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HomeMy WebLinkAboutAGENDA REPORT 2023 1004 CCSA REG ITEM 10KCITY OF MOORPARK, CALIFORNIA City Council Meeting of October 4, 2023 ACTION APPROVED STAFF RECOMMENDATION. BY A. Hurtado. K. Consider Side Letter Amending Memorandum of Understanding (MOU) with Service Employees International Union (SEIU) CTW, CLC Local 721 to Modify Terms of Holiday Pay and Holiday Leave Credit. Staff Recommendation: Approve the Side Letter with SEIU Local 721, subject to City Manager final language approval, and authorize the City Manager to sign the Side Letter. (Staff: PJ Gagajena, Assistant City Manager) Item: 10.K. MOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council FROM: PJ Gagajena, Assistant City Manager DATE: 10/04/2023 Regular Meeting SUBJECT: Consider Side Letter Amending Memorandum of Understanding (MOU) with Service Employees International Union (SEIU) CTW, CLC Local 721 to Modify Terms of Holiday Pay and Holiday Leave Credit BACKGROUND AND DISCUSSION As part of the City’s efforts to retain and attract employees and offer more flexible work schedules, a new 9/80 modified work schedule became effective on August 14, 2023, for certain employees. With a 9/80 work schedule, an employee works eight 9-hour workdays, one 8-hour workday, and has one day off during a two-week 80-hour period. This also changed the City’s hours of operation to the public from 8:00 a.m. to 5:00 p.m., Monday through Friday, to 7:30 a.m. to 5:30 p.m., Monday through Thursday, 8:00 a.m. to 5:00 p.m. on Fridays, and closure of City Hall on alternating Fridays. Note that some employees continued to work from 8:00 a.m. to 5:00 p.m., Monday through Friday, based on operational needs. Currently, Section 802 of the City's MOU with SEIU Local 721 and Section 13.7 of the City’s Personnel Rules indicate that regular full-time employees will receive 8 hours of holiday leave pay for a full holiday. Based on the policies, if employees are on a 9/80 work schedule and the holiday falls on a 9-hour workday, they must make up the one hour difference by using annual leave or compensatory time. To avoid impacting leave balances of those employees on 9/80 schedules by mandating they use annual leave or compensatory time or making up the time through some other sort of flexible work arrangement, it is determined to better to align with more traditional 9/80 implementation methodologies by paying employees for a full work day irrespective of the holiday falling on an 8-hour or 9-hour work day. Many neighboring cities that have a 9/80 work schedule practice a similar policy. Section 802 of the City's MOU with SEIU Local 721 also states that if a holiday falls on a day that is scheduled as an off day for a regular full-time employee on a 9/80 work schedule, the City will credit 8 hours of annual leave for each holiday which occurs on an employee's off day. The City determined that since regular full-time employees on a 9/80 work schedule will already receive an additional hour of holiday pay, the receipt of holiday leave credit is no longer necessary and will essentially offset one another in Item: 10.K. 219 Honorable City Council 10/04/2023 Regular Meeting Page 2 terms of benefits and overall cost. This offset occurs because with 11 paid full holidays per year, those on a 9/80 work schedule will gain an additional 11 hours of holiday pay per year under this new proposal. In turn, these same employees will lose between 8 to 16 hours of holiday leave credit when a holiday falls on an employee’s day off, depending on when holidays fall on Fridays during certain calendar years. Since the holiday pay and holiday leave credit provisions are stated in the City’s MOU with SEIU Local 721, the City notified SEIU Local 721 about the proposed changes in good faith although it states in the MOU the City is not required to meet and confer with SEIU LOCAL 721 on its decision to modify any rules pertaining to the 9/80 schedule. On September 19, 2023, the City met and conferred with SEIU Local 721 regarding these changes and they supported adding the additional hour of holiday pay but proposed that regular full-time employees on a 9/80 work schedule receive the holiday leave credit for the remainder of the 2023 calendar year and eliminate the holiday leave credit beginning in 2024 and going forward. The City reached mutual concurrence with SEIU Local 721 on a Side Letter that will add one hour of holiday pay for regular full-time employees on a 9/80 work schedule and offer holiday leave credit for the remainder of the 2023 calendar year to those employees but eliminate the holiday leave credit beginning in 2024 and going forward. The attached draft Side Letter shows the changes to the MOU. SEIU Local 721 has reviewed and concurs with the attached draft Side Letter. Due to the changes to the MOU and Personnel Rules, the changes to these provisions will also apply to non- competitive service management employees. ENVIRONMENTAL DETERMINATION This action is exempt from the California Environmental Quality Act (CEQA) as it does not constitute a project, as defined by Section 15378 of the State CEQA Guidelines. Therefore, no environmental review is required. FISCAL IMPACT Due to the elimination of holiday leave credit not taking effect until January 1, 2024, there are some costs incurred for adding one hour of holiday pay for regular full-time employees on a 9/80 work schedule for the remainder of the 2023 calendar year. This amount is approximately $4,959.00, which applies to 50 employees who are on the 9/80 work schedule. COUNCIL GOAL COMPLIANCE This action does not support a current strategic directive. STAFF RECOMMENDATION Approve the Side Letter with SEIU Local 721, subject to City Manager final language approval, and authorize the City Manager to sign the Side Letter. Attachment: Side Letter 220 10/04/2023 Side Letter of Agreement between SEIU Local 721 and the City of Moorpark Page 1 SIDE LETTER OF AGREEMENT BETWEEN CITY OF MOORPARK AND SERVICE EMPLOYEES INTERNATIONAL UNION CTW, CLC, LOCAL 721 This Side Letter of Agreement (“SIDE LETTER OF AGREEMENT”) is by and between the City of Moorpark (“CITY”) a Municipal corporation, located in the County of Ventura, State of California, and Service Employees International Union CTW, CLC, Local 721 (“SEIU LOCAL 721”), and is made and entered into this ____ day of __________, 2023, by and between the CITY and SEIU LOCAL 721 with reference to the following recitals: RECITALS WHEREAS, SEIU LOCAL 721 is the exclusively recognized employee organization for the Competitive Service employees of the CITY; and WHEREAS, SEIU LOCAL 721 entered into a Memorandum of Understanding with the CITY, effective for a term effective from July 1, 2023, up to and including Midnight, June 30, 2025 (MOU); and WHEREAS, under provisions of Section 802 of the MOU regarding “MODIFIED WORK SCHEDULE (9/80),” the CITY is not required to meet and confer with SEIU LOCAL 721 on its decision to modify any rules pertaining to the 9/80 schedule but in good faith the CITY notified SEIU LOCAL 721 about proposed changes to holiday pay and holiday leave credit; and WHEREAS, the CITY and SEIU LOCAL 721 have met and conferred on a SIDE LETTER OF AGREEMENT to temporarily modify the “MODIFIED WORK SCHEDULE (9/80)” language in the MOU for the purpose of adding one hour of holiday pay and revising the terms of holiday leave credit in the 2023-2025 MOU; and WHEREAS, this SIDE LETTER OF AGREEMENT shall expire on June 30, 2025. NOW, THEREFORE, the CITY and SEIU LOCAL 721 agree as follows: I. Section 802 of the MOU regarding “MODIFIED WORK SCHEDULE (9/80)” is hereby modified to read as follows: “MODIFIED WORK SCHEDULE (9/80): A 9/80 work schedule is defined as a modified work schedule plan, in which employees work eight 9-hour days and one 8-hour day in a pay period totaling 80 hours. The City is not required to meet and confer with Local 721 on any decision to continue or discontinue a 9/80 schedule. The City Manager at his/her sole discretion, may issue any additional rules for the 9/80 schedule. The City retains the ability to cancel the 9/80 schedule at any time at the City's sole discretion. City is not required to meet and confer on its decision to cancel the 9/80 schedule or modify any rules pertaining to the 9/80 schedule. ATTACHMENT 221 10/04/2023 Side Letter of Agreement between SEIU Local 721 and the City of Moorpark Page 2 The City Manager at his/her sole discretion may exempt any position or group of positions from being placed on a 9/80 schedule in order to fulfill the mission of the City. For each pay period, the City shall determine at its sole discretion the schedule for each employee, including what day is the 8-hour day and which is the off day, to ensure maintenance of a 40-hour work week in compliance with the Fair Labor Standards Act. Whenever practical, the off day shall be Monday or Friday. Regular full-time employees will receive 8 9 hours of holiday leave pay for a full holiday when it falls on Monday through Thursday, 8 hours of holiday leave pay for a full holiday when it falls on a Friday, and 4 hours for a half-day holiday. Any employee scheduled to work other than an 8-hour day on a designated City holiday must use annual leave or compensatory time to make up the difference. If a holiday falls on a day that is scheduled as an off day for a regular full-time employee on a 9/80 schedule, the City will credit 8 hours of annual leave for each holiday which occurs on an employee's off day from July 1, 2023 through December 31, 2023. Effective January 1, 2024, the City will no longer offer this holiday leave credit. Employees will be required to charge the amount of paid time off necessary to account for the number of hours in the regular daily work schedule when utilizing annual leave or compensatory time. For example, an employee shall charge 9 hours of leave for a regularly scheduled 9-hour day. Employees serving jury duty on their off days shall not be compensated by the City. At any time, the City Manager with no less than one-week notice may determine at his/her sole discretion that any position or group of positions shall be returned to the standard 8-hour day, 40-hour week schedule. Employees will not be allowed to change from one schedule to another, unless approved by the City Manager. At the time a regular, full-time position is filled, a decision about the work schedule shall be made by the City. Those positions not allowed a 9/80 schedule, as a result of fulfilling the City's mission, may be periodically adjusted to a 9/80 schedule if authorized by the City Manager. The City Manager may, without advance notice, temporarily return an employee to a standard 8-hour day, 40-hour week schedule, to ensure adequate staffing exists to accomplish the City's mission. The need for this temporary schedule change and the duration will be determined by the City Manager at his/her sole discretion. The reasons for the temporary schedule change may include but are not limited to a position vacancy, employee leave of absence, or change in workload. Employees on the 9/80 schedule shall work the days and hours approved by the City Manager and their Department Head. An unscheduled absence on a work day preceding or following a scheduled 9/80 day off more than once in a 12-month period is considered excessive and shall be considered to have an impact on the City's ability to fulfill the mission of the City. The City Manager may require a physician's certificate to justify the unscheduled absence. The intent of this Rule is that it is the responsibility of the employee to seek the waiver. 222 10/04/2023 Side Letter of Agreement between SEIU Local 721 and the City of Moorpark Page 3 II. A new Section 1406.M of the MOU is hereby added to read as follows: Section 13.7 of the Personnel Rules will be revised to be generally consistent with the following: Section 13.7. City Established Holidays: Holidays shall be observed during the calendar year according to the dates as established by City Council resolution. When a holiday falls on Saturday, the preceding work day (Friday) shall be observed, and when a holiday falls on a Sunday, the following Monday shall be observed, except as otherwise stated in a City Council resolution establishing City holidays. Holiday pay for full-time employees shall be equivalent to an eight-hour work day. Holiday pay for full- time employees on a 9/80 work schedule shall be equivalent to a nine-hour work day when it falls on Monday through Thursday. Regular part-time employees shall be paid for holidays based upon the ratio of the number of hours regularly scheduled for the work week and budgeted for the fiscal year. In the event that one or more municipal holidays fall within the time period for approved use of annual leave, such holiday hours shall not be charged as annual leave. III. Effective Date: This SIDE LETTER OF AGREEMENT shall become effective retroactively on the first full pay period commencing on or after July 1, 2023, subject to full execution of the SIDE LETTER OF AGREEMENT by the CITY and SEIU LOCAL 721. IV. Remaining Provisions: Except as revised by this SIDE LETTER OF AGREEMENT, all of the provisions of the 2023-2025 MOU shall remain in full force and effect. 223 10/04/2023 Side Letter of Agreement between SEIU Local 721 and the City of Moorpark Page 4 IN WITNESS WHEREOF, the parties hereto have caused this SIDE LETTER OF AGREEMENT to the 2023-2025 MOU between LOCAL 721 and the CITY to be executed the day and year first above written. ON BEHALF OF THE CITY: ON BEHALF OF SEIU LOCAL 721: Troy Brown, City Manager Aram Agdaian, SEIU Local 721 Chief Negotiator ATTEST: Daisy Amezcua, SEIU Local 721 Bargaining Team Member Ky Spangler City Clerk Javier Magdaleno, SEIU Local 721 Bargaining Team Member Steve Matthews, SEIU Local 721 Bargaining Team Member Annette Nino, SEIU Local 721 Worksite Organizer 224