2003-162RESOLUTION NO. 2003R- 162
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF ANAHEIM APPROVING A LETTER OF
UNDERSTANDING BETWEEN THE ANAHEIM POLICE
ASSOCIATION AND THE CITY OF ANAHEIM
WHEREAS, the City of Anaheim and the Anaheim Police Association,
have met and conferred and reached an understanding to mitigate the extraordinary
impact of CalPERS investment losses on employees represented by the Anaheim
Police Association; and
WHEREAS, the Anaheim Police Association is in agreement with the
recommendations contained in said Letter of Understanding; and
WHEREAS, as a result thereof, the Letter of Understanding dated
,2003 between the parties has been prepared and signed; and
WHEREAS, the City Council of the City of Anaheim does find that it is in
the best interest of the City of Anaheim to approve said Letter of Understanding.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Anaheim that the Letter of Understanding dated ,2003, between the
Anaheim Police Association and the City of Anaheim, a copy of which is attached hereto
and incorporated by reference herein, is hereby approved.
THE FOREGOING RESOLUTION is approved and adopted by the City
Council of the City of Anaheim this5t.h d/~f .__~/~ .. 2003.
MAYOR~'~'~ ~TT H~OF ,F ANAHEIM
ATTEST:
(31TY CLE'tS, K O¢ THE CITY OF ANAHEIM
APPROVED AS TO FORM:
?
CfTY ATTORNE~ OF THE'CITY OF .~AH~-v
H:\STAFFREP\SF6460LN
LETTER Of UNDERSTANDING
between the
ANAHEIM POLICE ASSOCIATION
and the
CITY OF ANAHEIM
The Anaheim Police Association ("APA") and the City of Anaheim ("CITY") have met and
conferred, and reached an agreement to amend provisions of the Memorandum of
Understanding between the parties to mitigate the extraordinary impact of CalPERS investment
losses on employees in classifications represented by the APA. The Parties hereby agree to
the following mitigations:
Article 44.1 of the Memorandum of Understanding between the Parties shall be amended
to read:
ARTICLE 44
PAID LEAVE PROGRAM
44.1 The Paid Leave program for regular, fuft-time employees in classifications listed in Appendix "A"
shaft be administered in accordance with the following provisions:
44.1.1
Effective Ju!y !0, !99~ August 1, 2003. employees shaft accrue Paid Leave time as
follows:
44.1.1.1
44.1.1.2
For c,mplc~,~cs ~'~'~ ..... ~,,, ,,,,, ~n ~o~. Flor the first four (4) years of
continuous, fuft-time service employees shaft accrue Paid Leave at the rate of
nine (9) hours for each complete biweekly pay period plus two (2) hours paid
leave at the close of the final complete biweekly pay period of each fiscal year
(236 hours per year). The maximum amount of Paid Leave that may be
accrued shaft be twice the annual accrual.
Upon completion of four (4) years of continuous, full-time service, employees
shaft accrue Paid Leave at the rate of c!c',~ (? I) ten (10) hours for each
complete biweekly pay pedod plus two (2) hours paid leave at the close of the
final complete biweekly pay period of each fiscal year (2~ 262 hours per
year). The maximum amount of Paid Leave that may be accrued shaft be
.~;/.cc thc ............... five hundred seventy six (576) hours.
44.1.1.3
Upon completion of eight (8) years of continuous, full-time service, employees
shall accrue Paid Leave at the rate of twelve-(-12-) eleven (ll) hours for each
complete biweekly pay period plus two (2) hours paid leave at the close of the
final complete biweekly pay period of each fiscal year (3!; 288 hours per
year). The maximum amount of Paid Leave that may be accrued shaft be
~'";"~ thc ............... slx hundred twenty eight (628) hours.
44.1.1.4
Upon completion of fourteen (14) years of continuous, fuft-time service,
employees shaft accrue Paid Leave at the rate of ~ twelve (12)
hours for each complete biweekly pay period plus two (2) hours paid leave at
the close of the final complete biweekly pay period of each fiscal year (3,!.0
Cw:C\LO Us~APA"P E RS"mitigation.doc
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314 hours per year). The maximum amount of Paid Leave that may be
accrued shall be .~:.'!ce thc ~n~uc! ccc."J~! six hundred e~qhtv (680) hours.
44.1.1.5
44.1.1.6
Effective August l, 2003, Uu_pon completion of ¢~ twenty (20)
years of continuous, full-time service, employees shall accrue Paid Leave at
the rate of ~ thirteen (~3) hours for each complete biweekly pay
period plus two (2) hours paid leave at the close of the final complete
biweekly pay period of each fiscal year (355 340 hours per year). The
maximum amount of Paid Leave that may be accrued shall be twice-the
c.-.':.',.'c! ~ccr','c! seven hundred thirty two (732) hours.
Effective Ju!y 2!, 2000 August ~, 2003, upon completion of ~
twenty-five (25) years of continuous, full-time service, such employees shall
accrue Paid Leave at the rate of 8fteeR-Tc1~ fourteen (~4) hours for each
complete biweekly pay period plus two (2) hours paid leave at the close of the
final complete biweekly pay period of each fiscal year (392 366 hours per
year). The maximum amount of Paid Leave that may be accrued shall be
~;:icc thc ennui! ccc;ut! seven hundred eighty four (784) hours.
APA and ANAHEIM agree that employees who are within forty (40) hours of their Paid
Leave accrual maximums as of the first day of the pay period following City Council
approval of this Letter of Understanding shall be paid for all Paid Leave hours accrued but
not used that are within forty hours of their maximum accrual. (For instance, an employee
whose Paid Leave accrual maximum is 680 hours, and whose current Paid Leave accrual
is 660 hours, shall be paid for 20 hours, resulting in a Paid Leave hours balance at the end
of the pay period of 640 hours.)
Article 44.9.2 of the Memorandum of Understanding between the Parties shall be
amended to read:
44.9.2
Employees may request to be compensated for up to ei~hty-(8~ sixty (60) accrued
Paid Leave hours ee6e twice per calendar q'.-'c,'tcr (J,~nuc~' ~, ,v*~ ,,,~,A~'~v,, v'~;, ,A,~,,~'",, ~, ,~+~
........... ~ ..... . ................................. vearsu ct to the
fo/lowing provisions:
44.9.2.1
44.9.2.2
44.9.2.3
44.9.2.4
The employee must have used a minimum of forty (40) hours of Paid
Leave during the preceding twelve (12) months.
The employee's Paid Leave balance cannot drop below one hundred
seventy-five (175) hours as a result of the request.
The Chief of Police or the Chief's designee must approve the employee's
request for Paid Leave pay-off.
Employees may request to be compensated one time during the
remainder of calendar year 2003 for up to sixty (60) hours of
accrued Paid Leave.
Articles 59.6.6.1 and 59.6.6.2 are struck and replaced with:
59.6.6.~
ANAHEIM and APA agree that employer costs payable to CalPERS in excess of the
benefit cost of "2% ~, 50" that are attributable to the benefit differential between
"2% ~. 50" and "3% ~. 50" shall be allocated between the Parties. For the purpose
of this Section, the benefit cost of "2% ~, 50" is the 2000/2001 fiscal year cost
reported by CalPERS of ~3.369 percent. The benefit cost of "3% ~, 50" is the
combination of the actuarially determined Normal Cost and Prior Service Cost of
the benefit, which shall be allocated between the Parties as set forth in this Letter
of Understanding and successor Memoranda of Understanding. Through June 30,
^
Cw:C\LOUs'~,PA PERS mitigation.doc
Revised 7/24/03
2022, those costs are 4.5% (Normal Cost) and 8.7% (Prior Service Cost), for a total
cost to be allocated between the Parties of 13.2%. ANAHEIM acknowledRes that it
is not the intent of this section that APA be allocated additional costs attributable
59.6.6.2
to CalPERS investment losses.
The Parties a.qree that the APA's allocation for the term of this A.qreement shall be
fully satisfied by the reduction in its member's Paid Leave accruals (1.25%
on.qoin.q), the reduction in its member's ability to be compensated for Paid Leave
accrued but not used (0.25% on.qoin.q), the deferral of the five percent general
salary increase from January 16, 2004 to February fl, 2005, the extension of this
Memorandum of Understandin.q without additional compensation and benefits
from January 13, 2005 to January 12, 2006, and employee payment of 2.5% of
compensation which is part of the employer cost payable to CalPERS.
Any employee payroll contribution required as the result of the allocation of costs
shall not exceed 2.5% of compensation as required by the Public Employment
Retirement Law durin.q the term of this a.qreement. Effective January 1. 2005.
ANAHEIM and APA a.qree to meet and confer concernin.q an employee payroll
contribution to be effective July 1, 2005. Unless the parties otherwise a~lree in
writin.q, an employee payroll contribution effective July 1, 2005 shall not exceed
2.5%.
The Parties agree that the general wage increase of five percent (5%) of base wages
scheduled January 16, 2004 shall be deferred to February 11,2005.
Article 72 of the Memorandum of Understanding between the Parties shall be amended to
read:
ARTICLE 72
DURA TION
72.1
The terms of this Memorandum are to remain in full force and effect until the -1~ 12~h day of
January 2005 2006. Upon adoption of a resolution approving this Memorandum and the
terms hereof by ANAHEIM City Council of ANAHEIM, this Memorandum shall be in full force
and effect as of the 19th day of January 2001.
STAFF OFFICIALS OF THE CITY OF
ANAHEIM, a municipal corporation
ANAHEIM POLICE ASSOCIATION
By: __
Dated: '7 - '~ / - Z.~z~ ~
Cw:C\LOUs~APA^PE RS^mitigation.doc
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STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF ANAHEIM )
I, SHERYLL SCHROEDER, City Clerk of the City of Anaheim, do hereby certify that the foregoing
Resolution No. 2003R-162 was introduced and adopted at a regular meeting provided by law, of
the Anaheim City Council held on the 5th day of August, 2003, by the following vote of the
members thereof:
AYES: MAYOR/COUNCIL MEMBERS: Pringle, Chavez, Hernandez, McCracken
NOES: MAYOR/COUNCIL MEMBERS: Tait
ABSTAINED: MAYOR/COUNCIL MEMBERS: None
ABSENT: MAYOR/COUNCIL MEMBERS: None
/~ITY CLEI~K OF THE CITY OF ANAHEIM
(SEAL)