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Home My WebLink About01/04/2011, C1 - AMENDMENT TO THE 2006-2009 MEMORANDUM OF AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE SAN counat j ac En as REpoRt " h` C1 CITY O F SAN LUIS O B I S P O FROM: Monica Irons, Director of Human.Resources SUBJECT: Amendment to the 2006-2009 Memorandum of Agreement between the City of San Luis Obispo and the San Luis Obispo Police Officers' Association for the term,January 1,2011 through December 31,2011 RECOMMENDATION Authorize the City Manager to execute an amendment to the 2006 — 2009 Memorandum of Agreement (MOA) between the City of San Luis Obispo and the San Luis Obispo Police Officers' Association (POA), upon ratification by the membership, for the term January 1, 2011 through December 31, 2011. DISCUSSION Background Wages, hours, and benefits are established through memorandums of agreement (MOA) with represented labor units. On December 31, 2010, MOAs with three of the City's five represented labor units expire. Those units are: the San Luis Obispo City Employees' Association (SLOCEA), the San Luis Obispo .Police Officers' Association (POA), and the International Association of Firefighters, Local 3523 (Fire Union). Compensation for unrepresented managers and confidential employees is set by resolutions that also expire on December 31, 2010. Together, these five employee groups equate to about 94% of the City's regular staff. The City has an obligation to meet and confer in good faith with its represented employee groups prior to changing wages, hours, or working conditions. Therefore, negotiating parameters were requested from the City Council in late September and each of the above employee groups were asked to meet to discuss the City's interest in reaching short-term labor agreements in an expedited manner. During these meetings staff discussed the City's current and forecasted financial situation. The information was based on the Interim Financial Forecast presented to the City Council in May 2010 and Five-Year General Fund Fiscal Forecast presented to Council on October 19, 2010. Knowing these discussions and negotiations were going to take place the Five Year Forecast was produced two months earlier than is typical. That forecast indicates an estimated average annual budget gap of$2.6 million over the next five years (2011-12 through 2015-16). Employee groups were asked to consider one year agreements that avoid increasing labor costs by forgoing typical items such as cost of living increases and increases to the City's health contribution on behalf of employees. This approach helps contain labor costs and achieves some savings, while allowing time for further input and Council direction on more comprehensive and longer term labor cost containment strategies. On November 16, 2010 Council approved agreements with the San Luis Obispo City Employees Association, the International Association of Firefighters, Local 3523, unrepresented C1-1 POA MOA Amendment Page 2 management, and unrepresented confidential employees. These four agreements were all similar in substance; a one year term from January 1, 2011 through December 31, 2011 aimed at containing labor costs. None of the groups will receive a cost of living increase or an increase to the City's contribution to health insurance during the term of these agreements. Summary of Tentative Agreement with POA Staff engaged in discussions with the POA in October but scheduling was more challenging due to the varied shift work that is inherent with this group of employees. However, the POA presented staff with a proposal in late December that fit within parameters provided by Council. At the time of writing this report, a tentative agreement has been reached pending ratification by the POA membership. The following summarizes the tentative agreement with the POA: 1. For the second calendar year in a row, the POA agrees it will not receive a cost of living increase or an increase to the City's health contribution. Because health insurance premiums increased nine percent on average in December; many POA members are experiencing a reduction in compensation. FISCAL IMPACT The tentative agreement with the POA to contain employee salary and benefit costs provide savings of approximately$233,800 annually compared with initial budget estimates. ALTERNATIVES Do not authorize the City Manager to execute an amendment to the POA MOA pursuant to the tentative agreement This alternative is not recommended, as the tentative agreements are consistent with the Council's previous direction and the City's employer-employee relations policies. ATTACHMENTS 1. Second Amendment to POA MOA. G:\Counci1\Agenda reports\201 ITOA AgreementTOAAmendment.doc C1-2 I 1 Attachment 1 SECOND AMENDMENT to the January 1, 2006—December 31,2009 Memorandum of Agreement Between the City of San Luis Obispo and the San Luis Obispo Police Officers' Association 1. PURPOSE OF THIS AMENDMENT In response to the City's request to meet and confer with the San Luis Obispo Police Officers' Association (hereinafter referred to as "Association") to discuss a short-term agreement to effectively contain labor costs, the City and Association have met and conferred in accordance to Article 45 — Renegotiations. The City recognizes the Association's willingness to work cooperatively and productively with City staff and for the second consecutive year, the Association agrees to waive its rights to meet and confer to propose any economic increase during the term of this agreement. The parties agree to modify the following Articles as set forth herein. II. ARTICLE 7.2—SALARY INCREASES FOR TERM OF AGREEMENT Salary increases will be effective on the first day of the first full pay period following the dates listed below: January 1, 2011 0% Sworn Classifications (Police Officer) January 1, 2011 0% Non-Sworn Classifications For the second consecutive year, the Association agrees to waive its rights to meet and confer to propose a cost of living increase in calendar year 2011. There shall be no cost of living increases for the term of this Amendment. III. ARTICLE 16.1 —HEALTH CARE INSURANCE CONTRIBUTION For the second consecutive year, the Association agrees to waive its rights to meet and confer to propose a health care insurance premium increase in calendar year 2011. There shall be no increase in health care contribution during the term of this Amendment. IV. ARTICLE 42 - STAFFING The number of positions, in classifications listed in Appendix A of the 2006-2009 MOA as represented by the Association, will be reflected in the 2011-13 Financial Plan upon adoption by Council. If it becomes necessary for the City to exercise its management right to change those staffing levels, the City acknowledges its C1-3 r Attachment 1 responsibility to meet and confer with the Association on the impacts of any such changes. V. ARTICLE 46 -TERM OF AGREEMENT This amendment shall become effective January 1, 2011 and shall continue in full force and effect until expiration at midnight, December 31, 2011. All other terms and conditions of the 2006-09 Memorandum of Agreement shall remain in full force and effect until expiration at midnight, December 31, 2011 as specified in Article 46. This Amendment supersedes any and all previous amendments to the MOA. CITY OF SAN LUIS OBISPO POLICE OFFICERS' ASSOCIATION Katie Lichtig, City Manager Matthew Blackstone, President Monica Irons, Director of Shaana Lichty, Secretary Human Resources Date Scott Cramer, Treasurer Chuck Riedel, Vice President Dustin Alexander, Board Member Jim Fellows, Board Member Dale E. Strobridge, Labor Consultant Date C1-4 councit memonanoum DATE: January 3, 2011 TO: City Council FROM: Monica Irons, Human ResouKAg Director VIA: Katie Lichtig, City Manager SUBJECT: January 4, 2011 Council da Item Cl — Amendment to the 2006-09 Memorandum of Agreement between the City of San Luis Obispo and the San Luis Obispo Police Officers' Association for the Term, January 1, 2011 through December 31, 2011 I was notified on Saturday, January 1, 2011 by the San Luis Obispo Police Officers' Association (SLOPOA) President, Matt Blackstone, that SLOPOA voted to ratify the Second Amendment to the January 1, 2006— December 31, 2009 SLOPOA Memorandum of Agreement. At the time of writing the agenda report the Amendment represented a tentative agreement, subject to the approval of the SLOPOA membership. Mr. Blackstone's communication to me provides the necessary confirmation for the City Manager to enter into the agreement, if approved by Council on January 4, 2011. bard epyr email: RED FILE ° COUNCIL OCDDDDt 0 CrrYMGR °FTTDDt MEETING AGENDA ° ASSPCM - ° ° ATTORNEY °PW DDt DATE�L ITEM #_P a RIG ppA� 0 NWTDM o HR DM E n SIA CRY NEWS 0 CGUNCIL 0 CITY MGR 0 CLERK RECEIVE® JAA 0 3 1011' SLO CITY CLERK