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HomeMy WebLinkAbout11/17/1998, C4 - MEMORANDUM OF AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE SAN LUIS OBISPO CITY EMPLOYEES' ASSOCIATION FOR THE PERIOD OF 1/1/99-12/31/00 council °it,7 .915 j ac cn as Report C4 CITY OFSAN LUIS OBISPO FROM: Ann Slate,Director of Personne ir SUBJECT: Memorandum of Agreement between the City of San Luis Obispo and the San Luis Obispo City Employees'Association for the period of 1/1/99-12/31/00 CAO RECOMMENDATION Adopt a resolution approving the Memorandum of Agreement. DISCUSSION The Memorandum of Agreement (MOA) between the City and the San Luis Obispo City Employees' Association (SLOCEA) will expire on December 31, 1998 after a term of two years. As provided for in that agreement, the City entered into negotiations with SLOCEA last month to develop a successor agreement. The City Council, in closed session, was briefed on October 20, 1998 on the various issues and provided direction to staff regarding economic considerations. Bill Avery,the City's chief negotiator,Karen Jenny,Risk Manager,and the Personnel Director then met with the Association's negotiating team led by Paul Bechely, a professional employee relations representative. A tentative agreement has been reached which was ratified by a majority of 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. The agreement is within the economic guidelines previously discussed with Council. It does include language that will enable SLOCEA to enhance its current retirement plan at no cost to the City which is more fully discussed below. Although the City Council has previously been hesitant to enhance the retirement program for City employees, the proposed plan, 2% at 55, is to be fully funded by the employees and it has been the top priority of this bargaining unit for a number of years. Currently in California, more than 300 local agencies, including cities, counties and special districts offer their employees the 2% at 55 retirement program. Locally, that includes the cities of Santa Maria and Morro Bay. Following is a summary of the significant changes and cost items included in the agreement: Term: 2 years Salary: 1 January 1999- 3.5%increase for all employees in the unit I January 2000- 3%increase for all employees in the unit Retirement: The City will obtain actuarial cost quotations from the Public Employees' Retirement System (PERS) for the 2% at 55 retirement program for miscellaneous employees. i Council Agenda Report—SLOCEA MOA 1999-2000 Page 2 With the approval of the Association, the City will implement the 2% at 55 retirement program no sooner than January 1, 2000, subject to all of the following conditions: 1. The Association and the City will execute a supplemental MOA to ensure that the parties' intent,to make 2%at 55 cost neutral to the City, be memorialized for no less than 8 years. The City's willingness to implement the 2% at 55 retirement program is conditioned upon the employees' stated willingness to pay for it. While this supplemental agreement will rim for eight years, the intent of the parties continues past its expiration. It is anticipated that 2% at 55 will cost the employees between 3-4% of salary. Since the City currently fully funds retirement costs for SLOCEA, when 2% at 55 is implemented, the employees will pay that portion of the retirement cost associated with the 2%at 55 retirement program. 2. Employees will pay the entire cost of the 2% at 55 retirement program. The cost of the program is defined as the incremental cost of the 2% at 55 program which is that percentage identified by PERS in the actuarial quotation. 3. Other affected employee groups and/or associations must agree to equivalent provisions for 2%at 55 implementation. Bilingual Pay: Employees certified as bilingual in Spanish through a testing process and certified as being required to regularly use their Spanish speaking skills shall receive a bilingual payment of$35 dollars per pay period. Additional languages may be approved by the City based upon demonstrated need. Regardless of certification and payment, all employees shall use any language skills they possess to the best of their ability. FISCAL IMPACT The cost of this agreement is approximately $226,000 in year one and $196,600 in year two. Funding is available in the existing fund balances for first six months of the agreement that fall m the 1998-99 Financial Plan. Funds will be appropriated in FY99-00 and FY00-01 as part of the upcoming two year financial planning process in accordance with the agreement and the actual negotiated agreement. ALTERNATIVE Do not approve the resolution and direct staff to negotiate a different successor agreement. This alternative is not recommended as the agreement is consistent with the Council's previous direction and the City's employer-employee relations policies. Attachments Resolution RESOLUTION N0. (1998 SERIES) 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 CITY EMPLOYEES'ASSOCIATION FOR THE PERIOD OF JANUARY 1, 1999- DECEMBER 31,2000 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 City Employees'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 famish a copy of this resolution and a copy of the executed Memorandum of Agreement approved by it to Tim Girvin, SLOCEA President; Ann Slate,Personnel Director; and William Statler,Finance Director. On motion of , seconded by and on the following roll call vote: AYES: NOES: ABSENT: the foregoing Resolution was passed and adopted this day of November, 1998. c4V-.3 Resolution No. (1998.Series) Page 2 Mayor Allen Settle ATTEST: Lee Price,CMC -- - - —City Clerk APPROVED ASIO FORM,. J g- . en, ty.Attomey S5:9&00resolution