FROM:
David Donery, Town Manager & Jeff Zuba, Finance & Administrative Services Director
SUBJECT:
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Discussion and Consideration of Memorandum of Understanding Proposal with the Service Employees International Union, Local 1021 (SEIU) for the period of July 1, 2022, to June 30, 2025.
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RECOMMENDATION
recommendation
That Council conduct a public hearing on the Proposed Memorandum of Understanding (MOU) between the Town of San Anselmo and SEIU Local 1021 for the period of July 1, 2022, to June 30, 2025.
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BACKGROUND
SEIU Local 1021 represents approximately 17 employees in various departments across the Town. The SEIU Local 1021 MOU expires on June 30, 2022. Over the past few months, representatives of the Town and Local SEIU 1021 have met in good-faith and worked diligently to negotiate the terms of a successor MOU. The Town and SEIU 1021 reached a tentative agreement on May 26, 2022, for a three-year successor MOU. The SEIU bargaining team recommended the tentative agreement to its membership and it was ratified on June 16, 2022.
DISCUSSION
The following are the highlights that reflect the terms and significant economic items included in the tentative agreement between the Town and SEIU Local 1021. In addition to the economic items, some operations items were also addressed in the successor MOU.
1. Term of the Agreement: July 1, 2022, through June 30, 2025
2. Salary Increase: Job classes represented in this bargaining group will receive a 4.5% increase to the salary schedule effective July 1, 2022, a 4.5% increase effective July 1, 2023, and a 3% increase effective July 1, 2024.
3. One-Time Payment: Employees represented by the bargaining group will receive a one-time, non-pensionable payment of $2,500 on August 1, 2022, or pay period following Council ratification of a new MOU, whichever occurs later. This payment will not contribute to Classic or PEPRA employees’ pensions and is just to normal payroll taxes. This payment is one-time payment only and is not scheduled to recur in the future.
4. Cost of Health Insurance Premium: For employees hired on or after July 1, 2014, the Town will increase its maximum contribution from $1,850 to $1,950 on July 1, 2022, $2,000 on July 1, 2023, and $2,050 on July 1, 2024, toward the cost of the premium for the family Kaiser health plan, less the payment for the P.E.R.S. medical plan. At no time shall the Town contribution for the Kaiser family health plan exceed the premium costs in effect per the then-current P.E.R.S. - Kaiser contract year.
5. Addition of Juneteenth as a holiday.
6. Non-Economic Items: in addition to the items discussed above, agreement was reached on other proposals, which reflect minor changes to existing provisions with little or no significant cost. The attached draft MOU includes all the changes agreed to by the parties. These negotiated MOU sections include:
• Recognition and Cooperation (Section 1): Revision of language in section 1 and clarification of language in letter G and H.
• Salaries and Equity Adjustments (Sections 2b and 2d): Revised the language benchmark positions. Modified the language for frequency of step increase.
• Working Hours and Overtime (Section 4c): Revised compensatory time leave bank.
FISCAL IMPACT
The current total annual salary and benefit cost to the Town for the 23.80 full-time equivalent (FTE) positions of SEIU is $2,543,815. The additional ongoing cost of the successor MOU beyond the FY2021-2022 budget is:
FY2022-23 (4.5%) FY2023-24 (4.5%) FY2024-25 (3%)
Wages:
Base Salary $77,172 $88,303 $62,406
Other costs:
Pension* $7,477 $8,538 $6,006
Taxes (Medicare, SS) $5,904 $6,229 $4,591
Total Cost $90,553 $103,070 $73,003
*This pension cost results only from the negotiated wage increase and does not include the annual contribution of lump sum unfunded pension liability. With the assumption of the terms and conditions of the pension benefit plan remains unchanged.
The cost is $90,553 for fiscal year 2022-2023, $103,070 for fiscal year 2023-2024, and $73,003 for fiscal year 2024-2025. In addition, there is a cost of $57,500 in one-time payments, which includes Social Security and Medicare taxes. These one-time payments will not contribute to Classic and PEPRA employee pension costs.
CONCLUSION
The action recommended for the Council is to conduct the public hearing on the Proposed Memorandum of Understanding (MOU) between the Town of San Anselmo and SEIU Local 1021. Pending the outcome of the public hearing, the next step will be to incorporate any changes identified by Council and bring back a resolution seeking approval of the Memorandum of Understanding between the Town of San Anselmo and SEIU Local 1021 for the period of July 1, 2022, through June 30, 2025.