HomeMy WebLinkAboutResolution 2015-149 N.C.S. 09/21/2015Resolution No. 2015-149 N.C.S.
of the City of Petaluma, California
RATIFYING THE SIDE LETTER OF AGREEMENT 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) REGARDING ESTABLISHMENT OF
A RETIREE HEALTH SAVINGS ACCOUNT
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) which included a
provision for the establishment of a Retiree Health Savings Account; and
WHEREAS, the Parties have learned that, as a result of the evolving impacts of the
Affordable Care Act, there could be negative consequences to an RHSA not initially foreseen;
and
WHEREAS, the Parties have met and conferred and reached agreement on the Side
Letter of Agreement attached hereto as Exhibit A; and
WHEREAS, the City Manager has reviewed and concurs with said Side Letter of
Agreement and does recommend that the City Council ratify this Side Letter of Agreement.
NOW, THEREFORE, BE IT RESOLVED that the Side Letter of Agreement attached
hereto as Exhibit A is ratified and the terms and conditions of said Side Letter of Agreement
shall be effective September 3, 2015 through June 30, 2016.
Under the power and authority conferred upon this Council by the Charter of said City.
REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the ,.{gip ro ed s to
Council of the City of Petaluma at a Regular meeting on the 21" day of September, 1 form -
2015,
2015, by the following vote: ¢°
City Attorney
AYES: Barrett, Mayor Glass, Healy, Kearney, King, Vice Mayor Miller
NOES: None
ABSENT: Albertson
ABSTAIN: None ; r
ATTEST:
City Clerk ayor
Resolution No. 2015-149 N.C.S. Page 1
Exhibit A
Side Letter of Agreement
Between the
City of Petaluma and the Petaluma Professional &
Mid -Managers Association — Units 4, 9 and 11
Retiree Health Savings Account
September 3, 2015 — June 30, 2016
Representatives of the City of Petaluma and the Petaluma Professional & Mid -Managers Association
("Association") Units 4, 9 and 11 have met and conferred and reached agreement on this Side Letter of
Agreement regarding Section 31 of the Unit 4 MOU, Section 36 of the Unit 9 MOU, and Section 37 of the
Unit 11 MOU, which read:
RETIREE HEALTH SAVINGS ACCOUNT (RHSA)
The City shall make available to members of this Unit the City's Retiree Health Savings Account.
Both parties acknowledge that the Memorandum of Understanding (MOU) for Units 4, 9 and 11 now in
effect were negotiated in good faith. Following ratification, employees in Units 4, 9 and 11 each made an
election to place the lump sum payments made by the City in either a 457 account or the RHSA, with the
understanding that the City would hold the funds for those electing the RHSA until such time that the
RHSA was established. The City undertook its due diligence to establish a Retiree Health Savings
Account in the manner discussed by the Parties. In doing so, the Parties learned that there could be
negative consequences to an RHSA not initially foreseen as a result of the evolving impacts of the
Affordable Care Act. Therefore, parties agree to the following:
All six (6) Unit 4, 9 and 11 employees who elected to place their lump sum payments in an RHSA
shall instead place those payments in a 457 Plan offered by the City. Each employee shall
provide documentation to the Human Resources Department no later October 31, 2015,
indicating which 457 Plan the employee wishes to use for the lump -sum payment. The City
agrees to add to the lump sum payment any interest the City earned on the funds, divided
proportionally between the six (6) employees, during the time the City held the funds on behalf of
the employees.
All other provisions of the Unit 4, 9 and 11 MOUs remain in effect.
For the Petaluma Professional & Mid -Managers Association — Units 4, 9 and 11
Katie Crump, President
Date
Dennis Wallach, Representative Date
For City of Petaluma
Dianne Dinsmore, Director of Human Resources Date
Resolution No. 2015-149 N.C.S.
Page 2