The URL can be used to link to this page

Home My WebLink About09 C36180 PDEO MOUMEETING DATE: PREPARED BY: REQUEST: Recommendation STAFF REPORT CITY OF PALM DESERT CITY MANAGER'S DEPARTMENT December 16, 2021 Andrea Staehle, Human Resources Manager Request for approval of a side letter amending Memorandum of Understanding (MOU) between the City of Palm Desert and the Palm Desert Employee Organization including a Cost of Living Adjustment (COLA) of 3% effective July 1, 2021 Request for Approval of Compensation for Unrepresented Employees including a Cost of Living Adjustment (COLA) of 3% effective July 1, 2021 and a Authorize the City Manager to Develop and Implement a Manager's Administrative Leave Option By Minute Motion: 1. Approve the Memorandum of Understanding (MOU) between the City of Palm Desert and the Palm Desert Employee Organization (Exhibit "A"), including a Cost of Living Adjustment (COLA) of 3% effective July 1, 2021 for current employees; and 2. Authorize the City Manager to take actions consistent with the MOU and Managers Administrative Leave option approved herewith to implement the changes contemplated. Executive Summary The Memorandum of Understanding (MOU) between the Palm Desert Employees Organization (PDEO) and the City provides that for each year during the term of the agreement for which the change in the Consumer Price Index (CPI), as published by the U.S. Department of Labor, Bureau of Labor Statistics (March to March) for the area is greater than 2%, that the parties agree to meet and confer regarding a Cost of Living Adjustment (COLA). The City and PDEO agreed to defer COLA discussion until December 2021. On December 2, 2021, the PDEO and City met to meet and confer regarding COLA and extending the current MOU. At the conclusion of the meeting, the City and PDEO agreed to a tentative MOU ("Exhibit A"), pending Council approval. Additionally, in consideration of the tentative MOU agreement, the City is requesting Council to approve a similar Staff Report Approval of City and PDEO MOU December 16, 2021 Page 2 compensation agreement with unrepresented employees, and authority to develop and implement a management administrative leave procedure in lieu of participation in the current alternative work schedule. Discussion The City and the PDEO entered into an MOU in 2017 for a five-year term from July 1, 2017 through June 30, 2022. During the term, the parties agreed to meet and confer with respect to the administration of a Cost of Living Adjustment in each year there is a greater than 2% change in the Consumer Price Index (CPI), (as published by the U.S. Department of Labor, Bureau of Labor Statistics, for the Riverside -San Bernardino -Ontario area, for all urban consumers) from the March index of the prior year to the March index of the current year. The City and PDEO agreed to defer COLA discussion until December 2021. On December 2, 2021, the City and PDEO Board met to discuss COLA and extending the current MOU through June 30, 2023. In consideration of the completion of the classification and compensation study occurring in May 2022, the continued analysis of the economic impacts and uncertainty of a global pandemic, recent COLA (2.3% effective March 2021), and to ensure fiscal responsibility, the City and PDEO agreed to a tentative MOU agreement, which includes: 1. 3.0% COLA effective July 1, 2021 for current employees. 2. No COLA for the 2022/2023 fiscal year. 3. Effective January 1, 2022, add $25 per month to the Cafeteria Flex Plan and eliminate the remote work stipend. 4. Extending the current MOU through June 30, 2023, including an agreement of completion of COLA negotiations for fiscal years 2021/2022 and 2022/2023. The City is requesting approval to implement that same compensation package for unrepresented employees, as well as authority for the City Manager to develop and implement a management administrative leave policy and procedure for eligible supervisory and management employees. The policy and procedure would provide an option for eligible employees to have 12 days of administrative leave in lieu of participating in the 9/80 alternative schedule. Staff Report Approval of City and PDEO MOU December 16, 2021 Page 3 Fiscal Impact The impact of this request is approximately $370,000 annually for all employees including represented and non -represented. LEGAL REVIEW DEPT. REVIEW RWH pnek Swift Robert W. Hargreaves City Attorney Andrea Staehle Human Resources Manager FINANCIAL REVIEW Janet M. Moore Director of Finance City Manager L. Todd Hileman: L. Todd WI-el/Ka vt. ATTACHMENTS: ASSISTANT CITY MANAGER .Andy Firestine Andy Firestine Assistant City Manager 1. Exhibit A: City of Palm Desert and PDEO December 2021 Memorandum of Understanding CITY COUNCIL ,CTION APPROVED DENIED RECEIVED OTHER MEETING DATE I I - it 0 - '2021 AYESR~TOIY4 -hah,1 (tNeStOrdeaUtwlvta n 1161144turni NOES: None. ABSENT: None ABSTAIN: None VERIFIED BY• NIWr l Sr`, Original on File with City Clerk's Office CITY OF PALM DESERT SIDE LETTER OF AGREEMENT MODIFYING THE 2017-2022 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF PALM DESERT AND THE PALM DESERT EMPLOYEES ORGANIZATION 1. PARTIES AND DATE. This Side Letter of Agreement (Side Letter) is entered into this 6th day of December, 2021, by and between the City of Palm Desert (City) and the Palm Desert Employees Organization (PDEO). City and PDEO are sometimes individually referred to as "Party" and collectively as "Parties" in this Side Letter. 2. RECITALS. 2.1. City and PDEO entered in a Memorandum of Understanding effective July 1, 2017 through June 30, 2022 (MOU). 2.2.Article 2.1 of the MOU memorializes the Parties' agreement to meet and confer with respect to any subject or matter related to this MOU, further, in accordance with the Meyers-Milias-Brown Act the Parties agree to meet and confer on issues related to wages, hours and working conditions. 2.3.Article 4.2 of the MOU memorializes the Parties' intent to meet and confer with respect to the administration of a Cost of Living Adjustment in each year there is a greater than 2% change in the Consumer Price Index (CPI), (as published by the U.S. Department of Labor, Bureau of Labor Statistics, for the Riverside -San Bernardino -Ontario area, for all urban consumers) from the March index of the prior year to the March index of the current year. 2.4.After meeting and conferring in good faith, the City and the PDEO desire to modify certain terms and conditions of the MOU as set forth in this Side Letter. 2.5. This Side Letter shall be in effect following City Council Approval. 3. TERMS 3.1. In Article 4, Subsection 4.2 added as follows: (a) The City agrees to apply a Cost of Living Adjustments (COLA) to increase the salaries of all current employees by 3.0% effective July 1, 2021, thus completing COLA discussions for FY 2021/2022. Current employees include all employees on active status as of the effective date hereof. Side Letter Agreement Dated December 6, 2021 Related to the 2017-2022 Memorandum of Understanding (b) Both parties agree to have no COLA in fiscal year 2022/2023, thus completing COLA discussions for FY 2022/2023. (c) The City agrees to increase the cafeteria cash by $25 per month and eliminate the "remote work allowance" effective January 1, 2022. 3.2. Entire Agreement; Continuing Effect of MOU. It is understood that the specific provisions contained in this Side Letter shall be in addition to any other side letters previously approved but will supersede any previous agreements, whether oral or written, directly related to any matters expressly addressed herein. 3.3. Expiration of MOU and Side Letter. The parties agree to extend the MOU, its accompanying Side Letters and all provisions therein by one year until June 30, 2023. This Side Letter shall also expire and become null and void on June 30, 2023, upon expiration of the MOU, at which time the terms and conditions of this Side Letter will be reviewed for applicability of extension into a successor agreement. IN WITNESS WHEREOF, the Parties hereto have caused this Amendment to be executed on the date first hereinabove written: PDEO Board CITY Date Cora Gaugush Date L. Todd Hileman PDEO Board Member City Manager Date John Urkov Date Andy Firestine PDEO Board Member Assistant City Manager Date Alex Vasquez Date Janet Moore PDEO Board Member Director of Finance Date Jeremy Frey Date Andrea Staehle PDEO Board Member Human Resources Manager Date Jose Rojas Date Robert Hargreaves PDEO Board Member City Attorney Page 12 Side Letter Agreement Dated December 6, 2021 Related to the 2017-2022 Memorandum of Understanding ATTEST: Date Norma Alley City Clerk Page 13