranda of Understanding
submitted to the Council June 15, 2015, which read as follows:
Additional Contribution
The amount of the City's additional contribution for current employees and their covered
family members shall be $1,797.34. The City's additional contribution shall not exceed
this amount unless and until a different amount is negotiated by the parties.
L,
be replaced with the following language which accurately reflects the agreement reached by the
parties:
Active Employees — PEMHCA Contribution
The City currently provides health benefits through the California Public Employees'
Retirement System (Ca1PERS) Health Benefits Program under the Public Employees'
Medical and Hospital Care Act (PEMHCA). The City's employer contribution for each
employee's health benefits shall be the minimum required by PEMHCA. The City pays this
contribution directly to Ca1PERS. This amount is established annually by PERS and is the
minimum amount the agency must pay on behalf of the employee for medical insurance.
It is separate and apart from the annual health insurance rates and the additional
contribution noted in Section 27.2.
Additional Contribution
The amount of the City's additional contribution for current employees and their covered
family members shall be $575.95 for employee only, $1,264.95 for employee plus one, and
$1,678.34 for employee plus two or more. These amounts do not include the City PEMCHA
contribution identified in 27.1. The City's additional contribution shall not exceed these
amounts unless and until a different amount is negotiated by the parties.
BE IT FURTHER RESOLVED that the Senior Planner classification be removed from the list
of Inactive Classifications in Exhibit A of the Unit 9 MOU submitted to the Council
June 15, 2015.
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