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HomeMy WebLinkAbout07 MOU WITH THE TUSTIN MUNICIPAL EMPLOYEES ASSOCIATIONDocuSign Envelope ID: CCFC334F-F338-4FEF-833C-5D9D0749A4EA F . AGENDA REPORT MEETING DATE: JULY 20, 2021 TO FROM SUBJECT SUMMARY MATTHEW S. WEST, CITY MANAGER Agenda Item o� Reviewed: yrt��l City Manager Finance Director �a DERICK YASUDA, DIRECTOR OF HUMAN RESOURCES MEMORANDUM OF UNDERSTANDING WITH THE TUSTIN MUNICIPAL EMPLOYEES ASSOCIATION Adoption of the attached Resolution and Memorandum of Understanding (MOU) will authorize terms and conditions of employment for employees in classifications represented by the Tustin Municipal Employees Association (TMEA) in accordance with City Council direction. RECOMMENDATION It is recommended that the City Council adopt Resolution No. 21-57 amending the City's Classification and Compensation Plans and approving a Memorandum of Understanding with TMEA for the period of July 1, 2021 through June 30, 2024. FISCAL IMPACT The provisions of this agreement will result in an additional cost of approximately $242,085 in Fiscal Year 2021-22 and a total of $1,431,331 over the three year term of agreement. Upon expiration of the agreement, the additional ongoing cost to the City is estimated to be $700,615. BACKGROUND AND DISCUSSION TMEA is the City's largest employee association, representing approximately 101 employees in a variety of professional, technical, field services, water services, and administrative support classifications. In accordance with the Meyers-Milias-Brown Act (MMBA), the City is required to meet and confer in good faith with represented employee organizations on wages, hours and other terms and conditions of employment. The City previously negotiated a three-year labor agreement with TMEA, which expired on June 30, 2021. The City began preparations for labor negotiations on a successor contract in early 2021 and the City's labor negotiators began formally meeting and conferring with TMEA in May 2021. On July 15, 2021, the City and TMEA reached a DocuSign Envelope ID: CCFC334F-F338-4FEF-833C-5D9D0749A4EA City Council Agenda Report July 20, 2021 MOU with TMEA Page 2 tentative agreement on a new three-year MOU, subject to ratification by the TMEA membership and formal approval by the City Council. TMEA has scheduled MOU ratification meetings on July 20, 2021 and will notify the City of the status of the MOU ratification vote prior to the Council Meeting that evening. The key terms of the agreement include base salary increases of 2.5% in Year 1, 2.5% in Year 2, and 2.0% in Year 3 as well as increases in the City's Flexible Benefits contributions (for medical, dental, and other insurance) of $35 per month in Year 1 for Employee Only, Employee +1 and Employee +2 and increases of $50 per month in both Year 2 and Year 3 for Employee +1 and Employee +2. In addition, the agreement also includes a number of operational and non -economic changes, including implementing a formal telecommuting policy, establishing Juneteenth as a City holiday, and other policy modifications to address operational issues and ensure compliance with the law. The MOU also contains a re -opener midway through the contract should conditions change and either the City or the association desires to negotiate over any terms and conditions of employment. The City is pleased to have a multi-year agreement with TMEA that provides improvements for employees within the City's financial means and will provide stability and labor peace for the next few years. `Do -cu Signed by: B9'79'�EdSBSJ'�t _. Derick Yasuda Director of Human Resources Attachment: 1. City Council Resolution No. 21-57 2. MOU between the City and TMEA for the period July 1, 2021 through June 30, 2024 (to be distributed after the agreement is ratified by TMEA) DocuSign Envelope ID: CCFC334F-F338-4FEF-833C-5D9D0749A4EA I:1*101*111IQ041kiLOMAM A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, AMENDING THE CLASSIFICATION AND COMPENSATION PLANS FOR THE CITY OF TUSTIN AND APPROVING THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF TUSTIN AND THE TUSTIN MUNICIPAL EMPLOYEES ASSOCIATION, CONCERNING WAGES, HOURS, AND TERMS AND CONDITIONS OF EMPLOYMENT WHEREAS, the City Council of the City of Tustin, California (the "City") has authorized and directed, under the provisions of the City's Personnel Rules, Resolution No. 15-50, the preparation of a Classification and Compensation Plan for all employees in the City service; and WHEREAS, Resolution No. 15-50 requires that amendments or revisions to the Classification and Compensation Plan be approved by resolution of the City Council; and WHEREAS, the City and the Tustin have met and conferred in good faith in Meyers-Milias-Brown Act; and Municipal Employees Association (TMEA) accordance with the requirements of the WHEREAS, the City and TMEA have reached agreement on wages, hours, and terms and conditions of employment effective July 1, 2021 through June 30, 2024, as more particularly set forth in the attached Memorandum of Understanding: NOW, THEREFORE, BE IT RESOLVED: The Memorandum of Understanding between the City and TMEA, effective July 1, 2021, is hereby approved and incorporated herein by reference as though fully set forth herein and staff is authorized to amend the City's Classification and Compensation Plans accordingly. II. This Resolution shall become effective on July 1, 2021, and all Resolutions and parts of Resolutions in conflict herewith are hereby rescinded. Resolution 21-57 Page 1 of 2 DocuSign Envelope ID: CCFC334F-F338-4FEF-833C-5D9D0749A4EA PASSED AND ADOPTED at a regular meeting of the City Council of the City of Tustin held on the 20th day of July 2021. LETITIA CLARK Mayor ATTEST: ERICA N. YASUDA City Clerk STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF TUSTIN ) I, Erica N. Yasuda, City Clerk and ex -officio Clerk of the City Council of the City of Tustin, California, do hereby certify that the whole number of the members of the City Council of the City of Tustin is five; that the above and foregoing Resolution No. 21-57 was duly passed and adopted at a regular meeting of the Tustin City Council, held on the 20' day of July 2021, by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: ERICA N. YASUDA City Clerk Resolution 21-57 Page 2 of 2