CC 2016-08-23_09b SEIU Side Letter Agreement
MEMORANDUM
TO: CITY COUNCIL
FROM: DEBORAH MALICOAT, DIRECTOR OF ADMINISTRATIVE SERVICES
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: AUGUST 23, 2016
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
$20,400 for FY 2016/17, with the increases taking effect on August 26, 2016. ($8,300
for the General Fund, $8,400 for the Water Fund and $3,700 for the Streets 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.
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.
Language was included in the MOU to also consider equity adjustments for FY 2015/16,
which was completed last year, 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
Item 9.b. - 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,
LOCAL 620
AUGUST 23, 2016
PAGE 2
The current salary survey revealed that three SEIU positions were more than 5% below
the median; in addition, the increase for the Maintenance Worker III position caused
compaction with the Water Services Worker and Public Works Lead Person, so it is
recommended that those positions also receive an increase. Given the formula and
compaction issues, the following positions could be given consideration for an equity
increase effective August 26, 2016:
Position Deviation from Median Proposed Increase
Assistant Engineer -7.87% 5.0% salary increase
Maintenance Worker III -6.82% 2.5% salary increase
Sports Facility Coordinator -6.82% 2.5% salary increase
Water Services Worker -2.71% 2.5% salary increase
Public Works Lead Person -2.67% 2.5% salary increase
SEIU membership voted to approve the Side Letter of Agreement on August 8, 2016.
The recommended action is consistent with direction previously provided by the City
Council.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Adopt the 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.
ADVANTAGES:
The equity adjustments will assist with recruitment and retention issues and maintain
position salaries closer to the Countywide median.
DISADVANTAGES:
The disadvantage is costs will be added to the General Fund, Water Fund and Streets
Fund.
ENVIRONMENTAL REVIEW:
No environmental review is required for this item.
Item 9.b. - Page 2
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,
LOCAL 620
AUGUST 23, 2016
PAGE 3
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted in accordance with Government Code Section 54954.2.
Item 9.b. - Page 3
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ARROYO GRANDE 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
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, Local 620 current 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 August 26, 2016.
On motion of Council Member _____________, seconded by Council Member
____________, and on the following roll call vote, to wit:
AYES:
NOES:
ABSENT:
the foregoing Resolution was passed and adopted this 23rd day of August, 2016.
Item 9.b. - Page 4
RESOLUTION NO.
PAGE 2
JIM HILL, MAYOR
ATTEST:
KELLY WETMORE, CITY CLERK
APPROVED AS TO CONTENT:
GEOFF ENGLISH, ACTING CITY MANAGER
APPROVED AS TO FORM:
HEATHER WHITHAM, CITY ATTORNEY
Item 9.b. - Page 5
Exhibit “A”
SIDE LETTER OF AGREEMENT
MODIFICATION TO MEMORANDUM OF UNDERSTANDING
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 as follows:
The City agrees to provide the following equity adjustments effective August 26,
2016:
Position Salary Increase New Salary Range
Assistant Engineer 5.0% salary increase 38
Public Works Lead Person 2.5% salary increase 31
Water Services Worker 2.5% salary increase 28
Maintenance Worker III 2.5% salary increase 26
Sports Facility Coordinator 2.5% salary increase 26
2. Article 8. shall be amended as follows:
The S.E.I.U. represents the following employee classifications:
POSITION SALARY RANGE
08/26/16
Senior Engineer 46
Associate Engineer 43
Assistant Engineer 38
Information Technology Specialist 38
Recreation Supervisor 35
Geographic Information Systems Technician 34
Public Works Lead Person 31
Fleet Maintenance Coordinator 30
Water Services Worker 28
Maintenance Worker III 26
Recreation Coordinator 26
Sports Facility Coordinator 26
Senior Accounting Clerk 26
Administrative Secretary 25
Accounting Clerk 21
Maintenance Worker II 21
Office Assistant II 18
Maintenance Worker I 17
Office Assistant I 14
Item 9.b. - Page 6
SEIU SIDE LETTER OF AGREEMENT
Page 2
The City and the S.E.I.U. agree that all position classifications represented by the Union
in this Article shall receive salaries as represented in Exhibit “B” for the period of August
26, 2016 through June 30, 2017.
3. The revised SEIU salary schedule is attached hereto, marked Exhibit “B”, and
incorporated herein by this reference
__________________________ _____________________________
For City of Arroyo Grande For Service Employees International
Union, Local 620
_________________________ _____________________________
Date Date
Item 9.b. - Page 7
Exhibit "B"
RANGE A B C D E Position
Monthly Monthly Monthly Monthly Monthly
11 2,692 2,825 2,969 3,114 3,271
12 2,756 2,896 3,040 3,194 3,351
13 2,826 2,970 3,116 3,272 3,437
14 2,897 3,041 3,195 3,353 3,521 Office Assistant I
15 2,972 3,118 3,274 3,439 3,610
16 3,042 3,196 3,356 3,523 3,700
17 3,121 3,275 3,440 3,611 3,793 Maintenance Worker I
18 3,197 3,357 3,525 3,703 3,886 Office Assistant II
19 3,276 3,441 3,613 3,794 3,985
20 3,360 3,527 3,705 3,889 4,082
21 3,443 3,616 3,797 3,989 4,186 Accounting Clerk
Maintenance Worker II
22 3,530 3,708 3,893 4,086 4,293
23 3,618 3,801 3,992 4,190 4,399
24 3,710 3,896 4,092 4,295 4,511
25 3,802 3,993 4,191 4,405 4,622 Admin. Secretary
26 3,897 4,094 4,296 4,512 4,738 Maintenance Worker III
Recreation Coordinator
Senior Accounting Clerk
Sports Facility Coordinator
27 3,996 4,194 4,407 4,624 4,854
28 4,096 4,299 4,515 4,740 4,979 Water Services Worker
29 4,196 4,409 4,627 4,856 5,100
CITY OF ARROYO GRANDE
SCHEDULE OF SALARY RANGES - SEIU
Effective 8/26/2016
Item 9.b. - Page 8
Exhibit "B"
RANGE A B C D E Position
Monthly Monthly Monthly Monthly Monthly
30 4,301 4,518 4,743 4,981 5,230 Fleet Maintenance Coordinator
31 4,410 4,629 4,860 5,106 5,358 Public Works Lead Person
32 4,520 4,745 4,983 5,233 5,495
33 4,631 4,862 5,108 5,366 5,631
34 4,747 4,986 5,236 5,499 5,772 GIS Technician
35 4,865 5,111 5,368 5,633 5,917 Recreation Supervisor
36 4,989 5,238 5,501 5,775 6,064
37 5,113 5,370 5,636 5,922 6,218
38 5,241 5,506 5,777 6,066 6,371 Assistant Engineer
Information Technology Specialist
39 5,372 5,638 5,925 6,220 6,531
40 5,507 5,780 6,069 6,374 6,694
41 5,641 5,927 6,224 6,534 6,861
42 5,784 6,072 6,378 6,698 7,031
43 5,930 6,230 6,537 6,866 7,207 Associate Engineer
44 6,077 6,383 6,703 7,036 7,388
45 6,234 6,543 6,872 7,212 7,574
46 6,387 6,710 7,041 7,394 7,765 Senior Engineer
47 6,545 6,874 7,219 7,581 7,959
48 6,714 7,049 7,402 7,771 8,160
49 6,878 7,227 7,587 7,963 8,362
50 7,052 7,406 7,775 8,163 8,571
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