HomeMy WebLinkAbout11/15/1994, C-6 - MEMORANDUM OF AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE SAN LUIS OBISPO FIRE BATTALION CHIEF'S ASSOCIATION FOR THE PERIOD 7/1/94-6/30/96 II �y�Sa � MEETING DATE:
����II ��II�IIII��III city Of LUIS OBISPO ITEM NUMBER:
COUNCIL AGENDA REPORT d-TO/
FROM: Wendy George, Personnel Analyst `
Ken Hampian, Assistant City Administrator
SUBJECT: Memorandum of Agreement between the City of San Luis Obispo and the
San Luis Obispo Fire Battalion Chiefs' Association for the period 7/1/94 -
6/30/96
CAO RECOMMENDATION:
Adopt resolution approving the Memorandum of Agreement
DISCUSSION:
Background:
The Memorandum of Agreement (MOA) between the City of San Luis Obispo and the San Luis
Obispo Fire Battalion Chiefs' Association expired on July 1, 1994, after a term of one year with
no salary increase. After meeting with the City Council in closed session in May, 1994, to
discuss various issues of mutual concern, the City entered into negotiations with the Association
to develop a successor agreement. The City's negotiators were Wendy George, Personnel
Analyst, and Ken Hampian, Assistant City Administrator. The Association's negotiating team
consisted of all four Battalion Chiefs, Steve Smith, Ken McCool, Lew Schmutz and Jerry Arnett.
A tentative agreement has been reached which was ratified by the Association membership. The
agreement reflects and strengthens the continued cooperation between the Association and the
City to address issues of mutual concern in a productive manner. Following is a summary of
the significant changes and cost items included in the agreement.
Terms of the Agreement:
Length:T24 months
TTYear 1: July 1, 1994 - 3% salary increase for all employees in the unit.
Upon the approval of the MOA the City will discontinue paying the
employees share of retirement (9%), add that same amount to base salary
and require the employees to pay their own retirement contribution. This
adjustment will have the effect of increasing salary for retirement
purposes. This practice is allowed by PERS and is eligible for tax
deferral under the Internal Revenue Code, Section 414(h)(2). The IRS
and PERS require the City to adopt a resolution implementing the
provisions of section T14(h)(2).
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0j;% COUNCIL AGENDA REPORT
Page 2
Year 2: July 1, 1995 - The City's health benefit payment will increase from $375
per month to $400 per month.
July 1, 1995 - 0.5% salary increase for all employees in the unit.
Other: Language has been added to the MOA that clarifies that sick leave hours
above the existing payoff threshold will be forfeited and not run out prior
to an industrial disability retirement being effective. In addition, language
has been included that commits both City management and Fire
Department management to explore ways to establish incentives for
reducing the use of sick-leave throughout the Department. In compliance
with state and federal laws regarding Family Medical Leave, language in
the MOA will be modified to meet the provisions of the law. Contract
language will also be updated to reflect the City's current health insurance
program and Cafeteria Plan.
FISCAL IMPACT:
This agreement would cost approximately $9,843 for Year 1. This is a total compensation cost
which includes salary and benefits. The total compensation cost for Year 2 would be $2,473.
Funding is available in the existing fund balances for FY 94-95. Funds will be appropriated for
FY 95-96 as part of the next two year financial planning process in accordance with this
agreement.
ALTERNATIVES:
Do not approve the resolution and direct staff to negotiate a different successor agreement. This
alternative is not recommended as the agreement presented is very close to Council's parameters,
and also offers retirement incentive and salary compression relief to the Association.
Attachment: Resolution
Note: A copy of the Memorandum of Agreement is available in the Council Reading
file.
RESOLUTION NO. (1994 SERIFS)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
ADOPTING AND RATIFYING THE MEMORANDUM OF AGREEMENT BETWEEN
THE CITY OF SAN LUIS OBISPO AND THE SAN LUIS OBISPO FIRE BATTALION
CHIEFS' ASSOCIATION FOR THE PERIOD OF JULY 19 1994 - JUNE 30, 1996
BE IT RESOLVED by the Council of the City of San Luis Obispo as follows:
Section 1. The Memorandum of Agreement between the City of San Luis Obispo and
the San Luis Obispo Fire Battalion Chiefs' Association, attached hereto as exhibit "A" and
incorporated herein by this reference, is hereby adopted and ratified.
Section 2. The Finance Director shall adjust the Personnel Services appropriation
accounts to reflect the negotiated compensation changes.
Section 3. The City Clerk shall furnish a copy of this resolution and a copy of the
executed Memorandum of Agreement approved by Steve Smith, San Luis Obispo Battalion
Chiefs' Association President and Wendy George, Acting Personnel Director.
On motion of , seconded by ,
and on the following roll call vote:
AYES:
NOES:
NONE:
��-3
Resolution No. (1994 Series)
Page 2
the foregoing Resolution was passed and adopted W$- day.of'November,."1994.
MAYOR PEG PINARD - — - -- -
ATTEST:
DIANE GLADWELL; CTTY
APPROVED AS TO FORM:
JEFFEKY - JOR - - --rX, CITY ATTORNEY _`