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CITY OF COLTON AGENDA REPORT FOR COUNCIL MEETING OF SEPTEMBER 16, 2008 TO: HONORABLE MAYOR AND CITY COUNCIL /ilFROM: ANTHONY ARROYO, HUMAN RESOURCES DIRECTOjt'R ITEM #8 SUBJECT: APPROVE AND ADOPT THE PROPOSED RESOLUTION AMENDING RESOLUTION R-137-05 FOR THE INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS (IBEW) REPRESENTING THE WATERNVASTEWATER UNIT WHICH ADOPTS EXHIBIT A, THE CONSOLIDATED MEMORANDUM OF UNDERSTANDING. DATE: August 26, 2008 BACKGROUND: The three year Memorandum of Understanding (MOU) with the Water/Wastewater Unit expired on June 30, 2007. Representatives of the City and the International Brotherhood of Electrical Workers, which represents the Water/Wastewater Unit, have negotiated a successor MOU over the course of four meetings. DISCUSSION/ANALYSIS: Representatives of the City and IBEW have reached an agreement with a term to June 30, 2011. The successor MOU is attached as Exhibit A. Some of the key provisions in the MOU provide the following: • A 3% increase to all members effective October 1, 2008 for the 08/09 FY; or 3% effective January 1, 2009 should the State take money from Colton to offset the State's budget. • Salary survey to be implemented on July 1, 2010. • Boot allowance of $200. • Increase from $50,000 to $75,000 for life insurance. • Cash out of up to $5,000 per fiscal year of sick leave. • Assess the feasibility of the City picking up the 4% PERS employee portion in July 1, 2009, in lieu of a salary increase; this item will be discussed with Council in 2009. Members of the IBEW negotiating team understand the City's financial outlook given the overall weakened economy. The proposals presented by IBEW and those presented by the City do not have much of a financial impact to the City's budget. A strikeout version of the MOU is available for review in Human Resources. FINANCIAL IMPACT: The cost of implementing the salary and benefit increases for the Electric unit will be approximately $40,000 including salary and benefits; in addition the boot allowance for the 19 represented employees will cost $3,800. The current Electric Utility Department budget can absorb these costs. ENVIRONMENTAL IMPACT: The item carries no environmental impact.