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HomeMy WebLinkAboutReso 19-1977 RESOLUTION NO. 19-77 CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION ACCEPTING AND APPROVING AMENDMENT 1-77 TO THE MEMORANDUM OF UNDERSTANDING ENTITLED "MEMORANDUM OF UNDERSTANDING, UNIT I - MANAGEMENT, JULY 1, 1975 - JUNE 30, 1978,EXCEPT - FOR SURVIVING PROVISIONS. BE IT RESOLVED '~by the City Council of the City of South San Francisco that: 1. Amendment 1-77 to the Memorandum of Understanding, Unit 1, Management, July 1, 1975- June 30, 1978, Except for Surviving Provisions, accepted and approved June 30, 1975, by Resolution No. 85-75 entitled "A Resolution Accepting and Approving Memorandum of Understanding, Unit i - Management, July 1, 1975 - June 30, 1978," is here accepted and approved, and a copy of said Amendment is attached hereto as Exhibit "A". 2. The City Clerk be and he is hereby authorized to make the following entry on ~the Memorandum of Understanding, Unit I - Management, July 1, 1975 - June 30, 1978, Except for Surviving Provisions: "Reference is hereby made to Amendment 1-77 which amends this Memorandum of Under- standing with respect to Fire Department members of Unit I related to a new base salary and retirement benefits." I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San FranCisco at a regular meeting, held on the 16th day of February , 1977, by the following vote: AYES, COUNCILMEN William A. Borba, Emanuele N. Samonte, Terry J. Mirri and Leo Padreddii lo NOES, COUNCILMEN Richard A. Battaglia ABSENT, ,, None ATTEST: ~~.,., ~-~*r~' City Clerk e Iii: I Il"' Resol ution No. 19-77 Passed February 16, 1977 EXHIBIT "A''° AMENDMENT 1-77 MEMORANDUM OF UNDERSTANDING UNIT 1 - MANAGEMENT JULY 1, 1975- JUNE 30, 1978 Except for Surviving Provisions ~ The City of South San Francisco (hereinafter, City) and Unit I - Management ('hereinafter, Unit 1), acknowledge and affirm that they have met and conferred in good faith, exchanged proposals and counter-proposals and in all respects fulfilled their obligations under law to meet and confer in good faith regarding the Amendment 1-77 to the Memorandum of Understanding - Management, July 1, 1975 - June 30, 1978, approved by Council Resolution No. 85-75, adopted June 30, 1975. This Amendment to the Memorandum of Understanding is the product of the above-described meet and confer process. Representatives of the City have agreed to present this Memorandum to the City Council for determination and representatives of Unit 1 have agreed to present this Memorandum to their membership fOr acceptance and approval. 1. Term. The term of this Amendment to the Memorandum of Under- standing shall be from July 1, 1977, to June 30, 1978, except for the surviv- ing provisions hereinafter set forth. 2. Retirement and Salary Relationship - Total Compensation. Fire Department members of Unit 1 desire to obtain the substantial benefits of the 2% @ Age 50 Public Safety Retirement Formula by having City amend the PERS agency contract to so provide. City does not desire to so amend II]11 . because (1) City now provides the ½ @ Age 55 Public Safety Retirement Formula which includes Fire Department members of-Unit 1, and Unit 6; Fire Department personnel not presently members of said Units; and future public safety Fire Department personnel, all at an agency contribution rate City is presently willing to pay when considered in relation to cost of salaries and other benefits which constitute total compensation, and (2) in accordance with applicable retirement laws, such amendment will cause City to incur an increase in the agency contribution rate for all public safety personnel (fire and police), which increase in cost of total compen- sation (including but not limited to salaries, retirement and other benefits) City is unwilling to incur. Members of Unit 1, for the purpose of establish- ing a reasonable City cost for said total compensation, and, therefore, to induce City to so amend the PERS contract (1) propose and agree, pursuant to Government Code Section 3500, et seq., to establish a New Base Salary for Fire Department members of Unit 1, and have said members furnish the assur- ances described below which City may require as a condition precedent to the PERS contract amendment, and (2) make the representations described below as the basis for a condition precedent which City may require prior to the PERS contract amendment. 2.1 New Base Salary 2.1.1 Established in Fiscal Year 1977-78. A New Base Salary for Fire Department members of Unit I shall be established for fiscal year 1977-78, same to be effective on June 24, 1977. Said Base Salary shall be computed as follows: (1) Add to each member's III[ !i l[~t'l llil e 1976-77 bi-weekly salary a percentage of said salary equal to the annual percentage change in cos~t of living as reflected in the Bay Area Cost of Living Index for the preceding completed annual index period (April to April), and (2) then deduct from that ~total the member's pro rata share of the difference between the agency contribution for the ½ @ Age 55 Formula (Police and Fire) and the agency contribution for the public safety retirement benefits referred to as 2% Q A~§e 50 Formula. Reference is hereby made to a document entitled ".Public Employees' Retirement SystemActuarial Valuation Report, PERS-ACT-14 (12/75), Agency Name City of-South San Francisco, Employee No. O093",dated June 14,1975, issued by Kisuk Yang, Chief Actuary for PERS, which is attached hereto as Exhibit A and by this reference in- corporated herein. Said reference designates on line " sub-line "a," the retirement benefits which are the subject of this Memorandum of Understanding and sets forth the agency contribution rates as of July 1, 1975, for the respective formulas in Reporf~s A, B and C. Report C sets forth the retirement benefits which are the subject of this memorandum of Understanding and referred to as the 2% @ Age 50 Formula.The agency contribution rates for the "retirement benefits" desig- na.ted in Reports A and C, line "B," sub-line "a" of . ill]!II li[lll ffl II said reference shall be obtained by City from PERS actuaries or a consulting actuary on or before May 1, 1977, for the 'purpose of computation. The difference in the agency contribution rates so determined shall be applied to the total public safety payroll (Fire and Police) for the bi-weekly periods to detern~ne the total cost as a basis for computing the member's proportion- ate share of that cost. The percentage difference be- tween the agency's contribution rate for the ½ @ Age 55 Formula and the 2% @ Age 50 Formula will be determined one time only, same being the time the City enters in- to the 2% @ Age 50 Program for Firemen, and will not be thereafter affected by future increases or decreases in the PERS ½ @ Age 55 Program or the 2% @ Age 50 Pro- gram. 2.1.2 Significance and Use of New Base Salary for Fire Depart- ment members of Unit I - Survival of Provision. This provision states the significance and use of the New Base Salary for Fire Department members of Unit 1, also referred to as Base Salary, established pursuant to para- graph 2.1.1 of this Memorandum of Understanding for future related actions. Thisprovisionshall survive the term of tilis Memorandum of Understanding, which term is set forth in paragraph 1, and shall run concurrently with the period for which the 2% @ Age 50 Public Safety 4~ I111 I! 1EI'I gl II Retirement Benefits are applicable to eligible Fire Department members of Unit 1, in accordance with PERS rules and regulations, including those appointed after the effective date of this Memorandum of Under- standing. Each of the fo'llowin§ sub-paragraphs may be read in conjunction with one or more of the other sub- paragraphs and with this Memorandum of Understanding to interpret this provision. (a) Unit I Fire Department members' Base Salary for fiscal year 1977-78 shall be the salary established pursuant to paragraph 2.1.1 of this Memorandum of Understanding and changes therein in subsequent years or other times by Memoran- dum of Understanding or otherwise shall be designated "Amended Base Salary." (b) Changes in said Base Salary or Amended Base Salary, whichever is applicable, shall not be based on the fact the deduction set forth in paragraph 2.1.1 (2) of this Memorandum of Understanding was made to compute same or based on the amount of said deduction. City may re- fuse to consider the fact of said d~duction or the amount thereof in future negotiations as a basis for increasing the Base Salary or Amended Base Salary, and said refusal shall not Hl~l ll I [ilIl'l ~l II e be deemed a refusal to meet and confer in good faith or otherwise violative of the Meyers- Mil ias.-Brown Act (Government Code Section 3500,et seq.). (c) The said Base Salary or Amended Base Salary, whichever is applicable, results in a compari- son difference between said salary and the salaries of other departments as well as the salaries of firemen in comparable agencies. If said comparison difference equals or is less than the members proportionate share which shall be computed pursuant to paragraph 2.1.1(2) of this Memorandum of Understanding (now esti- mated at 7.6%), it shall not serve as the sole basis for negotiations related to Fire Department members' salary benefits or other terms and conditions of employment or increases or adjust- ments to equal or approximate salaries, benefits or other terms and conditions of employment for other members of Unit 1, other City Departments or comparable agencies, or to othen~-i"s~ increase said salaries. If the comparison difference equals or is less than the Fire Department mem- ber's said proportionate share as above provided,. City may refuse to consider same as a basis for e ffT'l, 11 ~'11I'I 11~ 11 increasing the Base Salary or Amended Base Salary, and said refusal shall not be deemed a refusal to meet and confer in good faith or otherwise violative of the Meyers-Milias-Brown Act (Government Code Section 3500, et seq.). (d) If an increase by reason of cost of livin§ or otherwise i$ authorized by an approved Memor- andum of Understanding or otherwise,'said increase in an amount or percentage shall be applied to the Fire Department members' Base Salary or Amended Base Salary, whichever is then in effect. (e) If a decrease in salaries is authorized by an approved Memorandum of Understanding or other- wise, same being applicable to Unit 1, or the Fire Department, or all Departments, the amount of decrease or adjustment or percentage thereof shall be applied to the Fire Department members' Base Salary or Amended Base Salary, whichever is then in effect. 2.1.3 Assurances by Fire Department Members of Unit 1. In addition to the acceptance and approval of paragraph 2 and subparagraphs thereof of this Memorandum of Under- standing, by vote of the membership, each Fire Department member of Unit 1 shall subscribe the Acceptance and Assurance to be attached hereto as Exhibit B and incor- II~1, El 7~ 2.2 por~ted herein by this reference as if set forth verbatim. Fire Department members of Unit I appointed after the effective date of this Memorandum of Under- standing shall subscribe to a similar Acceptance and Assurance as a term and condition of employment. City Agreement to Amend the PERS Contract. City acting on the inducements, assurances and representations hereinbefore set forth, shall amend the PERS contract to provide the 2% @ Age 50 Public Safety Retirement Formula for Fire Department members of Unit I when all of the following have occurred. (a) This Memorandum of Understanding has been duly executed by the representatives of City and Unit 1, and thereafter accepted and approved by the members of Unit I and ratified by the City Counc i 1. (b) All of the Fire Department members of Unit i have executed the Acceptance and Assurance and same has been attached hereto as Exhibit B. (c) Fire Department personnel members of Unit 6 have attached or caused to be attached to the Memorandum of Understanding entitled "Memoran- dum of Understanding, Unit 6 - International Assoc- ciation of Firefighters of America, Local 1507, AFL-CIO, July 1, 1976 - June 30, 1978, Except 5 for Surviving Provisions", dated August 30, 1976, and approved by Council Resolution 132-76, adopted September 15, 1976, an Accept- ance and Assurance substantially similar to Exhibit B which is to be attached to this Memorandum of Understanding. 3. Salary Effective June 24, 1977, through June 22, 1978, for Fi.re Departm'ent Members of Unit 1. Salaries for Fire Department members of Unit 1, effective June 24, 1977, through June 22, 1978, shall be computed in accordance with paragraph 2.1.1 of this Memorandum of Unders~tanding. 4. Employees Covered and Scope of this Amendment. The provisions of this Memorandum shall apply to Fire Department Members of Unit 1, and except for salaries and retirement shall not affect the other provisions of the Memorandum of Understanding, Unit I - Management, July 1, 1975 - June 30, 1978, as amended. IN WITNESS WHEREOF, the parties hereto have executed this Amend- ment 1-77 to Unit l's said Memorandum of Understanding on the lOth day of February , 1977. CITY'S REPRESENTATIVE ~C.~Wa~~rk~el o'x~~- City Manager IIII EMPLOYEES' ~~PRESENT~TIVES _ 9 ~Or~ ~0. . 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