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Resolution - 2020-74RESOLUTION NO. 2020-74 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, ADOPTING THE SIDE LETTER OF AGREEMENT BETWEEN THE CITY AND THE WEST COVINA POLICE OFFICERS' ASSOCIATION (WCPOA) WHEREAS, on May 19, 2020, the City Council declared a fiscal emergency through the adoption of Resolution No. 2020-46; and WHEREAS, in declaring the fiscal emergency, the City Council directed the City Manager to take any and all actions necessary to address the fiscal emergency, including, but not limited to, measures relating to personnel and benefit costs, operations, and reductions in service levels, and reviewing and negotiating changes to labor agreements, service agreements, and franchise agreements, to the extent permitted by law; and WHEREAS, the City of West Covina, hereinafter referred to as the "City," and the West Covina Police Officers' Association, hereinafter referred to as the "Association," have met and conferred in accordance with the Meyers-Milias-Brown Act and Government Code § 3500 to address the City's fiscal emergency, and the appropriate personnel -related cost savings measures needed to address the fiscal emergency; and WHEREAS, the City and the Association have memorialized the agreement in a written side letter of agreement, which is attached hereto as Exhibit "A". NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA HEREBY RESOLVES AS FOLLOWS: SECTION 1. The Side Letter of Agreement between the City and the Association, attached hereto as Exhibit "A," is hereby approved. SECTION 2. The City Manager is authorized to sign the Side Letter of Agreement. SECTION 3. The City Clerk shall certify to the adoption of this resolution and shall enter the same in the book of original resolutions and it shall become effective immediately. APPROVED AND ADOPTED this 21st day o APPROVED AS TO FORM ATTEST i AA4e Lisa Soorrick City Attorney AssisYyht CityClerk I, LISA SHERRICK, ASSISTANT CITY CLERK of the City of West Covina, California, do hereby certify that the foregoing Resolution No. 2020-74 was duly adopted by the City Council of the City of West Covina, California, at a regular meeting thereof held on the 21 st day of July, 2020, by the following vote of the City Council: AYES: Castellanos, Johnson, Shewmaker, Lopez-Viado, Wu NOES: None ABSENT: None ABSTAIN: None i.� Lisa S rrick AssistEVt City Clerk EXHIBIT A SIDE LETTER OF AGREEMENT Attachment No. 1 - Exhibit "A" SIDE LETTER OF AGREEMENT TO THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF WEST COVINA AND WEST COVINA POLICE OFFICERS' ASSOCIATION THIS SIDE LETTER OF AGREEMENT ("Agreement") memorializes an agreement entered into between the City of West Covina ("City") and the West Covina Police Officers' Association ("WCPOA") (collectively "Parties") with respect to the following: WHEREAS, the Parties entered into a Side Letter Agreement to the Memorandum of Understanding (MOU) with a term of January 1, 2017 to June 30, 2021; and WHEREAS, the Parties agree that the amendments set forth in this side letter agreement shall be incorporated into the MOU; and WHEREAS, all other terms and conditions of the MOU shall remain in full force and effect. NOW THEREFORE, the Parties have agreed to amend the MOU as follows 1. "Suspend" as used throughout this Agreement shall mean that the stated benefits will not be provided during the term stated, i.e. through January 14, 2021. After January 14, 2021, the suspended benefits will resume. 2. Section 12, PERS Employee's Contribution — Paid by Employee shall be modified and replaced with the following: The Employee shall pay the entire nine percent (9%) member contribution to the Public Employees' Retirement System (PERS). The Employee who does not qualify as a "New Member" shall pay, via payroll deduction, an additional three percent (3%) of compensation earnable towards the employer contribution pursuant to cost sharing In accordance with Government Code Section 20516(f). Thus, the total employee contribution shall be twelve percent (12%). As soon as practical, the City shall amend the CalPERS contract so that cost sharing will be by contract amendment under Government Code section 20516(a) so that the additional 3% cost sharing identified above will be switched from cost sharing under Government Code section 20516(f) to Government Code section 20516(a). When cost sharing by contract amendment becomes effective under Government Code section 20516(a), cost sharing under Government Code section 20516(f) shall immediately cease. In accordance with IRS Code section 414(h)(2), the cost sharing will then be treated as a pre-tax deduction. The Employee who qualifies as a "New Member" shall pay 50% of the applicable normal cost as their member contribution (California Government Code Section 7522.30(c)). In the event that 50% of the applicable normal cost member contribution falls below twelve percent (12%) of compensation earnable, the "New Attachment No. 1 - Exhibit "A" Member' Employee shall pay the difference between 12% of compensation earnable and 50% of the applicable normal cost member contribution pursuant to cost sharing in accordance with Government Code Section 20516(f). As soon as practical, the City shall amend the CaIPERS contract so that cost sharing will be by contract amendment under Government Code section 20516(a) so that the additional cost sharing identified above will be switched from cost sharing under Government Code section 20516(f) to Government Code section 20516(a). When cost sharing by contract amendment becomes effective under Government Code section 20516(a), cost sharing under Government Code section 20516(f) shall Immediately cease. In accordance with IRS Code section 414(h)(2), the cost sharing will then be treated as a pre-tax deduction. The Parties agree that should the MOU expire without a successor agreement in place, the cost sharing contribution as described above shall continue. 3. Section 14, Deferred Compensation — Suspend through January 14, 2021 the City/employer contribution of up to $50 per month to Deferred Compensation. Employees shall still be able to participate in the voluntary benefit contribution by the employee only during the suspension period. 4. Section 23 (F), Sick Leave, Sick Leave Annual Payoff Program — There will be a one-time suspension of the cashing out of up to sixty (60) hours of sick leave in November of 2020. This benefit will be reinstated and employees shall be able to cash out up to sixty (60) hours of sick leave in the next cash out period in November of 2021. 5. Section 23 (E), Sick Leave, Sick Leave Pay -Off Upon Termination shall be modified and replaced with the following: The City shall contract with CalPERS for the Credit for the Unused Sick Leave option under Government Code section 20965. Employees, upon retirement, shall be required to first use all accumulated and unused sick leave for PERS service credit. Any accumulated and unused sick leave remaining after the purchase of service credit of one year (e.g. 2080 hours) shall be paid at one- third (1/3) of their accumulated or unused sick leave up to a maximum of four hundred (400) hours. Employees who die or voluntarily terminate prior to retirement shall not be required to first convert accumulated and unused sick leave for PERS service credit. Thus employees who die or voluntarily terminate prior to retirement shall be paid at one-third (1/3) of their accumulated or unused sick leave up to a maximum of four hundred (400) hours. However, there is no eligibility of pay out for unused sick leave for employees dying or terminating prior to three (3) years of full-time employment with the City. Attachment No. 1 - Exhibit "A" FOR THE WCPOA AND CITY OF WEST COVINA: I agree on behalf of the WCPOA: I agree on behalf of the City: owrran WCPOA President Date rl David Car any City Manager 7 Date