CC SR 20211116 M - RPVEA MOU 2020-21 Third Amendment
CITY COUNCIL MEETING DATE: 11/16/2021
AGENDA REPORT AGENDA HEADING: Consent Calendar
AGENDA TITLE:
Consideration and possible action to approve a Third Amendment to the Memorandum
of Understanding between the City and the Rancho Palos Verdes Employee s Association
(RPVEA MOU 2020-21).
RECOMMENDED COUNCIL ACTION:
(1) Adopt Resolution No. 2021 -__, A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF RANCHO PALOS VERDES, STATE OF CALIFORNIA,
ACCEPTING, APPROVING AND ADOPTING THE THIRD AMENDMENT TO THE
MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY AND THE
RANCHO PALOS VERDES EMPLOYEES ASSOCIATION TO EXTEND THE
TERM TO JUNE 30, 2022 AND TO INCREASE THE CITY’S CONTRIBUTION
TO EMPLOYEE HEALTH SAVINGS ACCOUNTS; and,
(2) Approve the Third Amendment to Memorandum of Understanding between the
City of Rancho Palos Verdes and the Rancho Palos Verdes Employees
Association (RPVEA) thereby extending the term of the RPVEA MOU 2020-21 to
June 30, 2022 and increasing the City's Health Savings Account contribution for
individual employees and employee family plans starting calendar year 2022.
FISCAL IMPACT:
Amount Budgeted: N/A
Additional Appropriation: None
Account Number(s):
ORIGINATED BY: Julie DeZiel, Human Resources Manager
REVIEWED BY: Karina Bañales, Deputy City Manager
APPROVED BY: Ara Mihranian, AICP, City Manager
ATTACHED SUPPORTING DOCUMENTS:
A. Draft Resolution No. 2021 -__ (page A-1)
B. Third Amendment to the Memorandum of Understanding between the City and
the Rancho Palos Verdes Employees Association (page B -1)
C. Memorandum of Understanding between the City of Rancho Palos Verdes and
the Rancho Palos Verdes Employees Association including the First Amendment
and Second Amendment (Exhibit “A” to Draft Resolution) (page C-1)
D. November 2, 2021 City Council Staff Report
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BACKGROUND:
On May 19, 2020, the City Council adopted Resolution No. 2020-25 establishing a
Memorandum of Understanding between the City and the RPVEA (RPVEA MOU 2020-
21) covering the period July 1, 2020 through June 30, 2021.
On December 15, 2020, the City Council adopted Resolution No. 2020-70 increasing the
City’s contributions to employee Health Savings Accounts contribution for individual
employees and employee family plans under the RPVEA MOU 2020-21 (“RPVEA MOU
2020-21 First Amendment”),
On June 16, 2021, The City and labor representatives of the RPVEA agreed to a
successor Memorandum of Understanding (MOU) and agreed to a six -month term
extension of the current RPVEA MOU through December 31, 2021 (“RPVEA MOU 2020-
21 Second Amendment”). This extension was to allow time for the City to conduct a
Classification and Compensation study to determine appropriate classifications,
compensation, benefits, and organizational structure changes.
At this time, the Classification and Compensation is still underway and is not scheduled
to be completed until late Spring of 2022. Since the RPVEA MOU is valid until December
31, 2021, the term will need to be extended to complete the Classification and
Compensation study. Moreover, at its November 2, 2021 meeting, the City Council
approved increasing the City’s contribution to employee Health Savings Accounts
contribution for individual employees and employee family plans . Thus, in order to
memorialize these two changes to the RPVEA MOU, the City Council is being asked to
consider Amendment No. 3 to the RPVEA MOU.
DISCUSSION:
On October 28, 2021, the City and labor representatives of the RPVEA met to discuss
the ongoing Classification and Compensation study. During the meeting, labor
representatives from the City and RPVEA agreed to a six-month term extension of the
current RPVEA MOU through June 30, 2022. This extension will allow time for the City
to conclude the Classification and Compensation study to determine, if any, appropriate
classifications, compensation, benefits, and organizational structure changes for the City
Council’s consideration.
On November 2, 2021, the City Council approved increasing the City's Health Savings
Account contribution for individual employees and employee family plans starting
calendar year 2022 to incentivize employees to remain or join the high deductible medical
plan, in return keeping premium insurance costs low for the City (Attachment D).
As a result, the City’s contribution to the employee Health Savings Accounts increased
by a total of $2,400 for all 30 employees enrolled in the high deductible Preferred Provider
Organization (PPO) medical plan effective on January 1, 2022. Thus, the City's HSA
contribution equates to $3,650 for individuals and $7,300 for family plans for 2022.
To memorialize the City Council’s decision, Staff is presenting a Resolution (Attachment
A) and the Third Amendment to the 2020-21 RPVEA MOU (Attachment B).
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This action is pursuant to the requirements of the Meyers-Milias-Brown Act (“MMBA,”
commencing at California Government Code § 3500 et seq .)
ADDITIONAL INFORMATION:
Additionally, management met and discussed with RPVEA of this proposal as part of the
medical benefits for 2022. Since management’s proposal can only enhance employee
benefits, the board of the RPVEA had no objection to proceeding with this agenda item
at this time.
ALTERNATIVES:
In addition to the Staff recommendation, the following alternative actions are avai lable for
the City Council’s consideration:
1. Do not adopt the resolution and the Third Amendment to the Memorandum of
Understanding and continue the provisions of the expired Memorandum of
Understanding until a new Memorandum of Understanding is negotiated and
implemented
2. Take other action, as deemed appropriate.
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RESOLUTION NO. 2021-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF RANCHO PALOS VERDES, STATE OF CALIFORNIA,
ACCEPTING, APPROVING AND ADOPTING THE THIRD
AMENDMENT TO THE MEMORANDUM OF
UNDERSTANDING BETWEEN THE CITY AND THE
RANCHO PALOS VERDES EMPLOYEES ASSOCIATION
TO EXTEND THE TERM TO JUNE 30, 2022 AND TO
INCREASE THE CITY’S CONTRIBUTION TO EMPLOYEE
HEALTH SAVINGS ACCOUNTS
WHEREAS, Section 36506 of the California Government Code requires that a
city council fix the compensation of all appointive officers and employees by resolution
or ordinance; and
WHEREAS, the City of Rancho Palos Verdes (“City”) continues to recognize the
Rancho Palos Verdes Employees Association (“RPVEA”) as the exclusive employee
organization for those City employees in the barga ining unit defined as non-
management, full-time employees in the classifications listed in Exhibit "A" to the
Memorandum of Understanding between the City and the RPVEA covering the period
July 1, 2020 through June 30, 2021 adopted on May 19, 2020 by City Council
Resolution No. 2020-25 (“RPVEA MOU 2020-21”), a copy of which is attached hereto
as Exhibit "1"; and
WHEREAS, the City’s and RPVEA’s labor relations representatives met and
conferred regarding increasing the City’s contributions to employee Health Savings
Accounts contribution for individual employees and employee family plans provided
under the RPVEA MOU 2020-21, which resulted in the First Amendment to the RPVEA
MOU 2020-21 ratified by RPVEA and then adopted on December 15, 2020 by City
Council Resolution No. 2020-70 (“RPVEA MOU 2020-21 First Amendment”), a copy of
which is attached hereto as Exhibit "2"; and
WHEREAS, the City’s and RPVEA’s labor relations representativ es met and
conferred regarding extending the term of the RPVEA MOU 2020-21 to December 31,
2021, providing a 2.2% COLA effective July 1, 2021 and permitting probationary
employees to earn and use accrued vacation leave during their initial-hire probationary
period, which resulted in the Second Amendment to the RPVEA MOU 2020-21 ratified
by RPVEA and then adopted on June 15, 2021 by City Council Resolution No. 2021-27
(“RPVEA MOU 2020-21 Second Amendment”), a copy of which is attached hereto as
Exhibit " 3"; and
WHEREAS, the City’s and RPVEA’s labor relations representatives have met
and conferred and agreed to a further six (6) month term extension of the current
RPVEA MOU 2020-21 through June 30, 2022, to allow time for the City to conclude a
classification and compensation study, which is subject to RPVEA ratification and City
Council consideration; and
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WHEREAS, the City Council has subsequently determined that it desires to
incentivize employees to remain or join the City’s high deductible medical plan, in return
keeping premium insurance costs low for the City, by increasing the City's Health
Savings Account contribution for individual employees and employee family plans
starting calendar year 2022;
WHEREAS, pursuant to the provisions of the Meyers-Milias-Brown Act
(Government Code § 3500 et seq.), the City and RPVEA have meet and conferred, and
reached an agreement regarding the proposed increase in the City's Health Savings
Account contribution for individual employees and employee family plans starting
calendar year 2021; and
WHEREAS, the City Council and RPVEA desire to amend the current RPVEA
MOU 2020-21 by accepting, adopting and implementing the attached Third Amendment
to the RPVEA MOU 2020-21 to reflect the aforementioned changes.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS:
Section 1: The City Council finds the above recitals are true and correct and
incorporated herein by this reference.
Section 2: The City Council approves and adopts the attached Third Amendment
to the RPVEA MOU 2020-21 provided herewith as Exhibit “4” thereby extending the
term of the RPVEA MOU 2020-21 to June 30, 2022 and increasing the City's Health
Savings Account contribution for individual employees and employee family plans
starting calendar year 2022.
Section 3: This resolution shall be effective on November 16, 2021. The City
Clerk shall certify the adoption of this Resolution.
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PASSED, APPROVED and ADOPTED this 16th day of November 2021.
_____________________________
Mayor
Attest:
____________________________
City Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss
CITY OF RANCHO PALOS VERDES )
I, Teresa Takaoka, City Clerk of the City of Rancho Palos Verdes, hereby certify
that the above Resolution No. 2021-__ was duly and regularly passed and adopted by
the said City Council at a regular meeting thereof held on November 16, 2021.
__________________________
City Clerk
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