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HomeMy WebLinkAbout101-Union MOU 2007-11.pdf SARATOGA CITY COUNCIL MEETING DATE: August 1, 2007 AGENDA ITEM: ORIGINATING DEPT: City Manager CITY MANAGER: Dave Anderson PREPARED BY: Barbara Powell, DEPT HEAD: Dave Anderson Assistant City Manager Monica LaBossiere, Human Resources Manager __________ SUBJECT: Memorandum of Understanding with the Northern California Carpenters Regional Council, Carpenters Forty Six Northern California Counties Conference Board and Their Affiliated Locals (Union) __________ RECOMMENDED ACTION(S): Adopt the resolution approving the Memorandum of Understanding (MOU) between the City and the Memorandum of Understanding with the Northern California Carpenters Regional Council, Carpenters Forty Six Northern California Counties Conference Board and Their Affiliated Locals (Union) for the period July 1, 2007 through September 30, 2011, and authorize the City Manager to execute the MOU. REPORT SUMMARY: The Assistant City Manager and Human Resources Manager negotiated on behalf of the City with UNION. Through a series of meetings and with direction from the City Council, the City and Union have agreed to the following significant MOU changes: Term: Š This four year agreement pertains to the period July 1, 2007 through September 30, 2007. In the past, agreements have ended on June 30th. This necessitates entering into negotiations during the April to August timeframe, which also coincides with budget preparation, employee evaluations and other pre-summer recess priorities. In light of these considerations, both parties felt a September end date would be preferable in order to expedite agreement. Compensation Adjustments: Š In FY 2007/08, each represented employee will receive a three percent (3%) cost of living increase, retroactive to July 1, 2007. In subsequent years of the agreement, the cost of living increase will be no less than one percent (1%) nor more than two and one half percent (2.5%), payable on July 1st of each year. Š The City has agreed to transition from a “Pay for Performance” System to a “Step System”. Under the Step System, each City classification will have a salary range with a twenty-five percent (25%) distribution between the lowest and highest salaries in the range. This 25% distribution is composed of five – five percent “steps”. On an annual basis, if an employee receives, at minimum, a cumulative score of three (3) on their performance evaluation, they are eligible to advance one step in their salary range, until they reach the top of their salary range, at which point they no longer receive annual salary increases. In FY 2007/08 salary increases will be implemented effective July 1, 2007. Š Performance Incentive Compensation (received after an employee remains at the top of his/her salary range for 5 consecutive years and then again at 10 years) will remain at five percent (5%). In order to receive Performance Incentive Compensation, an employee must receive, at minimum, a cumulative score of three (3) on that year’s performance evaluation. Other Provisions: Š A scheduled re-opener in 2009 has been included in the MOU in order to evaluate the economic feasibility of funding a revision in the employee retirement benefit based upon an analysis of CalPERS rates and the City’s revenue and expenditure forecasts. Š The current 9/80 schedule will continue through September 30, 2011. Š The Union has agreed to ratify the City’s proposed Grievance Policy and Alcohol and Drug Use Policy and requested their inclusion in the MOU. These policies were removed from the original submittal of Personnel Rules and Policies adopted by the Council, as the Union was not in agreement with them at that time. Staff will bring these two policies to the Council in September 2007 for formal adoption, thus completing the City’s Personnel Rules and Policies. Š The Union has requested the inclusion in the MOU of some additional policies that are included in the City’s Personnel Rules and Policies, together with the State of California Government Code Section pertaining to collective bargaining. This accounts for the larger number of pages in the MOU with the Union than are included in the MOU’s with either the Saratoga Employees Association or the Saratoga Management Association. The inclusion of these policies and Government Code section are for clarification only and do not impose additional obligations on the City. FISCAL IMPACTS: A three percent (3%) cost of living increase for Union members will have an approximate fiscal impact of $30,600. The fiscal impact of the five percent (5%) salary increase for eligible Union employees will be calculated based upon current salary level. The cost of living and salary increases will not exceed the amount budgeted and approved in the 2007/08 budget. ALTERNATIVE ACTION(S): Choose not to accept the agreement and direct City staff to continue negotiations with new direction. FOLLOW UP ACTION(S): Staff will execute the memorandum of understanding and implement its elements. ADVERTISING, NOTICING AND PUBLIC CONTACT: Nothing additional. ATTACHMENTS: Š Resolution to adopt the Memorandum of Understanding between the City and Union Š Copy of Memorandum of Understanding between the City and Union for the period July 1, 2007 through September 30, 2011 RESOLUTION NO. ____________ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SARATOGA REVISING THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY AND THE NORTHERN CALIFORNIA CARPENTERS REGIONAL COUNCIL, CARPENTERS FORTY SIX NORTHERN CALIFORNIA COUNTIES CONFERENCE BOARD AND THEIR AFFILIATED LOCALS (UNION) INTO A MEMORANDUM OF UNDERSTANDING WITH A TERM OF JULY 1, 2007 THROUGH SEPTEMBER 30, 2011 WHEREAS, the City of Saratoga, through its designated representatives and pursuant to State law, has met and conferred with the organized representative organization, the Northern California Carpenters Regional Council, Carpenters Forty Six Northern California Counties Conference Board and Their Affiliated Locals (Union), concerning proposals for modifications and changes to salaries, benefits and other matters; and WHEREAS, the representatives of the City and Union have reached an understanding regarding changes in salaries, benefits and other matters for the period beginning July 1, 2007, through September 30, 2011, for employees represented by Union; and WHEREAS, this resolution replaces various Resolutions of the City of Saratoga. This resolution is an expression of existing policy of the City of Saratoga and is subject to modification and change by the City Council from time to time. Nothing herein contained shall be construed as creating or establishing any of the provisions hereof as terms of any contract of employment extending beyond a period other than such period as during the resolution is in full force and effect. That is to say, that any employee of the City of Saratoga during the effective period of the resolution shall have such employment rights and duties as set forth herein only during such period of time as this resolution remains in effect, and not afterward. NOW, THEREFORE, BE IT RESOLVED that the terms and conditions of the Memorandum of Understanding, dated the 1st of July, 2007, is hereby approved. The above and foregoing resolution was passed and adopted at a regular meeting of the City Council of Saratoga held on the 1st of August, 2007, by the following vote: AYES: NOES: ABSENT: Aileen Kao, MAYOR ATTEST: Cathleen Boyer, CITY CLERK