HomeMy WebLinkAboutAgenda Report - June 10, 2009 B-02 SMSol
CITY OF LODI
COUNCIL COMMUNICATION
AGENDA TITLE: Authorize Staff to Modify Labor Unit Memorandum of Understandings (MOUs)
according to signed Tentative Agreements (TAs)
MEETING DATE: June 10,2009
PREPARED BY: City Attorney and Human Resources Manager
RECOMMENDED ACTION: Staff recommends Council Authorize Staff to Modify Labor Unit
Memorandum of Understandings (MOUs) according to signed
Tentative Agreements (TAs).
BACKGROUND INFORMATION: Following general City Council direction, staff has sought to ensure
a balanced 2009/10 General Fund budget applying similar
percentages of the General Fund to each department in 2009/10 as
in 2008/09. This has necessitated reducing expenditures within City departments to include employee
salaries and benefits. Accordingly, staff has negotiated tentative modifications to four bargaining
units/group's salary and benefits. As the members of each bargaining unit may have different
interests/needs in terms of salary and benefits, the structure of each tentative modification differs.
However, modifications center around a combination of furloughs, salary reductions, overtime
restrictions, limits on cash -out of benefits, and elimination cf deferred compensation matching programs.
Staff has reached the following tentative agreements for FY 09/10:
1) Lodi Police Dispatchers Association
■ Amend Article 1: Salary reduced by 58 hours of unpaid furlough leave.
■ Amend Article 10.2 to eliminate cash -out provisions of holiday leave.
2) Police Officers Association of Lodi
■ Amend Article 1: Salary reduced by 48 hours of unpaid furlough leave.
■ Amend Article 5.5 to eliminate cash -out provisions of comp leave.
■ Amend Article 22.6 to eliminate cash -out provisions of holiday leave.
■ Amend Article 17.1 allowing members to resume the monthly uniform allowance
starting July 1, 2009.
Police Department did not budget FY 09/10 overtime expenses of $360,000. However, the
Police Association agreed to use Compensatory Time Off rather than request payment of
overtime, thus saving the City $360,000'.
1 The Fair Labor Standards Act does not permit a requirement that overtime be taken on a compensatory rather
than a cash basis. Instead the units have agreed to cooperate with the City to avoid overtime with the
understanding that use of overtime would result in mid year budget cuts.
APPROVED:
Bla' mIpity Manager
3) Lodi Police Mid -Management Association.
■ Amend Article 1: Salary reduced.by 108 hours of unpaid furlough leave.
■ Amend Article 2.1 allowing members to resume the monthly uniform allowance starting
July 1, 2009.
■ Amend Article 4.2 to eliminate cash out provisions of comp leave.
■ Amend Article 27.3 to eliminate cash out provisions of holiday leave.
■ Amend Articles 1.2 allowing members to resume receiving the City's 3% deferred
compensation match effective July 1, 2009.
4) Lodi City Mid -Management Association.
■ Amend Article 1: Salary reduced by 96 hours of unpaid furlough leave.
■ Amend Article 3.2 to eliminate City deferred compensation match.
5) AFSCME Maintenance and Operators.
■ Amend Article 1: Salary reduced by 48 hours of unpaid furlough leave.
5) AFSCME General Services.
Amend Article 1: Salary reduced by 96 hours of unpaid furlough leave.
Amend Article 4.1 to eliminate City deferred compensation match.
Staff had previously reached agreements with the following groups for the FY 09/10: IBEW,
Unrepresented Confidential Employees, Executive Management, and Council Appointees.
FISCAL IMPACT: The above reduces the City's General Fund salary and benefit obligations by
$932,505 for FY 09/10.
FUNDING AVAILABLE: Not applicable.
Respectfully submitted,
V �
Dean Gu Ico, Humin Resources Managei
Dean Gu Ico, Hum n Resources Manager
(1)CITY OF LODI
COUNCIL COMMUNICATION
AGENDA TITLE: Authorize Staff to Modify Labor Unit Memorandum of Understandings (MOUs)
according to signed Tentative Agreements (TAs)
MEETING DATE: June 17,2009
PREPARED BY: City Attorney and Human Resources Manager
RECOMMENDED ACTION: Staff recommends Council Authorize Staff to Modify Labor Unit
Memorandum of Understandings (MOUs) according to signed
Tentative Agreements (TAs) .
BACKGROUND INFORMATION: Following general City Council direction, staff has sought to ensure
a balanced 2009/10 General Fund budget applying similar
percentages of the General Fund to each department in 2009/10 as
in 2008/09. This has necessitated reducing expenditures within City departments to include employee
salaries and benefits. Accordingly, staff has negotiated tentative modifications to all bargaining
units/group's salary and benefits. As the members of each bargaining unit may have different
interests/needs in terms of salary and benefits, the structure of each tentative modification differs.
However, modifications center around a combination of furloughs, salary reductions, overtime
restrictions, limits on cash -out of benefits, and elimination of deferred compensation matching programs.
Staff has reached the following tentative agreements for FY 09/10:
1) Lodi Police Dispatchers Association
• Amend Article 1: Salary reduced by 58 hours of unpaid furlough leave.
• Amend Article 10.2 to eliminate cash -out provisions of holiday leave.
2) Police Officers Association of Lodi
• Amend Article 1: Salary reduced by 48 hours of unpaid furlough leave.
• Amend Article 5.5 to eliminate cash -out provisions of comp leave.
• Amend Article 22.6 to eliminate cash -out provisions of holiday leave.
• Amend Article 17.1 allowing members to resume the monthly uniform allowance
starting July 1, 2009.
Police Department did not budget FY 09/10 overtime expenses of $360,000. However, the
Police Association agreed to use Compensatory Time Off rather than request payment of
overtime, thus saving the City $360,000`.
' The Fair Labor Standards Act does not permit a requirement that overtime be taken on a compensatory rather
than a cash basis. Instead the units have agreed to cooperate with the City to avoid overtime with the
understanding that use of overtime would result in midyear budget cuts.
APPROVED: '�
Blai in City Manager
3) Lodi Police Mid -Management Association.
■ Amend Article 1: Salary reduced by 108 hours of unpaid furlough leave.
■ Amend Article 2.1 allowing members to resume the monthly uniform allowance starting
July 1, 2009.
■ Amend Article 4.2 to eliminate cash out provisions of comp leave.
■ Amend Article 27.3 to eliminate cash out provisions of holiday leave.
■ Amend Article1 1.2 allowing members to resume receiving the City's 3% deferred
compensation match effective July 1, 2009.
4) Lodi City Mid-ManagementAssociation.
■ Amend Article 1: Salary reduced by 96 hours of unpaid furlough leave.
■ Amend Article 3.2 to eliminate City deferred compensation match.
5) AFSCME Maintenance and Operators. (Because the contribution is below the budget
allocation, this unit will see the lay-off of two street maintenance worker III positions.)
■ Amend Article 1: Salary reduced by 48 hours of unpaid furlough leave.
6) AFSCME General Services.
■ Amend Article 1: Salary reduced by 96 hours of unpaid furlough leave.
■ Amend Article 4.1 to eliminate City deferred Compensation match.
7) Lodi Fire Mid Management (Statement of Benefits)
■ Accept the equivalent of a 41 hour reduction through a combination of furlough hours
and deferred compensation waiver.
8) Lodi Professional Firefighters
■ Waive deferred compensation match
■ Waive vacation cash out
The Fire Department did not budget FY 09/10 overtime expenses of $200,000. However, the LPF
agreed to reduce minimum staffing to 12, thus saving the City a significant overtime exposure.
Staff had previously reached agreements with the following groups for the FY 09/10: IBEW,
Unrepresented Confidential Employees, Executive Management, and Council Appointees.
FISCAL IMPACT: The above reduces the City's General Fund salary and benefit obligations by
$1,334,400 for FY 09/10.
FUNDING AVAILABLE: Not applicable.
Respectfully submitted,
— I�
SIDE LETTERTO THE LODI POLICE DISPATCHERS ASSOCIATION MOU
May 2009
A. The City of Lodi and the Lodi Police Dispatchers Association currently operate under a
Memorandum of Understanding effective November 6,2007 through April 30,201 1, as
amended by Addendum dated February 2009.
B. This Addendum is entered for the purpose of addressing the continued significant and
unanticipated budget crisis caused by the current economic downturn.
For the above reasons the parties agree that members of the bargaining group will:
Accept 58 beat§ unpaid furlough hours in lieu of a 2.8% salary reduction in the FY 09-10.
Furlough hours shall be scheduled based on availability and shall be deducted from salary
in equal installments across all fiscal year pay periods (2.3 hours per paycheck).
Furlough hours must be used by the expiration of the current unit MOU.
In the event a member's employment terminates during the fiscal year, furlough hours shall
be prorated by the percentage of the year worked. Furlough hours used in excess of
prorated hours shall be deducted from other available leave balances, and if other leave
balances are inadequate, repaid to City.
Nothwithstandingthe above, overtime on July 4th shall be on a paid ratherthan a
Compensatory time off basis.
The parties agree that they will work cooperativelyto minimize overtime expenditures in the
department to avoid mid year budget cuts that would be required to meet the overtime
expenditures.
Finally, as a result of the additional furlough hours granted by this agreement, holiday leave
hours accrued during the pay periods in which January 1, 2009 through December31, 2009
must be used by October 31,2010.
This Addendum shall not become effective until approved by the Lodi City Council.
CITY OF LODI,
a municipal corporation
BLAIR KING, City Manager
ATTEST:
RANDI JOHL, J.D., City Clerk
APPROVED AS TO FORM:
D. STEPHEN SCHWABAUER - City Attorney
Lodi Police Dispatchers Assn.
By V—, �, \,� Q,
President
SIDE LETTER TO THE POLICE OFFICERS ASSOCIATION
OF LODI MOU
May 2009
A. The City of Lodi and the Police Officers Association of Lodi currently
operate under a Memorandum of Understanding effective October 9,
2007 through October 8,201 1 as amended by Addendum dated
February2009.
B. This Side Letter is entered for the purpose of addressing the continued
significant and unanticipated budget crisis caused by the current
economic downturn.
For the above reasons the parties agree:
Furlough Time:
Accept 48 f�g� un aid furlough hours in lieu of a 2.3% salary
p p g
reduction in the FY 09-10. Furlough hours shall be scheduled
based on availability and shall be deducted from salary in equal
installments across all fiscal year pay periods (1.9 hours per
paycheck).
In the event a member's employmentterminates during the fiscal
year, furlough hours shall be prorated by the percentage of the
year worked. Furlough hours used in excess of prorated hours
shall be deducted from other available leave balances, and if
other leave balances are inadequate, repaid to City.
Furlough hours must be used by the expiration of the current unit
MOU.
Compensatory Time:
Bargaining unit members agree that they shall not cash out any
compensatory time of from July 1,2009 through June 30,2010.
Moreover, members acknowledge that the 09/10 Police
Department budget does not include any expenditures for
overtime.
The parties agree that they will work cooperativelyto minimize
overtime expenditures in the department to avoid mid year budget
cuts that would be required to meet the overtime expenditures.
J
Uniform Allowance:
Effective July 1, 2009, members will resume receiving the City's
uniform allowance on a monthly basis.
Fourth of July:
Holidays:
Overtime on July 4th shall be on a paid rather than a
Compensatory time off basis.
Included in POAL's contributions to the budget shortfall is the
provision added by the February 2009 Addendum stating:
However, all holiday leave accrued during the pay periods in
which January 1,2009 through December31,2009 fall must be
used by October 31,2010 and may not be banked or cashed out.
This limitation shall not apply to members retiring during the 2009-
2010 fiscal year.
This Side Letter shall not become effective until approved by the Lodi City
Council, and the particulars of this Side Letterwill be evaluated during the Mid-
year budget process.
CITY OF LODI,
a municipal corporation
BLAIR KING, City Manager
ATTEST:
RANDI JOHL, J.D., City Clerk
APPROVED AS TO FORM:
D. STEPHEN SCHWABAUER
City Attomey
Police OfficersAssociation of Lodi
s:
By
President
SIDE LETTER TO THE POLICE MID MANAGEMENT ASSOCIATION
OF LODI MOU - May 2009
A. The City of Lodi and the Police Officers Association of Lodi currently
operate under a Memorandum of Understanding effective October 9,
2007 through October 8,201 1 as amended by Addendum dated
February 2009.
B. This Side Letter is entered for the purpose of addressing the continued
significant and unanticipated budget crisis caused by the current
economic downturn.
For the above reasons the parties agree:
Furlough Time:
Accept 1081 -eat unpaid furlough hours in lieu of a 5.2% salary
reduction in the FY 09-10. Furlough hours shall be scheduled
based on availability and shall be deducted from salary in equal
installments across all fiscal year pay periods (4.15 per
paycheck).
Furlough hours must be used by the expiration of the current unit
MOU, and may also be used any time in lieu of sick leave.
In the event a member's employment terminates during the fiscal
year, furlough hours shall be prorated by the percentage of the
year worked. Furlough hours used in excess of prorated hours
shall be deducted from other available leave balances, and if
other leave balances are inadequate, repaid to City.
Compensatory Time:
Bargaining unit members agree that they shall not cash out any
compensatziry-tTm-e—offftomJuly-1 009 -Rough June3fl;z01-0---
Moreover, members acknowledge that the 09/10 Police
Department budget does not include any expenditures for
overtime. The parties agree that they will work cooperatively to
minimize overtime expenditures in the department to avoid mid
year budget cuts that would be required to meet the overtime
expenditures.
Fourth of July:
Overtime on Juty 4th shall be on a paid rather than a
Compensatory time off basis.
Deferred Comp:
Effective July 1, 2009, members will resume receiving the City's
3% deferred compensation match.
Uniform Allowance:
Holidays:
Effective July 1, 2009, members will resume receiving the City's
uniform allowance on a monthly basis.
tncluded in POAL's contributionsto the budget shortfall is the
provision added by the February 2009 Addendum stating:
However, all holiday leave accrued during the pay periods in
which January 1, 2009 through December 31, 2009 fall must be
used by October 31, 2010 and may not be banked or cashed out.
This limitation shall not apply to members retiring during the 2009-
2010 fiscal year.
This Side Letter shall not become effective until approved by the Lodi City
Council, and the particulars of this Side Letter will be evaluated during the Mid-
year budget process.
CITY OF LODI,
a municipal corporation
BLAIR KING, City Manager
ATTEST:
RANDI JOHL, J.D., City Clerk
APPROVED AS TO FORM:
D. STEPHEN SCHWABAUER
City Attorney
SECOND ADDENDUM TO THE LODI CITY MID -MANAGEMENT
ASSOCIATION
MOU.
April, 2009
A. The City of Lodi and the Lodi City Mid Management Association currently
operate under a Memorandum of Understanding effective January 1, 2008
through December 31, 2009 as amended by Addendum dated February
2009.
B. This Addendum is entered for the purpose of addressing the continued
significant and unanticipated budget crisis caused by the current economic
downturn.
For the above reasons the parties agree:
Article I Salary and Term shall be amended as follows:
1.6 Add new section 1.6 as follows: Bargaining unit members agree to
accept an unpaid furlough of one day per month from July 1,2009
through June 30,2010.
This Addendum shall not become effective until approved by the Lodi City
Council. Moreover, it is entered with the understanding that Similar Operational
Savings will be implemented with respectto all City bargaining units and
Executive Management. Similar Operational Savings shall include but not be
limited to savings achieved by any individual or combination of reductions
including but not limited to furloughs, salary reductions, minimum staffing
reductions, overtime restrictions, limits on cash out of benefits, and elimination of
deferred compensation matching programs.
CITY OF LODI,
a municipal corporation
BLAIR KING, City Manager
ATTEST:
RANDI JOHL, J.D., City Clerk
APPROVED AS TO FORM:
D. STEPHEN SCHWABAUER
City Attorney
Lodi City Mid -Ma nt Assn.
ay
e
SIDE LETTER TO THE AFSCME COUNCIL 57 LOCAL 146 -AFL-CIO
MAINTENANCE & OPERATIONS UNIT MOU/ADDENDUM
June, 2009
A. The City of Lodi and the AFSCME Council 57 Local 146 -AFL-CIO
Maintenance & Operations Unit currently operate under a Memorandum of
Understanding effective July 1, 2008 through December 31, 2010 as
amended by addendum dated March of 2009.
B. This Side Letter is entered for the purpose of addressing the continued
significant and unanticipated budget crisis caused by the current economic
downturn.
For the above reasons the parties agree:
Article I — Salary, shall be amended as follows:
1.6 Add new Article 1.6 as follows: Bargaining unit members agree to
accept six furlough days from July 1, 2009 through June 30, 2010.
Furloughs shall be scheduled the tast Friday of every other month
starting in July, However, November's furlough will fall on the 25tH
This Side Letter shall not become effective until approved by the Lodi City
Council.
CITY OF LODI,
BLAIR KING, City Manager
ATTEST:
RANDI JOHL, J.D., City Clerk
AFSCME Council 57 Local 146 -
AFL -CIO Maintenance &
Operations Unit
F
l4lmv
s-05
By
Business Agent
By .041A
President
SIDE LETTER TO THE AFSCME COUNCIL 57 LOCAL 146 -AFL-CIO
GENERAL SERVICES UNIT MOUTADDEMDUM
June, 2009
A. The City of Lodi and the AFSCME Council 57 Local 146 -AFL-CIO General
Services Unit currently operate under a Memorandum of Understanding
effective July 1, 2008 through December 31, 2010 as amended by
Addendum dated February 2009.
B. This side letter is entered for the purpose of addressing the continued
significant and unanticipated budget crisis caused by the current economic
downturn.
For the above reasons the parties agree:
Article I — Salary, shall be amended as follows:
4.1 Add new sentence at end of Article I as follows: Bargaining unit
members agree to accept an unpaid furlough of one day per month to
be scheduled the last Friday of the month from July 1, 2009 through
June 30, 2010. However, November's furlough will fall on the 25th and
December's will fall on the 28th
Article IV - Deferred Compensation, shall be amended as follows:
4.2 At the end of section 4.1 add the following sentence: However,
bargaining unit members agree to forego all deferred compensation
matches they would otherwise be entitled to between the pay periods
in which July 1, 2009 through June 30, 2010 fall.
Layoffs —The City agrees that the 2009/10 budget will be adopted including the
Code Enforcement Officer, Purchasing Technician and Senior Admin Clerk
positions previously considered for lay-offs and will not consider other General
Services layoffs upon the adoption of the 2009/10 budget, except lay-offs arising
out of bumping rights from a non -General Services position. Howeverthe City
retains the right to impose layoffs at any time after the 2009/10 budget adoption.
This Side Letter shall not become effective until approved by the Lodi City
Council.
CITY OF LODI,
BLAIR KING, City Manager
ATTEST:
RANDI JOHL, J.D., City Clerk
i w~ `•a NEWt
AFSCME Council 57 Local 146 -
AFL -CIO General Services Unit
� fD�
Q..
Business Agent
By
President
SIDE LETTER TO THE LODI FIRE MID -MANAGEMENT
STATEMENT OF BENEFITS
February, 2009
A. The City of Lodi issued a Lodi Fire Mid Management Statement of Benefits
effective July 1, 2008 through December 31, 2010 as Amended by Addendum
dated February of 2009.
B. This Side Letter is issued for the purpose of addressing the significant and
unanticipated budget crisis caused by the current economic downturn.
For the above reasons the Statement of Benefits shall be amended as follows:
Article I — Salary, shall be amended to add the following:
1.4 Add the following at the end of paragraph 1.4 as follows: Lodi Fire Mid
Managers agree for the first pay period in which July 1, 2009 falls and ending on
the first pay period in which June 30, 2010 falls to give a total salary and benefit
contribution of 1.96 percent of regular salary and benefits, and waive vacation
cash out. These contributions are in addition to the contributions from the
February2009 Addendum. The contribution shall be made up of a combination
of furlough hours and/or waiving deferred compensation match, at each
member's election.
Furlough hours shall be scheduled based on availability and shall, for Battalion
Chiefs, be deducted from salary in equal installments across all fiscal year pay
periods. Division Chief hours shall be deducted in the week actually taken.
Unless scheduling issues prevent use of furlough hours, members shall use
furlough hours before sick, vacation, compensatory time off and holiday leave.
Moreover, furlough hours that have not been used by June 30, 2010, may be
carried forward and must be used or forfeited by December 31, 2010. In the
event a member's employment terminates during the fiscal year, furlough hours
shall be prorated by the percentage of the year worked. Furlough hours used in
excess of prorated hours shall be deducted from available leave balances, and if
other leave balances are inadequate, repaid to City.
This Side Lettershall not become effective until approved by the Lodi City Council.
CITY OF LODI,
a municipal corporation
BLAIR KING, City Manager
ATTEST:
RANDI JOHL, J.D., City Clerk
LODI FIRE MID -MANAGEMENT.
By
Representative
APPROVED AS TO FORM:
D. STEPHEN SCHWABAUER
City Attorney
SIDE LETTER TO THE LODI PROFESSIONAL FIREFIGHTERS
MOU
June, 2009
A. The City of Lodi and the Lodi Professional Firefighters currently operate
under a Memorandum of Understanding effective July 1, 2007 through
December 31, 2010 as Amended by Addendum dated February of 2009.
B. This Side Letter is issued for the purpose of addressing the significant and
unanticipated budget crisis caused by the current economic downturn.
For the above reasons the Parties agree as follows:
Bargaining Unit Members agree to waive Vacation Cash Out, and
Deferred Compensation Match beginning in the first pay period in which
July 1, 2009 falls and ending in the first pay period in which June 30, 2010
falls. These contributions shall not apply to members who, by June 10,
2009 have announced their retirement effective on or before August 31,
2009.
This Side Letter shall not become effective until approved by the Lodi City
Council. Moreover, in the event that revised budget projections permit reduction
of these contributions during the 2009/10 budget year, City agrees to revisit and
roll them back as soon as feasible.
CITY OF LODI,
a municipal corporation
BLAIR KING, City Manager
ATTEST:
RANDI JOHL, J.D., City Clerk
APPROVED AS TO FORM:
D. STEPHEN SCHWABAUER
City Attorney
Lodi Professional Firefighters
M
Representative