HomeMy WebLinkAbout08/01/2006, C6 - MEMORANDUM OF AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE SAN LUIS OBISPO CITY EMPLOYEES' council McmeD� o�
j ac,Enaa Report
CITY OF SAN LUIS OBISPO
FROM: Monica Irons, 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 JANUARY 1, 2006—DECEMBER 31, 2009
CAO RECOMMENDATION
Adopt a resolution approving the Memorandum of Agreement for a four-year contract between
the City of San Luis Obispo and the San Luis Obispo Employees' Association(SLOCEA).
DISCUSSION
The Memorandum of Agreement (MOA) between the City and SLOCEA expired on December
31, 2005, at the end of a one-year contract term. As provided for in the MOA, the City entered
into negotiations with SLOCEA on December 13, 2005 to develop a successor MOA. The City
Council was briefed in closed session on January 3, 2006 regarding SLOCEA's initial proposals
and staff was provided economic parameters for negotiations.
Rick Bolanos, Attorney with the law firm Liebert Cassidy Whitmore, represented the City as
Chief Negotiator with the assistance of Monica Irons, Human Resources Director, Karen Jenny,
Risk Manager, and Rachael Hendricks, Human Resources Analyst. Paul Bechely represented
SLOCEA as the Chief Negotiator. Members of the SLOCEA negotiating team were: Ron Faria,
Tim Girvin, Ed Humphrey, Madelyn Paasch, Randy Stevenson, and Greg Zocher.
The parties exchanged proposals until mid June when a tentative agreement was reached which
was ratified by a majority of the Association membership. The four-year MOA is within the
economic guidelines provided by Council. A four year term is positive for both.SLOCEA and the
City as it brings clarity and stability in labor relations; thus allowing the parties to continue to
provide essential city services. This MOA reflects the continued cooperation between the
Association and the City to address issues of mutual concern. The Association's priorities are
providing competitive wages and benefits for their members, including affordable health insurance
coverage. A preliminary study indicated the City's cafeteria contribution lagged approximately
43% below the median of eight comparable cities. Competitive wages and benefits are critical to
the City's ability to attract and retain qualified employees. Therefore, the City will conduct a more
extensive total compensation study this year and share the results with the Association in 2007.
Following is a summary of the key changes included in the MOA:
Term: January 1, 2006 through December 31, 2009
Salary: January 2006: 2%wage increase
July 2006: 2%wage increase
July 2007: 5%wage increase
f
Council Agenda Report—SLOCEA MOA Page 2
July 2008: 5%wage increase
July 2009 5%wage increase
Cafeteria Contribution*: December 2005 increase $65 to $635 per month
December 2006 increase $75 to $710 per month
December 2007 increase $80 to $790 per month
December 2008 increase $80 to $870 per month
*Cafeteria contributions change in December due to January premium increases which are
projected to increase an average of 15% a year.
Standby Pay: August 2006 increase from $30 to $35 each weekday
increase from$35 to $40 each weekend day
FISCAL IMPACT
SLOCEA represents 138 employees with current annual total compensation of$10.7 million. The
total cost for this four-year compensation package is approximately$1,586,181. Adequate funding
is available in the MOA adjustment account for the current fiscal year. Increases for subsequent
years will be included in the Financial Plan.
ALTERNATIVE
Do not approve the resolution and direct staff to negotiate a different successor MOA. This
alternative is not recommended, as the MOA is consistent with the Council's previous direction and
the City's employer-employee relations policies.
ATTACHMENTS
Resolution to adopt and ratify 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, 2006
through December 31,2009.
PLEASE NOTE: A copy of the MOA is in the Council reading file and available for public review
in the City Clerk's office. At the time of this report deadline, appropriate signatures were being
obtained.
G:\agenda reports\2006\SLOCEA 2006.doc
ATTACHMENT 1
RESOLUTION NO. (2006 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 1,2006,THROUGH DECEMBER 31, 2009
BE IT RESOLVED,by the City 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 (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 Irons, 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 1 st day of August, 2006.
ATTEST:
Audrey Hooper;City Clerk Mayor David F. Romero
APPROVED AS TO FORM:
00nathan P. Lowell, City Attomey
EXHIBIT A
A copy of the MOA is in the Council Reading File
and available for public review. At the time of
this report deadline, appropriate signatures were
being obtained.
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