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AGENDA ITEM

MEETING DATE: TITLE: October 25, 2011 Memorandum of Understanding between the City of Glendora and the Glendora Municipal Employees Association for the two year term of July 1, 2011 through June 30, 2013. Bob Blackwood, Interim Human Resources Director Waive full reading, read by title only and adopt a Resolution entitled, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GLENDORA, CALIFORNIA, APPROVING A 2011 2013 MEMORANDUM OF UNDERSTANDING WITH THE GLENDORA MUNICIPAL EMPLOYEES ASSOCIATION.

PRESENTED BY: RECOMMENDATION:

BACKGROUND: On August 24, 2010, the City Council approved Terms and Conditions of Employment which resolved an ongoing impasse with the Glendora Municipal Employees Association (GMEA). That document provided for the employment terms and conditions with the GMEA for the one year term ending June 30, 2011. In compliance with the Myers-Milias-Brown Act (MMBA), representatives from the City and the GMEA commenced negotiations toward a successor MOU in June 2011. The outcome of those negotiations is the attached two-year (July 1, 2011 June 30, 2013) MOU. A summary of the negotiated changes is stated below. These negotiations were based upon direction provided by the City Council in closed session during the negotiations process. Both sides negotiated with the recognition of the City of Glendoras current financial difficulties. The concessions agreed to by the GMEA membership demonstrates their recognition of the ongoing economic conditions faced not only by the city of Glendora but nationwide. GMEA informed the City on October 10, 2011 that their membership had voted to accept the proposed terms negotiated by the parties. This action tonight seeks City Council to approval of those terms and conditions negotiated. DISCUSSION: The following summarizes the concessions negotiated with the GMA and as ratified by their membership. 1. a. TERM: 2-years (July 1, 2011 through June 30, 2013).

2.

FURLOUGH:

a. b.

64 hour per year non-paid furlough which represents a 3.02% reduction in compensation. Savings: All Funds: $193,977. General Fund: $81,632.

3.

LOWER TIER RETIREMENT:

a. Amend the Citys contract with CalPERS to provide the 2% @ 60 retirement plan with final 3 years compensation for all new hire employees. The Citys current retirement plan is the 2.5% @ 55 with final highest year. Pursuant to CalPERS law, any reduction in the retirement formula can only apply to new hire employees as the current employees have a vested right to the existing formula. b. Savings: This change in retirement plan will ultimately result (after 10 to 12 years) in an estimated 3% reduction in the employer rate charged by CalPERS. Actual savings in terms of dollars will be dependent on the number of new hires and speed at which new hires replace existing employees through attrition.

4.

REOPENER:

a. Contained in the MOU is a provision that provides for the contract to be re-opened should the City experience a 5% or greater reduction in sales, use or property tax revenue compared to the same six month period in the previous year; AND, b. A reopener for the parties to develop non-mandated drug testing policies and, as regards State or Federal mandated programs, to negotiate the impact of implementing those provisions.

5.

ELIMINATION OF THE SICK LEAVE REIMBURSEMENT PROGRAM.

a. Existing MOU language allowed an employee to annually convert accumulated sick leave to cash (Note: this provision was suspended for the 2010-2011 fiscal year).

6.

REDUCTION IN TUITION REIMBURSEMENT:

a. Limits the City paid reimbursement for employees pursuing educational degrees to cost of tuition and up to $200.00 per semester for required class materials and books only. Existing language provided for full reimbursement of tuition, books, costs and additional fees.

7.

REDUCTION IN VACATION ACCRUAL:

a. The rate of vacation accrual for new hire employees has been reduced from an initial accrual of 96 hours (12 days) per year at hire and 160 hours (20 days) per year after 15 years city service to 80 hours (10 days) per year at hire to 144 hours (18 days) after 15 years city service. Current employees will have their vacation accrual rate adjusted by an additional 8 hours per year at each accrual level to bring them to the same accrual rate as other (GMA) miscellaneous

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