City of Oxnard Proposed Agreements with SEIU, OPOA, IAFF and Police Management

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Cornelia Morris
5 years ago
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by Greg Nyhoff, City Manager, Maria Hurtado, Assistant

1 City of Oxnard Proposed Agreements with SEIU, OPOA, IAFF and Police Management September 13, 2016 Presented by Greg Nyhoff, City Manager, Maria Hurtado, Assistant City Manager and Burke Dunphy, City Labor Representative 1

2 Agenda Background Successor Contracts SEIU OPOA IAFF Police Management Recommended Action Conclusion 2

Background Late 2014: City began organizational assessment, reviewing City s corporate support, accountability and value systems March 2015: Phase I report for the organizational assessment was

3 Background Late 2014: City began organizational assessment, reviewing City s corporate support, accountability and value systems March 2015: Phase I report for the organizational assessment was presented to City Council, highlighting a number of concerns, many related to expenses within the General Fund June 2015: City Council passed its FY budget, reflecting a structural deficit of $12M, resulting in expense and service reductions, along with the use of onetime resources to pay on-going expenses June 2016: City Council passed the FY budget, reflecting a stabilization in City finances as a result of an improving local economy and an increase in property tax revenue Allowed City to keep moving forward with its fiscal health goals without further service reductions 3

4 Successor Contracts SEIU Term: Contract Extended through June 30, 2019 Pension Contribution: Classic employees will pay the full 7% employee contribution by the end of the contract Salary: Wage increases of 9% over contract term Miscellaneous Terms: Reduction in health benefits to limited benefit employees, consistent with prior Council authority Elimination of language regarding closure of City offices on day after Thanksgiving Addition of one floating holiday, to be used within the calendar year in which it is granted and which shall have no cash value for employees 4

5 Successor Contracts OPOA Term: Contract expires August 31, 2018 Pension Contribution: Classic employees will pay 5% of the employee share of pension costs by the end of the contract Salary: Wage increases of 8.5% over contract term Miscellaneous Terms: Increase in City contribution to cafeteria plan by $60 per month effective January 2017 Memorialize practices related to: Advancing through salary ranges Callback pay on holidays Enforcement of annual leave caps on a pay period by pay period basis Add language related to employee resignation and rights upon reinstatement Provide employees an option to redeem annual leave into deferred compensation accounts in addition to cash Clarify process related to effectiveness of education incentive pay for qualifying employees Modify language related to uniform allowances consistent with CalPERS requirements Modify discipline procedures to involve Human Resources Director Parties agree to reopen contract to negotiate a grievance process 5

6 Successor Contracts IAFF Term: Contract expires August 31, 2018 Pension Contribution: Classic employees will pay 5% of the employee share of pension costs by the end of the contract Salary: Wage increases of 8.5% over contract term Miscellaneous Terms: Increase in City contribution to cafeteria plan by $60 per month effective January 2017 Memorialize process for advancing through salary ranges Clarify eligibility requirements for administrative pay differential Update kin care leave provisions to comply with applicable law Eliminate historical language related to annual leave Provide employees an option to redeem annual leave into deferred compensation accounts in addition to cash Eliminate limit on new employee usage of annual leave Eliminate antiquated language regarding vacation scheduling Modify grievance and discipline procedures to involve Human Resources Director and provide reopener to discuss modifications to grievance process Clarify procedure related to notification of dues increases Modify language related to uniform allowances consistent with CalPERS requirements Eliminate references to Employee Thrift Plan participation Add language related to employee resignation and rights upon reinstatement 6

7 Successor Contracts Police Management Term: Contract expires August 31, 2018 Pension Contribution: Classic employees will pay 5% of the employee share of pension costs by the end of the contract Salary: Wage increases of 8.5% over contract term Miscellaneous Terms: Increase in City contribution to cafeteria plan by $60 per month effective January 2017 Update contract to reflect modifications to reserve and annual leave provisions agreed upon as part of February 2015 contract extension Eliminate language regarding Employee Thrift Plan participation and drug and alcohol testing program Add half day holidays on Christmas Eve and New Year s Eve consistent with OPOA, which includes employees supervised by OPSM-Police members Add language regarding temporary upgrade pay consistent with provisions applicable to unrepresented employees Memorialize current practice of providing straight time overtime to commanders who work shifts as Watch Commander beyond their regular schedule 7

8 Successor Contracts Fiscal Impact Salary increases are higher than was originally forecast But, forecast also assumed the City s pickup of the employee share of CalPERS costs would continue Some pension savings is realized in the Public Safety Retirement Fund, as opposed to the General Fund Long term cumulative savings in General Fund to equal $6.5M by FY

9 Recommended Action Adopt by resolution the successor contracts reached with the following bargaining units: SEIU OPOA IAFF Police Management Adopt a resolution to approve paying and reporting the value of the City s payment of a portion of employee pension costs, as modified by the successor contracts, consistent with CalPERS regulations 9

10 Conclusion These agreements reflect a continued sharing of the burden of the City s fiscal and operational challenges between the City and its employees They are fair and reasonable compromises reflecting modest wage increases, the cost of which are partially offset by employee pension contributions Employees have not received unit-wide salary increases since January 2014 and, under these agreements, will not see a net increase until FY

11 Conclusion The terms of these agreements are consistent with the City s goal of fiscal stabilization while providing reasonable benefit increases in an effort to retain quality staff Adoption of these agreements by the City Council will allow both the City and its employees to continue progress towards a more stable and bright fiscal future for all 11

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CITY COUNCIL AGENDA REPORT

L.3 CITY COUNCIL AGENDA REPORT TYPE OF ITEM: Report AGENDA ITEM NO.: 3 DATE: March 19, 2019 TO: FROM: SUBJECT: City Council Steve Naveau Director of Human Resources Successor Memoranda of Understanding