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HomeMy WebLinkAboutStaff Report 3.L 12/07/2015DATE: December 7, 2015 Agenda Item #31 TO: Honorable Mayor and Members of the City Co a'1 through City Manager FROM: Dianne Dinsmore, Human Resources Directo SUBJECT: Resolution Ratifying The Tentative Agreement Executed By The Duly Authorized Representatives Of The City Of Petaluma And American Federation of State, County and Municipal Employees Local 675 Unit 1 Confidential, Unit 2 Maintenance, and Unit 3 Clerical Technical RECOMMENDATION It is recommended that the City Council adopt the Resolution Ratifying The Tentative Agreement Executed By The Duly Authorized Representatives Of The City Of Petaluma And American Federation of State, County and Municipal Employees (AFSCME) Local 675 Unit 1 Confidential, Unit 2 Maintenance, and Unit 3 Clerical /Technical. BACKGROUND The AFSCME Memoranda of Understanding (MOUs) for Units 1, 2, and 3 expire December 31, 2015. The parties have met and conferred and have reached a tentative agreement to extend the contract through June 30, 2016, and to raise the City contribution to medical insurance for current employees and their covered family members to $575.95 for employee only, $1,264.95 for employee plus one, and $1,678.34 for employee plus two or more. This action ratifies the Tentative Agreement reached by the parties. DISCUSSION Section 27.7 (Units 1 and 3) and Section 28.7 (Unit 2) Future Contribution of the MOU state that "The amount of the City's future contribution for current employees and their covered family members shall remain at the levels established effective January 1, 2015, until changed through the meet and confer process and/or as allowed by the MMBA." Therefore, the City contribution to medical insurance for AFSCME members is currently $562.83 for employee only, $1,241.56 for employee plus one, and $1,648.79 for employee plus two or more. The Petaluma Professional and Mid - Managers Association (PPMMA) and City Executive staff have similar language. However, in their case, the City contribution is capped at the 2014 level. Atypically, medical premiums dropped from 2014 to 2015 by approximately 3.5 %. As a result, the City contribution for AFSCME employees is lower that its contribution to PPMMA and Executive staff. The City and AFSCME have met and conferred regarding successor MOUs for Units 1, 2, and 3 and have reached a Tentative Agreement to extend the current contracts through June 30, 2016, and to raise the City contribution to medical insurance for AFSCME employees and their covered family members to $575.95 for employee only, $1,264.95 for employee plus one, and $1,678.34 for employee plus two or more. This is the same City contribution as currently provided PPMMA and Executive staff. The foregoing is the total tentative agreement reached by the parties. This Tentative Agreement does not include any other sections of the MOU or any other wages, terms or conditions of employment. FINANCIAL IMPACTS The cost associated with this Tentative Agreement is approximately $6,841.80 to the General Fund and $19,812.24 in other funds, for a total $26,653.90 in all funds. The increased cost to the General Fund will be covered by the greater Cable Franchise Fee payment, which came in $7,128.43 higher than forecasted and is anticipated to be ongoing at that level of revenue. ATTACHMENTS 1. Resolution 2. Exhibit A — Tentative Agreement 2 ATTAC) IIvIENT 1 RESOLUTION RATIFYING THE TENTATIVE AGREEMENT EXECUTED BY THE DULY AUTHORIZED REPRESENTATIVES OF THE CITY OF PETALUMA AND AMERICAN FEDERATION OF STATE, COUNTY AND MUNICIPAL EMPLOYEES LOCAL 675 UNIT 1 CONFIDENTIAL, UNIT 2 MAINTENANCE, AND UNIT 3 CLERICAL TECHNICAL WHEREAS, the City of Petaluma, through its duly authorized representatives, and the American Federation of State, County and Municipal Employees (AFSCME) Local 675, through its duly authorized representatives, have concluded their mutual obligation to meet and confer in good faith with respect to successor agreements to the AFSCME Memoranda of Understanding (MOUs) for Units 1, 2, and 3, effective January 1, 2012 — December 31, 2015, in accordance with the Meyers- Milias -Brown Act and the City's Employer- Employee Relations, Rules and Regulations (Resolution No. 55412 N.C.S.); and WHEREAS, the duly authorized representatives of the City and the AFSCME have executed this Tentative Agreement pursuant to Section 15, Resolution No. 5512 N.C.S. and recommend its approval by the City Council; and WHEREAS, the City Manager, pursuant to Section 28 of the Charter of the City of Petaluma, and as the City's Municipal Employees' Relations Officer (Resolution No. 5375 N.C.S.), is required and empowered to make a recommendation to the City Council on matters related to employees' compensation; and WHEREAS, the City Manager has reviewed and concurs with said Tentative Agreement for Unit 1, 2 and 3 and does recommend that the City Council ratify said Memoranda of Understanding. NOW, THEREFORE, BE IT RESOLVED that the Tentative Agreement, being in the best interests of the City of Petaluma, is ratified and the terms and conditions of said Tentative Agreement, attached to and incorporated as Exhibit A, shall be effective January 1, 2016. EXHIBIT A TENTATIVE AGREEMENT Tentative Agreement between American Federation of State, County and Municipal Employees (AFSCME) Local 675 and the City of Petaluma Having met and conferred in good faith regarding successor Memoranda of Understanding (MOUs) for Units 1, 2, and 3 to the MOUs expiring December 31, 2015, and in accordance with the Meyers - Milias -Brown Act and the City's Employer - Employee Relations, Rules and Regulations (Resolution No. 55412 N.C.S.), the parties agree as follows: The current MOUs effective January 1, 2012 through December 31, 2015 shall be extended through June 30, 2016. The parties shall commence meeting and conferring for subsequent Memoranda of Understanding no later than the last week of January 2016. 2. Health Benefits — Active Employees City Additional Benefit Effective January 1, 2016, the amount of the City's additional contribution for current employees and their covered family members shall be $575.95 for employee only, $1,264.95 for employee plus one, and $1,678.34 for employee plus two or more. These amounts do not include the City PEMCHA contribution. Employee shall contribute to his/her Ca1PERS Health Premium in the amounts less the City's PEMHCA contribution and less the additional contribution paid by the City. The City's additional contribution shall not exceed these amounts unless and until a different amount is negotiated by the parties. The foregoing is the total tentative agreement reached by the parties. This Tentative Agreement does not include any other sections of the MOU or any other wages, terms or conditions of employment. For AFSCME, Local 675 Felix Huerta Date For AFSCME, Local 675 Ken Whaley, President Date For the City of Petaluma Dianne Dinsmore, Director of Human Resources Date 21