SR-071508-1B~®
tYof City Council Report
Santa bionics
City Council Meeting: July 15, 2008
Agenda Item:
To: Mayor and City Council
From: Karen Bancroft, Director of Human Resources
Subject: Resolution Authorizing the City Manager to Execute a Memorandum of
Understanding with the United Transportation Union, Local 1785
Recommended Action
This report requests that Council adopt the attached Resolution authorizing the City
Manager to execute a Memorandum of Understanding (MOU) with the United
Transportation Union, Local 1785.
Executive Summary
The current Memorandum of Understanding (MOU) with the United Transportation
Union, Local 1785, (UTU) expired on June 30, 2008. Per the terms. and conditions of
that MOU, negotiations with UTU for a successor MOU commenced and resulted in a
new agreement that has been ratified by the membership of UTU. The total cost of this
MOU is $914,100 for fiscal year 2008-2009 and is provided for in the adopted budget.
Discussion
This agreement is a three-year contract from July 1, 2008 through June 30, 2011. The
agreement provides the following .salary adjustments to keep salaries in line with
salaries in the applicable labor market:
• $23.00 per hour to $23.90 per hour for FY2008-2009 (3.9%)
• $23.90 per hour to $24.75 per hour for FY2009-2010 (3.56%)
• $24.75 per hour to $25.65 per hour for FY2010-2011 (3.64%)
In order to give UTU parity with the City's other non-sworn bargaining units, the
agreement as of FY2008-2009 provides for:
city-paid long term disability insurance coverage
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• a higher vacation accrual rate for employees with five (5) years of service up to
ten (10) years of service (1.25 days/month)
• a sick leave buy back program whereby employees can cash-out unused
accrued sick leave at the end of each fiscal year.
In addition to some other minor economic and non-economic changes, the agreement
also deletes the S. P.A.B. bonus as of FY2008-2009, a savings of $34,800 per year, and
provides a bonus of $4.00 per day for the completion of required CHP logs.
Financial Impacts & Budget Actions
The total cost of the new contract terms for FY2008-2009 is $914,100. This amount
includes the. salary adjustment ($545,000), -city-paid long term disability insurance
coverage ($182,800), increased vacation accrual rate ($45,300), a sick leave cash-out
program (estimated at $146,600) and a bonus for completion of required CHP logs
($29,200) as well as the savings that will be realized by the elimination of the S.P.A. B.
bonus (34,800). Provision was made in the FY2008-2009 budget to accommodate the
results of negotiations with bargaining units and no appropriation is necessary.
Prepared by:
Karen Bancroft, Director of Human Resources
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Approved: Forwarded to Council:
Reference Resolution No.
10324 (CCS).