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08. Terms and Conditions of Employment EXHIBIT S BEGIN HERE JULY 20 CITY COUNCIL MEETING Council Packet Revisions AS DISCUSSED AT OUR MEETING THIS WEEK, ATTACHED ARE THE PAGES THAT ARE REVISED FOR THE EMPLOYEE MOU'S: Packet Page 8 -10 CEA MOU — P.7 — Section 7: State Current CalPERS — Contribution Packet Page 8 -21 CEA MOU — P.18 —City Attorney Signature — "Approved as to form" added Packet Page 8 -28 OE3 MOU — P. 2 — Section 2: Union Recognition — Reorder classifications Packet Page 8 -35 OE3 MOU — P.9 — Section 10.1 -C: Compensation for Services- typo correction "Differentials" Packet Page 8 -39 OE3 MOU — P. 13 — Section 10.8: Special Skills Compensation — correct to show American Water Works Association Packet Page 8 -40 OE3 MOU — P. 14 — Section 11: State Current CalPERS - Contribution Packet Page 8 -59 OE3 MOU — P. 33 — City Attorney Signature — "Approved as to form" added 5.6 Compensatory Time Off (CTO) At the employee's discretion, compensatory time off may be granted for overtime worked at the rate of time and one -half for each hour worked in lieu of compensation in cash. Employees, who have previously earned compensatory time, shall be allowed to schedule compensatory time off at dates of the employee's selection provided that prior supervisory approval has been obtained. Compensatefy time may be te 80 houfs. CTO time may be accrued for up to 80 hours per calendar year. Any CTO earned exceeding 80 hours will be paid ineasl� at the rate of time and one -half. An employee may carry over the unused balance into the next calendar year. Any unused carryover balance will be automatically paid out at the end of the calendar year. An employee may exercise his/her option two times each calendar year to convert any /or all accumulated compensatory time to cash. 5.7 Leave Accruals An employee shall not accrue leave credits (vacation, sick leave) during a pay period if off without pay for more than 40 hours during se.id pay period. SECTION 6: FACILITIES CLOSURE Git , west will be elesed fi - , 2007 thi-tough Janttafy 1, 2008-;; Deeember 2 4, 2008 dwou�g h J n�ZO0-9; and Deeember 2 4, 2009 t4ough T.,,,,,.,,.,, 1 , 2 940. City facilities* will be closed from December 23, 2010 through December 31, 2010 and December 23, 2011 through January 2, 2012. Employees may use vacation, CTO, floating holiday, administrative leave, or leave without pay for work time missed during the closure week. With Supervisor and Department Head prior approval, an employee may opt to work during the facility closure. *The Sports Center and Blackberry Farm Golf Course may remain open on facilities closure days staffed by part-time employees SECTION 7: P.E.R.S. CONTRIBUTION The City , gees to pay the o,,.. ee + tie th ry 1'� P b coizti u ii r &tE - t 6 c irrirorxx=a- rcc vnic 1i,,,pl R -eme t Systo,-., (GaIPERS) , + ,. exeee 7 e f a , 1 eab salary i i n tiz'l the c2ty - inTl E!ment5- the -C aIPERS 2.77` 6-- 6tt,4 -5 - R. t vxix} t ttc'3. The City will amend �i ., +, ae t ,itl. Q1 DERS and will „l o o„+ 2 '7� G ' +l, ti t Ffo ti d f „„,,..tt . i Q5 � �t' icrr miz JCrixxcccccrcrzcccrcz- acccc -vr i eeeiiibef 2 2, 2007 if G C , n t fa .t , o „,i t re o its (i ing a see r - et ball„+ o , and empleyees pay 29% of salary (ongoing f^,. the o ,1 .,o nl, ,o f't a 1DT DC ,o +;.o„ o„+ At +l,0 1„e..;,,,,;., o f the ,, per i .4: 1, 2. 7% r; CG b.o.., mes e f- e 6 P The City has contracted with Ca1PERS for a 2.7% @55 retirement formula. Tthe City agrees to pay the employee's contribution rate to the California Public Employees Retirement System (Ca1PERS) not to exceed 6.0% of applicable salary and each employee agrees to pay 2.0% of applicable salary. The City agrees to pay the employer's contribution rate to the Public Employees Retirement System. SECTION 8: INSURANCE COVERAGE 8.1 Health - Medical Insurance City agrees to pay an amount as set forth hereinfor medical coverage for employee and dependents through the Meyers- Geddes State Employees Medical and Hospital Care Act. For each participating employee, the City shall contribute $714.00 toward premium cost per month during the term of this agreement. Required contribution amounts exceeding the premium contribution of the City are the responsibility of the employee. In instances where the premium for the insurance plan selected is less than the city's maximum premium contribution, the difference will be added to the employee's bi- weekly compensation. The City will no longer pay medical insurance cash back (excess of the monthly premium less the cost of the medical coverage) for new employees hired after July 1, 2005. Effective July 1, 2010, employees that retire or resign from service with the City of Cupertino and who are not eligible for retiree medical benefits can continue on the Cupertino medical and dental plans provided that they pay the premiums in full. The City reserves the right of selection and administration as to deferred compensation plan(s). If during the term of this agreement, modifications are made to the Federal tax code which would result in any of the medical insurance provided be subject to taxation, the contract will be re- opened for the purposes of adjusting the salary and medical benefits so long as it does not result in an increase or decrease in the total compensation. If during the term of this agreement, modifications are made to the Federal tax code which would result in any of the medical insurance provided to become subject to taxation, the contract will be re- opened to discuss the impact of such modifications. 8.2 Dental Insurance City agrees to pay $77.26 per month for employees and their dependents. 8.3 Life Insurance City shall provide life insurance and accidental death and dismemberment coverage for each employee in the amount of two and one half times annual salary to a maximum benefit of $250,000. Employees may be eligible to purchase additional life insurance subject to the provisions of the insurance policy. 7 SECTION 30: TERM This agreement shall be effective commencing at 12:01 a.m., July 1, 2010 and ending at 11:59 p.m. June 30, 2012. CITY EMPLOYEES' ASSOCIATION CITY OF CUPERTINO Rachelle Sander David W. Knapp Kimberly Frey Carol Atwood Gary Kornahrens Laura Miyakawa Beth Ebben David Woo Approved as to form: Richard Winter Date: Carol Korade City Attorney Date: 18 MEMORANDUM OF UNDERSTANDING Between CITY OF CUPERTINO Arid OPERATING ENGINEERS LOCAL UNION NO. 3, AFL -CIO Recital: Management and the Membership represented by Operating Engineers Local Union 3 (OE3) wish to formalize a relationship which will survive differences in interests, endure changes in leadership, and extend beyond legal and contractual requirements based on the following principals: In our relationship, we understand and accept that a high degree of trust is essential. Therefore, we will focus on developing and maintaining trust. We will promote and expand communications between the parties and recognize active listening as a major component of communications. We will avoid sending ambiguous or mixed messages. We will always consult before deciding on matters which may have a major impact on the other party. Agreement This is a two (2) year agreement, entered into the 1st day of July, 2010 between the effleia' pr-ese tativ°s of the City of Cupertino, hereinafter referred to as "City ", and t he effleial re °sentative °f the Operating Engineers Local Union No. 3, AFL -CIO, hereinafter referred to as "Union ", sets forth the agreement resulting from the several discussions held between the two parties concerning the wages, hours, and other terms and conditions of employment for the employees of the Public Works Unit of the City, for which the Union is the recognized sole and exclusive representative. This agreement represents the full entire and integrated agreement between the City and the Union and supersedes all prior representations and agreements, whether written or oral. General Provisions SECTION 1: DEFINITIONS 1.1 City — the City of Cupertino, a municipal corporation 1.2 Union — the Operating Engineers Local Urdon No. 3 1.3 Employee — All employees whose positions are contained in the Public Works Unit recognized pursuant to Section 2.52.470 of the Cupertino Municipal Code. 1 SECTION 2: UNION RECOGNITION Pursuant to Section 2.52.480 of the City Code and applicable State law, the Union is recognized by the City as the exclusive representative of the employees within the Public Works Unit consisting of the following classifications as well as any new classifications which may be appropriate for this unit as determined by the Municipal Employee Relations Officer: • Equipment Mechanic . • Maintenance Worker I • Maintenance Worker II • Maintenance Worker III • Street Lighting Worker 2.1 The City shall promptly notify the Union of its decision to implement any and all new classifications pertaining to work of a nature performed by employees in the bargaining unit. SECTION 3: NO- DISCRIMINATION In accordance with the City of Cupertino Equal Opportunity in Employment Plan, all employees shall have equal opportunity in employment without regard to race, color, creed, religion, political affiliation, national origin, sex, handieaptlis ability, sexual orientation, e-r--age or for Union activity: SECTION 4: REPRESENTATION RIGHTS 4.1 The City and Union shall not interfere with, intimidate, restrain, coerce or discriminate against employees of the City because of their exercise of representation right under Section 3502 of the Government Code. 4.2 Business Representatives of the Union may have access to any employee or employees presenting a grievance and employees have the right to have the Union Business Representative represent him or her at all stages of disciplinary action. 4.3 The Union may select two (2) employees from the Service Center as Union Steward. 4.4 In addition to his/her regularly assigned work, the Union Steward shall be permitted reasonable time during working hours to notify the Business Representative through the most rapid means appropriate and available of any alleged violations of this Memorandum. Employees are authorized to contact their Union Steward during working hours to report an alleged grievance or violation of this Memorandum. One Union steward shall be relieved from assigned work duties by their immediate supervisor to attend meetings arranged with Management and to investigate and process grievances initiated by other employees. It is understood and agreed that 2 CTO may be accrued for up to 80 hours per calendar year. Any CTO earned exceeding 80 hours will be paid at the rate of time and one -half. An employee may carry over the unused balance into the next calendar year. Any unused carryover balance will be automatically paid out at the end of the calendar year. An employee may exercise his/her option twice each calendar year to convert any /or all accumulated compensatory time to cash. 9.7 Leave Accruals An employee shall not accrue vacation or sick leave credits during a pay period if off without pay for more than 40 hours during said pay period. SECTION 10: COMPENSATION FOR SERVICES 10.1 Salary Range a. Approximate monthly salary ranges as listed on Attachment B will apply for each classification effective at the beginning of the fay period in which July 1 occurs. As reflected in Attachment B, effective at the beginning of the pay period in which July 1, 2010 occurs, the City agrees to pay a salary increase equal to .5% and effective July 1, 2011, a salary increase equal to 1.0 %. b. Maintenance Worker I (MWI) hires after July 1, 2010 will be under the MWI /2010 salary schedule as noted in Attachment B. b. Th G ty agre to r a 101 di ff a! to emnleyees assigned to lead re for th furl Othe r.l y �grod t^ th rk f b w ill LVL 1.1I{.J w ^ v V V vv VL 1 fur - lou g h lAs1 p pay differential. C. Elmwood Differentials as listed on Attachment A will apply for each classification working in the Elmwood Program. 10.2 Bilingual Pay Differential a. A n eliapLV'v passes the required language Pf ercenc- y - ess e -te receie -°!e bilingual pay d f - e r - et t:.,l n4 43r- the -work time -doming w ien- empTeyeeuses b ilingual sk ills. f3 payfevii- r-eperti the 7.51% bili ngual y diffe fential will be LVVVl UeA wi 15 minute minimum. An employee who speaks another language other than English while performing their assigned duties involving contact with members of the community and who passes the required language proficiency test(s), will be eligible to receive a 7.5% bilingual pay differential only for the work time during which the employee uses bilingual skills. For A payroll reporting purposes, the 7.5% bilingual pay differential will be recorded with a 15 minute minimum. In order to be eligible for Bilingual Pay, the Department Head must certify that the employee has a need to use his /her bilingual skills in communicating with members of the community. 10.3 Acting Pay /Out -of -Class 10.3.1 Acting Pay Temporary assignment, approved in advance by the Department Head, to a classification in a higher pay grade not defined by this agreement, shall be compensated at the Step 1 rate of the higher classification, or at a rate five percent greater than that of the regular position, but not more than the maximum step of the higher class, whichever is greater, for the number of hours so assigned. In order to qualify for Acting Pay, an employee shall work a minimum of 8 hours per day in the temporary position. No employee shall work in a higher classification without written notice. A copy of the authorization shall be submitted with the timesheet for the affected pay period. 10.3.2 Out -of -Class Temporary assignments to a position assigned to a classification in a higher pay grade shall be compensated at the Step 1 rate of the higher classification, or at a rate five percent greater than that of the regular position, whichever is greater, for the numher of hours so assigned hours worked. The temporary assignment shall be authorized in writing by the Supervisor or Superintendent of Public Works. No employee shall work in a higher classification without written notice. A copy of the authorization shall be submitted with the timesheet for the affected pay period. No increase in the wage rates shall apply in instances of Maintenance Worker I positions temporarily assigned to positions of Maintenance Worker II classification. 10.4 Standby Compensation Employees who are required to be available during their off -shift hours for possible recall for emergency service shall be compensated at the following rate per 128 hours so assigned during the term of this agreement. July 1, 2010 - $200.00 Minimum manning and skill qualifications for standby assignment shall be determined by the City. Assignment of such standby duty shall be rotated on an equal basis among all qualified employees who reside in an area that provides a response time of 30 minutes or less. 10.5 Callback Pay 10 Welding American 5,0% 7.5/ Welding Society Certified; Horizontal Fillet, Carbon Steel Plate, Verticle - and Overhead Welds Spraying Qualified 50%7.5% Applicator Certificate categories B, C or F Class B License CA Class B s4%4.5/ Drivers License Back Flow Back 1-().Q%- 7.5% Prevention Assembly Tester Certificate as issued by the American Water Works Association Eligible employees receive compensation incentive pay for only actual hours worked. To be eligible for special skill pay, experience and certificates must be current, with written documentation on file with the Human Resources Department. Special skill compensation shall be determined and approved in advance by the Supervisor in writing. 1. Eff-eetive ittly 1, 2000 an emple, ee p assessi g a valid QAG will be eligible fer VTV pr pay fef eaeh hour- worked when ass ig ned �icgcnrirrg An . i t w �. � , Y , lo ) }.m,�7p � . , , , .,..., �,.::5 valid vvrcr�... u..v of .. v.uiib, qualified ii iiiiadracc. , p stain steel, ttRd a4—.,, 4i % 7 liability" an&er "public safety" tasks a . Dl.,..."-.,,, o F A b T er- h t o rs 13 d. W ejad inst -- - - -- e. „a xxT.,ter- tank f Oth we lding tasks ass a 3. Assi An em eli r e ( 51% ) t ,• 1 ., ass 4 A f'+ ert;f; A 3xTxxT A C B 1 fl! „ Pre A bl e m p l oy ee 1J ^ 1 e �DZCCIlL1V 11V L1V1CZTJJLZllp1 - � T es t er- , ! — f— k .1. nE l te to the e t�,'s aekf e w 1 r ,Ai devises will be granted eu4 of elass pay at 1 09%. „ a Mi � a � 1 10.9 Flexible Staffing — Maintenance Worker I /II An employee shall be eligible to advance from Maintenance Worker I to Maintenance Worker II after one year of satisfactory service at the maximum salary step of Maintenance Worker I and with the recommendation of the Department Head. SECTION 11: PUBLIC EMPLOYEES RETIREMENT CONTRIBUTION The Gity a to pay the erapleyee's eentributien rate to the California Public Employees Retirement System (GaIPERS) not 4e e)ieeed 0 of applieable salar-y until 44ie City implements the GaIPERS 0/ , A411 imple ent 2.79% 4�� v4t,h an estimated date of Deeembet- 22, 2007 if GaIPERS appreva are m et , and — empley - pay z-1A o f sa (.,,, fe the emp lleyee "� sh'afe of C-AlIPIERS r-etir-emefit. At the 0 begifmin J 55 beeemes ° e, The City has contracted with Ca1PERS for a 2.7% @55 retirement formula. Tthe 44 J City agrees to pay the employee's contribution rate to the California Public Employees `C Retirement System (CalPERS) not to exceed 6.0% of applicable salary and each employee agrees to pay 2.0% of applicable salary. The City agrees to pay the employer's contribution rate to the Public Employees Retirement System. SECTION 12: HEALTH AND WELFARE BENEFITS The City agrees to make available a plan of comprehensive health and welfare benefits for eligible employees, as well as those provided by the Operating Engineers Health and Welfare Trust Fund for Northern California. Any such benefits program must have the continued approval of the Board of Administration, Public Employees Retirement System. For each participating employee, the City shall contribute toward premium cost the following amount per month during the term of this agreement. July 1, 2010 through June 30, 2012 14 Sideletter Agreement: ATTACHMENT C Due to timing, the parties agree to meet and discuss the following items subsequent to the ratification of this agreement, with the intent to retroactively include the agreed upon items as an integral part of the agreement no later than August 31, 2010: 1. Updated job descriptions 2. Timeline for obtaining certificates Approval of Side letter: OPERATING ENGINEERS LOCAL CITY OF CUPERTINO UNION No. 3 Bill Pope David W. Knapp Brian Gathers Carol Atwood Tony Proni Roger Lee James Steed Laura Miyakawa Date: Approved as to form: Carol A. Korade City Attorney Date: 33