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HomeMy WebLinkAbout02/03/2004, C2 - MEMORANDUM OF AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE SAN LUIS OBISPO CITY EMPLOYEES' council acEnaa Report UmNumba CA C I TY OF SAN LU IS 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 1/I104-12/31/04 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, 2002, after a term of two years. On August 20, 2002, Council approved a one-year addendum to the MOA. As provided for in the agreement, the City entered into negotiations with SLOCEA in September, 2003, to develop a successor agreement. The City Council, in closed session, was briefed on October 21, 2003 and January 6, 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 the Human Resources Director met three times with the Association's negotiating team led by Paul Bechely, a professional employee relations representative. Members of the employees' team included Ron Faria, Gary Keavney, and 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 2004- 2% increase 1 July 2004 - 1% increase Sick Leave Cash-out at Retirement: Upon retirement, employees can receive cash for unused sick leave that they have accrued during City service years as follows: 10 years of service 10% of sick leave cashed out 15 years of service 15% of sick leave cashed out OCK." Council Agenda Report—SLOCEA MOA page 2 February 3,2004 20 years of service 20% of sick leave cashed out 25 years of service 25%of sick leave cashed out 30 years of service 30%of sick leave cashed out Retiree Medical Trust.Fund During negotiations SLOCEA expressed an interest in establishing a trust fund for medical expenses for retirees. If established, the cost and expenses of the trust fund would be funded by the employees with no cost to the City for implementation or administration. FISCAL IMPACT SLOCEA represents 152 City employees with a current annual total compensation of$10.1 million. The General Fund is responsible for $6.6 million of that. The cost of this agreement is approximately$229,000, with ongoing annual costs of approximately $280,000. 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. Ghgmda mports/SLOCEA MOA 7004 �a -a RESOLUTION NO. (2004 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 1,2004 THROUGH DECEMBER 31, 2004 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 , 2004. ATTEST: Lee Price, City Clerk Mayor David F. Romero APPROVED AS TO FORM: e Jonath P , Cit mey (I - 3