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CC RESOLUTION 4354RESOLUTION NO. 4354 A RESOLUTION APPROVING THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF EL SEGUNDO, CALIFORNIA, AND THE EL SEGUNDO POLICE MANAGERS' ASSOCIATION BE IT RESOLVED by the Council of the City of El Segundo as follows: SECTION 1: Discussions which have taken place in the meet and confer process have resulted in a mutually agreeable Memorandum of Understanding between the City of El Segundo and this Association; SECTION 2: Staff is authorized to implement all terms and conditions of the Memorandum of Understanding (entitled "agreement ") between the City of El Segundo and The El Segundo Police Managers' Association on or about December 16, 2003. A copy of that agreement is attached as Exhibit "A," and is incorporated by reference. SECTION 3: The City Clerk is directed to certify the passage and adoption of this Resolution; enter same in the book of original Resolutions; and make a Minute of its adoption in the City's records and in the Minutes of the meeting when it was adopted. SECTION 4: This Resolution will become effective immediately upon adoption and will remain effective unless repealed or superseded. PASSED, APPROVED AND ADOPTED this 16th day of December 2003. Mike Gordon, Mayor 1. ATTEST: I, Cindy Mortesen, City Clerk of the City of El Segundo, California, do hereby certify that the whole number of members of the City Council of said City is five; that the foregoing Resolution No. 4354 was duly passed and adopted by said City Council, approved and signed by the Mayor, and attested to by the City Clerk, all at a regular meeting of said Council held on the 16th day of December 2003, and the same was so passed and adopted by the following vote: AYES: Gordon, Jacobs, Gaines, McDowell, Wernick NOES: None ABSENT: None ABSTAIN: None a%r*- b om4wn 4� Cindy Mortesen, City Clerk 2. APPROVED Mark D. HeA 0 K-`arl H. Berger, / J Assistant CityAtt4ney EXHIBIT "B" NOT CONTRACT LANGUAGE TENTATIVE AGREEMENT BETWEEN THE CITY OF EL SEGUNDO ( "City ") AND THE EL SEGUNDO POLICE MANAGERS' ASSOCIATION ( "Association ") The term of the Memorandum of Understanding (MOU) shall commence on July 1, 2003 and end on June 30, 2008. 2. In Year One of the MOU, the City and the association agree to. A A 3% increase to the basic monthly salary schedule, effective July 1, 2003. B. Preparation of a Comprehensive MOU to include the following: Y PERS Disability Retirement and Appeal Procedures for local safety members. r Annual fitness for duty medical examination protocols and procedures. Y Establishment of Employee IOD (injured on duty) policies and procedures. Revisions to the current "Tuition and Book Reimbursement Program ". ➢ Association sharing of costs for Los Angeles County Civil Service Commission costs, to a maximum of $3,000 per calendar year. ➢ Prohibition against smoking and/or use of tobacco products by unit members hired on or after July 1, 1988 Confirmation that current practice of shooting, physical fitness compensatory time off, and holiday pay for Lieutenants will be included in the Comprehensive MOU. "Completion of Meeting and Negotiating" statement Enumeration of all existing benefits. Final copies of the above documents were provided to the Police Managers Association on December 3, 2003. Articles will be added to the Comprehensive Memorandum of Understanding to signify that the parties have agreed to such documents and policies. 3. A 3% increase in the basic monthly salary schedule, effective July 1, 2004 4 A 4% increase in the basic monthly salary schedule, effective July 1, 2005 5. A 5% increase in the basic monthly salary schedule, effective July 1, 2006* 6 A 5% increase in the basic monthly salary schedule, effective July 1, 2007* * Subject to item #8 below, may be decreased to offset cost of medical insurance premium increases. 7 Subject to the provisions of #8 below, 10% additional compensation (salary increases) over the last 4 years of the MOU contingent upon new business license revenues and new net sales tax revenues. ** The unit will receive a 1 % compensation increase for each $120,000 in increased new revenue (as defined in the MOU). Contingency is capped at 4.0% each year beginning with the October 2004 payment date. There will be no cap for the year ending October 2008, provided however, that the cumulative maximum contingency payment for the time period October 1, 2004 through October 1, 2008 may not exceed 10 %. ** Subject to item #8 below, the first .83% of contingency money will be used to offset cost of medical insurance premium increases. 8. In recognition of the anticipated increased cost of City paid medical insurance premiums, the compensation increases in this package will reflect a charge of .83% (first from any contingency increases, otherwise from salary increases in years 4 and 5 of the MOU). During the term of the MOU, either party may reopen the contract in order to consider alternatives to the PERS medical plan. The City agrees that it will only propose plans that provide for a cost - effective, comprehensive medical package for employees and their families (i.e., provides comparable benefits to current plan including portability). There will be no change in insurance plans prior to January 2006 without agreement of the parties 9. The City and The Association agree that the 10% additional compensation over the last 4 years of the contract is contingent upon new business license revenues and new net sales tax revenues (collectively "New Revenues "). New Revenues are defined as business license revenues and sales tax revenues generated from businesses entering and doing business in the City for the first time after September 30, 2003 and does not include- businesses doing business in the City as of September 30, 2003 that expand or transfer locations within the City or consolidate their business from locations outside the City to within the City; or new businesses that are formed after September 30, 2003 but are controlled or owned (majority interest) by businesses located in the City as of September 30, 2003; or mergers and acquisitions that in anyway involve businesses that were located in the City as of September 30, 2003 even if the resulting entity is an entity that was not located in the City as of September 30, 2003. Additionally, financial incentives of any type whatsoever to any business generating New Revenues and payments the City is required to make to any entity based upon the providing of such incentives shall be deducted from the New Revenues for purposes of determining the amount of revenues eligible for the contingent payments contemplated hereunder. New sales tax revenue will be determined by confirming with the City's sales tax consultant a list of new sales tax producers generated after September 30, 2003 and evaluated at the end of each fiscal year. For purposes of this Agreement "new sales tax producers" shall mean the same thing as new businesses, as described above. Any new sales tax counted toward the 10% contingency will be net of any revenue or offsetting costs that may be required by, or as a part of, a development or other tax sharing agreement. The Association agrees that it will not interfere with or otherwise impede the City's ability to enter into a tax sharing /reduction agreement or similar arrangement with new businesses. Contingency is cumulative and any eligible revenue generated beginning in year one will be designated to the contingency over the term of the contract. 10. Parties agree to work jointly to develop a comprehensive Memorandum of Understanding that contains all rules, regulations, policies and procedures currently in effect that relate to wages, hours, benefits and working conditions. 11. The City and the Association agree that during the term of this agreement, the City contribution for medical insurance will equal that provided to the El Segundo Police Officers Association. Any increase above the current $800 per month medical insurance contribution is non- PERSable and available for medical insurance purposes only. Signature Page for the Tentative Agreement between the City of El Segundo And the El Segundo Police Managers Association. Signed by the City: Signed by the Association: