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CC Resolution 2017-026RESOLUTION NO. 2017 - 026 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING AND ADOPTING A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF LA QUINTA AND THE LA QUINTA CITY EMPLOYEES' ASSOCIATION WHEREAS, the City of La Quinta, hereinafter referred to as "City" and the La Quints City Employees' Association, the recognized organization representing its members, hereinafter referred to as "Association," have met and conferred over wages, hours, terms, and conditions of employment pursuant to Government Code 3500, as amended; and WHEREAS, the City and the Association have negotiated a Memorandum of Understanding for the period commencing on July 1, 2017, and terminating June 30, 2018; and WHEREAS, the City and the Association have agreed upon a 3% structure adjustment increase to the Salary Schedule effective June 26, 2017, as set forth in Exhibit A; and; and WHEREAS, the Association ratified the Memorandum of Understanding on May 25, 2017. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La Quinta, California, as follows: SECTION 1. The City does hereby ratify and approve, ratify and authorize implementation of each economic and non -economic benefit and right set forth in the Memorandum of Understanding between the City and the Association, attached and incorporated herein as "Exhibit A" and said to the extent the City may legally do so in accordance with the time constraints of said Memorandum of Understanding. PASSED, APPROVED and ADOPTED at a regular meeting of the La Quints City Council held on this 20th day of June, 2017, by the following vote: AYES: Council Members Fitzpatrick, Pena, Radi, Sanchez, Mayor Evans NOES: None ABSENT: None ABSTAIN: None Resolution No. 2017-026 LQCEA MOU Adopted: June 20, 2017 Page 2 of 2 r 1i�� I 'Z&� , - LINDA EVANS, Mayor City of La Quinta, California ATTEST: .�444AJ;1, SUSAN MAYSELS, City Cle City of La Quinta, California (CITY SEAL) APPROVED AS TO FORM: WILLIAM H. IHRKE, City Attorney City of La Quinta, California EXHIBIT A MEMORANDUM OF UNDERSTANDING This Memorandum of Understanding ("MOU") is made and entered into by and between the CITY OF LA QUINTA ("City") and the LA QUINTA CITY EMPLOYEES' ASSOCIATION ("Association"). WHEREAS, the City and the Association have met and conferred in good faith with respect to the wages, hours, and terms and conditions of employment of City employees and all other subjects within the scope of bargaining under the Meyers- Milias-Brown Act (Government Code Section 3500, et seq.), and have reached an agreement that they wish to set forth in writing in the form of this MOU; NOW, THEREFORE, the City and the Association agree as follows: SECTION 1: TERM. This MOU shall take effect on July 1, 2017, and shall remain in effect for one (1) year through and including June 30, 2018. SECTION 2: SALARY The 2017/18 Salary Schedule reflects the 3% structure adjustment agreed upon by the City and Association. The document is attached hereto as Exhibit 1, and by this reference made a part hereof, shall become effective on June 26, 2017, and shall remain in effect during the full term (July 1, 2017 through June 30, 2018) of this MOU, unless modified in writing by mutual agreement of both parties. SECTION 3: PAY FOR PERFORMANCE CLASSIFICATION AND COMPENSATION SYSTEM A. Pay for Performance Compensation Methodology. Pay increases retroactive to July 1, 2017 shall be based upon individual performance review ratings for the year ending June 30, 2017 as follows: If more than 2 steps below the job rate: If only one step below the job rate: Overall Performance Rating NI SU EX No increase 1 step 2 steps NI SU EX No increase 1 step 1 step + Performance Pool If at or above job rate: NI SU EX Performance I Pool No increase No increase 2017/18 MOU -1- The City Council has the discretion to establish the total performance pool for all City of La Quinta employees for performance evaluations, which has already been budgeted at $33,000 for Fiscal Year 2017/18. B. Market Survey. The parties agree to a full market survey performed by Fox Lawson & Associates prior to June 30, 2018, and every 3rd year thereafter. Animal Control will be removed from the Code Enforcement job description prior to the survey. Recommendations from Fox Lawson & Associates will be considered for potential adjustments to the existing salary ranges based on the market survey data. Any adjustments made to the existing salary ranges shall be considered PERSable adjustments. C. Overall Performance EvaluationRatin_c ss. The City will create a Project Action Team consisting of up to 3 staff selected by Management and 3 staff appointed by LQCEA work on improvement of the performance review process. City shall provide the Association with the overall performance evaluation ratings only (no employee names), identifying the number of ratings falling into each rating category, no later than October 31 each year. D. Request for Reconsideration of Performance Evaluation Rating. City and Association agree to follow the guidelines provided in the "Request for Reconsideration of Performance Evaluation Rating" as the basis for reviewing performance evaluation ratings of employees who choose to utilize same. These guidelines in no way alter the Personnel Policies Section 12.10.2, which states performance evaluations are not grievable. SECTION 4: MEDICAL, DENTAL, VISION AND LIFE INSURANCE COVERAGE. Effective January 1, 2017, the parties agree to the maximum contribution by the City of $1,515.00 per month. The parties further agree to reopen negotiations in August 2017 in order to meet and confer on the amounts paid by the City and employees for insurance coverage for the next calendar year. A. Contributions. The employee contribution for insurance coverage shall be paid by payroll deduction as a condition of enrollment and continuous insurance coverage. The benefits, terms and conditions of coverage shall be governed by the formal plan documents. B. Dot --out of City Coverage. Personnel Policy Section 14.05 states that an employee who provides the City evidence of medical insurance under a separate policy and requests to be deleted from the City's coverage shall receive $250 per month as an in lieu payment. Should such other coverage subsequently be unavailable to the employee, the employee shall have the right to seek reinstatement to coverage under the City's policy upon written request. In such a case, the City shall reinstate the employee's coverage and cancel the in lieu payment if reinstatement is permitted under the provisions for reinstatement then in effect with the City's health insurance provider. 2017/18 MOU -2- C. Flexible Spending Plan. The City has implemented a Flexible Spending Plan through Total Administrative Services Corporation (TASC) for interested employees. The City has paid the initial one-time enrollment fee of $350.00 and will pay the $15.00 per employee enrollment fee for new employees who elect to join, and those employees who participate will pay the monthly administration fee and optional medical reimbursement debit card fee through payroll deduction. SECTION 5: EDUCATIONAL INCENTIVE PROGRAM. Section 15.25 The City's Personnel Policy will be updated to reflect that all employees are eligible for tuition reimbursement not to exceed $30,000 during the term of this MOU at a maximum of $3,000 (or 10%) per employee. SECTION 6: MANAGEMENT RIGHTS. Except as limited by the terms of this MOU, the City retains sole and exclusive right to manage its operations and direct its work force using any or all of the powers and authority previously exercised or possessed by the City or traditionally reserved to management, including but not limited to the right to determine its organization and the kinds and levels of services to be provided; to direct the work of its employees; to assign work from one classification of employees to another, including work currently performed by employees in the classifications covered by this MOU; to establish work standards and levels of required performance; to utilize part-time or temporary employees; to pay wages and benefits in excess of those required by this MOU; to select, modify, alter, abandon, or modernize methods of conducting its operations; to build, move, modify, close, or modernize facilities, machinery, processes, and equipment; to establish budgetary procedures and allocations; to determine methods of raising revenues; to sublet and subcontract work except work currently performed by City employees; to take all necessary action in the event of an emergency; to establish and amend rules of conduct and to impose discipline and discharge; to establish and amend rules for safety and health; to select, hire, classify, reclassify, assign, evaluate, transfer, promote, demote, upgrade, downgrade, reprimand, discipline, suspend, discharge, lay off, and rehire employees; to determine job content and to create, combine or modify job classifications and rates or classes of pay; and to exercise all other customary powers and authority of management, regardless of whether the City has exercised such power previously. Nothing in this provision shall be construed to restrict grievances concerning any part of this MOU. In the event of an emergency, the City may amend, modify or rescind any provision of the MOU. Such amendment, modification or rescission shall remain in force only for the period of the emergency. The City shall have the sole and complete discretion to declare that an emergency exists for the purposes of this Section. City retains the right to reopen negotiations during the term of this MOU for the purpose of meeting and conferring on implementation of furlough days. SECTION 7: NON-DISCRIMINATION. All personnel decisions and actions, including but not limited to appointments, promotions, demotions, transfers, layoffs, and discharges, shall be made without regard to race, color, creed, sex, marital status, age, national origin or ancestry, physical or mental disability, medical condition, sexual orientation, or any other 2017/18 MOU -3- unlawful consideration. Further, the City shall not discriminate against any employee based upon his/her activity on behalf of his/her membership in any employee association or group. SECTION 8: HOURS. Employee hours of work shall be as stated in the City's Personnel Policies unless superseded as provided in Section 14 herein. SECTION 9: HOLIDAYS. Holidays shall be recognized as provided in the City's Personnel Policy. SECTION 10: VACATION. Vacation accrual shall be as provided in the City's Personnel Policies unless superseded as provided herein. SECTION 11: SICK LEAVE. Sick leave shall be accrued as provided in the City's Personnel Policies unless superseded as provided herein. SECTION 12: CalPERS RETIREMENT A. Employer/Employee Obligations. For purposes of the City's election to pay to the California Public Employees' Retirement System (CaIPERS), effective July 1, 2013, the City shall pay to CalPERS on behalf of each full-time, regular employee, the required employer contribution, and an amount equal to 0% of the required member contribution to CalPERS. Effective July 1, 2013, each full-time, regular employee shall pay an amount equal to 100% of the required member contribution to COWERS, not to exceed eight percent (8%). B. Public Em la ees' Retirement System PERS Retirement Formulas for New Hires. Any employee hired on or after January 1, 2013 shall be subject to the following retirement formulas with the retiree's annuity based on the average of the employee's three (3) highest paid consecutive years, in accordance with the City's contract with PERS and the Public Employees' Pension Reform Act of 2013 (PEPRA): Classic Employees (current PERS members) hired on or after January 1, 2013: 2% @ 60 New Employees (new PERS members) hired on or after January 1, 2013: 2% @ 62 C. Unused Sick Leave Election. Government Code Section 20965 and the City's contract for retirement benefits with CaIPERS permits conversion of unused sick leave to service credit, pursuant to certain restrictions. Upon retirement, employees are required to complete the "Unused Sick Leave Election Form" prior to receiving their final paycheck. Upon retirement, employees will have the option of selecting one of the following: (1) receiving payout for the full amount of unused sick leave (pursuant to the payout schedule contained in Personnel Policy Section 14.20.4, as amended by this MOU); (2) receiving payout for a set amount of unused sick leave, and requesting conversion to service credit of the remainder; or (3) converting the entire amount of 2017/18 MOU -4- unused sick leave to service credit, waiving their right to a payout for unused sick leave. SECTION 13: COMPUTER LOAN PROGRAM. The City agrees to continue the Computer Loan Program (Program) and to fund the Program in the amount of $17,500 for the term of this MOU at a maximum of $1,750 per employee. Any employee who has participated in the Program and has paid his/her loan in full may participate again if there is money available after those employees who have not previously participated have been funded. SECTION 14: ALTERNATE WORK WEEK SCHEDULE. The City and Association agree to continue the Alternate Work Week Schedule ("AWWS"), utilizing a 9/80 schedule, whereby employees may elect to participate in the AWWS by working eight 9-hour days and one 8-hour day, with every other 8-hour day off. The AWWS will continue for the term of this MOU, or until cancelled by Management, whichever occurs sooner. SECTION 15: EMPLOYEE FITNESS MEMBERSHIP SUBSIDY AT LA QUINTA WELLNESS CENTER OR DESERT RECREATION DISTRICT FITNESS CENTER. The City agrees to subsidize the cost of membership at either the La Quinta Wellness Center or the Desert Recreation District's Fitness Center. City employees may submit their paid receipt for La Quinta Wellness Center or Desert Recreation District membership to the City's Finance Department for reimbursement of $40.00 toward their annual membership fee. SECTION 16: PERFORMANCE REVIEW/TRANSPARENCY PROCESS. The City agrees to the following with regard to the performance review and transparency process: 16.1 Review Period: Annual Performance Reviews will be completed between July 1 and September 30 for the previous fiscal year ending on June 30. 16.2 Association Survey: Association may survey its members for input regarding the performance review process and may provide survey results to City for consideration. Any changes to the Performance Evaluation form shall be a subject of the meet and confer process. 16.3 Labor/Management Committee: City and Association agree to form a Labor/Management Committee (LMC) that may meet three (3) times per year at the request of either party to address concerns regarding employee relations. The LMC is not authorized to change the MOU or to settle any grievance being processed under the MOU. SECTION 17: SOLE AND ENTIRE AGREEMENT. It is the intent of the parties hereto that the provisions of this MOU shall supersede all prior agreements, memoranda of agreement or memoranda of understanding, or contrary salary and/or personnel rules and regulations, administrative codes, 2017/18 MOU -5- provisions of the City (other than the Municipal Code), whether oral or written, expressed or implied, between the parties, and shall govern the entire relationship and be the sole source of any and all rights which may be asserted hereunder. This MOU is not intended to conflict with federal or state law. The Association and the City agree that all personnel rules not specifically included herein shall be incorporated herein by this reference. The City reserves the right to add to, modify or delete from its Personnel Policies, subject to its obligations under the Meyers-Milias-Brown Act. SECTION 18. WAIVER OF BARGAINING DURING TERM OF THIS AGREEMENT. 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