Title
Staff Report for a Resolution Approving a Side Letter to Amend the Memorandum of Understanding between the City of San Leandro and the San Leandro City Employees’ Association (SLCEA), Local 21 IFPTE
Staffreport
SUMMARY AND RECOMMENDATIONS
Staff recommends that the City Council adopt a resolution approving a Side Letter agreement to amend the Memorandum of Understanding between the City of San Leandro and the San Leandro City Employees’ Association (SLCEA), Local 21 IFPTE.
BACKGROUND
In February 2016, the City Council approved a Memorandum of Understanding (MOU) between the City of San Leandro and the San Leandro City Employees’ Association (SLCEA) for the period January 1, 2016 through December 31, 2020. The terms included an agreement to reopen negotiations should either San Leandro Management Organization (SLMO) or San Leandro Police Officers’ Association (SLPOA) receive an overall compensation settlement substantively in excess of that provided to SLCEA (Section 42.14).
After approval of the SLPOA MOU in December 2016, SLCEA requested a meeting to reopen negotiations. SLCEA proposed modifications to the MOU based on the terms approved in the SLPOA MOU. The City and SLCEA met and conferred several times to discuss the proposed modifications, and reached a tentative agreement to amend certain contract provisions.
Analysis
Following is a summary of the proposed modifications to the SLCEA MOU to be included in the Side Letter.
Provision Proposed Modification
Vacation Cash Out Effective upon ratification, the number of hours of vacation that employees can cash out will increase from 100 to 120 hours per year.
Health Contribution The MOU language shall be updated to reflect the current practice where the City and employees split only the increase, not the decrease, in the medical and dental premiums.
Bilingual Pay Effective upon ratification, the rate for employees certified as bilingual will increase from $125 to $185 per month. This will affect 24 employees currently certified.
Holiday Pay Effective January 1, 2018, in lieu of observing the set holiday schedule, Water Pollution Control Plant Operators will receive holiday-in-lieu pay equal to 6.5% of the employee’s base salary. This will affect 11 employees who are scheduled without regard to holidays due to continuous 24/7 operations.
Effective January 1, 2018, the practice of retaining holiday time (R-time) will cease for non-sworn employees in the Police department. This change in practice is required to comply with CalPERS regulations, which require that holiday pay be reported in the pay period earned.
Previous Actions
On February 16, 2016, by Resolution No. 2016-015, the City Council approved the SLCEA MOU for the period January 1, 2016 through December 31, 2020.
Fiscal Impacts
There will be a minimal fiscal impact associated with the proposed Side Letter agreement. Increasing the Vacation Cash Out maximum reduces overall liability. The Health Contribution language is a current City practice, which is already reflected in the current budget. The proposed increase in Bilingual Pay will result in an increased cost of approximately $55,000 for the remainder of the contract. The holiday-in-lieu pay for Water Pollution Control Plant operators reflects a change in practice in how holidays are paid to employees who work 24/7 operations, and will result in a budget impact of approximately $169,000 for the remaining three years of the contract, which will be funded from the Water Pollution Control Plant fund reserves. There is no fiscal impact to the holiday practice change for non-sworn employees.
Attachment to the Resolution
• Side Letter agreement between the City and SLCEA
PREPARED BY: Emily Hung, Human Resources Manager, City Manager’s Office