HomeMy WebLinkAboutAgenda Report - July 20, 2016 I-02CITY OF LODI
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AGENDA ITEM
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AGENDA TITLE: Adopt Resolution Adjusting the Salary Range for the Positions of Electric Line
Apprentice I/II and Approving a Side -Letter Agreement with Local 1245
International Brotherhood of Electrical Workers Regarding a Recovery of Training
Investment Agreement
MEETING DATE: July 20, 2016
SUBMITTED BY: Human Resources Manager
RECOMMENDED ACTION: Adopt resolution adjusting the salary range for the positions of
Electric Line Apprentice I/II and approving a Side -Letter Agreement
with Local 1245 International Brotherhood of Electrical Workers
regarding a Recovery of Training Investment Agreement.
BACKGROUND INFORMATION: The Lodi Electric Utility Department (LEU) has experienced
challenges recruiting qualified applicants for the journey level
Electric Lineman/Linewoman position over the last several years.
Recruiting and hiring candidates at the Apprentice level provides LEU with another recruiting option for
an entry level or promotional opportunity.
The LEU has authorization to fill two Electric Line Apprentice positions in its Fiscal Year 2016/17 budget.
The Memorandum of Understanding (MOU) between the City and Local 1245 International Brotherhood
of Electrical Workers (IBEW), January 1, 2015 through December 31, 2017, contains a provision for the
training of Electric Line Apprentices through a separate agreement between the City and California —
Nevada Joint Apprenticeship Training Committee (JATC). The apprentice program will take
approximately 42 months to complete, which consists of on-the-job learning, Saturday classes and a
week-long concentrated training each year. Upon successful completion of the apprentice program and
passage of a journeyman examination administered by IBEW, the Apprentice will be promoted to
Journeyman Lineman.
Over the course of the Apprentice Training program, the City will invest approximately $12,250 in training
fees. The training fee is in addition to salary, benefits, reasonable travel costs, and other fees associated
with the Apprentices' employment. Currently, there is no recourse for the City to recuperate any of the
training fees invested in the Apprentice in the event he/she decides to voluntarily separate employment
after completion of the training program.
Representatives from the City and IBEW have met and conferred in good faith and wish to engage in a
Side -Letter Agreement that would allow the City to recoup the training costs, on a pro -rated basis, if the
employee voluntarily separates from the City within 42 months following completion of the training
program. The proposed cost recovery time period is the same as the apprentice program. For each full
month that the employee works, after completion of the training program, the amount of the
reimbursement to the City is reduced by 1/42.
As defined in Section 4.2 of the IBEW MOU, the Electric Line Apprentice I/II salary is comprised of seven
steps which allow Apprentices to advance their salary, at regular intervals, as they develop their
APPROVED:
knowledge, skills, and abilities. There are five salary steps at the Apprentice I level and two salary steps
at the Apprentice II level. It is industry standard for the Apprentice's salary, upon completion of the
apprentice program, to be approximately 80 percent to 90 percent of journey level Electric
Lineman/Linewoman salary. During contract negotiations with IBEW, in 2014, the salary for the journey
level Electric Lineman/Linewoman was amended; however, the salary for the Apprentice I/11 was not
adjusted accordingly. Staff recommends the Electric Line Apprentice I/II salary be adjusted by
approximately 15 percent so that it will be approximately 85 percent of the journey level Electric
Lineman/Linewoman salary.
After discussions with and concurrence from IBEW, staff recommends the salary range for Electric Line
Apprentice I be $67,236.64 to $81,726.56 and the salary range for the Electric Line Apprentice II be
$89,899.22 to $94,394.18.
Staff recommends Council approve the proposed salary ranges for Electric Line Apprentice I/II and
approve the Side -Letter Agreement with IBEW establishing a Recovery of Training Investment
Agreement.
FISCAL IMPACT:
FUNDING AVAILABLE:
The estimated annual increase in the salary schedule is approximately
$12,000 at top step of the salary schedule.
Funding has been allocated in the FY 2016/17 budget.
diadek,t,
Adele Post, Human Resources Manager
A-
-A/-----
Jordan
-----Jordan Ayers, Deputy City Mana 'er/Internal Services Director
Side Letter Agreement Amending the Memorandums of Understanding
Between the City of Lodi and Local 1245 International Brotherhood of Electrical Workers
January 1, 2015 — December 31, 2017
This Side Letter Agreement is entered into between the City of Lodi, a municipal corporation
("City"), and Local 1245 International Brotherhood of Electrical Workers ("IBEW"). City and
IBEW have met and conferred in good faith and mutually agree to the following:
RECITALS
WHEREAS, the Memorandum of Understanding between IBEW and the City has a term
of January 1, 2015 through December 31, 2017 (MOU), and
WHEREAS, the IBEW MOU provides for an Electric Line Apprentice program that is
detailed in Section 4.3 of the MOU; and
WHEREAS, the City desires to limit the risk of investing substantial sums in the
Employee's training and potentially losing the value of that training if the Employee terminates
employment after receiving such training; and
WHEREAS, the City and IBEW mutually agree to amend Section 4.3 of the IBEW MOU
to include a Recovery of Training Investment Agreement that sets forth the Employee's
obligation to reimburse the City for the City's investment in the Employee's training in the event
the Employee voluntarily terminates from the City prior to the successful completion of forty-
two (42) months of service following the completion of the Electric Line Apprentice program as
follows:
Article IV - SALARY
4.3 Lodi has entered into a separate agreement with the California — Nevada Joint
Apprenticeship Training Committee ("JATC") to provide training for Electric
Line Apprentices.
The Electric Line Apprentice program is intended to be a program of seven steps.
An Electric Line Apprentice I or II will be eligible for consideration for a merit
increase upon completion of 13 pay periods in a step, provided available
workload provides appropriate experience and provided further that the Electric
Line Apprentice I or II is making normal progress in training and testing. The
Electric Line Apprentice I or II will advance from step to step, when the Electric
Utility Director or his/her designee determines that the Electric Line Apprentice I
or II has achieved the qualifications necessary for such advancement and
approvals are received pursuant to Lodi policies and procedures.
An Electric Line Apprentice I or II will be paid when working or training on-the-
job in the field.
An Electric Line Apprentice I or II will be entitled to straight time pay for up to
40 hours per week and for reasonable expenses in accordance with Lodi policies
and procedures, subject to approval, while training one week per year at JATC's
facility. An Electric Line Apprentice I or II will not be entitled to pay or expenses
for weekend training at JATC facilities.
Apprenticeship classroom training by Lodi personnel or at Lodi facilities will be
on paid time if during normal work -hours or unpaid if outside normal work -hours.
Study will normally be outside of work hours, and without pay, but the Electric
Utility Director or his/her designee may permit limited apprenticeship study
during paid work -hours, workload permitting, typically during inclement weather.
Electric Line Apprentices I or II are on probation at all times while they are
classified as Electric Line Apprentices I or II.
Employees entering into the Electric Line Apprentice program will be
obligated to reimburse the City for the training cost in the event the
Employee voluntarily terminates from the City prior to the successful
completion of forty-two (42) months of service following completion of the
Training Program. Employees will enter into a Recovery of Training
Investment Agreement (Attachment A) and will be obligated to reimburse
the City for one -hundred percent (100%) of the total training cost, subject to
abatement when specified service requirements are met, as set forth in the
Proration Table (Attachment B). The training reimbursement provides that
repayment of any obligation incurred under the Agreement shall be made in
twelve (12) equal monthly installments, due on the first of each month,
immediately following Employee's voluntary termination.
All other provisions of the MOU remain in full force and effect.
CITY OF LODI, IBEW LOCAL 1245
a municipal corporation
STEPHEN SCHWABAUER Date
CHARLEY SOUDERS Date
City Manager Business Representative
ADELE POST Date
Human Resources Manager
ATTEST:
JENNIFER M. FERRAIOLO Date
City Clerk
APPROVED AS TO FORM:
JOHN P. FUKASAWA
Deputy City Attorney
Date
ATTACHMENT A
RECOVERY OF TRAINING INVESTMENT AGREEMENT
This Agreement is entered into between ("EMPLOYEE") and the CITY OF LODI,
a municipal corporation (the "CITY"), as authorized by the Memorandum of Understanding
between the CITY and International Brotherhood of Electrical Workers ("IBEW") Local 1245.
RECITALS
The purpose of this Agreement is to limit the CITY's risk of investing substantial sums in
the EMPLOYEE's training and potentially losing the value of that training if the EMPLOYEE
terminates employment after receiving such training.
On or about CITY extended to EMPLOYEE a conditional offer of employment in
the position of Electric Line Apprentice, subject to EMPLOYEE's agreement to complete the
IBEW Electric Line Apprentice training program ("Training Program").
The Training Program requires Electrical Line Apprentices to complete 7,000 hours of
on-the-job training and classwork. The classwork consists of no less than ten (10) Saturday
classes and one (1) week-long training per academic school year. The cost of the Training
Program is established by the California — Nevada Joint Apprenticeship Training Committee
"JATC" and is subject to increase from time to time. The training cost, as of June 1, 2016, is
$12,250.
This agreement sets forth the EMPLOYEE's obligation to reimburse the CITY for the
CITY's investment in the EMPLOYEE's training in the event EMPLOYEE voluntarily terminates
from the CITY prior to the completion of forty-two (42) months of service following successful
completion of the Training Program, by providing that the CITY may require reimbursement
from EMPLOYEE of one hundred percent (100%) of the total training cost for Electric Line
Apprentice position, subject to abatement when specified service requirements are met, as set
forth in the attached proration table.
THEREFORE, the Parties agree to the terms set forth below:
By signing this agreement, the EMPLOYEE understands that s/he is bound by and
agrees to the following terms:
1. (hereafter "EMPLOYEE") agrees that in training EMPLOYEE for the position of
Electric Line Apprentice, the CITY OF LODI (hereafter " CITY") incurs a training cost of $ .
EMPLOYEE acknowledges that the training cost set forth herein is a reasonable estimate of
CITY's training costs.
2. EMPLOYEE acknowledges that his/her participation in the Training Program is entirely
voluntary and that such training can be obtained from other sources.
3. EMPLOYEE acknowledges that the amounts recoverable under this agreement do not
include EMPLOYEE wage or benefit costs.
4. EMPLOYEE agrees that in the event he/she voluntarily terminates or abandons his/her
employment with the CITY prior to the completion of forty-two (42) months of service following
the successful completion of his/her apprenticeship, he/she will repay the CITY for the cost of
training noted above, prorated to reflect the months of service the EMPLOYEE has completed
following the successful completion of their training. EMPLOYEE agrees that for the purpose of
Page 1 of 2
this Agreement, "time of service" shall begin on the date following the successful completion of
the Training Program.
5. EMPLOYEE agrees that the aggregate amount of repayment due will be determined
based upon the attached proration table.
6. EMPLOYEE agrees that repayment of any obligation incurred under this Agreement
shall be made in twelve (12) equal monthly installments, due on the first of each month,
immediately following EMPLOYEE's termination.
7. If EMPLOYEE fails to make timely payments for the amounts due, EMPLOYEE will be
deemed in default on this Agreement, the entire aggregate amount owed will become
immediately due, and the CITY may initiate legal proceedings to collect said amounts.
EMPLOYEE will be responsible for all reasonable collection costs and attorney fees incurred by
the CITY in undertaking such proceedings. The CITY may elect to forbear taking such action to
allow EMPLOYEE the opportunity to become current on the debt. Such forbearance will not
alter the EMPLOYEE's default status or adversely affecting the CITY's right to later initiate
proceedings for recovery pursuant to this Agreement.
8. This Agreement shall be governed by the laws of the State of California. Jurisdiction of
litigation arising from this Agreement shall be venued with the San Joaquin County Superior
Court. If any part of this Agreement is found to conflict with applicable laws, such part shall be
inoperative, null, and void insofar as it is in conflict with said laws, but the remainder of this
Agreement shall be in force and effect.
9. This Agreement represents the entire understanding of CITY and EMPLOYEE as to
those matters contained herein. No prior oral or written understanding shall be of any force or
effect with respect to those matters covered hereunder. This Agreement may not be modified or
altered except in writing and signed by CITY and EMPLOYEE.
10. This Agreement is not an offer or guarantee of employment with the CITY.
11. IN WITNESS WHEREOF, CITY and EMPLOYEE have executed this Agreement as of
the date first listed below.
Dated:
Dated:
EMPLOYEE
Name:
Title
CITY OF LODI, a municipal corporation
ELIZABETH A. KIRKLEY
Electric Utility Director
Original filed in EMPLOYEE's Personnel File
Page 2 of 2
Name:
Hire Date:
Apprenticeship completed:
Recovery of Training Investment Agreement
Proration Table
Beginning Date of Recovery
Period
Months
worked
Monthly
reduction
Training Fee
$ 12,250.00
1
$ 291.67
$ 11,958.33
2
$ 291.67
$ 11,666.66
3
$ 291.67
$ 11,374.99
4
$ 291.67
$ 11,083.32
5
$ 291.67
$ 10,791.65
6
$ 291.67
$ 10,499.98
7
$ 291.67
$ 10,208.31
8
$ 291.67
$ 9,916.64
9
$ 291.67
$ 9,624.97
10
$ 291.67
$ 9,333.30
11
$ 291.67
$ 9,041.63
12
$ 291.67
$ 8,749.96
13
$ 291.67
$ 8,458.29
14
$ 291.67
$ 8,166.62
15
$ 291.67
$ 7,874.95
16
$ 291.67
$ 7,583.28
17
$ 291.67
$ 7,291.61
18
$ 291.67
$ 6,999.94
19
$ 291.67
$ 6,708.27
20
$ 291.67
$ 6,416.60
21
$ 291.67
$ _ 6,124.93
22
$ 291.67
$ 5,833.26
23
$ 291.67
$ 5,541.59
24
$ 291.67
$ 5,249.92
25
$ 291.67
$ 4,958.25
26
$ 291.67
$ 4,666.58
27
$ 291.67
$ 4,374.91
28
$ 291.67
$ 4,083.24
29
$ 291.67$
3,791.57
30
$ 291.67._
$ 3,499.90
31
$ 291.67
$ 3,208.23
32
$ 291.67
$ 2,916.56
33
$ 291.67
$ 2,624.89
34
$ 291.67
$ 2,333.22
35
$ 291.67
$ 2,041.55
36
$ 291.67
$ 1,749.88
37
$ 291.67
$ 1,458.21
38
$ 291.67
$ 1,166.54
39
$ 291.67
$ 874.87
40
$ 291.67
$ 583.20
41
$ 291.67
$ 291.53
42
$ 291.53
$ 0.00
Note: Training fee is subject to change based on JATC rate change
ATTACHMENT B
Signature of Apprentice
RESOLUTION NO. 2016-146
A RESOLUTION OF THE LODI CITY COUNCIL
APPROVING A SIDE -LETTER AGREEMENT WITH LOCAL 1245
INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS TO
IMPLEMENT A RECOVERY OF TRAINING INVESTMENT AGREEMENT
AND APPROVING ADJUSTMENTS TO THE SALARY RANGES FOR
THE POSITIONS OF ELECTRIC LINE APPRENTICE I AND II
WHEREAS, the Memorandum of Understanding (MOU) between the City and Local
1245 International Brotherhood of Electrical Workers (IBEW) has a term of January 1, 2015
through December 31, 2017; and
WHEREAS, the IBEW MOU provides for an Electric Line Apprentice program; and
WHEREAS, the City desires to limit the risk of investing substantial sums in the
Employee's training and potentially losing the value of that training if the Employee terminates
employment after receiving such training; and
WHEREAS, the City and IBEW mutually agree to amend Section 4.3 of the IBEW MOU
to include a Recovery of Training Investment Agreement that sets forth the Employee's
obligation to reimburse the City for the City's investment in the Employee's training in the event
the Employee voluntarily terminates from the City prior to successful completion of forty-two
(42) months of service following completion of the Electric Line Apprentice program.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby approve
a Side -Letter Agreement with Local 1245 International Brotherhood of Electrical Workers to
implement a Recovery of Training Investment Agreement for Electric Line Apprentices; and
BE IT FURTHER RESOLVED that the Lodi City Council does hereby approve the
adjustments to the salary ranges for the positions of Electric Line Apprentice I and 11 and shall
be as follows:
Step 1
$67,236.64
ELECTRIC LINE APPRENTICE I
Step 2 Step 3 Step 4
$70,598.48 $74,128.40 $77,834.82
ELECTRIC LINE APPRENTICE II
Step 6 Step 7
$89,899.22 $94,394.18
Dated: July 20, 2016
Step 5
$81,726.56
I hereby certify that Resolution No. 2016-146 was passed and adopted by the Lodi City
Council in a regular meeting held July 20, 2016 by the following vote:
AYES: COUNCIL MEMBERS — Johnson, Kuehne, Mounce, and Mayor Chandler
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — Nakanishi
ABSTAIN: COUNCIL MEMBERS — None
\I\ ?rotAhuareo
NIFER FERRAIOLO
City Clerk
2016-146