City Council Agenda
Memo to: Manteca City Council
From: Dawn Lichti, Acting Administrative Services Director
Date: May 19, 2020
Subject: Side Letter Agreements
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Adopt a resolution approving a budget appropriation in the amount of $954,826 approving Side Letter Agreements, related to salary "me too" clauses, to the master Memorandum of Understanding for the Mid Managers Association, Confidential Mid Managers Association, Public Safety Management Association, Manteca Firefighters IAFF Local 1874, Manteca Police Officers Association, Manteca Police Employees Association, and the Executive Management Summary of Salary and Benefits.
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Background:
The City's 2019 labor negotiating was comprised of the City's former Finance Director and contract attorney Philip Wright of Kronick, Moskovitz, Tiedemann & Girard. Through the process, the City's negotiators were given authority of up to 6% PERSable benefit for each unit.
The Operating Engineers Local Union No. 3 (OE3) was the last contract to be approved. OE3 ratified their contract in November 2019 and it was approved by City Council on December 3, 2019, with a term of July 1, 2019, through June 30, 2021. All other bargaining units ratified and had their contracts approved before December.
During the negotiations process OE3 wanted a 1.5% COLA, but based on their other proposals, they only had 0.5% of the PERSable benefit authority left to bargain with. The City's negotiating team reached an agreement that if OE3 members who were in the CalPERS "Classic" category paid an extra 1% in member contribution, then the City would provide an additional 1% increase to the base pay of all their members (for a total of 1.5%), including the PEPRA members who were not required to pay an extra 1% towards their CalPERS member contribution. Although the contracted attorney believed this was a "wash," it actually resulted in some OE3 members receiving a 7% PERSable benefit.
All bargaining units had negotiate...
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