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Home My WebLink About01/04/2005, C7 - MEMORANDUM OF AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE SAN LUIS OBISPO CITY EMPLOYEES' 1 ' councilMffiw Dd.l j acEnaa Repout t°=N CITY OF SAN LUIS OBISPO FROM: Monica Moloney,Director of Human Resource;V* SUBJECT: MEMORANDUM OF AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE SAN LUIS OBISPO CITY EMPLOYEES' ASSOCIATION FOR THE PERIOD OF 01/01/05-12/31/05 CAO RECOMMENDATION Adopt a resolution approving the Memorandum of Agreement for a one-year contract. DISCUSSION The Memorandum of Agreement (MOA) between the City and the San Luis Obispo City Employees' Association (SLOCEA) expired on December 31;2004, after a term of one year. As provided for in the agreement, the City entered into negotiations with SLOCEA in November, 2004, to develop a successor agreement. The City Council, in closed session, was briefed on December 7, 2004, on the various issues and provided direction to staff regarding economic considerations. Bill Avery, the City's chief negotiator, Karen Jenny, Risk Manager, and Monica Moloney, Human Resources Director, met two times with the Association's negotiating team led by Paul Bechely, a professional employee relations representative. Members of the employees' team included Ron Faria, Tim Girvin, Ed Humphrey, Madelyn Paasch, Randy Stevenson and Greg Zocher. 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; while recognizing the fiscal challenges facing the City. The agreement is within the economic guidelines previously discussed with Council. Following is a summary of the significant changes and cost items included in the agreement: Term: One year Salary: 1 January 2005 - 2% increase I July 2005 - 1% increase Cafeteria Plan: $10/month increase from$560/month to$570 effective January 1, 2005 Retirement: An amendment to the Public Employees' Retirement System (PERS) contract for miscellaneous employees to provide the "Optional Settlement 2 n � — I Council Agenda Report—SLOCEA MOA Page 2 January 4,2005 Death Benefit" for employees, which allows the spouse of a deceased employee, who was eligible to retire from service at the time of death, to select a monthly retirement allowance instead of the lump sum death benefits currently payable. Probation Periods: Reduce the probation period for employees who transfer or are promoted within the unit to six months, and allow an employee to return to his/her former position during that time frame if the position is vacant. Work out of Class: After six months provide that with department head approval an employee may be compensated at the first step of the higher classification to which he/she has been assigned. FISCAL IMPACT SLOCEA represents 144 City employees with a current annual total compensation of$10.2 million with $6.5 million of that in the General Fund. The salary portion of this agreement is exactly the same as the salary increases for this unit during 2004. The increase to the cafeteria plan contribution and the change to Optional Settlement 2 Death Benefit have modest additional costs for a group this size of approximately $35,000 per year. Adequate funding for this increase is currently available in the MOA adjustment account. 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 PLEASE NOTE: A copy of the MOA is available in the Council Reading File. C L � � RESOLUTION NO. (2005 Series) A RESOLUTION OF THE CITY 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, 2005,THROUGH DECEMBER 31,2005 BE IT RESOLVED, that the City Council of the City of San Luis Obispo hereby resolves as follows: SECTION 1. The Memorandum of Agreement between the City of San Luis Obispo and the San Luis Obispo City Employees' Association (SLOCEA), 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 it to: Ron Faria, San Luis Obispo City Employees' Association, and Monica Moloney, Director of Human Resources. Upon motion of , seconded by and on the following roll call vote: AYES: NOES: ABSENT: the foregoing resolution was adopted this day of 2005. ATTEST: Audrey Hooper, City Clerk Mayor David F. Romero APPROVED AS TO FORM: Jo6ath Lowell, City Attorney - RECEIVED °11��iiii��IIIIIIP° illllll► JAN 0 4 2005 council memojzanaum LIZIty of San Luis'Obispo DATE: January 4, 2005 TO: Mayor and Members of the City Council FROM: Audrey Hooper, City Clerk VIA: Ken Hampian, City Administrative Officer SUBJECT: REMOVAL OF AGENDA ITEM C7- MEMORANDUM OF AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE SAN LUIS OBISPO CITY EMPLOYEES' ASSOCIATION (SLOCEA) FOR THE PERIOD OF 01/01/05 - 12./31/05 Please note that Agenda Item C7 has been removed from the Agenda. SLOCEA is recommending some language revisions that require further discussion. This matter will be brought back to Council for action at the January 18, 2005, City Council meeting.. C �GCDD DIR CAO FIN DIR RED FILE � ACAO FIRE CHIEF ME ING AGENDA ATTORNEY ,rpw DIR ZOLERKlORIG POLICE CHF DATE I ITEM #—L-1— 13 T HEADS ,�R"cC DIR ,y�'✓✓`�r„J� UTIL DIR _ r HR DIR GA301-03 AGENDAS\01-04-05 C7 SLOCEA MOU.DOC