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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 Item 9.b. - Page 9 THIS PAGE INTENTIONALLY LEFT BLANK Item 9.b. - Page 10