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Home My WebLink About25O - WAGESREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: NOVEMBER 5, 2007 TITLE: AGREEMENT WITH THE SERVICE EMPLOYEES INTERNATIONAL UNION (SEIU) CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 1St Reading ^ Ordinance on 2"d Reading ^ Implementing Resolution ^ Set Public Hearing For_ CONTINUED TO FILE NUMBER Direct the City Attorney to prepare and authorize the City Manager and Clerk of the Council to execute an agreement with the Service Employees International Union, Local 721 regarding wages and other terms and conditions of employment. DISCUSSION The City and the Service Employees International Union (SEIU), representing Part Time Civil Service employees (30 hours) recently completed contract negotiations resulting in a two-year contract extension (attached as Exhibit "A") of the existing Letter of Agreement. This extension period covers July 1, 2008 through June 30, 2010. The provisions of the extended agreement are as follows: 1. Salary Increase: July 1, 2008 = 40 January 1, 2009 = 2.50 July 1, 2009 = 40 January 1, 2010 = 2.50 2. 2.7o at 55 Ca1PERS "Miscellaneous Employee" Retirement Formula: A. City agrees to amend Ca1PERS contract for 2.7$ at 55 retirement formula, effective January 1, 2009. B. City agrees to contribute the employee's contribution under the "Employer Paid Member Contribution" (EPMC) provision of the CalPERS retirement system, effective July 1, 2009. C. Employees agree to contribute toward enhanced retirement formula a total of 6.30, effective July 1, 2009. 250-1 Agreement with SEIU November 5, 2007 Page 2 of 2 FISCAL IMPACT Funds for contract extension are accounts: Salary account (Object code 6171). There is no new cost available in the affected departmental Code 6111) and Benefits account (Object for FY 2007-08. APPROVED AS TO FUNDS AND ACCOUNTS: Enrique . ,'Alv Executiv e'' Dir c r Personnel Ser 'ces Department Francisco Gutierrez Executive Director Finance & Management Services Agency 250-2 TWO-YEAR CONTRACT EXTENSION TO THE LETTER OF AGREEMENT Exhibit A FOR PART-TIME CIVIL SERVICE EMPLOYEES BETWEEN THE CITY OF SANTA ANA AND SERVICE EMPLOYEES INTERNATIONAL UNION, LOCAL 721 FOR FISCAL YEARS 2008-09 AND 2009-10 The City of Santa Ana (CITY) and the Service Employees International Union (SEIU) have met and agreed to amend the Letter of Agreement (LOA) between the CITY and SEIU for Fiscal Years 2004-05 through 2007-08 by extending this LOA for two additional years. The existing LOA provisions will remain unchanged unless addressed by this addendum. The new expiration date of the LOA will be June 30, 2010, and the LOA will be amended as follows: AMENDED ARTICLE IV (new language in bold) 4.2 Salary Schedule. (insert language from existing 4.3F as the last paragraph of 4.2) The assignment of classes to salary rate ranges is listed in Exhibit B, which is included in the Full Time SEIU MOU and made a part hereof as though set forth herein. 4.3 Salaries. F. Effective July 1, 2008, the base salary of employees covered by this Agreement shall be increased by eight (8) salary rate ranges {approximately 49'0). G. Effective January 1, 2009, the base salary of employees covered by this Agreement shall be increased by five (5) salary rate ranges (approximately 2.59'0). H. Effective July 1, 2009, the base salary of employees covered by this Agreement shall be increased by eight (8) salary rate ranges (approximately 49'0). I. Effective January 1, 2010, the base salary of employees covered by this Agreement shall be increased by five (5) salary rate ranges (approximately 2.59:0). 250-3 Exhibit A J. Effective July 1, 2009, Miscellaneous employees covered by this Agreement shall contribute 6.39'o toward the 2.790 at 55 retirement benefit. To the extent permitted by CaIPERS and Internal Revenue Service regulations, this 6.39'o contribution shall be implemented through payroll deduction on n pre-tax basis. AMENDED ARTICLE XII (new language in bold) 12.1 General. The terms of the existing contract between the City and the California Public Employees' Retirement System (CaIPERS) governing City retirement benefits for affected employees are incorporated by reference herein. Each miscellaneous Part Time Civil Service employee covered by this Agreement shall be a member of the CaIPERS system and shall continue to make payment to CaIPERS in an amount necessary to pay one hundred percent (100%) of his or her individual retirement contribution which is equal to seven percent (7%) of his/her PERSable salary. Such payments shall be credited to the individual employee's CaIPERS account. - - - - -• - - • - - -~ -, -_ _ . , ..._ _ .. ~ _~....,.. ,., r,,,~ 7 7G L°/ ...F +L..~ ~.+ ..~v r• ~ ~ fin c r~IDC D y~l'fF C ')°/ + FF +' .i L t•i + ~ ~ ,T ~ MI V «1~~7.~ ~r~I~~w.~~` -h•~-~tl-h~ ° ° ° ° ° ~ ~ , ' 12.2 Deferred Retirement. Effective July 1, 2009, the City shall begin to make payment to CaIPERS on behalf of each affected employee, in nn amount necessary to pay one hundred percent (1009'0) of his or her individual retirement contribution which currently is equal to seven percent (79'0) and will increase to eight percent (89'0), effective January 1, 2009. Such payments shall be credited to the individual employee's CaIPERS account. Such payments are not increases in base salary and no salary rate range applicable to any of the employees covered by this Agreement shall be changed or deemed to have been changed by reason thereof. As a result, the City will not treat these payments as ordinary income and, thus, will not withhold Federal or State income tax from said payments. The City has received an opinion or ruling from the Internal Revenue Service confirming that these payments are deferred compensation, and not ordinary income. In the 250-4 event that the City receives a ruling on or after July 1 2009 from the Internal Revenue Service thot such payments are ordinary income of~~iL~'it A employees instead of deferred compensation, the City's obligation to make such payments shall discontinue, and in place thereof, the base salary of each said employee shall forthwith be increased by ~-6P sixteen (16) salary rate ranges (approximately 89'0), after January 1, 2009. For the purpose of reporting an employee's compensation to CaIPERS, the City shall include these payments ns if they were a part of the employee's base salary. 12.3 2.790 at 55 Service Retirement Benefit for Miscellaneous Members. Effective January 1, 2009, the City agrees to amend its retirement contract with Ca1PER5 to provide Miscellaneous employees covered by this Agreement with the 2.79:0 at 55 Service Retirement benefit. Pursuant to CaIPERS regulations, this new formula will apply to employees that are in active status on the dote this amendment takes effect. This new formula will apply to each year of eligible service credited with the City of Santa Ana. Pmrment of New 2.79:a at 55 Service Retirement Benefit. Effective July 1, 2009, Miscellaneous employees covered by this Agreement agree to pay 6.39:0 of CaIPERS reportable compensation toward the cost of the 2.79'o at 55 enhanced retirement formula as set forth in Article IV, Section 4.3J. Pre-Taxable Benefit. To the extent permitted by CaIPERS and Internal Revenue Service regulations, the City shall make the above employee deduction as a pre-tax contribution. AMENDED ARTICLE XXVIII 28.1 The term of this Agreement shall be from July 1, 20048 through June 30, 208810. 250-5 ARTICLE XXIX 29.0 RATIFICATION & EXECUTION Exhibit A 29.1 The City and the Union have reached an understanding as to certain recommendations to be made to the City Council for the City of Santa Ana and have agreed that the parties hereto will jointly urge said Council to adopt a new wage and salary resolution which will provide for the changes contained in said joint recommendations. The City and the Union acknowledge that this Agreement shall not be in full force and effect until ratified by the membership of the Union and adopted by the City Council of the City of Santa Ana. Subject to the foregoing, this Letter of Agreement is hereby executed by the authorized representatives of the City and the Union and entered into this ~3*~ 6th day of die August, 20067. Dated: CITY OF SANTA ANA, a Municipal Corporation of the State of California By: Mayor Dated• By: Dated: ATTEST: Clerk of the Council APPROVED AS TO FORM: Assistant City Attorney By: 250-6 City Manager Assistant Director of Personnel Services Exhibit A This Agreement has been ratified by the membership of the Santa Ana City Employees, Chapter 1939/Service Employees International Union Local ~ 721. Dated: SEIU: David Biondollilo, President Sandi Gottlieb Lisa Ruvalcava 250-7 250-8