Loading...
HomeMy WebLinkAboutCity Council Resolution 11-057 RESOLUTION NO. 11 057 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SARATOGA ADOPTING SIDE LETTER AGREEMENT WITH THE SARATOGA EMPLOYEE ASSOCIATION (SEA) FOR REDUCTIONS WHEREAS, the City of Saratoga and the Saratoga Employee Association (SEA) entered into a Memorandum of Understanding (MOU) effective July 1, 2007 through September 30, 2011; and WHEREAS, representatives of the City and SEA have met and conferred in good faith regarding proposed amendments to the MOU and reached a tentative side letter agreement dated July 11, 2011 for an effective date of July 1, 2011 (except as otherwise stated); and WHEREAS, SEA has previously ratified the terms and conditions of the side letter agreement dated July 11, 2011; and WHEREAS, the Saratoga City Council finds that the provisions and agreements contained in said side letter agreement 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 dated July 11, 2011 attached as Exhibit A to this resolution are hereby adopted. The above and foregoing resolution was passed and adopted at a regular meeting of the Saratoga City Council held on the 17 day of August 2011 by the following vote: AYES: Council Member Manny Cappello, Emily Lo, Jill Hunter, Vice Mayor Chuck Page, Mayor Howard A. Miller NOES: None ABSENT: None ABSTAIN: None Howard A. Miller Mayor ATTEST: DATE: ‹P 5 c?-o>> Ann u livan, City Clerk July 11, 2011 3 p.m. Side Letter Agreement re Economics from City to SEA Page 1 The SEA 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 (except as otherwise specifically stated), which will contribute immediate savings towards the City's projected budget shortfall of $400,000 in FY2011. The following terms and conditions agreed upon ay SEA and the City will continue to provide SEA 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. SEA's total compensation is 56.06% of the City's total compensation. 56.06% of $400,000 $224,240. SAVINGS CHART WITH ESTIMATED SEA SAVINGS Year 1 (11 -12) Year 2 (12 -13) New Hire Health Insurance 1050 if E +2 per E hired 1050 if E +2 per E hired New Hire PERS 2% at 60 2.327% of payroll or about 2.327% of payroll or 2K per E about 2K per E Eliminate 81- Annual Salary Survey 15K 15K PERS employee -paid (eff. Sept. 1, 2011) 7% or $155,285.83 (10 7% or $186K (full year) months) Standby and Call back Pay Reform (eff. Sept. 1, 2011) 15K (10 months) 18K (full year) Cash -in -lieu of medical unknown unknown PTO Reform 10K estimate 10K estimate Uniform Allowance Change 800 800 Furlough days 30K (2 days) TOTAL 22.47 is ,,Arit LONG -TERM SAVINGS 1. Health Insurance for New Hires 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, 2011, (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. Eliminate Bi- Annual Salary Survey Effective July 1, 2011, the Salary Ranges paragraphs in Article III. SALARY ADMINISTRATION, Section A. will be eliminated. (Despite the Bi- Annual Salary Survey being included in the City's Personnel Rules, the language will not apply to SEA as this provision in the MOU makes it inapplicable.) Article III, B (COLA), C (Performance Incentive Compensation or Longevity), and D (Annual Performance Review) will be maintained in the MOU (although either side can propose language clarification changes). SHORT -TERM SAVINGS 4. Retirement 1 006055.00004/310797v1 July 11, 2011 3 p.m. Side Letter Agreement re Economics from City to SEA— Page 2 Effective September 1, 2011, each employee will pay 7% of the employee's compensation on a pre -tax basis for the CaIPERS 2 @55 retirement plan. (Article XII, eliminate third sentence and substitute the new sentence.) 5. Standby and Call Back Pay Reform Effective September 1, 2011, the call out pay language in Article VI and standby pay Io nguage in Article VII will be changed as follows: VI. CALL OUT PAY Non exempt employees who are called out to perform work of an emergency nature after the employee's regularly scheduled workday are compensated at—tI eir --Feg lar rate of pas; for a minimum of thee one hour for each occurrence at one and one -half times (1.5) the employee's regular hourly rate of pay. Employees will be compensated from the time they leave their residence until their direct return home after being released from the assignment. A second call out while responding to the first does not restart the clock. For example, if an employee is responding to a call out that begins at 2 p.m. and receives a second call at 2:15 p.m., and calls are addressed and the employee is home by 3 p.m., both calls are within the one -hour minimum. VII. STANDBY PAY Non exempt employees may be assigned to standby duty as determined and as assigned in advance by the City Manager or Department Head. Anticipatcd cvcnts or scacons that would Employees assigned to standby duty must report for duty within one hour of notification and be able to perform the duties as assigned. Employees assigned to standby duty will be issued City cell phones and must rcopond with answer a telephone calls. Employees are compensated $25.00 2-7--56 for each weeknight, defined as from the end of the employee's work days shift to the beginning of the next day's shift, and $5075 1per day for each weekend, defined as the end of the employee's workday on Thursday of an off -Friday week or Friday of an on- Friday week to the beginning of the next workday (off- Friday, Saturday, Sunday), or holiday assigned to standby status, unless an employee's regularly scheduled work day includes an off Friday, Saturday, or Sunday If an employee's regularly scheduled work day .includes an off- Friday, Saturday, or Sunday, such an employee receives only the $25.00 for standby after working the employee's regularly scheduled shift.. 6. Cash -in -Lieu of Medical Insurance Effective January 1, 2012, an employee who completes and submits required documents (1) to prove that the employee has other health insurance coverage and (2) to waive City provided health insurance coverage will receive a payment per month of $350.00 as additional taxable wages. The employee must complete and submit any required documents and provide proof of other health insurance coverage during open enrollment (in or around October) to be eligible for the cash -in -lieu payment beginning the following January. 7. PTO Cash -Out: For each employee with over 400 hours of accrued PTO as of August 31, 2011, the City will offer a one -time cash -out of accrued PTO down to 400 hours. Eligible employees will receive the cash value payment as soon as feasible. 8. PTO Accrual Cap: Effective September 1, 2011, the PTO accrual cap will be 600 hours and maximum accrual of 600 hours will be enforced. An employee may accrue up to a maximum of 600 PTO hours (equivalent to 15 weeks). Under no circumstances can an employee accrue more than 600 PTO hours at any point in time. Once an employee has accrued a total of 600 PTO hours, no additional PTO will accrue until the employee uses his or her accrued PTO and reduces the balance to less than 600 hours. Thereafter, PTO benefits will continue to 01)6055.00004/310797v I July 11, 2011 3 p.m. Side Letter Agreement re Economics from City to SEA Page 3 accrue .on a prospective basis only until the employee reaches the 600 hour maximum. No retroactive credit will be given for the time when accrued PTO was at the cap. 9. PTO: Earned PTO will not be paid out other than at the time of separation. 10. Uniform and Clc,thinq Allowances Effective July 1, 201i, Article XIII. UNIFORM AND CLOTHING ALLOWANCES will be changed to read as follows: 14.4 Each regular full -time employee in the following positions shall receive an allowance of $200 per fiscal year for the purchase of safety boots, protective clothing, and laundering of uniform shirts: Facilities Maintenance Employees Code Compliance Specialist Building Inspectors Three shirts per employee per year are purchased directly by the City in the colors designated by the City. This $200 allowance shall be paid on the second pay date in July. The allowance shall be prorated from the date of hire for a newly hired employee. The allowance is reported to PERS as salary earned. 11. Furlough Days Effective September 1, 2011, each SEA unit member will forego receiving payment for 2 days of furlough on days that would otherwise be work days between September 1, 2011, and June 30, 2012. The employee is not to perform any work on the furlough day. The two days of City -wide furloughs will be approved by the City Manager after receiving employee input. A supervisor may require in writing that an employee will take a different day off as a furlough day when necessary for operational needs. The supervisor will only authorize an employee to take a different day, off when necessary for the City's operational needs (such as the IT department working on a City -wide furlough day to perform an IT upgrade that needs to be performed when others are not working). No PTO (or any other paid time off such as administrative leave) can be used on the furlough day each month because each furlough day must result in no cost to the City. 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 SEA and City Chief Negotiator, ratified by the SEA membership, and approved by the Saratoga City Council. For S r City of Saratog Mark O'Connell Deanna Mouser 006055.00004/310797v 1