Title
Staff Report for a Resolution Approving the San Leandro City Employees’ Association (SLCEA), Local 21 IFPTE Memorandum of Understanding
Staffreport
SUMMARY AND RECOMMENDATIONS
The City Manager recommends that the City Council approve a resolution ratifying the Memorandum of Understanding (MOU) between the City of San Leandro and the San Leandro City Employees’ Association (SLCEA), Local 21 IFPTE, for the period covering January 1, 2016 through December 31, 2020.
BACKGROUND
The San Leandro City Employees’ Association (SLCEA), Local 21 IFPTE is the largest City bargaining group representing approximately 275 full-time and part-time employees. The City and SLCEA/Local 21 negotiators reached a tentative agreement, which is presented to the City Council for approval. The proposed MOU may be subject to administrative corrections for clerical purposes as warranted.
Analysis
The City and SLCEA/Local 21 have reached a tentative agreement based on the terms negotiated, which has been ratified by the employees. The major elements of the tentative agreement include the following:
Term
The proposed term for the MOU is for the period January 1, 2016 through December 31, 2020 (5 years)
Compensation
Salary increases will be effective as follows:
• Effective January 1, 2016, a three (3%) percent salary increase.
• Effective January 1, 2017, a three (3%) percent salary increase.
• Effective January 1, 2018, a three (3%) percent salary increase.
• Effective January 1, 2019, a three (3%) percent salary increase.
• Effective January 1, 2020, a three (3%) percent salary increase.
Medical
The City’s 2016 monthly contribution will be increased as follows:
Level Increase
Employee only + $25
Employee +1 + $50
Employee +2 or more + $75
Thereafter, employees will pay 50% of premium increases or decreases based on the Kaiser rate.
Other
An additional floating holiday will be provided to employees.
Increase Life insurance coverage from $20,000 to $50,000.
Previous Action
On October 7, 2013, by Resolution No. 2013-128, the City Council approved the prior MOU for the period January 1, 2013 through December 31, 2015.
Fiscal Impacts
The MOU is effective January 1, 2016. The total cost over the life of the MOU is approximately $4,454,625, which primarily represents the 3% wage increase each year and the implementation of increases in City contribution for medical and life insurance coverage. The financial impact is approximately $409,975 in FY 2015-16 for the period January 1, 2016 through June 30, 2016; $837,200 in the FY 2016-17; $873,100 in FY 2017-18; $909,950 in FY 2018-19; $944,300 in FY 2019-20; and $480,100 in FY 2020-21 for the period July 1, 2020 through December 31, 2020.
Budget Authority
Staff will provide further analysis and submit 2015-16 budget adjustments by fund for City Council appropriation approval.
ATTACHMENT
• Memorandum of Understanding (MOU)
PREPARED BY: Emily Hung, Human Resources Manager, City Manager’s Office