HomeMy WebLinkAboutSANTA ANA MANAGEMENT ASSOCIATION (2008-2010)
A-2006-300B
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TWO-YEAR CONTRACT EXTENSION TO
THE MEMORANDUM OF UNDERSTANDING BETWEEN
THE CITY OF SANTA ANA
AND
SANTA ANA MANAGEMENT ASSOCIATION
FOR FISCAL YEARS 2008-09 AND 2009-10
The City of Santa Ana (CITY) and the Santa Ana Management Association (SAMA) have
met and agreed to amend the Memorandum of Understanding (MOU) between the CITY
and SAMA for Fiscal years 2004-05 through 2007-08 by extending this MOU for two
additional years. The existing MOU provisions will remain unchanged unless addressed by
this addendum. The new expiration date of the MOU will be June 30, 2010, and the MOU
will be amended as follows:
AMENDED ARTICLE V (new language in bold)
5.3 Salaries.
E. Effective July 1, 2008, the base salaries of classifications covered by this
Agreement shall be increased by approximately four percent (4%).
F. Effective January 1, 2009, the base salaries of classifications covered by
this Agreement shall be increased by approximately two and one-half
percent (2.5'0).
G. Effective July 1, 2009, the base salaries of classifications covered by this
Agreement shall be increased by approximately four percent (4'0).
H. Effective January 1, 2010, the base salaries of classifications covered by
this Agreement shall be increased by approximately two and one-half
percent (2.5%).
I. Effective July I, 2007, Miscellaneous employees covered by this Agreement
shall contribute 2% of their salary toward the employer cost of the 2.7%
at 55 retirement benefit. To the extent permitted by CalPERS and
Internal Revenue Service regulations, this 2% contribution shall be
implemented through payroll deduction on a pre-tax basis.
Effective July I, 2008, Miscellaneous employees covered by this Agreement
shall contribute an additional 2% of their salary (for a total of 4'0) toward
the employer cost of the 2.7'0 at 55 retirement benefit. To the extent
permitted by CalPERS and Internal Revenue Service regulations, this
additional 2% contribution shall be implemented through payroll deduction on
a pre-tax basis.
Effective July 1, 2009, Miscellaneous employees covered by this Agreement
shall contribute an additional 2.3% of their salary (for a total of 6.3'0)
toward the employer cost of the 2.7% at 55 retirement benefit. To the
extent permitted by CalPERS and Internal Revenue Service regulations, this
additional 2.3% contribution shall be implemented through payroll deduction
on a pre-tax basis.
AMENDED ARTICLE XI (new language in bold)
11.1 Health Insurance. The City shall contribute the following amounts toward the
payment of premiums for affected employees and their dependents under the
existing health insurance programs or new program or programs providing
substantially similar or improved coverage and benefits selected in accordance with
procedures in effect on the effective date of this Agreement:
B. Effective January 1, 2006, January 1, 2007, ElfIEI-January 1, 2008, January 1,
2009, and January I, 2010, respectively, the City shall contribute toward
medical premiums an amount consistent with the rates then in effect for each
tier of the CalPERS Kaiser Permanente HMO Other Southern California plan.
11.2 Dental Insurance.
A. Effective January 1, 2004 through December 31, 2005, the City agrees to
contribute a maximum of up to seventy f$7Q1 dollars ($70) per month per
employee toward the payment of premiums for dental insurance plans provided
by the City for employees covered by this Agreement and their eligible
dependents. Effective January 1, 2006, the City contribution amount will be
increased to a maximum of up to eighty $8G dollars ($80) per month per
employee. Effective January 1, 2007, the City contribution amount will be
increased to a maximum of up to ninety t$9G) dollars ($90) per month per
employee. This contribution amount of $90 per month per employee shall
remain in effect during the term of the Agreement, which expires June 30,
2010.
11.7 Medical Retirement Subsidy Plan.
A. Effective Fiscal Year 2004-05, the City's annual contribution to the Medical
Retirement Subsidy Plan for full time SAMA employees shall be increased by an
additional one-half percent (0.5'10) of the SM,v. el'l'll"le}'ees' bargaining unit's
salary base, under the same Medical Retirement Subsidy Plan it maintains for
Executive Officers and Management employees of the City. With this
additional contribution amount, the City's I'l'Is)(il'lll:ll'l'l contribution toward the
Medical Retirement Subsidy Plan for SAMA employees shall equal one percent
(1.0%) of 'tfletp the bargaining unit's salary base.
Effective Fiscal Year 2008-09, the City's annual contribution to the
Medical Retirement Subsidy Plan for full time SAMA employees shall be
increased by an additional four tenths of one percent (0.4010) of the
bargaining unit's salary base. With this additional amount, the City's
contribution toward the Medical Retirement Subsidy Plan for SAMA
employees shall equal one and four tenths' percent (1.4010) of the
bargaining unit's salary base.
Effective Fiscal Year 2009-10, the City's annual contribution to the
Medical Retirement Subsidy Plan for full time SAMA employees shall be
increased by an additional point three five tenths of one percent (0.3510)
of the bargaining unit's salary base. With this additional amount, the
City's contribution toward the Medical Retirement Subsidy Plan for SAMA
employees shall equal one and three quarters' percent (1.7510) of the
bargaining unit's salary base.
AMENDED ARTICLE XIII (new language in bold)
13.2 Deferred Retirement. The City will continue to make payment to CalPERS on
behalf of each affected employee, in an amount necessary to pay one hundred
percent (100'10) of his or her individual retirement contribution which is currently
equal to seven percent (7%) of base salary, and will increase to eight percent
(810) of base salary, effective January 1, 2009. Such payments shall be
credited to the individual employee's CalPERS account.
Such payments are not increases in base salary and no salary rate ranges applicable
to any of the employees covered by this Agreement shall be changed or deemed to
have been changed by reason thereof. As a result, the City will not treat these
payments as ordinary income and, thus will not withhold Federal or State income
tax from said payments. The City has received an opinion or ruling from the
Internal Revenue Service confirming that these payments are deferred
compensation, and not ordinary income. In the event that the City receives a ruling
from the Internal Revenue Service that such payments are ordinary income of the
employees instead of deferred compensation, the City's obligation to make such
payments shall discontinue and in place thereof the base salary of each said
employee shall forthwith be increased by fourteen (14) salary rate ranges
(Administrative Management employees), or sixteen (16) salary rate ranges
after January 1, 2009, or approximately seven percent (7/'0) (Middle
Management employees), or approximately eight percent (8%) after January 1,
2009.
For the purpose of reporting an employee's compensation to CaIPERS, the City shall
include these payments as if they were a part of the employee's base salary.
13.5 2. 7'}'0 at 55 Service Retirement Benefit for Miscellaneous Members. Effective
January 1, 2009, the City agrees to amend its retirement contract with
CalPERS to provide Miscellaneous employees covered by this Agreement with
the 2.7% at 55 Service Retirement benefit. Pursuant to CalPERS regulations,
this new formula will apply to employees that are in active status on the date
this amendment takes effect. This new formula will apply to each year of
eligible service credited with the City of Santa Ana.
Payment of New 2.7'}'0 at 55 Service Retirement Benefit. Miscellaneous
employees covered by this Agreement agree to pay 6.3,},0 of CalPERS
reportable compensation toward the cost of the 2.7% at 55 enhanced
retirement formula, as set forth in Article V, Section 5.3I.
Pre- Taxable Benefit. To the extent permitted by CalPERS and Internal
Revenue Service regulations, the City shall make the above employee
deductions pre-tax contributions.
AMENDED ARTICLE XX
20.1 The term of this Memorandum of Understanding shall commence on the date when
the terms and conditions for its effectiveness, as set forth in Article III,
Implementation, are fully met, but in no event shall said Memorandum of
Understanding become effective prior to 12:01 a.m. on July 1, 2004. This
Memorandum of Understanding shall expire and otherwise be fully terminated at
12:00 midnight on June 30, 20G810.
ARTICLE XXII
22.0 RA TIFICA TION & EXECUTION
The City and SAMA have reached an understanding as to certain recommendations
to be made to the City Council for the City of Santa Ana and have agreed that the
parties hereto will jointly urge said Council to adopt a new wage and salary
resolution which will provide for the changes contained in said joint
recommendations. The City and SAMA acknowledge that this Agreement shall not
be in full force and effect until ratified by the membership of SAMA and adopted
by the City Council of the City of Santa Ana. Subject to the foregoing, this
Agreement is hereby executed by the authorized representatives of the City and
SAMA and entered into this!8*" 20th day of JSl'lI:Jsry November, 20096.
CITY OF SANTA ANA, a Municipal
Corporation of teState of California
Dated:
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By:
Dated:
Dated:
ATTEST~
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Clerk of the Council
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APPROVED AS TO FORM:
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/Assistant City Attorney
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This Agreement has been ratified by the membership of the Santa Ana Management
Association.
Dated:
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By: ,~)!~/ I.
President
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Vice President