HomeMy WebLinkAboutStaff Report 3.D 12/18/2017DATE: December 18, 2017
Agenda Item #3.®
TO: Honorable Mayor and Members of the City Council through City Manager
FROM: Amy Reeve, Director of Human Resources
SUBJECT: Resolution Ratifying the Tentative Agreement Reached by the Duly Authorized
Representatives of the City of Petaluma and the American Federation of State,
County and Municipal Employees, Units 1, 2 and 3, and Approving the Side
Letter Agreement
RECOMMENDATION
It is recommended that the City Council adopt the attached Resolution Ratifying the Tentative
Agreement Reached by the Duly Authorized Representatives of the City of Petaluma and the
American Federation of State, County and Municipal Employees (Units 1, 2 and 3) and
Approving the Side Letter Agreement.
BACKGROUND
The American Federation of State, County and Municipal Employees ( AFSCME) Memoranda of
Understanding (MOU) is effective July 1, 2016 through June 30, 2019. Section 1.3 of the MOU
provides for a wage reopener for the purpose of discussing a potential salary adjustment for
Fiscal Year 2017 -2018 and Section 27.2 provides for a re- opener on health benefits to discuss an
additional City contribution for medical.premiums effective January 1, 2018.
The City has met and conferred with AFSCME representatives and the parties have reached a
Tentative Agreement. The recommended action ratifies the Tentative Agreement reached by the
parties and approves a Side Letter Agreement. The Tentative Agreement is attached as a Side
Letter and labeled Exhibit A to the Resolution.
DISCUSSION
The City and AFSCME have met and conferred and reached a Tentative Agreement to the wage
and health benefit reopeners. The agreement includes a $2,000, one -time bonus for all employees
of Units 1, 2, and 3 which is not PERSable and a return to the formula approach for health
benefit calculation. The health benefit contribution for 2018 shall be equal to the actual 2018
Ca1PERS Health premium for the Kaiser (Bay Area - Sacramento plan), less the City's PEMHCA
contribution, times 95% for current employees and their covered family members. These
agreements are memorialized in the Exhibit A Side Letter Agreement.
FINANCIAL IMPACTS
The estimated cost of the one -time bonus is $206,000, of which $52,596 is attributable to the
General Fund. The estimated cost of the change in medical formula is $40,000 in fiscal year
2018, of which $10,617 is attributable to the General Fund. One time revenues received during
the 2016 /2017 fiscal year, consisting of non - recurring real property transfer tax receipts and one
time permit fees, have been identified to fund the cost increase.
ATTACHMENTS
Resolution with Exhibit A — Side Letter Agreement
ATTACHMENT 1
Resolution No. 2017- N.C.S.
of the City of Petaluma, California
RESOLUTION RATIFYING THE TENTATIVE SIDE LETTER AGREEMENT
REACHED BY THE DULY AUTHORIZED REPRESENTATIVES OF THE
CITY OF PETALUMA AND THE AMERICAN FEDERATION OF STATE,
COUNTY AND MUNICIPAL EMPLOYEES, UNITS 1, 2 AND 3 AND
APPROVING THE SIDE LETTER AGREEMENT
WHEREAS, the City of Petaluma, through its duly authorized representatives, and the
American Federation of State, County and Municipal Employees ( AFSCME), Units 1, 2 and 3,
through its duly authorized representatives, have concluded their mutual obligation to meet
and confer in good faith, with respect to Sections 27.2 and 1.3 of the AFSCME Memorandum
of Understanding (MOU), effective July 1, 2016 - June 30, 2019, and the parties desire to
conclude re- opener negotiations related to benefits and wages, 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 reached
Tentative Agreement and executed this Side Letter Agreement 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 Side Letter Agreement for
AFSCME and does recommend that the City Council ratify said Side Letter Agreement.
NOW, THEREFORE, BE IT RESOLVED that the Side Letter Agreement, being in the best
interests of the City of Petaluma, is ratified and the terns and conditions of said Side Letter
attached to and incorporated as Exhibit A, shall be effective on the first pay period following
the ratification of the Side Letter Agreement.
3
RM
SIDE LETTER AGREEMENT BETWEEN THE.CITY OF
PETALUMA AND THE AMERICAN FEDERATION OF
STATE, COUNTY AND MUNICIPAL EMPLOYEES,
UNITS 1,: 2. AND' 3
EXHIBIT A
The representatives of the City of Petaluma and the American Federation of State, County and
Municipal Employees.(AFSCME), Units 1, 2 and 3, have met and conferred and reached
agreement on this Side.Letter of Agreement. The parties agree to the following:
1) Effective January 1, 2018, the City's additional benefit contribution for 2018
shall be equal to the actual 2018 CalERS Health premiurn for Kaiser (Bay Area I .
Sacrazmento), less the City's PEMCHA contribution, times 95% for current
employees and their covered family members.
2) Effective the lust payroll following the ratification of the Side Letter Agreement,
members of the unit will receive a one-time,, non PERSable, $2,000 bonus.
AMERICAN FED ON OF STATE, COUNTY AND MUNICIPAL EMPLOYEES
Larry He el, AFP-64EBij6ess Agent Date
Ken Whaley, AFSCME Pf dent Date
Mike Se'slar, AFSCME Vice President Date
CITY OF PETALUMA
�e-" -11-17
John C. Brown, City Manager Date
Owe-
Amy M, eeve, Human Resources Director Date