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HomeMy WebLinkAboutAGENDA REPORT 2000 0405 CC REG ITEM 11LMOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council FROM: Deborah S. Traffenstedt, City Clerk YMM I /, k. DATE: March 24, 2000 (CC Meeting of 4/5/00) iffm IJi SUBJECT: Consider Amendment to Five -Year Memorandum of Agreement (MOA) with Service Employees International Union AFL -CIO, CLC Local 998 BACKGROUND AND DISCUSSION On July 7, 1999, the City Council approved a five -year Memorandum of Agreement ending June 30, 2004, with Service Employees International Union AFL -CIO, CLC Local 998 and authorized the City Manager to sign on behalf of the City. As a Presentation /Action /Discussion item on the April 5 agenda, the Council has been asked to consider approving a Resolution of Intention and introducing an Ordinance for first reading to authorize an amendment to the contract between the City Council and the Board of Administration of the California Public Employees' Retirement System (CalPERS) to provide a 2 percent at 55 retirement formula. In recognition of the benefit of the CalPERS 2 percent at 55 retirement formula, Local 998 has agreed to trade one half of one percent of the negotiated pay increase in July 2000 and July 2001, contingent on the fact that managers and all part -time employees will also have the same reduction in future salary increases. The language proposed to be amended in the MOA is shown in draft form as an attachment to this report (new language is underlined). In addition to the retirement benefit change, a language clarification pertaining to merit raise eligibility following promotion is also proposed. Staff is requesting that the City Council approve the amendment to the MOA and authorize the City Manager to sign the amendment, with the final language to be determined by the City Manager. STAFF RECOWdENDATION Approve the amendment to the MOA and authorize the City Manager to sign the amendment, with the final language to be determined by the City Manager. 00 DRAFT AMENDMENT LANGUAGE MEMORANDUM OF AGREEMENT (1999- 2004) SERVICE EMPLOYEES INTERNATIONAL UNION AFL -CIO, CLC, LOCAL 998 Sec. 503 2% at 55 BENEFIT: The City agrees to provide a Local Miscellaneous 2% at age 55 CalPERS retirement benefit for the bargaining units covered by this Agreement, to be effective with the first pay _period of Fiscal Year 2000 -2001, beginning on or after July _1, 2000, subject to a corresponding amendment to Sec. 601, Salary Adjustments, pursuant to paragraph two of that section. Sec. 601 SALARY ADJUSTMENTS: The City agrees to adjust wages of classes in the bargaining units covered by this Agreement by two percent (2 %) effective with the payroll ,period beginning July 3, 1999 and two and one half percent (2 1-2%) effective with the payroll period beginning July 1, 2000. Effective with the first payroll period beginning on or after July 1, 2001, the City shall adjust wages by two and one half percent (2 1/2 %) or by the average of the Consumer Price Indexes for the Los Angeles - Riverside- Orange County and the U.S. City Average All Urban Consumers for the month of April, compared to the prior April with a maximum increase of five percent (5 %), whichever is higher. Effective with the first payroll period beginning on or after July 1 in Years 2002 and 2003, the City shall adjust wages by the average of the Consumer Price Indexes for the Los Angeles and U.S. City Average for the month of April, compared to the prior April with a maximum increase of five percent (5 %) for each year (e.g., for Fiscal Year 2002/2003, compare April 2001 to April 2002). In the event a General Fund operations deficit is projected for any fiscal year in the proposed budget prepared by the City Manager and as an alternative to layoffs or reductions in hours, then the City Council shall have the prerogative to suspend, delay, reduce or cancel the salary adjustment in that fiscal year. Such action will not be taken without providing an opportunity for Local 998 to meet and confer with the City Manager. As a condition of the City approving a contract amendment with CalPERS to provide _a 2% at 55 retirement benefit effective per Section 503, above, 000227 the salary adjustments provided for in the first paragraph of Section 601, above, _shall be amended as follows: Effective with the first payroll period beginning on..__or._._.__ after _ July - - -1, 2000,_ the City shall_ adjust wades by two percent ('2 %) . Effective with the first payroll beginning_ on or -- -._._. ......... . af ter July 1, _2001, the_ -City -shall _adjust wages by two percent (2 %) or by the average of the Consumer Price _Indexes for the Los Angeles - Riverside- Orange County and the U.S. City Average All Urban Consumers for the month of April, compared to the prior April, minus one -half percent (1/2 %), with a maximum increase_ of five percent (5 %), whichever is higher. Sec. 606 MERIT RAISE AFTER PROMOTION: Section 4.6 of the Personnel Rules shall be revised as follows: Section 4.6. Salary on Promotion: All employees who are promoted to a position in a class with a higher salary range shall be placed on the Step A in the new higher range or placed at the step which is a minimum 5% salary increase for the employee, not to exceed the highest step of the new range. fie- _m_ eye -- '' --eā€” ā€” n- -i;n, a -r-y ate shall . net When economic conditions, unusual employment conditions or exceptional qualifications of a candidate for promotion indicate that a higher step would be in the City's best interests, upon recommendation of the appointing authority, the City Manager may authorize hiring at a higher step in the salary range. The effective date of the promotion shall become the new anniversary date for the purposes of determining merit raise eligibility. Vacation and sick leave will continue to accrue from the date of initial hire for regular full -time and part -time employees promoted to a position in a class with a higher salary range. 000