HomeMy WebLinkAbout2003-06-16 City Council (7)City Manager’s Report
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TO:HONORABLE CITY COUNCIL
FROM:CITY MANAGER DEPARTMENT: HUMAN RESOURCES
DATE:JUNE 16, 2003 CMR: 327:03
SUBJECT:APPROVAL OF RESOLUTIONS AMENDING SE1-U MEMORANDUM
OF AGREEMENT AND COMPENSATION PLAN TO ADD SIDE
LETTER AGREEMENT ON SEIU FURLOUGH
RECOMMENDATION
Staff recommends that Council approve the attached side letter agreement between the CitY
and Local 715A, Service Employees International Union (SEIU) wherein SEIU has agreed to
implement a voluntary furlough in fiscal year 2003-04.
BACKGROUND
As a result of budget reductions due to the recession and revenue shortfalls, the City has been
meeting with the employee groups for several months developing budget solutions. The City
proposed a 3-day mandatory furlough to all employee groups. In a collaborative effort, SEIU
representatives offered a voluntary unpaid furlough after receiving input from their members.
After offering its members the opportunity to pledge time off, SEIU received commitments
totaling at least $446,000 in salary savings to the City. Following negotiations, City staff and
members of SEIU have agreed on a program, outlined in detail in the attached side letter
agreement, under which participating SEIU employees will receive furlough time off in
exchange for a salary reduction.
DISCUSSION
The voluntary furlough provides salary savings to the City through reduction of employee
salaries, in exchange for which members of SEIU receive time off. Under the agreement
negotiated by City staff and SEIU, each participating SEIU member agrees to take off up to
90 hours from work, and the City will reduce each employee’s salary accordingly. Each
employee has the option of implementing a salary reduction in one of two ways:(1) through a
salary reduction imposed in equal increments throughout the fiscal year via adjustment of the
employee’s pay rate; or (2) as a traditional furlough salary reduction, under which the
employee will not be paid for the time the employee does not work. Employees who choose
CMR: 327:03 Pagelof 3
Employees who choose to participate in the voluntary furlough would complete a salary
reduction authorization form by June 30, 2003 and any furlough hours must be used by June
30, 2004. SEIU has agreed to work with the City and management staff to ensure that
furlough hours will be used in accordance with ordinary department vacation scheduling and
usage procedures. Any employee who fails to use pledged furlough days will be scheduled
for mandatory time off. Under the attached agreement, based on SEIU’s agreement to
accomplish at least $446,000 in salary savings, the City Manager would agree not to
recommend layoffs in the proposed budget for 2003-04 approved in June 2003.
The City and SEIU understand that the furlough agreement will be incorporated in any new
negotiated agreement applicable to FY 2003-2004.
RESOURCE IMPACT
The City will have a one-time savings of at least $446,000.
POLICY IMPLICATIONS
This request does not represent any change to existing City policy.
ENVIRONMENTAL REVIEW
This is not a project under the California Environmental Quality Act (CEQA).
ATTACHMENTS
1.Resolution amending Merit Rules to incorporate side letter to SEIU
Memorandum of Understanding.
2. Resolution amending SEIU Compensation Plan
CMR: 327:03 Page2of 3
PREPARED BY: Leslie Loomis, Director of Human Resources
DEPARTMENT HEAD:
LESLIE LOOMIS
Director of Human Resources
CITY MANAGER APPROVAL:
City Manager
CIvIR: 327:03 Page3of 3
RESOLUTION NO.
RESOLUTION OF THE COUNCIL OF T~E CITY OF PALO
ALTO AMENDING SECTION 1401 OF THE MERIT SYSTEM
RULES AND REGULATIONS REGARDING THE MEMORANDUM
OF AGREEMENT BETWEEN THE CITY OF PALO ALTO AND
LOCAL 715A, SEIU,AFL-CIO, CLC, TO ADD FURLOUGH
PROVISIONS
The Council o{ the City of Palo Alto does RESOLVE as
fol!ows:
SECTION !. Section 1401 of the Merit System Rules and
Regulations is hereby amended as fol!ows:
1401. Memorandum of agreement incorporated by
reference. That certain memorandum o~ agreement
by and between the City of Pa!o Alto and Local
7!5A, SEIU, AFL-CIO, CLC, consisting of a
Preamble and Ar<ic!es < through XXV!i and
Appendices A ~hrough E, for a term commencing
Hay_ ~, 2001, and =~ring~..~: April 30, 2004, as
amended to add the furlough provisions for
fisca!_vear 2003-2004 set forth ~’~ Exhibit "~"~.,
is hereby incormorated into these Merit System
Rules and Regulations by reference as <hough
fully set ~ ....h herein id randum sha~].... :~ .......Sa memo
apply to a!~ = l ,~- ~in ~{~cat~ons_ ~mp_oy~e~class .......
represented by said Local 715A, SEiU, AFL-CIO,
CLC, excemt~ where ..~me~ficaiiy~.provided
otherwise herein.
in the case of ~ :1 ct~on:_i with this cnam:er an@
any other_orovisions .of the Mer~-
and ~e@uiations, ~h{~ chapter-. ~ ......w:=: prevail over
such other provisions as
reoresented~ bv~ ~aid Local 7~OA,~- SEiU,
CLC.
SECTION 2. The Memorandum of Agreement ("MOA")
incorporated into the Merit System Rules and Regulations ("Merit
Rules") by Section i is a revision of the MOA incorporated into
the Merit Rules by Resolution No. 8084, and adds an Appendix H
to that MOA as set forth in Exhibit "A", at:ached hereto and
incorporated herein by reference.
030612 sdl 8120353
SECTION 3. The changes provided for in this resolution
shal! not affect any right established or accrued, or any
offense or act committed, or any penaity of forfeiture incurred,
or any prosecution, suit, or proceeding pending or any judgment
rendered prior to the effective date of this resolution.
SECTION 4. The Council finds that this is no< a project
under the California Environmenta! Quality Act and, therefore,
no environmenta! impact assessment is necessary.
±N_,RODU~.D AND PASSED:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
ATTEST :
,~i~v ~-" ~ C±=rk
APPROVED AS TO FORM:
Mayor
APPROVED:
Senior Assistant ~",v:,~y Attorney Ci:v Manager
Director of A&m.inisrra:ive
~v_Ces
Director of Human Resources
030612 sdl 8120353
RESOLUTION NO.
RESOLUTION OF THE COUNCIL OF THE CITY OF PALO
ALTO AMENDING THE COMPENSATION PLAN FOR
CLASSIFIED PERSONNEL (SEIU) ADOPTED BY
RESOLUTION NO. 8056, AND ~ENDED BY RESOLUTION
NOS. 8059, 8141, 8180, 8242 and 8251, TO ADD
FURLOUGH PROVISIONS
.A±uo does RESOLVE asThe CounciI of the City of Pa!o
follows:
SECTION !. Pursuant to the provisions of Section 12 of
Article ..... TYi of the Charter of the City of Palo .~.±’~" ~co, the
Compensation Plan for Classified Personnel, adopted by
Resolution No. 8056, and amended by Resolution Nos. 8059, 8141,
8180, 8242 and 8251, is hereby amended by adding the furlough
~rovisions for f~sca! year 2003-2004 set forth -~n Exhibit "’~"
attached hereto and incorporated herein by reference.
SECTION 2. The Director of A6ministranive Services is
authorized to ’ _7~ _ ~mm~=~m~n~ the amended compensation ~!an as
forth in Sec:ion !.
SECTION 3. The Council finds rhar this is not a projec:
under the California Environmental Quality Act and, therefore,
no environmental impact assessment is necessary.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
A~<TPH~iONS:
ATTEST:
Ciny Clerk
APPROVED AS TO FORM:
Mayor
APPROVED:
~ ’ ~ty A::ornevSenior ASSt. ~_ _City Manager
Director of Adminiszrarive
Services
030612 cl Sl.~O~,. 4
D_:~o: of Human Resources
Exhibit A
Tentative Side-Letter Agreement
Between SEIU Local 715 and the City of Palo Alto
Pending City Council Approva!
Cost Saving Measures, FY 2003/04
The Union and the City have agreed to facilitate a
voluntary furlough wherein SEIU Local 715 represented
employees receive furlough time off during the 2003-04
fiscal year in exchange for a salary reduction, in order to
save the City a one time amount of $446,000 and to mitigate
the possibility of cuts in City services.
o The Union and the City agree that employees who choose to
participate will sign and submit a furlough salary
reduction authorization form on or before June 20, 2003.
Employees must indicate on the authorization form that they
agree to a salary reduction in exchange for a commensurate
number (up to 90) of furlough hours off. SEIU and the City
agree that these voluntary furlough options will only be
available and are expressly contingent upon the City’s
receipt of valid, signed salary reduction authorizations
that provide at least $446,000 in salary savings to the
City.
o Participating employees may choose between the following
options for im_m!ementation of the furlough salary
reduction: (i) a salary reduction imposed in equal
increments throughout the fiscal year via adjustment of the
employee’s pay rate; and (2) a traditional furlough salary
reduction, under which the employee wi!l not be paid for
the time the, employee does not work.
o Under the first option (pay rate reduction), the City will
calculate the applicable salary reduction corresponding to
the number of hours donated by each participating employee
for the fiscal year. The City will document employee salary
reductions by Personnel Action Form and in a FY’03 - 04 pay
rate table in a side letter appendix to the applicable MOA.
for the FY 03-04 period only. The emp!oyee will be credited
with the corresponding number of furlough hours, which will,
be available for use under ordinary department vacation
scheduling and usage procedures.
o Any SEIU employee who participates in the FY ’03-’04 pay
rate reduction program and who receives overtime pay during
that year will receive a one time payment to compensate for
the reduction in overtime pay due to participation in the
program. The parties agree that the overtime adjustment is
earned only during (i) the employee’s last week of City
employment, or (2) the last week of FY ’03-"04, whichever
comes first. This one-time payment wil! be calculated based
on the difference between the overtime pay the employee
received during the fisca! year (up .to and including the
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ii.
last pay period of FY ’03-’04) which was calculated based
on the employee’s furlough-reduced pay rate(s), and the
overtime pay the same employee would have received for the
same hours had the employee’s regular pay rate(s) not been
so reduced (minus all legally required deductions. To avoid
excessive administrative costs, in the event the one time
payment (according to the above calculation) would total
less than $5.00, a check will not be issued. Employees who
separate prior to the end of the fiscal year shall~ also
receive any applicable overtime adjustment.
Under the second option (traditional furlough), an employee
will take off the agreed number of fur!ough hours/days
during the fisca! year, as scheduled between the employee
and the employee’s supervisor, and will not be paid for the
hours/days not worked.
SEIU and the City agree that an employee who fails to
schedule pledged furlough days wil! be directed to take
time off or will be3 scheduled for mandatory time off.
SEIU acknowledges that all agreed furlough hours must be
used on or before June 30, 2004, and agrees to work with
the City and its management staff to ensure all of such
hours are used on or before that date, and in accordance
with ordinary department vacation scheduling and usage
procedures. The City (Human Resources Department) wil!
keep a tally of FY 03-04 fur!ough hours for each
participating SEIU employee.
Based on SEIU’s agreement to accomplish $446,000 in salary
savings via the furlough plan set forth herein, the City
Manager agrees not to recommend layoffs in the proposed
budget for 2003-04 submitted in June 2003.
In the event SEIU layoffs are incorporated into the adopted
budget in June 2003, SEIU reserves the right to withdraw
from this side letter agreement.
The Union agrees to take the 3-day mandatory furlough to a
vote of its membership in the event the voluntary furlough
is not implemented.
For the Union For the City
Date:Date:
06/11/2003 HD
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