HomeMy WebLinkAboutAgenda Bill 3.B 02/28/2011DATE: February 28, 2011
TO: Honorable Mayor and Members of the City Council through City Manager
FROM: Pamala Stephens; .Human Resources Manager
SUBJECT: Resolution Amending and Extending the Memorandum of Understanding
Executed by the Duly Authorized Representatives of the City and the American
Federation of State, County,-and Municipal. Employees, Local 675, For
Employees of Unit 1 (Confidential), Unit 2 (Maintenance), and Unit 3
(Clerical /Technical).
RECOMMENDATION
It is recommended that the. City Council adopt the attached Resolution amending and extending
the Memorandum of Understanding between the City of Petaluma and the American Federation
of State, County, and Municipal Employees, Local 675, (AFSCME) for Employees of Units 1, 2
and 3.
BACKGROUND
The City of Petaluma and AFSCME Units 1, 2, and 3 had .a 3-Year Memoranda of Understanding
in place effective July 1, 2007 to June 30, 2010. In a side.letter executed on June 25, 2009 the
parties ,agreed, and the City Council approved, the extension of the MOUs by one year through
June 30, 2011. This was , in exchange for a deferral of a 2 % salary 'adjustment that was originally
due on June 29, 2009 and a deferral of a 2% salary adjustment that was originally due on
December 28, 2009. Further, ,the City agreed to pay the CalPERS health premium increase for
the Kaiser Health plan in 2011 which was 6.84 %.
In anoth6r side letter dated May 18, 2010, the City of Petaluma and AFSCME further agreed to
defer the;previously extended 2% salary adjustments an additional six months through December
: 31,,,2 1 0110..
DISCUSSION
The City of Petaluma,and,AFSCME have continued to work together to find ways to address the
City's financial situation and its impact upon City employees and members of AFSCME. The
City of Petaluma. continues to face serious financial challenges. ;In response to the continued
financial and ,economic condition the City requested and AFSCME Units 1, 2, and 3 agreed, to
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Agenda, Review:
City Attorney Finance Director City Manag
extend the previously deferred 2% salary adjustments an additional six months through June 30,
2011. In exchange for the deferral of the 2 % salary adjustments, the parties agreed to extend the
previously extended MOUs' an additional six months through December 31, 2011, as detailed in
the attached Side Letter of Agreement executed on February 3, 2011.
AFSCME and the City have agreed to defer scheduled salary adjustments an additional six
months through June 30, 2011 and extend the MOU an additional six months through December
31, 2011. Deferring the cost of salary adjustments has contributed to the necessary budget
reduction efforts put into effect over ,the last 2 — 3 years.
FINANCIAL, IMPACTS
With this MOU, the City has now obtained agreement with AFSCME to defer salary adjustments
fora total of two years, through,June 30, 2011. If those deferred salary adjustments are paid on
July 1, 2011 the estimated annual cost on a go forward basis of those salary adjustments
including.roll -up costs for Medicare and Ca1PERS is $323,3189: Of that amount, the General .
fund cost.is'estimated to be $117,546, costs to other funds are estimated at $205,834.
ATTACHMENTS
1. Resolution
2. Side Letter of Agreement
IN
Attachment 1
Resolution No. 2011 - N.C.S.
of the City of Petaluma, California
AMENDING AND EXTENDING THE MEMORANDUM OF UNDERSTANDING
EXECUTED BY 'THE DULY AUTHORIZED REPRESENTATIVES
OF THE CITY AND THE AMERICAN FEDERATION OF
STATE; COUNTY, AND MUNICIPAL EMPLOYEES,
LOCAL 675 FOR EMPLOYEES OF
UNIT I (CONFIDENTIAL), UNIT 2 (MAINTENANCE),
AND UNIT 3 (CLERICAL /TECHNICAL)
WHEREAS, a Memorandum of Understanding (MOU), for American Federation of
State, County, and Municipal Employees, Local 675, Units 1, 2, and 3 was approved by the
Council, of the City of Petaluma on November 19, 2007, pursuant to Resolution 2007 -197 and
effective July 1, 2007 to June 30, 2010; and,
WHEREAS, the City and AFSCME, Local 675, executed a Side Letter of Agreement
executed June 25, 2009 and agreed to a one -year extension of the Unit 1, 2, and 3 MOUs and a
deferral of the 2% salary adjustment.due June 29, 2009 and the 2 % salary adjustment due on
December'28, 2009; and,
WHEREAS, the Memorandum of Understanding for the AFSCME, Local 675, Units 1,
2 and 3 was amended and extended by one year through June 30, 2011 by the Council of the City
of Petaluma on July 9, 2010', pursuant to Resolution 2009 -104; and,
WHEREAS, the City; through its duly authorized representatives, and the American
Federation of State, County, and Municipal Employees (AFSCME), Local 675, through its duly
authorized representatives, have met and conferred in good faith; and,
WHEREAS, the City and AFSCME, Local. 675 have executed a Side Letter of
Agreement, executed. February 2, 2011 on the extension of the current Unit 1, 2 and 3 MOUs and
further deferral to; Ririe '30; '201.1 of the 2 % salary adjustment originally due June.29, 2009 and
the 2 % salary. adjustment originally due December 28, 2009; and,
WHEREAS, the City Manager has reviewed and concurs with said Side Letter of
Agreement for 'Units 11, ,2, and 3 and does recommend that the City Council amend and extend
the MOU through December 31, 2011; and,
n
NOW, THEREFORE, BE IT RESOLVED that the Memorandum of Understanding for
the AFSCME, Local 675, Units 1, 2, and 3 is hereby amended and extended through December
31, 2011.
BE IT FURTHER RESOLVED, that all Unit 1, 2, and 3 side letters of agreement and
the MOUs remain in effect as originally agreed and /or adopted.
Ll-
Attachment 2
Side Letter of Agreement
Between 1he
City of Petaluma and the American Federation,of;State County,, and Municipal Employees ('AFSCME),
Local 675, Employees of'Unit 1 (Confidential), Unit,2 (Maintenance),
and Unit 3 (Clerical/Technical)
Six -Month Extension of the Units 1, :.2' and 1 Meinorandum of Understandings
and Side Letterdated June 25, 2009
Further Extension of the One -Year Deferred 2 % Salary Adjustment Originally Due on June 29, 2009
and the 2% Salary Adjustment Originally Due on December 28, 2009
Representatives of the City of Petaluma and AFSCME, Local 675 Unit 1 (Confidential), Unit 2 (Maintenance), and
Unit 3 (Clerical/Technical) have met and conferred in good faith and have reached agreement on this Side Letter
of Agreement.
The City of Petaluma and ,AFSCME Units 1, 2, and 3 had a 3 -year Memoranda of Understanding ( "MOUs ") in
place effective July 1, 2007 to June 30, 2010. The parties agreed to extend the MOUs in a Side Letter executed
June 26, 2009 by one year through Juhe30, 2011. This was in exchange for a one -year deferral of a 2 % salary
adjustment that was originally'due on June 29, 2009, and a one -year deferral of a 2% salary adjustment that was
originally due on December 28, 2009.. The parties further agreed to defer the previously extended 2% salary
adjustments for an additional six months beyond their original extensions in another side letter executed on May
18, 2010.
The City of Petaluma continues to face serious financial challenges. In response to the continued financial and
economic condition of the City, AFSCME Units 1, 2, and 3,have agreed to extend their MOUs, the June 25, 2009
Side letter and the May 18, 20'10 Side Letter an additional six months and to defer the previously extended 2%
salary adjustments an additional six months beyond the prior extensions.
The parties therefore agree:
1. That the 2% June 29, 2009 salary adjustment and the 2 %0 December 28, 2009 salary adjustment are
hereby deferred six additional months beyond their prior extensions to June 30, 2011.
2. That the current MOUs between the City and AFSCME Units 1 2, and 3 and Side Letters dated June 25,
2009 and May 18, 20.10 shall be extended :through December 31, 2011.
0-Aa
This Side Letter of Agreement is executed the ,$rd day of February 2011, by the employer- employee relations
representatives whose signature appears below for their respective organizations.
AME • AN FEDERA F STATE, COUNTY, AND 'MUNI Cl PAL EMPLOYEES
Geor opy e_ s Agent, AFSCME
P C//
Deborah Padova President, AFSCME Date
CITY OF
John C. Brown, City Manager
ma y,' cam.
Pamala:Stephens, Human Resources Manager
Date
Date