HomeMy WebLinkAbout01/18/2005, C5 - MEMORANDUM OF AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE SAN LUIS OBISPO CITY EMPLOYEES' council
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CITY OF SAN LUIS OBISPO
FROM: Monica Moloney,Director of Human Resources
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
1 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
Council Agenda Report—SLOCEA MOA Page 2
January 18,2005
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 thatwith department head approval an employee
may be compensated at the first step of the higher classification to which
he/she has been assigned.
FISCAL UVIPACT
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..
Wagmda reports/SLOCEA MOA 2005
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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:
Jo . Lowell, City Attorney
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