| | | | | | | |  | ITEM: | 4.M.
| COUNCIL MEETING DATE:
| October 8, 2015 | | SECTION: | Consent Agenda |
Description:
Approve Memorandum of Agreement with LELS Local No. 243 for Contribution to Post-Employment Health Reimbursement Arrangement (PEHRA) Upon Promotion Out of Bargaining Unit | Staff Contact:
Melissa Haas, Human Resources Manager | Department / Division:
Human Resources Division |
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| | | | | | | | ACTION REQUESTED:
Approve memorandum of agreement with LELS Local No. 243 for contribution to Post-Employment Health Reimbursement Arrangement (PEHRA) upon promotion out of bargaining unit.
SUMMARY:
LELS Local No. 243, representing the City's Police Sergeants, has requested an amendment to an article of the 2014-2015 collective bargaining agreement relative to the Post Employment Health Reimbursement Arrangement (PEHRA).
Staff recommends approval of the memorandum of agreement.
BACKGROUND:
The City of Apple Valley and LELS Local No. 243 representing the City's Police Sergeants have previously entered into a Collective Bargaining Agreement effective 1/1/14 through 12/31/15. The agreement contains an article relative to the Post Employment Health Reimbursement Arrangement (PEHRA).
Through recent joint meetings, City staff and LELS representatives agree as follows:
- Effective with promotion out of the bargaining unit into a non-represented position with the City, 30% of the employee's accrued unused annual leave hours shall be deposited into the employee's PEHRA account.
- The deposited hours shall be converted to dollar value equivalent at the employee's regular hourly pay rate in effect immediately preceding promotion out of the bargaining unit.
- This provision shall apply to any employee promoted out of the bargaining unit into a non-represented position with the City for the duration of the Collective Bargaining Agreement.
- This provision shall sunset effective 12/31/15.
- All other provisions related to the PEHRA shall continue pursuant to the Collective Bargaining Agreement and applicable Memorandum of Agreement.
BUDGET IMPACT:
While not specifically included in the budget, annual leave is payable to an employee upon separation from employment. This amendment, in converting the specified annual leave amounts to the PEHRA at this time, will reduce City costs by converting the annual leave at a lower rate of pay than in the future, and by saving the payroll taxes which would be due if the annual leave were paid out in cash.
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