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SARATOGA CITY COUNCIL
MEETING DATE: November 2, 2011 AGENDA ITEM:
DEPARTMENT: City Attorney CITY MANAGER: Dave Anderson
PREPARED BY: D. Mouser and M. LaBossiere DIRECTOR: Catherine Engberg Labor Negotiating Team Acting City Attorney
SUBJECT: Council Resolution to Adopt Memorandum of Understanding for the
Saratoga Employee Association (SEA)
RECOMMENDED ACTION:
Adopt the Memorandum of Understanding between the City of Saratoga and Saratoga Employee
Association (SEA) July 1, 2011 to June 30, 2015. BACKGROUND:
SEA is the labor organization or exclusive representative of the employees and mid-management
employed by the City, excluding employees and mid-management in the Streets and Parks Divisions represented by the “UNION”.
SEA and the City’s labor negotiations team have met on numerous occasions regarding the terms
and conditions of employment for the bargaining unit. The results of these negotiations are
contained in the attached Memorandum of Understanding (MOU).
The previous Memorandum of Understanding (MOU) with SEA expired on September 30, 2011.
Preceding the expiration of the MOU on September 30, 2011, the City and SEA agreed to
changes to the MOU on August 17, 2011 in a Side Letter of Agreement to reduce personnel
related expenditures to address the budget shortfall resulting in Fiscal Year 2011-2012 savings of approximately $229,000 in total compensation and benefits.
The following is a summary of short and long-term key issues that the City and SEA have
reached agreement on:
• Retirement: Effective September 1, 2011, each SEA unit member will contribute 7% of
his/her compensation on a pre-tax basis for the employee’s seven (7) percent fixed share of
the CalPERS defined benefit retirement program. Pension reform includes a 2-tier retirement
plan for employees hired after the City completes the PERS-required process. These employees will be provided a 2%@60 defined benefit retirement formula with a three (3)
year average of salary as part of the retirement calculation.
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• Medical Insurance Premiums: Medical insurance premium costs for employees continue to
grow year after year at rates that exceed the city’s revenue growth. For employees hired after
July 1, 2011, the City’s contribution for medical insurance will be a specific amount set for each tier of coverage, with the employee paying the amount above the City’s contribution level. ($600 for employee only, $1200 for employee and one dependent, and $1500 for
employee and two or more dependents).
• Elimination of Bi-Annual Salary Survey: Effective July 1, 2011, Article III. Salary Administration A. Salary Ranges (Bi-Annual Salary Survey) will be eliminated from the MOU (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.)
• Paid Time Off (PTO) Cap: The City will enforce its PTO cap.
• Public Accountability: Administrative Leave and PTO will be taken by exempt (salaried) employees and tracked in increments of one hour or more in a workday.
• Furlough: SEA unit members will take two (2) furlough days during FY2011-2012.
SEA will confirm its ratification results by Monday, October 31, 2011.
FISCAL IMPACTS:
In Fiscal Year 2011-2012, the savings is approximately $229,000 in total compensation and
benefits. Additional savings will be realized in future years. CONSEQUENCES OF NOT FOLLOWING THE RECOMMENDED ACTIONS:
SEA unit members would continue to receive benefits as per SEA’s Memorandum of
Understanding which expired on September 30, 2011 and per the City and SEA agreement to changes to the MOU on August 17, 2011 in Side Letters of Agreement.
ALTERNATIVE ACTION(S):
N/A FOLLOW UP ACTION(S):
The future scheduled longevity pay for SEA positions will be effective upon unit members
eligibility.
ADVERTISING, NOTICING AND PUBLIC CONTACT:
Pursuant to Government Code 54954.2, this item was properly posted as a City Council agenda item and was included in the packet made available on the City’s website in advance of the
meeting. A copy of the agenda packet is also made available at the Saratoga Branch Library each
Monday in advance of the Council meeting.
ATTACHMENTS: 1. Resolution
2. MOU TA
3. MOU TA – SEA Attachment A