HomeMy WebLinkAboutHR Bargaining Unit Side Letter Extending Current Agreement with SEIU Local 1021____________________________________________________________________________________
FOR CITY CLERK ONLY
Council Meeting: March 23, 2020
Disposition: Resolution 14772
Agenda Item No: 5.b
Meeting Date: March 23, 2020
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Human Resources
Prepared by: Shibani Nag,
Director of Employee Experience
and Culture
City Manager Approval: ______________
TOPIC: BARGAINING UNIT SIDE LETTER EXTENDING CURRENT MEMORANDUM OF
UNDERSTANDING (MOU) WITH SEIU LOCAL 1021
SUBJECT: RESOLUTION APPROVING A MEMORANDUM OF UNDERSTANDING SIDE LETTER
AGREEMENT BETWEEN THE CITY OF SAN RAFAEL AND SEIU LOCAL 1021
RECOMMENDATION:
Adopt Resolution approving the Side Letter Agreement between the City of San Rafael and SEIU Local
1021.
BACKGROUND / ANALYSIS:
In late 2018, the City of San Rafael entered into a Memorandum of Understanding (MOU) with the SEIU
for a two-year term from July 1, 2018 through June 30, 2020. The City and SEIU have reached a tentative
agreement to extend the current MOU by one year, through June 30, 2021 by use of a side letter
agreement (Exhibit to Attachment 1). The side letter agreement also makes changes to certain terms of
the MOU, as described below. Attachment 1 is a resolution approving the recommended side letter
agreement.
Salary Increases: It is recommended that job classes represented by the bargaining unit receive a 2.0%
base wage increase in the first pay period including July 1, 2020 and a 1% base wage increase in the
first pay period including January 1, 2021. These increases are equivalent to a 2.5% increase over the
next fiscal year. The side letter would amend Section 3.1.2 of the MOU, entitled “General Wage Increase,”
to make this change.
Retiree Health Insurance: The City’s maximum contribution towards retiree health for employees hired
on or after January 1, 2010 is the PEMHCA minimum which is determined by CalPERS on an annual
basis. Employees are eligible to participate in a retiree health care trust to enable them to prefund retiree
health premiums. This trust is funded by an annual conversion of 50 hours of sick time each July 1st
provided an employee has a minimum remaining balance after the conversion. To address employees’
concerns that the remaining balance is insufficient in the event of an extended illness, the remaining
balance threshold will be increased from 75 hours to 125 hours. The side letter would amend Section
4.4.2 of the MOU, entitled “Retirees Health Insurance,” to make this change.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
Emergency/Smoke Leave: The side letter would add new Section 5.4.10 to the MOU, entitled
“Emergency/Smoke Leave”. This new language is added to address changes to work
assignment/locations in the event of an emergency or other circumstance that results in the closure of
City facilities.
FISCAL IMPACT:
The current total annual salary and benefit cost to the City for the 122.80 full-time equivalent (FTE)
positions of SEIU is $15,054,021. The total additional one-year cost is $328,634.
The cost associated with this MOU extension is in line with the City’s current budget projections for next
fiscal year. Upon approval, the SEIU salary schedule will be updated accordingly and will be presented
for informational purposes along with the FY 20-21 budget.
OPTIONS:
The City Council has the following options to consider on this matter:
1. Adopt the resolution approving the Side Letter.
2. Adopt resolution with modifications.
3. Direct staff to return with more information.
4. Take no action.
RECOMMENDED ACTIONS:
1. Adopt resolution to approve the Side Letter with SEIU Local 1021.
ATTACHMENTS:
1. Resolution (SEIU) with attached Side Letter.
RESOLUTION NO. 14772
RESOLUTION OF THE SAN RAFAEL CITY COUNCIL APPROVING A
MEMORANDUM OF UNDERSTANDING SIDE LETTER AGREEMENT BETWEEN THE
CITY OF SAN RAFAEL AND SEIU LOCAL 1021
WHEREAS, on July 2, 2018 the City of San Rafael entered into a Memorandum of
Understanding with SEIU Local 1021 for a two-year term from July 1, 2018 to June 30, 2020 (the
“MOU”); and
WHEREAS the City and SEIU have reached a tentative agreement to extend the MOU by
one year, through June 30, 2021 as set forth in the attached “Side Letter Agreement between
SEIU Local 1021 and the City of San Rafael”; and
WHEREAS, under the tentative agreement, job classes represented by SEIU will receive
a 2.0% base wage increase in the first pay period including July 1, 2020 and a 1% base wage
increase in the first pay period including January 1, 2021; and
WHEREAS, these increases are equivalent to a 2.5% increase over the next fiscal year;
and
WHEREAS, the proposed increase in compensation is in line with the City’s current
budget projections; and
WHEREAS, the side letter agreement also amends Section 4.4.2 of the MOU regarding
Retiree Health Insurance to modify the terms of funding of an employee’s retiree health care trust;
and
WHEREAS, the side letter agreement also adds new Section 5.4.10 to the MOU to
address changes to work assignment/locations in emergency situations;
NOW, THEREFORE BE IT RESOLVED that the City Council of the City of San Rafael
hereby approves the attached “Side Letter Agreement between SEIU Local 1021 and the City of
San Rafael” extending the MOU to June 30, 2021.
I, Lindsay Lara, Clerk of the City of San Rafael, hereby certify that the foregoing Resolution
was duly and regularly introduced and adopted at a regular meeting of the City Council of the City
of San Rafael, held on Monday, the 23rd of March 2020, by the following vote, to wit:
AYES: COUNCILMEMBERS: Bushey, Colin, Gamblin, McCullough & Mayor Phillips
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
______
Lindsay Lara, City Clerk
SIDE LETTER AGREEMENT
BETWEEN SEIU LOCAL 1021
AND
THE CITY OF SAN RAFAEL
The City of San Rafael (hereinafter referred to as "City") and SEIU Local 1021 (hereinafter
referred to as the "Local 1021 ") entered into a Memorandum of Understanding ("MOU") with
a term beginning on July 1, 2018 and terminating on June 30, 2020. The City and the
Association are collectively referred to herein as the "Parties." The Parties now wish to extend
this MOU one year and pro~ wage increase.
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Effective i th Parties mutually agree to extend the MOU one year to end on June 30,
2021 and to provide bargaining unit members a 2% salary increase in the first pay period after
July 1, 2020 and a 1 % equity adjustment in the first pay period after January 1, 2021. The two
step increases over the final year of this extended MOU is equivalent to 2.5% increase and is
consistent with the Bay Area December 2019 CPI index.
The specific provisions contained in this Agreement are intended to supersede any previous
agreements, whether oral or written, regarding the matters contained in this Agreement.
Except as provided here, all wages, hours, and other terms and conditions of employment
presently Association in the MOU remain in full force and effect.
The Parties have satisfied their obligations to meet and confer in good faith in accordance
with the Meyers-Milias-Brown Act ("MMBA") concerning the terms and conditions of this
Agreement and its implementation.
Thus, the Parties mutually agree to make the following changes to the MOU to read as
follows:
Paragraph 3 of the MOU
This Memorandum of Understanding shall be presented to the City Council of the City of San
Rafael as the joint recommendation of the undersigned for salary and employee benefit
adjustment for the period commencing July 1, 2018 and ending June 30, 2020!. When ratified
by the Local 1021 Bargaining Unit membership and approved by City Council, this
Memorandum of Understanding shall be binding upon the SEIU LocaJ 1021, the employees
it represents, and the City of San Rafael.
This Memorandum of Understanding shall be presented to the City Council of the City of San
Rafael as the joint recommendation of the undersigned parties for salary and employee benefit
adjustments for the period commencing July 1, 2018 and ending June 30, 2020.
1.1 .2 Term of MOU
This Agreement will be in effect from July 1, 2018 through June 30, 2020!,
3.1.2 General Wage Increase
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Effective the first full pay period including in July 2018 or upon approval of the City Council,
whichever is latest, salary ranges for classifications in this unit shall be increased by 2%.
Effective the first full pay period in July 2019, salary ranges for classifications in this unit shall
be increased by 2%.
Effective the first pay period after July 1, 2020 2 salary ranges for classifications in this unit
shall be increased by 2.0%.
Effective the first pay period after January I, 2021, alary ranges for classifications in this
unit shall be increased bv 1.0%.
Salary rates for all bargaining unit positions are shown in the salary table attached as Exhibit
"A".
4.2.2 Retirees Health Insurance
Employees represented by SEIU who retire from the Marin County Employees' Retirement
Association (MCERA) within 120 days of leaving their City of San Rafael position (and who
comply with the appropriate retirement provisions under the MCERA laws and regulations) are
eligible to continue in the City's retiree group health insurance program offered through
PEMHCA. The City's contribution towards retiree coverage shall be the PEMHCA minimum
contribution as determined by CalPERS on an annual basis.
a. Employees hired on or before January 1, 2010
The City shall make a monthly retiree health insurance contribution on behalf of
employees hired before January 1, 2010 and who retire from the City of San Rafael
as described in this Section. The City's total monthly contribution, which includes the
PEMHCA minimum contribution, shall not exceed $752 per month. The City's retiree
health contribution shall continue for the lifetime of the retiree and retiree's spouse, in
accordance with PEMHCA eligibility provisions for coverage.
b. Employees hired on or after January 1, 2010, and who meet the eligibility
requirements for retiree health insurance, are eligible to continue in the City's group
health insurance program. The City's maximum contribution towards retiree
coverage under this subsection, 4.2.5b, shall be the PEMHCA minimum contribution
as determined by CalPERS on an annual basis. The City shall not be responsible for
making any contributions towards the cost of coverage of the retiree's spouse,
registered domestic partner, or dependents upon the employee's retirement from the
City in excess of the PEMHCA minimum contribution as required by CalPERS.
The City shall additionally make available a retiree health care trust to enable these
employees to prefund retiree health care premiums while employed by the City. The
retiree health care trust shall be funded by annual conversion of 50 hours of sick time
in service on July 1 of each year, provided an employee has a remaining balance of
~ 125 hours of sick leave after the conversion.
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5.4.10 Emergency/Smoke Leave
In the event that an emergency is declared that impacts City facilities or operations and
results in the closure of any facilities, employees regularly assigned to work in a closed
work.site may be required to report to a worksite other than their regular worksite to
assist in emergency duties or to a non-impacted worksite for regular duties at the
discretion of the City.
If employees are not assigned to a non-impacted worksite or assigned to assist in
emergency duties, they shall be granted leave up to 10 days in any calendar and
compensated for their regularly scheduled work day with no adverse effect to the
employee.
This provision applies to Federal, State, County, or City declared emergencies or to other
non-declared circumstances that result in the closure of City facilities.
CITY OF SAN RAFAEL:
/SEIU LOCAL 1021
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MP #4814-1919-1469 vl