STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of March 25, 2025
TO: Members of the City Council
SUBMITTED BY: Dante Hall, City Manager
Edwin Gato, Director of Finance
Kristi Carter, Human Resources Manager
SUBJECT: Approve a Memorandum of Understanding with Teamsters Local 315 Full Time Employees, a Memorandum of Understanding with Teamsters Local 315 Part Time Employees, and a 3% Cost of Living Adjustment to Part Time Unbenefited Employees RECOMMENDED ACTION:
Adopt a Resolution Approving a Memorandum of Understanding with Teamsters Local 315, Full Time Employees, a Memorandum of Understanding with Teamsters Local 315 Part Time Employees, and a 3% Cost of Living Adjustment (COLA) to Part Time Unbenefited employees.
DISCUSSION:
The existing Memorandums of Understanding (MOUs) with the Teamsters Local 315 employees have terms that ended on June 30, 2024. The City has been engaged in the meet and confer process as required by law with the represented employees. The City Council has provided the City’s chief labor negotiator with direction in closed session meetings over the past nine months. The City has come to an agreement with the Teamsters Local 315 union, and has proposed a one-year Memorandum of Understanding with Full Time employees a one-year Memorandum of Understanding with Part Time employees. A summary of the changes proposed by the Teamsters Local 315 employee groups is set forth below:
Employee Group
Summary of Terms
Teamsters Local 315, Full Time Employees
MOU Term: July 1, 2024 - June 30, 2025 (One-Year)
FY 2024-25
3% Cost of Living Adjustment (COLA) effective March 30, 2025.
One-time 5% of the employee's gross annual salary earned in FY 2023-2024 non-recurring, non-pensionable retention payment.
Adjust paid bereavement leave from 24 to 40 hours pursuant to AB 1949 and employees may use accrued unused vacation and sick leave to extend their bereavement leave up to a total of 59 hours.
Adjust safety shoe reimbursement from up to $200 to $275 for one (1) pair of shoes per fiscal year for Building and Code Enforcement Inspectors and Public Works employee classifications.
Uniforms (shirts and pants) will be provided to Public Works employee classifications which require a uniform. In addition, these classifications will now receive an annual $500 uniform maintenance allowance. The maintenance allowance payments will be made in July and January.
Upon proof of higher education completion from an accredited education institution, Education Incentive Pay shall be paid in addition to regular pay as follows:
Associate's Degree: $75.00 per month
Bachelor's Degree: $125.00 per month
Master's Degree: $175.00 per month
When an employee is certified as bilingual, they will receive an additional premium of 1% base wages per month.
Employees will receive Longevity Pay as follows after the completion of:
10 years of service: $150.00 per month
15 years of service: $200.00 per month
20 years of service: $250.00 per month
25 years of service: $300.00 per month
Teamsters Local 315, Part Time Employees
MOU Term: July 1, 2024 - June 30, 2025 (One-Year)
FY 2024-25
3% Cost of Living Adjustment (COLA) effective March 30, 2025.
One-time 5% of the employee's gross annual salary earned in FY 2023-2024 non-recurring, non-pensionable retention payment.
Adjust paid bereavement leave from 24 to 40 hours (prorated based upon regular work schedule) pursuant to AB 1949 and employees may use accrued unused vacation and sick leave to extend their bereavement leave up to a total of 59 hours.
Adjust safety shoe reimbursement from up to $200 to $275 for one (1) pair of shoes per fiscal year for Building and Code Enforcement Inspectors and Public Works employee classifications.
Employees will receive Longevity Pay as follows after the completion of:
10 years of service: $150.00 per month
15 years of service: $200.00 per month
20 years of service: $250.00 per month
25 years of service: $300.00 per month
A three percent (3%) Cost of Living Adjustment (COLA) will also be applied to part-time, unbenefited employees effective March 30, 2025. While this adjustment did not require meet and confer, it is being implemented to maintain consistency with the COLA provided to Teamsters-represented positions.
FISCAL IMPACT:
The approval of new labor-related items will incur both ongoing and one-time costs. The proposed MOUs are intended for a duration of one year. The ongoing and one-time costs associated with the employees impacted by these approvals are illustrated below.
FY 2024-25
Group
Annualized On-Going Costs
One-Time Costs
Teamsters Local 315
Full Time Employees
$168,000
$105,000
Teamsters Local 315
Part Time Employees
$5,000
$20,000
Part Time, Unbenefited Employees
$5,000
$0
The adopted FY 2024-25 Budget allocates funds for both ongoing and one-time expenditures. This budget includes a 3% ongoing salary increase for both full-time and part-time employees represented by Teamsters Local 315, as well as a 3% ongoing increase for part-time employee who are not eligible for benefits.
The staff recommends that the City Council approve an appropriation for a one-time retention payment of 5% for the employee groups represented by Teamsters Local 315. There are sufficient funds available in the General Fund reserve to support this allocation.
ATTACHMENTS:
Resolution
Memorandum of Understanding between the City of Hercules and Teamsters Local 315, Full Time Employees Memorandum of Understanding between the City of Hercules and Teamsters Local 315, Part Time Employees Master Salary Schedule (Last Revised March 11, 2025)
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