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HomeMy WebLinkAbout102-SMO MOU - Agreement.pdfAGREEMENT BETWEEN THE CITY OF SARATOGA AND THE SARATOGA MANAGEMENT ASSOCIATION (SMO) 1 CITY OF SARATOGA MEMORANDUM OF UNDERSTANDING FOR WAGES, EMPLOYEE BENEFITS AND CONDITIONS OF EMPLOYMENT I. INTRODUCTION This Memorandum of Understanding (“MOU”) or “AGREEMENT” dated ______________ is between the City of Saratoga, through its designated representatives, hereinafter referred to as “CITY” and the Saratoga Management Organization, hereinafter referred to as “SMO”. The members of SMO are the persons holding the positions listed below in Section II. Members of SMO are referred to herein as “SMO members” and “employees.” This MOU complies with the provisions of the Meyers-Milias-Brown Act, as contained in Section 3500, et seq., of the Government Code of the State of California in that the employer-employee representatives noted herein did meet in good faith and did reach an understanding on those matters within the scope of representation. This MOU also complies with Resolution No. 509-2 relating to employer-employee relations, and Resolution No. 489-2, establishing the procedure for meeting and conferring with recognized employee organizations. II. POSITIONS REPRESENTED BY SMO Assistant City Manager Public Works Director Community Development Director Administrative Services Director Recreation Director III. GENERAL CONDITIONS A. Total Agreement This Agreement sets forth the full and entire understanding of the parties for the period beginning July 1, 2007, and continuing through September 30, 2011. This Agreement shall remain in effect until a new Agreement is signed by both parties. This Agreement supersedes any prior understandings, representations, agreements or promises of any kind, whether written, oral, express, or implied between the parties (including all prior Memoranda of Understanding) with respect to the subject matter of the Agreement. No verbal statement or other amendments, except an amendment mutually agreed upon between the parties and in writing attached to this Agreement designated as an amendment to this Agreement, shall supersede or vary the provisions in this Agreement. If any provision of this Agreement is adjudged to be void or unenforceable, the remainder of the Agreement shall nevertheless remain in effect. AGREEMENT BETWEEN THE CITY OF SARATOGA AND THE SARATOGA MANAGEMENT ASSOCIATION (SMO) 2 Except as specifically provided in this Agreement, it is agreed and understood that SMO waives its right, and agrees that the CITY shall not be required to negotiate with respect to any subject or matter covered in this Agreement or with respect to any other matters within the scope of negotiations, during the term of this Agreement. The waiver of any breach, term, or condition of this Agreement by either party shall not constitute a precedent in the future enforcement of all its terms and provisions. B. City Council Approval City Council approval of the terms of this MOU is incorporated in Resolution No. __________ adopted on August 1, 2007. C. Validity of Memorandum Should any article, section, or portion of this Agreement be held unlawful and unenforceable by any court of competent jurisdiction, the court’s decision shall only apply to the specific article, section, or portion of this Agreement directly specified in the decision, and the remainder of this Agreement shall not be affected by the decision. IV. AT-WILL STATUS AND SEVERANCE All members of SMO are at-will employees and serve at the pleasure of the City Manager. Should the City Manager choose to terminate any SMO member, the following severance provisions apply. Starting on the one-year anniversary of the date of hire, SMO members shall be entitled to (a) a severance payment equal to three (3) months salary; and (b) the continuation of the Health Insurance, Life and Accidental Death Insurance, and Dental Insurance benefits specified in this agreement for a three (3) month period after termination. The number of months upon which the severance payment is based and severance benefits are to be offered shall be increased by one (1) month each year on the member’s anniversary date up to a maximum of six (6) months severance pay and benefits. The severance payment shall be paid in a lump sum within ten (10) days of the effective date of termination. The severance payment shall be based on the SMO member’s then monthly salary. Severance benefits shall begin the first of the month succeeding the effective date of termination. V. SALARY ADMINISTRATION A. Salary Ranges Salary data for each position represented by SMO is periodically collected from the following list of comparable cities: Los Altos Menlo Park San Carlos Cupertino Los Gatos Morgan Hill Campbell AGREEMENT BETWEEN THE CITY OF SARATOGA AND THE SARATOGA MANAGEMENT ASSOCIATION (SMO) 3 The Department Directors and Assistant City Manager are internally aligned, as the incumbents concur that the complexity and level of responsibility in the work is similar, regardless of assigned department. When salary surveys are conducted, salary data is collected for each classification. The salary range is determined by taking the salary data average of the five classifications. The CITY will be adjusting the salary ranges administratively effective July 1, 2008 as a result of the FY 2007-08 compensation study and administratively every two years thereafter according to salary survey compensation data, ensuring that the CITY pays the average of its comparable cities. 1. Adjustments to Salary Range as the result of a Salary Survey and Anniversary Date: Any salary range adjustments for a classification implemented by the CITY will not establish a new salary anniversary date for employees serving in that classification. 2. Adjustments to Salary Range as the result of a Salary Survey and Retention of Step: Whenever the schedule of compensation for a classification is revised, each incumbent in a position to which the revised schedule applies shall be paid at the same step in the revised range as the step at which the employee was paid in the previous range. See Exhibit “A” for the FY 2007-08 Salary Range Table. B. 5-Step Salary Plan and Cost of Living Adjustment For fiscal year 2007/08, salary increases will be retroactive to July 1, 2007. 1. Cost of Living Adjustment For fiscal year 2007-08, each SMO member shall receive a cost-of-living adjustment of three percent (3%), retroactive to July 1, 2007. For each subsequent year of this MOU, each SMO member shall receive an annual cost-of-living adjustment of no less than one percent (1.0%) and no greater than two and one-half percent (2.5%). If the United States Bureau of Labor and Statistics Average Consumer Price Index for “All Urban Consumers (CPI-U)” for the months of December to December for the “San Francisco-Oakland-San Jose” region falls below one percent (1.0%), each SMO member shall nevertheless receive a minimum one percent (1.0%) cost-of-living adjustment; if the above Index increases above two and one-half (2.5%), each SMO member shall nevertheless receive a maximum two and one-half (2.5%) cost-of-living adjustment. 2. Base Salary Employees occupying a position in a classification covered by this Memorandum shall be paid a base salary within the range established for that position’s classification. 3. Placement Within Range The CITY will determine salary placement consistent with the personnel rules. AGREEMENT BETWEEN THE CITY OF SARATOGA AND THE SARATOGA MANAGEMENT ASSOCIATION (SMO) 4 4. Progression Within Range Salary advancement within an established salary range is customarily considered at one (1) year intervals. Each employee who is employed after July 1, 2006 will be eligible to receive a salary increase to the next higher step within the range of their assigned classification upon the individual employee’s original employment anniversary date (established anniversary date). Each employee who was hired on or prior to July 1, 2006 will be eligible to receive a salary increase to the next higher step within the range of their assigned classification upon July 1 of each year, (as a result of the CITY moving from a broad range pay-for-performance system to a step system effective July 1, 2007). July 1 of each year will be the established anniversary date for each employee who was hired on or prior to July 1, 2006. 5. Eligibility for Progression within Range All regular employees will be evaluated on an annual basis and will be eligible to advance in their salary range based on annual performance evaluation results. No increase in salary shall be automatic solely upon completion of a specified period of service. All increases shall be contingent upon a satisfactory annual evaluation of the employee’s performance, and shall require recommendation of the City Manager. In the case that an employee receives a cumulative rating of less than three (3) points on the annual performance evaluation, indicating a cumulative rating less than “meets expectations”, the employee will not receive a salary increase other than an approved and budgeted cost-of-living increase. An employee who is denied an increase in salary may discuss such denial with the City Manager. The decision of the City Manager shall be final. An employee who has received a cumulative rating of three (3) points or greater during the annual employee performance evaluation will be eligible to receive a salary increase of five percent (5%) (1 step) above their existing salary as of the employee’s established anniversary date, until such time as the employee reaches the top of his/her salary range, at which time the employee shall not advance beyond the top of the established range, except as provided for in Section 6. Performance Incentive Compensation below. 6. Performance Incentive Compensation Employees represented by SMO who have remained at the top of the same salary range for five (5) years may be eligible for an additional step increase of five percent (5%) following receipt of a cumulative rating of three (3) points or greater during the annual employee performance evaluation. Five (5) years after meeting the criteria for the initial performance incentive compensation described above, a qualified employee – that is an employee who has remained at five percent (5%) above the top of his/her same salary range – may be eligible for an additional salary increase of five percent (5%), following receipt of a cumulative rating of three (3) points or greater during the annual employee performance evaluation. AGREEMENT BETWEEN THE CITY OF SARATOGA AND THE SARATOGA MANAGEMENT ASSOCIATION (SMO) 5 VI. REVIEW AND APPRAISAL All SMO members will receive annual reviews, consistent with the CITY’s performance review process. New employees shall be evaluated after six months and after one year of service. All appraisals will be in writing and will be signed by both the City Manager and the SMO member being reviewed. VII. EMPLOYEE BENEFITS A. Health and Dental – In-Lieu Payments Health and dental in-lieu payments are made to employees who do not elect health and/or dental insurance. Any employee who declines to accept coverage in the PERS Health Program, evidenced by signing a waiver form, shall receive a monthly in-lieu payment of $118.75. Any employee who declines to accept coverage in the Delta Dental Plan, evidenced by signing a waiver form, shall receive a monthly in-lieu payment of $25.00. B. Deferred Compensation The CITY provides employees the opportunity to contribute to an IRS Section 457 deferred compensation plan. Employees may contribute up to the maximum allowed by law. Contributions may come from employee’s regular earnings through payroll deductions, or from any unused portion of their Benefits Allowance. In addition, the CITY will match SMO members’ contributions to a deferred compensation account up to a maximum of $200.00 per month. C. Car Allowance SMO members shall receive a monthly $400.00 car allowance. VIII. LEAVE A. Annual Leave Accrual All SMO employees will accrue annual leave at the following rate: First 60 months of employment - 22 days (176 hours) per year 61st through 120th month - 27 days (216 hours) per year 121st month and beyond - 32 days (256 hours) per year Members of SMO who begin employment with more than five (5) years of public service experience (as employees of a City, County, State, or District) shall begin accruing at the sixty-one (61) month rate. AGREEMENT BETWEEN THE CITY OF SARATOGA AND THE SARATOGA MANAGEMENT ASSOCIATION (SMO) 6 All employees begin accruing annual leave upon hire. New employees may not use annual leave during their first six months of employment except for illnesses and other circumstances approved by the City Manager. Annual leave and/or administrative leave are to be used for all time off from work except for Jury Duty and Military leave. B. Administrative Leave CITY shall grant SMO members, on a fiscal year basis, 65 hours of administrative leave. Administrative Leave is compensated time off given to regular, full-time exempt employees of the City. This leave shall be taken in a manner consistent with PTO. Use of administrative leave is a privilege and is provided in recognition that City projects often require employees to devote whatever hours are necessary, irrespective of a regular scheduled workweek, to fulfill the obligations of the job. Employees are granted a specific number of hours per fiscal year, specified in each bargaining agreement. Administrative Leave must be taken by exempt employees only in increments of (4) hours or more in a workday (29 CFR 541.710 Employees of Public Agencies). For example, where the employee leaves work for four or more hours early to take care of personal business. Administrative Leave cannot be carried over from year to year and must be used by June 30th of the fiscal year. Administrative Leave must be exhausted prior to using PTO. . IX. RETIREMENT (PERS) The parties agree to a scheduled reopener in 2009 for the purpose only of discussing the financial feasibility of enhancing the City’s retirement package with PERS (i.e., moving from the current 2% at 55 to 2.5% at 55). The discussion will be limited to (1) PERS financial situation and whether it will become superfunded and, therefore, require a smaller contribution from the City; and (2) the City’s financial situation and whether the City can afford to fund all or part of an enhanced retirement for employees. The parties will schedule a time for the reopener in 2009 within 60 days after the City receives an actuarial valuation from PERS of the cost of 2.5% at 55 and the discussions will not extend beyond 60 days of the reopening. X. TUITION REIMBURSEMENT All regular employees of the CITY who have been employed continually for at least three (3) months prior to the commencement of an approved or required course are eligible for the CITY’s tuition reimbursement program. A. Coursework for Degree or Certificate If the course(s) taken is/are job related or in fulfillment of the requirements for a degree or certificate, one-hundred percent (100%) reimbursement will be afforded for tuition, fees and books by the CITY up to a maximum of one thousand dollars ($1,000) per employee per fiscal year. For SMO members the City Manager will determine job-relatedness. AGREEMENT BETWEEN THE CITY OF SARATOGA AND THE SARATOGA MANAGEMENT ASSOCIATION (SMO) 7 B. Coursework for Professional Development If the course(s) is/are not specifically related to the employee’s current position, and does not fulfill the requirements for a degree or certificate, but does provide for professional development related to the worker’s position of employment or a higher position in the CITY, reimbursement will be afforded for tuition, fees and books by the CITY at one-hundred percent (100%), up to a maximum five hundred dollars ($500) per employee per fiscal year. Reimbursement will be afforded after successful completion of the course(s) requirements. Successful completion is defined as a “C” grade or a “Pass” on a pass-fail system. XI. WORKING CONDITIONS The CITY will continue to operate on a 9/80 work schedule to be determined, for SMO members, by the City Manager where a full-time work week, constitutes forty (40) hours within seven consecutive 24 hour days, also defined as one hundred sixty-eight (168) hours. Employees on a 9/80 schedule are scheduled to work 8 nine hour days, 1 eight hour day, and have one day off every two weeks. An employee’s workweek begins in the middle of the employee’s 8 hour day and the employee’s day off is on the same day of the week in the following week. For example, the standard 9/80 work schedule is as follows: Sunday Monday Tuesday Wednesday Thursday Friday Saturday 4 (end) off 9 9 9 9 4 (start) off off (end) off 9 9 9 9 off (start) off 4 (end) off 9 9 9 9 4 (start) off off (end) off 9 9 9 9 off (start) off The City Manager has discretion to require some SMO employees to work a schedule different from the standard 9/80 schedule including a schedule that is not 9/80. Fridays when the CITY is not open for business are referenced as “off-Fridays.” The work period (pay period) is the period encompassing two consecutive workweeks. AGREEMENT BETWEEN THE CITY OF SARATOGA AND THE SARATOGA MANAGEMENT ASSOCIATION (SMO) 8 A holiday furlough will exist whereby the CITY operations are closed from December 24 through January 1 of every year. Employees shall utilize their available balances (annual leave or administrative leave), if applicable. Employees that utilize unpaid leave due to insufficient leave balance shall maintain regular benefit status. XII. SCOPE OF AGREEMENT This MOU represents the entire and complete understanding reached between the representatives of the CITY and the representatives of SMO for the period designated, and applies to all positions represented by SMO. XIII. RATIFICATION This MOU is subject to ratification by a majority vote of the members of SMO. City Council adoption of Resolution No. __________and ratification by SMO will commence the terms of this MOU. Representative of the Representative of the City of Saratoga Saratoga Management Association ____________ Dave Anderson, City Manager John Cherbone, President ____________________________________ ____________________________________ Date Date AGREEMENT BETWEEN THE CITY OF SARATOGA AND THE SARATOGA MANAGEMENT ASSOCIATION (SMO) 9 Exhibit “A” City of Saratoga - Page 1 of 1 POSITION 5-STEP SALARY RANGE TABLE FY07-08 w/3% COLA CLASSIFICATION TITLE (POSITION) STEP ONE STEP TWO STEP THREE STEP FOUR STEP FIVE SARATOGA MANAGEMENT ASSOCIATION ADJUSTE D 5% increase 5% increase 5% increase 5% increase Assistant City Manager bi-w 4,836.50 5,078.32 5,332.24 5,598.85 5,878.79 Public Works Director annual 125,748.88 132,036.32 138,638.14 145,570.04 152,848.54 Community Development Director hr. 60.46 63.48 66.65 69.99 73.48 Finance and Administrative Services Director Recreation Director