HomeMy WebLinkAboutStaff Report 3.C 02/05/2018DATE: February 5, 2018
Agenda Item #3.0
TO :/' onorable Mayor and Members of the City Council through City Manager
FROM:° y Reeve, Director of Human Resources
SUBJECT: Resolution Ratifying the Tentative Agreement Reached by the Duly Authorized
Representatives of the City of Petaluma and the Petaluma Professional and Mid -
Managers Association Units 4, 9 and 11, and Approval of 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
Petaluma Professional and Mid - Managers Association Units 4, 9 and 11, and approve the Side
Letter Agreement.
BACKGROUND
The Petaluma Professional and Mid - Managers Association (PPMMA) Memoranda of
Understanding (MOU) is effective July 1, 2016 through June 30, 2019. Section 6.1 of.the MOU
provides for a wage reopener for the purpose of discussing a potential salary adjustment for
Fiscal Year 2017 -2018 and Section 27.3 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 PPMMA 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 PPMMA 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 4, 9, and 11 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
CalPERS 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 $81,880 with no ongoing costs, of which
approximately $22,680 is attributable to the General Fund. One -time revenues received during
the 2016 /17 fiscal year have been identified to fund the cost. These revenues consist of non-
recurring real property transfer tax receipts, along with large one -time permit fees. The increase
in the medical formula will result in additional costs of approximately $27,000 in Fiscal Year
2018.
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 PETALUMA PROFESSIONAL
AND MID - MANAGERS ASSOCIATION,
UNITS 4, 9AND 11
AND APPROVAL OF THE SIDE LETTER AGREEMENT
WHEREAS, the City of Petaluma, through its duly authorized representatives, and the
Petaluma Professional and Mid - Managers Association (PPMMA) Units 4, 9 and 11, through its
duly authorized representatives, have concluded their mutual obligation to meet and confer in
good faith, with respect to Sections 6.1 and 27.3 of the PPMMA 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 PPMMA 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
PPMMA 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 terms 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.
EXHIBIT A
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SIDE LE'T'TER AGREEMENT
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13E"1'`Vle ,N Tl -1E CITY Ole NeTALUNIA AND
P1',TALUMA PROFESSIONAL AND MID- MANAGERS ASSOCIATION,
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UNITS 4, 9 AND 11
The representatives of the City of Petaluma and lhC Pelalnma Professional and Mid - Managers
Association, Units 4,9 and 11, have nlct and conferred and reached agreement on this Side
Letter o('Agreement. The parties agree to the Iollowing:
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1) 1;1`Icctivc January 1, 2018, t11C City's hCnCllt Contribution 101' 2018 shall he cdual
to the actual 2018 CaIPFRS Health premium for Kaiser (Bay Arca / Sacramento),
less the City's PIiMCI IA contribution, times 95% For current employee~ and their
covered family members.
ve first payroll 1611 Twin � the ratification ol' the: Side Letter Aorcement.
L1leeti� the (� , p< y e c
members ofthC unit who arc actively employed as of' the date of ratification will
receive a one -time, non PI:;RSable, $2,000.00 signing, bonus:
PETALUMA PROFF,SSIONAL AND NllD- \MANAGERS ASSOCIATION
- ' tial— I 1g.:2,11 8
Dennis Wallach, PPMMA Business Agent Date
Katie Crt`mp, PPNIMA Presid 6t I)nte
1161 Williamscn, PPIrIMA Vice President Date
CITY OF PFTALU,19A
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