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Home My WebLink About02/15/2011, C4 - AMENDMENT TO THE JULY 1, 2007 - JUNE 30, 2012 MEMORANDUM OF AGREEMENT BETWEEN THE CITY OF SAN LUIS council MRemaw AQen0A nEpont �N° • CITY OF SAN LU I S O B I S P O FROM: Monica Irons, Director of Human Resource SUBJECT: Amendment to the July 1, 2007—June 30, 2012 Memorandum of Agreement between the City of San Luis Obispo and the San Luis Obispo Police Staff Officers' Association RECOMMENDATION Authorize the City Manager to execute an amendment to the July 1, 2007 — June 30, 2012 Memorandum of Agreement (MOA) between the City of San Luis Obispo and the San Luis Obispo Police Staff Officers' Association eliminating two of the three remaining salary increases. DISCUSSION Background On November 16, 2010 Council approved agreements with the San Luis Obispo City Employees Association, the International Association of Firefighters, Local 3523, unrepresented 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 across the board "cost of living" increases or an increase to the City's contribution to health insurance during the term of these agreements. On January 4, 2011 Council approved a similar agreement with the San Luis Obispo Police Officers' Association (POA). Again, the term of the agreement was January 1, 2011 through December 31, 2011 and the POA agreed to no across the board salary increases or increase in the City's contribution to health insurance. All of the above agreements had expired on December 317 2010 and therefore, presented the opportunity for negotiating terms and conditions of employment. However, the City has longer term agreements with two other represented employee groups: the San Luis Obispo Police Staff Officers' Association (SLOPSOA) and the Fire Battalion Chiefs' . Association (BCs). The five year term of the MOA between the City and SLOPSOA is from July 1, 2007 through June 30, 2012 while the five year term of the MOA between the City and the BCs is from January 1, 2006 through December 31, 2011. Longer term agreements are typically negotiated to ensure labor stability and may include periodic across the board salary adjustments aimed at keeping salaries competitive in the market. The economy has changed dramatically since the time the long-term agreements with SLOPSOA and BCs were negotiated. However, unless otherwise specified, the parties must mutually agree to "re-open" an agreement in order to negotiate changes. For example, in 2009 the City C4-1 1 SLOPSOA MOA Amendment Page 2 requested all employee groups reopen agreements and waive,. defer, or simply not request an across the board salary increase during fiscal year 2009-10. Agreement was gained with all employee groups in 2009, resulting in approximately $1 million in salary savings. With that in mind, staff approached SLOPSOA representatives in November and discussed the City's current and forecasted financial situation. Staff asked SLOPSOA to consider how they might support the City's strategy to contain labor costs and explained the City's desire to avoid increasing labor costs with the five employee groups with contracts expiring in December 2010. In early January SLOPSOA invited staff to a membership meeting and provided staff with the opportunity to present and discuss updated financial information including the updated General Fund Fiscal Forecast. The discussion was very productive with SLOPSOA members asking questions and openly contemplating methods that would help address the City's goal of labor cost containment. While productive and professional, these discussions were likely not simple for this group of 17 police management employees including first line supervisors through Police Captains because the SLOPSOA agreement currently contains the following across the board salary increases: January 2011 July 2011 January 2012 June 2012 _ Contract Schedule 1 2% 3% 2% Term SLOPSOA demonstrated leadership during the 2009 request to re-open by being the only employee group to agree to waive, not defer, contractually committed salary increases of 4% during fiscal year 2009-10. Summary of Tentative Agreement with SLOPSOA This leadership is once again being demonstrated as SLOPSOA and the City have reached the following tentative agreement in a very productive, efficient, and constructive manner: 1. For the second time during their five year agreement, the SLOPSOA agrees to modify scheduled contractual increases as follows: January 2011 July 2011 January 2012 June 2012 Contract Schedule 1 0% 0% 3% Term 2. SLOPSOA requests the City take into consideration the reduction of scheduled salary increases by four percent, if the City requests further across the board salary reductions by employee groups during the course of this agreement. The SLOPSOA proposal is extremely reasonable as it reduces the City's contractual obligations by four percent and is consistent with other employee groups who have agreed to no across the board salary increases during calendar year 2011. However, this concession is more significant in that these increases were committed and in fact, SLOPSOA contacted the City's payroll department and authorized the City to not implement the January scheduled increases pending the outcome of these discussions. Further, the request for consideration in the event the City takes action towards across the board salary reductions that would include furloughs is very \\chstore4\HR\Council\Agenda reports\201 l\SLOPSOA Amendment\SLOPSOAAmendment2_I5_I Ldoc C4-2 SLOPSOA MOA Amendment Page 3 reasonable, because for all practical purposes, SLOPSOA is agreeing to a reduction from the contractual commitment effective January 2011. FISCAL IMPACT The tentative agreement with SLOPSOA to reduce salary costs provides savings of approximately$118,000 in calendar year 2011 and savings of approximately $87,000 in calendar year 2012. ALTERNATIVES Do not authorize the City Manager to execute an amendment to the SLOPSOA 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 Third Amendment to SLOPSOA MOA. \\chstore4\HR\Counci1Wgenda reports\201I\SLOPSOA Amendment\SLOPSOAAmendment2_l5_I Ldoc C4-3 f 1 - Attachment THIRD AMENDMENT to the July 1,2007 June 30, 2012 Memorandum of Agreement Between the City of San Luis Obispo and the San Luis Obispo Police Staff Officers' Association I. PURPOSE OF THIS AMENDMENT The San Luis Obispo Police Staff Officers'Association (SLOPSOA) recognizes the severity and ongoing nature of the City's budget shortfall. By agreeing to the modifications of salary increases outlined in Section II of this amendment, SLOPSOA demonstrates great leadership and commitment to the City's financial health and sustainability. In waiving contractually agreed to salary increases during calendar year 2011, as they did in calendar year 2009, SLOPSOA reduces salary costs of this group. In recognition of this significant concession, the City agrees to "credit" SLOPSOA a dollar amount equivalent to the annualized 2011 savings from this concession. This "credit" would be applied against any projected savings to be achieved by the City in the event a salary reduction, including furlough, is implemented during the term of this contract, thus reducing or delaying the impact on this group. II. MODIFICATION OF SALARY INCREASES FOR THE REMAINING TERM OF THE AGREEMENT The parties agree to all salary increases set forth in the prior amendments as modified below: January 2011 0% All classifications July 2011 0% All classifications January 2012 3% All classifications All other terms and conditions of the 2007-12 Memorandum of Agreement and prior Amendments shall remain in effect for the term of the agreement as specified in Article 31. 1 C4-4 i� Attachment CITY OF SAN LUIS OBISPO POLICE STAFF OFFICERS' ASSOCIATION Katie Lichtig Kern Rosenblum City Manager SLOPSOA President Monica M. Irons John Bledsoe Director of Human Resources Vice President Janice Goodwin Member at Large Date Date 2 C4-5