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CC - Item 4E - Rosemead Employee Association MOU5 E M 6 • F lk q O ® Q~Q ~OORPORAnD \0~0 10 ROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR AND CITY COUNCIL FROM: OLIVER C. CHI, CITY MANAGER DATE: JUNE 10, 2008 SUBJECT: ROSEMEAD EMPLOYEE ASSOCIATION M.O.U. SUMMARY The existing Memorandum of Understanding (MOU) between the City and the Rosemead Employee's Association (REA) expires on June 30, 2008. The City's negotiating team has been meeting the REA Board over the last several months to negotiate a new contract. The negotiation process has gone extremely well and staff is pleased to present a two year MOU that will be in effect from July 1, 2008 through June 30, 2010. Staff Recommendation Staff recommends that the City Council approve the MOU (Attached) between the City and the REA for the period of July 1, 2008 through June 30, 2010. ANALYSIS The proposed MOU maintains most of the existing benefits with a few modifications. The most significant change is the implementation of a merit based compensation system. The proposed MOU includes a Cost of Living Adjustment (COLA) effective July 1, 2008 of 3% with the opportunity for team members to earn an additional 2% merit increase during the fiscal year based upon their annual evaluation. Beginning July 1, 2009, team members would no longer receive a COLA; however, they would be eligible to receive a merit increase of up to 5% based upon their annual evaluation. Additional changes in the MOU include such things as Bilingual Pay for eligible employees, On- Call pay for certain employees that will be assigned on call status for a one-week period of 24 hours per day, and the clarification of existing benefits such as holiday pay and benefits for 3/4-time employees. PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. Submitted by~ f Matthe E. Hawke wort Assistant City Manager- Internal Business Units Attachment : MOU between the City and the REA APPROVED FOR CITY COUNCIL AGENDA: 0 • • THE CITY OF ROSEMEAD AND THE ROSEMEAD EMPLOYEE ASSOCIATION MEMORANDUM OF UNDERSTANDING JULY 1 ~ 2008 THROUGH JUNE 3% 2010 • • TABLE OF CONTENTS ARTICLE 1. PREAMBLE ARTICLE 2. RECOGNITION & EFFECTIVE DATES ARTICLE 3. CONSTITUTIONALITY ARTICLE 4. IMPLEMENTATION ARTICLE 5. NON-DISCRIMINATION ARTICLE 6. GENDER ARTICLE 7.. COMPENSATION ARTICLE 8. HEALTH CARE PROVIDER ARTICLE 9. CAFETERIA-STYLE HEALTH, WELFARE, & SAVINGS BENEFIT ARTICLE 10. RETIREMENT HEALTH PLAN ARTICLE 11. RETIREMENT PROGRAM ARTICLE 12. ENHANCED RETIREMENT PROGRAM ARTICLE 13. DEFERRED COMPENSATION PROGRAM ARTICLE 14. VACATION LEAVE ARTICLE 15. VACATION BUYBACK ARTICLE 16. CITY-RECOGNIZED HOLIDAYS ARTICLE 17. HOLIDAY PAY ARTICLE 18. FLOATING HOLIDAYS ARTICLE 19. OVERTIME / COMPENSATORY TIME ARTICLE 20. ADMINISTRATIVE LEAVE ARTICLE 21. FLEXIBLE SCHEDULING ARTICLE 22. SICK LEAVE ARTICLE 23. BEREAVEMENT LEAVE ARTICLE 24. JURY LEAVE ARTICLE 25. BILINGUAL PAY ARTICLE 26. SHORT-TERM DISABILITY ARTICLE 27. LONG-TERM DISABILITY ARTICLE 28. LIFE INSURANCE ARTICLE 29. TUITION REIMBURSEMENT ARTICLE 30. WELLNESS PROGRAM ARTICLE 31. TEAM MEMBER ASSISTANCE PROGRAM ARTICLE 32. STAND-BY / CALL-BACK PAY ARTICLE 33. FLEXIBLE BENEFIT PLAN (SECTION 125) ARTICLE 34. DIRECT DEPOSIT PAYROLL ARTICLE 35. MEDICARE / SOCIAL SECURITY ARTICLE 36. %TIME TEAM MEMBERS ARTICLE 37. AUTO ALLOWANCE ARTICLE 38. MISCELLANEOUS COMMITMENTS • • ARTICLE 1: PREAMBLE It is the purpose of the Memorandum of Understanding to promote and provide for harmonious relations, cooperation and communication between the City Management and the Rosemead Employee Association. As a result of good faith negotiations between City Management and Association representatives, this memorandum of Understanding sets forth the Agreement regarding wages, hours and other terms and conditions of employment for our Team Members covered by this Memorandum. This Memorandum provides for an orderly, means of resolving differences which may arise from time to time during its term. ARTICLE 2: RECOGNITION & EFFECTIVE DATES This Memorandum of Understanding is made and entered into between the management representatives of the City of Rosemead, herein referred to as the "City" and the representatives of the Rosemead Employee Association, herein referred to as the "Association". Full consideration has been given to salaries, Team Member benefits, and other terms and conditions of employment. Pursuant to the provisions of Section 3505.1 of the Government Code of the State of California, said parties agree to this Memorandum of Understanding effective July 1, 2008. This Memorandum of Understanding shall become effective July 1, 2008 and will continue in effect until June 30, 2010. The Rosemead Employee Association shall be officially recognized as the representative body for all Team Members of the City of Rosemead. This Memorandum of Understanding represents the full and complete understanding between the parties related to the subject matter set forth herein and all preliminary negotiations of whatever kind or nature are merged herein. ARTICLE 3: CONSTITUTIONALITY If any section, subsection, subdivision, sentence, clause, or phrase of this Memorandum of Understanding is for any reason held to be illegal or unconstitutional, such decision shall not affect the validity of the remaining portion of this Memorandum of Understanding. ARTICLE 4: IMPLEMENTATION This Memorandum of Understanding constitutes a mutual recommendation by the parties to the City Council that one or more resolution be adopted accepting this Memorandum of Understanding and effecting the changes enumerated herein relative to wages, benefits, and other terms and conditions of employment for the Team Members of the City of Rosemead. It is expressly intended that the duties, responsibilities, and functions of the City in the operation of its functions shall in no manner be impaired, subordinated, or negated by any provisions of this agreement. ARTICLE 5: NON-DISCRIMINATION It is agreed that neither the Association nor the City shall discriminate against any Team Member because of race, religious creed, color, national origin, age, ancestry, sexual. orientation, sex (including gender identity) disability (physical or mental), sexual orientation, marital status, pregnancy, child birth or related medical condition, or any other legally protected characteristics. ARTICLE 6: GENDER Whenever the masculine or feminine form of any word is used in this Memorandum of Understanding, it also includes the other gender unless clearly indicated in the context. Page 1 of 8 • 0 ARTICLE 7: COMPENSATION All full-time and'/, time Team Members will be part of the new 2%-5% Merit Based Compensation System. All full-time and 3/. time, Team Members will receive the following: • Effective July 1, 2008 - 3% COLA and up to 2% merit upon anniversary date of current position • Effective July 1, 2009 - Up to 5% merit upon anniversary date of current position All part-time Team Members will receive a 3% COLA effective July 1, 2008. City will survey all positions annually in March and set hourly rate at 4% above average as of July 1 of each year. Cities utilized for the annual survey will be determined as part of the Class and Compensation Study. ARTICLE 8: HEALTH INSURANCE PROVIDER The City shall contract with CalPERS to serve as the health insurance provider for the City of Rosemead. Beginning July 1, 2008, the City will provide each Team Member with $1,600 per month for use towards enrolling in any of the City offered health plans, dental plans, and vision plans. Any unused remainder can be put into a deferred compensation plan, taken as a cash disbursement, or used for the purchase of any City sponsored insurance, long-term care, or long-term saving program. Team Members can also choose to take the entire benefit as deferred compensation or cash, but must first show proof of health insurance through another source. ARTICLE 10: RETIREMENT HEALTH PLAN For all full-time Team Members hired on or before July 1, 2007, who have 20 years or more of service with the City of Rosemead, and who retire from the City, an allocation of up to $1,000 / month will be given to pay for health care benefits for the duration of their retirement. If the health insurance program selected by the Team Member costs more than $1,000 / month, the City will only cover the first $1,000 / month of the cost of the selected program. Once the Team Member reaches age 65 or becomes eligible for Medicare coverage, the Team Member will transition to Medicare coverage, with the City picking up the remaining cost of health insurance coverage up to a maximum of $1,000 / month. For all full-time Team Members hired on or before July 1, 2007, who have 12-19 years of service with the City of Rosemead, and who retire from the City, an allocation of up to $500 / month will be given to pay for health care benefits for the duration of their retirement. If the health insurance program selected by the Team Member costs more than $500 / month, the City will only cover the first $500 / month of the cost of the selected program. The above retirement health contributions will only be in effect for full-time Team Members employed with the City as of July 1, 2007. When Team Member reaches 65 years of age, or becomes eligible for Medicare, said Team Members will transition to Medicare coverage and the City will continue to contribute towards the cost of health care coverage during the duration of the Team Members retirement according to the program as defined in Article 10. Furthermore, it is expressly noted that the retirement health contribution can be used towards health coverage for the Team Member, their spouse, and / or any eligible dependent. Team Members hired after July 1, 2007 shall receive retiree health benefits in accordance with public employees' retirement laws and CaIPERS. Page 2 of 8 • 0 ARTICLE 11: RETIREMENT PROGRAM Team Members will be enrolled in the City's retirement program through CalPERS. Effective July 1, 2007, the City will begin providing the 2.7%@55 benefit with one-year final compensation option. In addition, the City will continue to contribute the Team Member's share to the retirement system. ARTICLE 12: ENHANCED RETIREMENT PROGRAM The City will continue offering an enhanced retirement package through PARS. Full-time Team Members who retire from Rosemead after working 20 years for the City will have their pension formula enhanced to 3%@55, with the provision that the maximum pension allowance that Team Member's can accrue through PARS will be 90% of their final pay. Team Members must be at least 55 years of age to qualify for PARS. , . ARTICLE 13: EMPLOYER FUNDED DEFERRED COMPENSATION PROGRAM For all full-time Team Members, the City will set-up and begin contributing into a deferred compensation account a percentage of the Team Member salary based on years of service. That funding formula will be as follows: • 0 - 4 Years: 1% of salary contributed into a deferred compensation account. • 5 - 9 Years: 2% of salary contributed to a deferred compensation account. • 10 - 14 Years: 3% of salary contributed to a deferred compensation account. • 15 - 19 Years: 4% of salary contributed to a deferred compensation account. • 20+ Years: 5% of salary contributed to a deferred compensation account. $500 will be allocated into deferred compensation for Executive Management. ARTICLE 14: VACATION LEAVE All full-time Team Members will be entitled to a paid vacation of 100 hours (10 days) following one year of employment. Team Members may begin taking accrued vacation after six months of employment. From the second year of employment until completion of the thirteenth year, Team Members will be entitled to 140 (14 days) hours of paid vacation. Beginning with the fourteenth year, and every year thereafter, Team Members will be entitled to 160 hours (16 days) of vacation. ARTICLE 15: VACATION BUYBACK Any full-time Team Member who takes 40 consecutive hours of vacation during the course of the year will be eligible to have the City buyback up to 80 hours of vacation time. ARTICLE 16: CITY-RECOGNIZED HOLIDAYS The following days shall be recognized and observed as paid holidays: 1. New Year's Day (January V) 2. Martin Luther King's Birthday (the third Monday in January). 3. Presidents' Birthday (the third Monday in February) 4. Memorial Day (the last Monday in May) 5. Independence Day (July 4'") 6. Labor Day (the first Monday in September) 7. Veteran's Day (November 11`h) 8. Thanksgiving Day 9. Christmas Day (December 251") Non-essential City services and facilities will be closed from Christmas to New Year's Day. If the Team Member elects to take the non-holidays off, he/she will be required to utilize their own time. Page 3 of 8 • • ARTICLE 17: HOLIDAY PAY Full-time non-exempt Team Members will receive holiday straight time plus 1 '/2 time for hours worked. Part-time Team Members will receive 1 Y time for hours worked. ARTICLE 18: FLOATING HOLIDAYS Team Members will receive 20 hours of floating holiday per calendar year. Those hours must be used before the end of the calendar year or they will be forfeited. ARTICLE 19: OVERTIME I COMPENSATORY TIME Beginning on July 1, 2007, compensatory time-off (CTO) will no longer be provided to any Team Member. Instead, non-exempt Team Members that work overtime shall be paid for those overtime hours at a rate of 1.5 times their regular pay rate. Those Team Members that have accrued CTO prior to July 1, 2007 shall be allowed to keep those hours. Use of CTO earned shall be granted so that it does not unduly disrupt the operations of the City. Terminating Team Members shall be compensated for accrued compensatory hours. Furthermore, Team Members who have accrued CTO may elect to buy back to the City any hours of CTO per year. Said sell back shall take place during the second pay period in December of each year and will be paid at the Team Member's hourly rate at the time the CTO is sold back to the City. In addition, accrued CTO for any terminating Team Member will be paid out at the Team Member's hourly rate at the time of termination. ARTICLE 20: ADMINISTRATIVE LEAVE On January 1, 2008, and every January 1 thereafter, Team Members working in a position classified as exempt or management will be allocated an allotment of Administrative Leave according the following schedule: Jdb;Classification4'r. Al l~. r=t?.-'Atlrnlnlstrativ`esLeave°Allocation m--' Exempt 60 Hours Management 80 Hours Executive Management 80 Hours Any Administrative Leave hours that have not been used by December 31 of a calendar year will be lost. However, any Team Member working in a position classified as exempt or management, and who has utilized or plans to utilize at least Y of their allocated Administrative Leave by December 31, will be offered the opportunity to sell back to the City any of their remaining Administrative Leave hours. Said sell back shall take place during the second pay period in December of each year and will be paid at the Team Member's hourly rate at the time the administrative leave is sold back to the City. Furthermore, any Administrative Leave on the books for a terminating Team Member shall be paid out at the Team Member's hourly rate at the time of termination. For the purposes of participating in the City's Administrative Leave sell back program, those Team Members classified exempt must have utilized at least 30 hours of Administrative Leave, and those Team Members classified as management must have utilized at least 40 hours of Administrative Leave. ARTICLE 21: FLEXIBLE SCHEDULING Depending on a Team Member's area of assignment, an alternate work schedule may be arranged given supervisor approval. This could include the possibility of utilizing a flextime or telecommuting from an offsite location. Page 4 of 8 ARTICLE 22: SICK LEAVE Full-time Team Members will accrue ten hours of sick leave per month. A new Team Member may bring with them up to 200 hours of accrued sick leave from their previous agency, if the previous employer did not otherwise compensate the Team Member. In addition, new Team Members can not utilize sick leave within the first 30 days of employment. Team Members retiring from the City may have the option to sell back sick leave to purchase up to one additional year of service time from CaIPERS. Any other balances or if the Team Member resigns or is terminated will be forfeited. ARTICLE 23: BEREAVEMENT LEAVE In the event of the death of a member of an Team Member's immediate family (defined as spouse, parent, grandparent, sibling, children, grandchildren, mother-in-law, father-in-law, sister- in-law, brother-in-law, step-relatives, or member of the household, domestic partner or child of a domestic partner), Team Members will be entitled to four (4) paid days off for bereavement leave. ARTICLE 24: JURY LEAVE Team Members required to serve on a jury will be entitled to their regular compensation for up to 80 hours provided that fees forjury service are deposit with the finance department. ARTICLE 25: BILINGUAL PAY The City will offer a bilingual pay program for eligible Team Members who consistently utilize other languages to translate during the normal course of work. To qualify, Team Members must pass the test developed or utilized by the City for the following recognized languages: Spanish, Vietnamese, Cantonese, and/or Mandarin. A maximum of three (3) positions per language per site may be certified to receive bilingual pay by the City. It will be applicable at all primary sites (RCRC, Garvey Center, Public Safety and Maintenance Yard). In the event that more than three team members wish to apply for it, management will determine the top three (3) based upon positional need. Once certified, full time positions and % time positions shall receive a bilingual stipend of $75 per month. Any Team Member who is not certified by the City shall not be required to use a language other than English. However, when a member of the public, requests assistance in a language other than English, our Team Members shall make a reasonable effort to accommodate and assist in a polite and professional manner. ARTICLE 26: SHORT-TERM DISABILITY The City will provide Team Members with a short-term disability plan to protect against cases where a non-work-related illness or injury is sustained which results in an inability to work for a short period of time. In these cases, Team Members will receive 66% of their base salary after 14 days, and continued payment until the Team Member is medically able to return to work, or has to begin utilizing long term disability, or until the Team Member reaches the age of 65, whichever comes first. The maximum short-term disability benefit amount will be $8,000 per month. ARTICLE 27: LONG-TERM DISABILITY The City will provide Team Members with a long-term disability plan to protect against cases where a non-work-related illness or injury is sustained which results in an inability to work for a long period of time. In these cases, Team Members will receive 66% of their base salary after 45 days, and continued payment until the Team Member is medically able to return to work, or until the Team Member reaches the age of 65, whichever comes first. The maximum long-term disability benefit amount will be $8,000 per month. ARTICLE 28: LIFE INSURANCE Team Members will receive an accidental death & dismemberment and life insurance policy of $100,000. Page 5 of 8 ARTICLE 29: TUITION REIMBURSEMENT Upon successful completion of a course, full-time Team Members will be eligible for tuition reimbursement of up to $5,000 per fiscal year. Reimbursable expenses must be approved by the City Manager and will include items such as registration, tuition, textbooks, and parking. ARTICLE 30: WELLNESS PROGRAM The City will reimburse full-time Team Members up to $500 per fiscal year toward the cost of a fitness/exercise or health related program, provided that the Team Member develops and submits to the personnel officer a personal wellness plan. Once submitted, the Team Member must engage in an exercise program on a regular basis and/or be involved in a program to improve health (i.e. weight reduction, smoking cessation, etc). Qualifying fitness and exercise activities include but are not limited to: nautilus, aerobics, tennis, racquetball, swimming, golfing, and bicycling. Reimbursement for participating in the Wellness Program is available to full-time Team Members and will be considered on a case-by-case basis. In addition, equipment required for participating in these activities will be considered on a case by case basis. ARTICLE 31: TEAM MEMBER ASSISTANCE PROGRAM The City will provide Team Members with access to a Team Member Assistance Program. ARTICLE 32: STAND-BY / CALL-BACK PAY If a Team Member is on stand-by or on-call, he/she shall receive $100 per week with a minimum of 3 hours of overtime regardless of the time of day or day of the week if required to report back to work. In addition, call back pay shall commence upon the arrival of the Team Member at the work site. ARTICLE 33: FLEXIBLE BENEFIT PLAN (SECTION 125) The City will offer Team Members a flexible benefit plan which will allow individuals to pay for certain expenses (child care, unreimbursed medical expenses, insurance premiums) with pre-tax dollars. ARTICLE 34: DIRECT DEPOSIT PAYROLL Team Members will be provided with an option to authorize the automatic deposit of each paycheck into an individual's checking, savings or credit union account. ARTICLE 35: MEDICARE / SOCIAL SECURITY If Federal Medicare / Social Security is mandated by Congress, the contribution designated by law to be the responsibility of the Team Member shall be paid in full by the Team Member. ARTICLE 36: 314 TIME TEAM MEMBERS Team Members designated as 3/. time will work 30-32 hours per week and will receive the following benefits: • Health Single Party Kaiser. • Tuition Reimbursement A maximum reimbursement amount of $2,500 per year will be provided. • Wellness Plan A maximum reimbursement amount of $250 per year will be provided. • City Paid Deferred Compensation 3/4 Time Team Members will not be eligible for this benefit. • Retirement Health Plan The City will pay benefits in accordance with public employees' retirement laws and CalPERS. Page 6 of 8 • • Vacation Accrual Half the full-time rate All other non-full-time Team Members will not receive city paid health. ARTICLE 37: AUTO ALLOWANCE Management Team members may receive up to $500 per month based on business necessity. Executive Management may receive up to $800 per month or a city provided vehicle. ARTICLE 38: MISCELLANEOUS COMMITMENTS The City commits to the following miscellaneous activities during the 2008-2010 fiscal year: • Implement a Merit Based Compensation System - all full-time and 3/. time Team Members will be part of the merit system. • Implement a Class and Compensation Study - review study by 2/1/09 with Association and retroactive to 1/1/09. • Re-classify Pre-School Teacher positions to % Time positions. • Create job descriptions for every position in the City. • Create a formalized Personnel Rules & Regulations Manual. • Create formalized Administrative Policies. • Conduct an FLSA audit. Page 7 of 8 • ROSEMEAD EMPLOYEES ASSOCIATION BY: BY: JEAN S. SCOTT REA REPRESENTATIVE KIM P. BORIS REA REPRESENTATIVE BY: RAY RODRIGUEZ REA REPRESENTATIVE BY: MARTIN A. JONES REA REPRESENTATIVE BY: I RMA A. GALINDO REA REPRESENTATIVE By CONCH ITA T. ESCALONA REA REPRESENTATIVE CITY OF ROSEMEAD By OLIVER C. CHI CITY MANAGER THE PARTIES HERETO HAVE CAUSED THIS MEMORANDUM OF UNDERSTANDING TO BE EXECUTED THIS DAY OF 2008 Page 8 of 8