CC Resolution 13148 - Approving and Ratifying Side Letter Agreement to MOU City of Campbell and CPOA CALGOVEBA CPOA Resolution - VEBA
April 2024
RESOLUTION NO. 13148
A RESOLUTION APPROVING AND RATIFYING A SIDE LETTER AGREEMENT TO
THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF CAMPBELL
AND THE CAMPBELL PEACE OFFICERS' ASSOCIATION MANDATING THAT UPON
SEPARATION A MEMBER'S UNUSED SICK LEAVE SHALL BE TRANSFERRED TO
THE MEMBER'S CALGOVEBA ACCOUNT, EFFECTIVE APRIL 2024
WHEREAS, on December 20, 2022, the City Council adopted Resolution No. 12926
approving and ratifying a successor Memorandum of Understanding (MOU) between the
City of Campbell (City) and the Campbell Peace Officers' Association (CPOA), covering
the period of January 1, 2023, through December 31, 2025, and memorializing the
salaries and benefits for CPOA members; and
WHEREAS, on behalf of its employees, the City participates in a Voluntary Employees'
Beneficiary Association (VEBA) known as CALGOVEBA; and
WHEREAS, through its CALGOVEBA participation, the City of Campbell makes
mandatory contributions to a tax-free trust account for each of its employees to help
employees pay for healthcare expenses not otherwise covered by the City's insurance
programs; and
WHEREAS, CPOA members' CALGOVEBA benefits are memorialized in the December
20, 2022, MOU between the City and CPOA; and
WHEREAS, CPOA members currently have the option of cashing out their unused sick
leave upon termination, retirement, or death or applying their unused sick leave towards
CaIPERS service credit upon retirement from the City; and
WHEREAS, CPOA members recently voted to waive this option and instead have their
unused sick leave automatically transferred to their respective CALGOVEBA accounts
upon termination, retirement, or death according to the following formula:
• Under 5 years of completed service: 0% at terminal pay rate;
• 5 through 10 years of completed service: 20% at terminal pay rate;
• Start of year 11 through completion of year 15: 30% at terminal pay rate;
• Start of year 16 through completion of year 20: 40% at terminal pay rate;
• Start of year 21 and thereafter: 50% at terminal pay rate; and
WHEREAS, there is no additional cost associated with the City allowing for a mandatory
transfer of a member's unused sick leave to their respective CALGOVEBA account; and
WHEREAS, the City joined CALGOVEBA as a way to assist employees with their
healthcare expenses, and allowing employees to direct the value of their unused sick
leave toward their CALGOVEBA accounts is a way for the City to further support its
employees: and
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CPOA Resolution -VEBA
April 2024
WHEREAS, the City's negotiation team and CPOA have reached a tentative agreement
to amend the December 20, 2022, MOU to allow for the mandatory transfer of unused
sick leave towards CPOA members' respective CALGOVEBA accounts upon their
termination, retirement, or death, as more fully reflected in the attached Side Letter
Agreement between the City and the CPOA ("Attachment A" hereto and made a part
hereof);
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Campbell
does hereby approve and ratify the attached Side Letter Agreement such that upon
termination, retirement, or death, members of the CPOA shall have their unused sick
leave automatically transferred to their CALGOVEBA account.
BE IT FURTHER RESOLVED that effective April 16, 2024, Section III.E of the December
20, 2022, MOU shall be amended to read as follows:
SECTION III. HEALTH & WELFARE BENEFIT PROGRAMS
E. City of Campbell's Voluntary Employees' Beneficiary Association (VEBA) Plan
(hereinafter referred to as, "CALGOVEBA")
a. Mandatory City Contribution: During a CPOA member's active employment
with the City, the City will make a mandatory contribution of$170 per pay
period to that CPOA member's CALGOVEBA account.
b. Mandatory Transfer of Unused Sick Leave to Member's CALGOVEBA:
Upon a member's termination, retirement, or death, the City shall
automatically transfer the value of the member's unused sick leave to his or
her respective CALGOVEBA account pursuant to the formula set forth
below:
• Under 5 years of completed service: 0% at terminal pay rate;
• 5 through 10 years of completed service: 20% at terminal pay rate;
• Start of year 11 through completion of year 15: 30% at terminal pay
rate;
• Start of year 16 through completion of year 20: 40% at terminal pay
rate;
• Start of year 21 and thereafter: 50% at terminal pay rate.
BE IT FUTHER RESOLVED that unless it is otherwise stated herein or in Resolution
No. 12926, it is not the intent of the City Council in approving and ratifying this Side
Letter Agreement to further change, modify, or repeal in any way any of the existing
provisions of the City of Campbell Personnel Rules and Regulations; and
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CPOA Resolution -VEBA
April 2024
FINALLY, BE IT FURTHER RESOLVED that the City Appointing Power and the
Human Resources Manager have the authority to take any necessary administrative
actions to implement the provisions of this resolution.
PASSED AND ADOPTED this 16th day of April, 2024, by the following roll call
vote:
AYES: Councilmembers: Bybee, Furtado, Scozzola, Lopez, Landry
NOES: Councilmembers: None
ABSENT: Councilmembers: None
APPROVED:
Susan M. Land , Mayor
ATTEST:
cAiidecr) 4ielaa
Andrea S ers, City Clerk
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Side Letter Agreement
Between
City of Campbell
And
Campbell Peace Officers' Association (CPOA)
This Side Letter Agreement Between the City of Campbell and the Campbell Peace Officers'
Association(Side Letter) modifies the current Memorandum of Understanding (MOU)between
the City of Campbell (City) and the Campbell Peace Officers' Association (CPOA), dated
December 20, 2022, and covering the period of January 1, 2023 through December 31, 2025,
solely with regards to the distribution of unused sick leave upon a CPOA member's termination,
retirement, or death. All other terms of the existing MOU shall remain in effect through
December 31, 2025.
This Side Letter further reflects the understanding of the parties arising from resolution of the
meet and confer process and the parties hereby agree as follows:
Upon termination, retirement, or death, a CPOA member's unused sick leave shall be deposited
into their respective individual CALGOVEBA account, pursuant to the limitations set forth
below.
YEARS OF SERVICE NET% OF UNUSED SICK LEAVE TO CALGOVEBA
Under 5 Years of Service 0%
5 years completed through 10 years 20% at terminal pay rate
completed service _
Start of year 11 through completion of year 15 30%at terminal pay rate
Start of year 16 though completion of year 20 40%at terminal pay rate
Start of year 21 and thereafter 50%at terminal pay rate
The parties further agree that with this Side Letter, all members of the CPOA waive any option
they currently have to designate the use of their unused sick leave upon termination, retirement,
or death, including opting to cash out their unused sick leave or opting to use the value of their
unused sick leave towards the purchase of years of service.
EXECTUED THIS /4 DAY OF 2024, BY THE EMPLOYER-
EMPLOYEE REPRESENTATIVES, OSE SIGNATURES APPEAR BELOW, FOR
THEIR RESPECTIVE ORGANIZATION
CITY SENTATI S:I CPOA REPRESENTATIVES:
B. . oventhal, City anager> Matthew Ryan, C9resident
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/ nge ../e Gae'., Assistant City Manager Lee Heitzman, CPOA Vice President