HomeMy WebLinkAboutCity Council Resolution 11-050 RESOLUTION NO. 11 050
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SARATOGA
ADOPTING SIDE LETTER AGREEMENTS WITH THE
SMO SARATOGA MANAGEMENT ORGANIZATION) FOR REDUCTIONS
WHEREAS, the City of Saratoga (City) and the Saratoga Management
Organization (SMO) entered into a Memorandum of Understanding effective July 1,
2007 through September 30, 2011; and
WHEREAS, representatives of the City and SMO have met and conferred in
good faith regarding proposed amendments to the MOU and reached tentative side letter
agreements dated June 7, June 23, and June 30, 2011 for an effective date of July 1, 2011
attached as Exhibit A to this resolution; and
WHEREAS, SMO has previously ratified the terms and conditions of the side
letter agreements dated June 7, June 23, and June 30, 2011 for an effective date of July 1,
2011 attached as Exhibit A to this resolution; and
WHEREAS, this Council finds that the provisions and agreements contained in
said side letter agreements fair and proper and in the best interest of the City; and
NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of
Saratoga the terms and conditions contained in the side letter agreements dated June 7,
June 23, and June 30, 2011 attached as Exhibit A to this resolution are hereby adopted.
The above and foregoing resolution was passed and adopted by the Saratoga City Council
at a regular meeting held on the 6 day of July 2011, by the following vote:
AYES: Councilmember Manny Cappello, Emily Lo; Jill Hunter,
Vice Mayor Chuck Page, Mayor Howard Miller
NAYES: None
ABSTAIN: None
ABSENT: None �j
U1/
Howard A. Miller, Mayor
ATTEST:
DATE: 7/ 7/3i 9
Ann Ivan,
City Clerk
June 30, 2011 Side Letter Agreement re Concessions are Completed between City and SMO (page 1 of 1)
The Saratoga Management Organization (SMO) and the City of Saratoga have been meeting and discussing the
terms and conditions of employment and have agreed to the terms and conditions in the Side Letter Agreements
dated June 7 and June23, 2011. The parties agree that the economic concessions in the June 7 and June 23 Side
Letter Agreements are sufficient to address SMO's part of the budget shortfall and no further economic
concessions will be sought from SMO. These concessions are of an ongoing nature and will remain in place for
the next four years (FY2011 -12, FY2012 -13, FY2013 -14, and FY2014 -15) and will remain in place unless negotiated
otherwise thereafter.
If the Council ratifies the June 7, June 23, and the June 30 Side Letter Agreements, Council is approving that
further economic concessions will not be sought from SMO in the four -year period and these concessions remain
in place.
By signature below the parties agree to the terms and conditions of this Side Letter. This Side Letter will be
effective when signed by the SMO and City Chief Negotiator, ratified by the SMO membership, and approved by
the Saratoga City Council.
S m For City of Saratoga
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M hael Taylor 30..7,0i) Deanna Mouser C 1
006055.00005/310150v 1
June 7, 2011 Side Letter Agreement re Economics from City to SMO (page 1 of 1)
The Saratoga Management Organization (SMO) and the City of Saratoga have been meeting and discussing the
rms and conditions of employment and agree to the following terms and conditions as the first step to support
the City's long term objectives of obtaining a sustainable fiscal position.
SAVINGS CHART
WITH ESTIMATED DoRtafivAL
CITY -WIDE SAVINGS
Year 1 (11-12) Year 2 (12 -13) Year 3 (13 -14) Year 4 (14 -15)
Longevity 0 0 70K 85K
1) New Hire Medical:
Effective July 1, 2011, for any employee hired on or after July 1, 2011, the City will provide a monthly health
insurance contribution as follows: $600.00 for employee -only coverage, $1200.00 for employee plus one
dependent coverage, and $1500.00 for employee plus two or more (family) coverage. If an employee selects
a health insurance plan with a monthly premium above the City contribution, the employee will pay the
amount above the City contribution as a payroll deduction.
2) New Hire CaIPERS Retirement Plan: Any employee hired on or after July 1, 2 011, (and effective as soon as
the City can complete the legally required process for this item) will receive the following 2nd tier retirement
option:
a) A retirement plan of 2% at 60 with a retirement benefit based on a calculation using a three year average
compensation (as summarized in the PERS actuarial summary letter attached as Exhibit 1).
b) Each employee will pay on a pre -tax basis 100% of the employee's contribution as determined by PERS
toward the CaIPERS 2 @60 retirement plan.
3) Performance Incentive Compensation (Longevity): Effective July 1, 2011, the Performance Incentive
Compensation paragraph in Article V. B. 6 will be eliminated.
By signature below the parties agree to the terms and conditions of this Side Letter. This Side Letter will be
effective when signed by the SMO and City Chief Negotiator, ratified by the SMO membership, and approved by
the Saratoga City Council.
F .MI:
0 or City of Sarato:
I A i 1.4. AVM: il/..A.4/ 1 ItAdi e 7-1
Mic ael Taylor Deanna Mouser
006055.00005/305361 v3
June 23, 2011 Side Letter Agreement re Savings between City to SMO (page 1 of 1)
The SMO and the City of Saratoga have been meeting and discussing the terms and conditions of employment
and agree to the following terms and conditions to be effective July 1, 2011 which will contribute immediate
savings towards the City's projected budget shortfall of $400,000 in FY2011 -12.
The following terms and conditions agreed upon by SMO and the City will continue to provide SMO incumbents
with competitive total compensation benefits; at the same time, support the City's short and long term
objectives of obtaining a sustainable fiscal position.
This Side Letter must be signed and ratified by SMO and approved by the City Council on or before July 6, 2011.
This Side Letter addresses economic reform for short -term and long -term savings. Both sides agree that
contract language and other negotiable issues remain open for bargaining, but this Side Letter provides for
savings needed in FY 2011 -12. The remainder of negotiations on negotiable topics will occur in the future.
SMO's compensation and benefits cost is 12.71% of the City's total compensation and benefits. 12.71% of
$400,000 is $50,840.
SAVINGS CHART WITH ESTIMATED Year 1 (11 -12)
SMO ONLY SAVINGS
PERS 7% ($43,171)
$275 car allowance (SMO) $6K
TOTAL $49,171
Future savings are addressed in a prior, separate side letter dated 6/7/11 that also requires ratification and
addresses 2% at 60 PERS for new hires, health insurance for new hires, and the removal of longevity program.
1) Retirement:
Effective July 1, 2011, each employee will pay 7% of the employee's compensation on a pre -tax basis for
the CaIPERS 2 @55 retirement plan. (SMO Savings: $43,171).
2) Reduction in Car Allowance:
Effective July 1, 2011, each SMO member will receive a car allowance of $275 per month. (SMO Savings:
$6,000 per year.)
By signature below the parties agree to the terms and conditions of this Side Letter. This Side Letter will be
effective when signed by the SMO and City Chief Negotiator, ratified by the SMO membership, and approved by
the Saratoga C ouncil.
F. dr./10 r City of Saratoga
I I 2 1 "'"Z3 1/
11 ael Taylor Deanna Mouser