TO:
Honorable Mayor and Members of the City Council
THROUGH:
Mark Danaj, City Manager
FROM:
Teresia Zadroga-Haase, Human Resources Director
SUBJECT:Title
Memorandum of Understanding with the California Teamsters Local 911 (Human Resources Director Zadroga-Haase).
APPROVE, ADOPT RESOLUTION NO. 15-0067
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Recommended Action
RECOMMENDATION:
It is recommended that the City Council adopt by Resolution the attached successor Memoranda of Understanding (MOU) with the California Teamsters Local 911 (Teamsters), effective January 1, 2016 through December 31, 2018. The City Council adoption will authorize the City Manager to execute the MOU and take appropriate actions to carry out the implementation of the MOUs.
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EXECUTIVE SUMMARY:
Representatives of the City began meeting in September, 2015 with representatives of Teamsters on a successor MOU. The previous MOU expired on December 31, 2015. The successor MOU presented herein is for a three-year term, effective January 1, 2016 through December 31, 2018 and contains increases in compensation and other modifications consistent with the direction and authority provided by Council to the City’s negotiating team. The Teamsters reached tentative agreement with the City on December 15, 2015.
FISCAL IMPLICATIONS:
The financial portions of the MOU take effect with the first day of the full payroll period following January 1, 2016, which is the payroll period beginning January 9, 2016. The estimated fiscal impact of the negotiated changes to the MOU over the three-year term is:
Contract Term: $1,448,819
FY2015-2016 (6 months): $121,158
All costs for the current fiscal year are included in the FY2015-2016 budget; no additional appropriations are required.
The fiscal impact breakdown by fiscal year for the three-year contract term is:
FY2015-2016 (6 months): $ 121,158
FY2016-2017: 330,034
FY2017-2018: 608,609
FY2018-2019 (6 months) 389,018
TOTAL $1,448,819
Costs for future fiscal years will be included in the budget process for those fiscal years.
BACKGROUND:
In early 2013 City Council approved a successor MOU with Teamsters for a term of three years effective January 1, 2013 through December 31, 2015. In August of 2015, the City contacted Teamsters regarding the commencement of negotiations for a successor MOU.
DISCUSSION:
The City met with representatives of Teamsters and negotiated in good faith for a total of five (5) meetings, reaching a tentative agreement on December 15, 2015. The City was notified by Teamsters that the bargaining unit membership ratified this successor MOU on December 18, 2015.
The substantive amendments under the successor MOU for Teamsters are summarized as follows (costs shown are FY15/16 costs only):
1. MOU Contract Term for three years - January 1, 2016 through December 31, 2018;
2. Salaries - Effective the first full payroll period following January 1, 2016 employees shall receive a 2% increase to base salary, effective the first full payroll period following January 1, 2017 employees shall receive a 2.23% increase to base salary and effective the first full payroll period following January 1, 2018 employees shall receive a 3.0% increase to base salary (FY15/16 cost of $84,100);
3. The Water Plant Operator employees will be added to the employees who receive standby pay (FY15/16 cost $6,500);
4. Adding certain administrative employees in the Police Department who are required to wear uniforms to the list of civilian employees receiving uniform allowance (FY15/16 cost of $250);
5. Memorializes the alternative 9/80 work schedule for City Hall and other Teamster represented employees; and
6. Elimination of obsolete language and other language cleanup changes.
The compensation increases granted through the proposed MOU equate to approximately 2.5% annually over the three-year term of the agreement as follows:
|
|
Number of Incumbents |
1/2016 |
1/2017 |
1/2018 |
3-Year Total |
|
Teamsters |
117 across all departments and diverse classifications |
2% |
2.23% |
3% |
7.23% 1 (see footnote) |
1 Additional non-base pay increases included small additions to the number of employees receiving standby pay and uniform allowance totaling approximately .25%.
It should be noted that the proposed MOU continues the provisions negotiated during the previous contract negotiations of employees paying the full employee contribution towards retirement costs (7%).
This agreement with Teamsters is comparable to the agreements reached with the two Police bargaining units, which Council approved at your December 15, 2015 meeting.
The alternative 9/80 work schedule provides extended service hours to the public Monday through Thursday from 7:30 a.m. to 5:30 p.m. (eight out of ten business days) and 8:00 a.m. to 5:00 p.m. on open Fridays. Essential services will be provided on an as-needed basis by affected departments on the alternating closed Fridays.
Our Police and Fire Departments are 24/7 operations, with most staff currently already working four 10-hour shifts/week or some other alternative work schedule. The 9/80 with alternating closed Fridays will not affect services for the public with respect to the Police and Fire Departments.
For the Parks and Recreation Department, only the City Hall operations will be affected by the schedule change as the public counter will have extended hours Monday through Thursday and will not be open on closed Fridays. All other facilities will be staffed, open and available to the public as they are today.
The Public Works public counter hours will be extended Monday through Thursdays, providing for longer hours for pickup and return of traffic control equipment and signage. On the closed Fridays, Public Works will have staff on stand-by to respond to emergencies such as fallen trees, utility line breaks, heavy storms, etc.
Community Development will also have extended public counter hours to better serve the public Monday through Thursdays. Staff will be available on an on-call basis for closed Friday emergencies, and closed Friday inspection services will be available by appointment as necessary.
All other administrative and support functions will be available to the public and internal department customers on an extended basis Monday through Thursdays and the normal 8:00 a.m. to 5:00 p.m. on open Fridays. This will provide access to Human Resources, for example, before and/or after work to those currently employed but interested in employment opportunities with the City.
The schedule begins with the pay period beginning March 19, 2016 (first business day is Monday, March 21, 2016), with April 1, 2016 being the first “closed Friday” for City Hall administrative offices. The City Manager’s Office in conjunction with all operating departments will begin an outreach and education effort to inform the public of the new City Hall schedule beginning immediately and continuing through the date of the schedule change March 21st.
CONCLUSION:
The MOU presented for City Council approval is the result of collaborative and good faith negotiations between the City and the Teamsters. The agreement provides the City’s valued employees with fair wages and benefits while also maintaining fiscal responsibility. Three-year contract terms provide predictability of costs for budgeting purposes.
Attachments:
1. California Teamsters Local 911 Memorandum of Understanding (redlined)
2. California Teamsters Local 911 Memorandum of Understanding (final)
3. Resolution No. 16-0004