(6)AR 091608 MOU/IBEW - Laserfiche WebLink

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CITY OF COLTON AGENDA REPORT FOR COUNCIL MEETING OF SEPTEMBER 16, 2008 ITEM #7 TO: HONORABLE MAYOR AND CITY COUNCIL FROM: ANTHONY ARROYO, HUMAN RESOURCES DIRECTOR SUBJECT: APPROVE AND ADOPT THE PROPOSED RESOLUTION AMENDING RESOLUTION R-07-06 FOR THE INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS (IBEW) REPRESENTING THE ELECTRIC UNIT WHICH ADOPTS EXHIBIT A, THE CONSOLIDATED MEMORANDUM OF UNDERSTANDING. DATE: August 26, 2008 BACKGROUND: The three year Memorandum of Understanding (MOU) with the Electric Unit expired on June 30, 2008. Representatives of the City and the International Brotherhood of Electrical Workers, which represents the Electric 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. • 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 that much of a financial impact to the City's budget. Furthermore, the sick leave cash -out proposal presented by the City will help reduce the City's unfunded liability. 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 $117,920; in addition the boot allowance for the 25 represented employees will cost $5,000. The current Electric Utility Department budget can absorb these costs. ENVIRONMENTAL IMPACT: The item carries no environmental impact.