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
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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