CC 2015-11-24_09c Side Letter_SEIUMEMORANDUM
TO: CITY COUNCIL
FROM: DEBORAH MALICOAT, DIRECTOR OF ADMINISTRATIVE SERVICES "\O)'V'-
BY: KAREN SISKO, HUMAN RESOURCES MANAGER ~
SUBJECT: CONSIDERATION OF A RESOLUTION APPROVING A SIDE LETTER
OF AGREEMENT MODIFYING THE FY 2014/15 THROUGH FY 2016/17
MEMORANDUM OF UNDERSTANDING WITH THE SERVICE
EMPLOYEES INTERNATIONAL UNION, LOCAL 620
DATE: NOVEMBER 24, 2015
RECOMMENDATION:
It is recommended that the City Council adopt a resolution approving a Side Letter of
Agreement modifying the FY 2014/15 through 2016/17 Memorandum of Understanding
("MOU") with the Service Employees International Union, Local 620 ("SEIU").
FINANCIAL IMPACT:
Terms of the proposed Side Letter of Agreement will increase costs by approximately
$15,300 for FY 2015/16, with the increases becoming effective on July 3, 2015.
($10,800 for the General Fund, $3,000 for the Water Fund and $1,500 for the Sewer
Fund.)
BACKGROUND:
The existing MOU between the City and SEIU was approved on July 8, 2014 and is due
to expire on June 30, 2017. Included in Article 8. D. of the MOU, was a reopener to
consider equity adjustments for positions which are identified as 5% below the median
of the City's salary survey of comparable cities within San Luis Obispo County.
It was also requested that a Maintenance Worker Ill position be reclassified back to
Sports Facility Coordinator. This position had this classification title until the employee
filling the position retired in 2013.
ANALYSIS OF ISSUES:
In fiscal year 2013/14, a plan was devised to assist in bringing employee salaries closer
to the median for comparable cities within San Luis Obispo County. Equity adjustments
were provided to some SEIU positions in FY 2014/15 when the MOU was negotiated.
Item 9.c. - Page 1
CITY COUNCIL
CONSIDERATION OF A RESOLUTION APPROVING A SIDE LETTER OF
AGREEMENT MODIFYING THE FY 2014/15 THROUGH FY 2016/17 MEMORANDUM
OF UNDERSTANDING WITH THE SERVICE EMPLOYEES INTERNATIONAL UNION,
LOCAL620
NOVEMBER 24, 2015
PAGE2
Language was included in the MOU to also consider equity adjustments for FY 2015/16
and FY 2016/17. The formula for consideration was:
• 0% for positions less than 5% below median
• 2.5% for positions at least 5% below median
• 5% for positions at least 7 .5% below median
• 7.5% for positions at least 10% below median
The salary survey revealed that five SEIU positions were more than 5% below the
median. Given the formula, the following positions could be given consideration for an
equity increase effective July 3, 2015:
Position
Recreation Coordinator
Senior Accounting Clerk
Maintenance Worker I
Maintenance Worker II
Recreation Supervisor
Deviation from Median
-11.12%
-6.78%
-6.03
-5.91%
-5.25%
Proposed Increase
7 .5% salary increase
2.5% salary increase
2.5% salary increase
2.5% salary increase
2.5% salary increase
Although not part of the reopener for equity adjustments, SEIU requested that a
Maintenance Worker Ill be reclassified back to the classification of Sports Facility
Coordinator. The main function of this position is to take care of the ball fields at the
Soto Sports Complex. A job description already exists for this position. The position
would remain at SEIU, Range 25 so no change in costs would be incurred. SEIU
requested that language be added to keep this position in the same occupational series
along with the Maintenance Workers for seniority rights.
SEIU membership voted to approve the Side Letter of Agreement on November 10,
2015.
ALTERNATIVES:
The following alternatives are provided for the Council's consideration:
1. Adopt resolution approving the Side Letter of Agreement as presented;
2. Do not adopt the resolution and direct staff to renegotiate the terms of the
Agreement;
3. Do not adopt the resolution; or
4. Provide direction to staff.
Item 9.c. - Page 2
CONSIDERATION OF A RESOLUTION APPROVING A SIDE LETTER OF
AGREEMENT MODIFYING THE FY 2014/15 THROUGH FY 2016/17 MEMORANDUM
OF UNDERSTANDING WITH THE SERVICE EMPLOYEES INTERNATIONAL UNION,
LOCAL 620
NOVEMBER 24, 2015
PAGE3
ADVANTAGES:
The equity adjustments will assist with recruitment and retention issues and maintain
position salaries closer to the County median.
DISADVANTAGES:
The disadvantage is costs will be added to the General Fund, Water Fund and Sewer
Fund.
ENVIRONMENTAL REVIEW:
No environmental review is required for this item.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted in front of City Hall on Thursday, November 19, 2015. The
Agenda and report were posted on the City's website on Friday, November 20, 2015.
No public comments were received.
Item 9.c. - Page 3
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO
GRANDE APPROVING A SIDE LETTE~ OF AGREEMENT MODIFYING
THE FY 2014/15 THROUGH FY 2016/17 MEMORANDUM OF
UNDERSTANDING WITH THE SERVICE EMPLOYEES
INTERNATIONAL UNION, LOCAL 620
WHEREAS, the City Council of the City of Arroyo Grande ("City") deems it in the best
interest of the City to approve a Side Letter of Agreement amending the Service
Employees International-Union, Lo.cal 620 curre11t Memorandum of Understanding,
which includes modifications to salaries and benefits, as hereinafter provided. -
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City 'of Arroyo
Grande that:
1. An amendment to the Memorandum of Understanding ("MOU") with the Service
Employees International Union, Local 620 ("SEIU") is hereby approved, a copy of
said amendment entitled "Side Letter of Agreement, Modification to
Memorandum of Understanding" is attached hereto, marked Exhibit "A", and
incorporated herein by this reference~
2. This Resolution shall become effective November 25, 2015.
On motion of Council Member seconded.by Council Member
and on the following roll ~all vote, to wit:
AYES:
NOES:
ABSENT:
the foregoing Resolution was passed and adopted this day of '2015.
Item 9.c. - Page 4
RESOLUTION NO.
PAGE2
JIM HILL, MAYOR
ATTEST:
KELLY WETMORE, CITY CLERK
APPROVED AS TO CONTENT:
DIANNE THOMPSON, CITY MANAGER
APPROVED AS TO FORM:
HEATHER WHITHAM, CITY ATTORNEY
Item 9.c. - Page 5
SIDE LETTER OF AGREEMENT
MODIFICATION TO MEMORANDUM OF UNDERSTANDING
Exhibit "A"
For valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the City of Arroyo Grande ("City") and the Service Employees
International Union, Local 620 ("SEIU") do hereby agree to modify the current
Memorandum of Understanding ("MOU") between the City and SEIU as follows:
1. Article 8. D. shall be amended to as follows:
The City agrees to provide the following equity adjustments effective July 3,
2015:
Position
Recreation Supervisor
Recreation Coordinator
Senior Accounting Clerk
Maintenance Worker II
Maintenance Worker I
Salary Increase
2.5% salary increase
7.5% salary increase
2.5% salary increase
2.5% salary increase
2.5% salary increase
New Salary Range
35
26
26
21
17
2. The budgeted position of a Maintenance Worker Ill in the Public Works
Department will be reclassified to Sports Facility Coordinator.
Article 8 shall be amended to add the following:
Sports Facility Coordinator Salary Range 25
3. Article 25 shall be amended to add the following:
For the purposes of this article, the classification of Maintenance Worker Ill and
Sports Facilities Coordinator will be considered to be within the same
occupational series.
For City of Arroyo Grande For Service Employees International
Union, Local 620
Date Date
Item 9.c. - Page 6