CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
8/14/2023
1 SUBJECT:
Memorandum of Understanding with Teamsters Local 856 Wastewater Treatment Plant (WWTP) and City of Pacifica for the period of July 1, 2023 through June 30, 2025.
RECOMMENDED ACTION:
Adopt the resolution approving the Memorandum of Understanding between the City of Pacifica and (WWTP) Teamsters Union Local 856; for the period of July 1, 2023, through June 30, 2025, including the revised salary schedule.
STAFF CONTACT:
Yulia Carter, Assistant City Manager
(650)738-7301
[email protected]
Irene Camarena, Human Resources Manager
(650)738-7303
[email protected]
BACKGROUND:
The current Memoranda of Understanding with (WWTP) Teamsters Union Local 856 group within the City expired on June 30, 2023.
The (WWTP) Teamsters Union Local 856, and representatives of the the City of Pacifica (City) have met and conferred in good faith regarding wages, hours, and other terms and conditions of employment for represented employees. In accordance with the Meyers-Milias-Brown Act WWTP and the City reached terms for a successor agreement following the prior Memorandum of Understanding (MOU), which expired on June 30, 2023.
The specific terms are reflected in the attached Tentative Agreement (TA) MOU (Exhibit A).
On July 10, 2023, City Council approved new agreements with seven out of eight labor groups, leaving the WWTP Teamsters Union Local 856 the only remaining labor group within the City that had not completed contract negotiations. Although a tentative agreement was reached on the same timeline with the other labor units, the membership of WWTP Teamsters 856 had voted it down three times. The City’s negotiations team continued labor meetings with this group into the new fiscal year.
The City and the (WWTP) Teamsters Union Labor 856 labor group completed negotiations on August 7, 2023, and WWTP Teamsters Union Labor 856 voted and ratified on August 8, 2023.
All salary and equity adjustment will be effective on the first full pay period following City Council approval.
The negotiating team has prepared for Council the full, red-lined Memorandum of Pacifica City Council 2
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Understandings (MOU) tonight with the salaries, benefits, and other terms and conditions of employment already incorporated (see Attached Tentative Agreement and MOU). After Council approval, staff will have some additional minor technical changes and clean-up work including ensuring the correction of any remaining typos, fixing the table of contents, and finalizing the documents for signature and eventually posting online. Staff will ensure that final MOU comport with the Tentative Agreement and is fully executed and posted online.
DISCUSSION
The City Council made a commitment to start addressing the City’s organizational challenges as part of their recently adopted Strategic Plan, specifically, strategic goal #1 to Enhance Organizational and Fiscal Stability. The Council authorized the City's management team to negotiate labor agreements that include the citywide targeted equity adjustments to those classifications that are significantly (more than 5%) below market, in addition to regular cost-ofliving adjustments (COLA) to all classifications.
The structured equity adjustments were presented as a Citywide long-term framework approach to this labor group to eventually bring all WWTP classifications to market per the previously developed compensation philosophy. The structured equity adjustments are based on how far below market compensation for a specific classification falls according to the Citywide Total Compensation Survey conducted by an independent classification and compensation consulting firm. The structured equity adjustments range from 1%-4% each year of the contract, as illustrated in the table below:
With Pacifica's perennial low staffing levels and below-market employee compensation compared to cities in our region, and limited revenue sources to fund critical infrastructure and other capital projects, this unprecedented package represents a strong commitment by the City Council to maintain the high level of municipal services by supporting this extraordinary investment in City staff to address the ongoing recruitment and retention challenges while maintaining long-term financial sustainability.
The negotiating team stayed consistent with the framework that was applied to all other bargaining groups as approved on July 10, 2023. The new MOU provides for a two percent 2% annual COLA wage increase, plus structured equity adjustments in each contract year consistent with the citywide framework. The group voted to exchange the City paid contributions to 457 plan of up to 2% (offered to all other groups) with a 1% increase to certification pay for certain employees, which sunsets at the end of the MOU.
In addition to these economic terms, the new agreement includes some non-economic updates and clarified language related to several citywide provisions, including bereavement, Pacifica City Council 3
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grievances, etc.
The attached Tentative Agreement MOU (EXHIBIT A) highlights the additional changes specific to this bargaining unit.
The individual resolution authorizing the execution of the Memorandum of Understanding with members of this Bargaining Unit is also attached in the agenda packet as Attachment 1.
RELATION TO CITY COUNCIL GOALS AND WORK PLAN:
The recommended action is consistent with the following Council goal: "Enhance organizational and fiscal stability" includes strategies to improve staff retention, recruitment, mental health, and wellness resources and increase staffing for rising workloads.
FISCAL IMPACT:
The FY 2023-24 fiscal impact associated with these agreements is estimated to be approximately $95,000 increase in the Wastewater Fund. The second year of the contract will result in an additional incremental increase of approximately $81,000 in the Wastewater Fund.
The actual cost will vary depending on eligibility for the grade level certification cost of the employees. The budget increases related to new labor agreement will be incorporated in the FY 2023-24 Budget at the mid-year budget review.
ORIGINATED BY:
Human Resources
ATTACHMENT LIST:
EXHIBIT A - Signed TA - WWTP Teamsters Local Union 856 (PDF) ATTACHMENT 1-MOU WWTP Teamsters 856 Redlined for Council Ratification (PDF) Pacifica City Council 4
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RESOLUTION NO. ____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PACIFICA APPROVING THE
MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF PACIFICA AND TEAMSTERS LOCAL 856 WASTEWATER TREATMENT PLANT FOR THE PERIOD OF JULY 1, 2023, THROUGH JUNE 30, 2025
__________________________________________________________________ WHEREAS, a Memorandum of Understanding has been negotiated in good faith in accordance with the Meyers-Milias-Brown Act (“MMBA”) and agreed to by the Teamsters Local 856 Wastewater Treatment Plant bargaining unit has ratified the Memorandum of Understanding; and
WHEREAS, said Memorandum of Understanding, as ratified by Teamsters Local 856 Wastewater Treatment Plant and as approved by the City Attorney, is attached hereto along with revised salary schedules for the Teamsters Local 856 Wastewater Treatment Plant; and WHEREAS, said cost of living increases and equity adjustments will be effective on the first full pay period following Council approval; and
WHEREAS, said Memorandum of Understanding has been approved by the City Council at its meeting held on August 14, 2023, and authorization given for the City Manager to execute said agreement;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Pacifica that certain wages, salaries, fringe benefits, and working conditions as described in said Memorandum of Understanding with members of the Teamsters Local 856 Wastewater Treatment Plant, copy attached (Attachment 1), are hereby authorized for the period of July 1, 2023, through June 30, 2025; and
BE IT FURTHER RESOLVED, that in accordance with California Government Code 570.5(a), the salary schedules listed under Appendix A-1 and A-2 of the Memorandum of Understanding are approved and adopted.
• • • • •
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Pacifica, California, held on August 14, 2023, by the following vote:
AYES, Councilmembers:
NOES, Councilmembers:
ABSENT, Councilmembers:
ABSTAIN, Councilmembers:
_________________________________
Pacifica City Council 5
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Tygarjas Twyrls Bigstyck, Mayor
ATTEST: APPROVED AS TO FORM:
______________________________ _________________________________ Sarah Coffey, City Clerk Michelle Kenyon, City Attorney