City Council Agenda Report
TO: Mayor Clauzel and Members of the City Council
FROM: Fernando Ulloa, City Manager
BY: Marie Guillory Jones, Director of Human Resources
MEETING DATE: February 4, 2025
ITEM NO: 7.5
SUBJECT: Authorize the City Manager to Approve the Proposed Side Letter Agreements between the City of Patterson and American Federation of State, County, and Municipal Employees (AFSCME) Local 10, Patterson Management and Mid-Management Employee Association (PMMEA), and Patterson Fire Fighters Association IAFF Local 4577 to Amend the Relevant Sections of the Memoranda of Understanding (MOU) Between Each of the Parties Regarding Longevity Pay and to Approve the Revised Unrepresented Full-Time Employee Benefit Summary, Containing Respective Longevity Pay Language.
RECOMMENDATION
Motion to Authorize the City Manager to approve the proposed Side Letter Agreements between the City of Paterson and American Federation of State, County, and Municipal Employees (AFSCME) Local 10, Patterson Management and Mid-Management Employee Association (PMMEA), and Patterson Fire Fighters Association IAFF Local 4577 to amend the relevant sections of the Memoranda of Understanding (MOU) between each of the parties regarding longevity pay and to approve the revised Unrepresented Full-Time Employee Benefit Summary, containing respective longevity pay language.
BACKGROUND
City of Patterson employees are eligible for longevity pay after ten (10) years of full-time service with the City. Longevity pay is compensation in addition to an employee’s base rate of pay. The initial rate of longevity pay is two percent (2%). This amount increases after fifteen (15) years of service and then again at twenty (20) years of service. Twelve percent (12%) is the highest rate an employee can receive.
ANALYSIS
Upon reviewing the reported compensation for a recent retiree, CalPERS contacted the City with questions to clarify the retiree’s reported earnings. After further review and discussions with our staff, CalPERS determined that although our longevity payments are being correctly reported as special compensation, the language in our MOU should be written in a more concise manner.
Rather than reflecting longevity pay in a compounding manner for the respective year bands (Chart A), they would prefer the total amount reflected for each period (Chart B):
Chart A vs Chart B
Years of Service Longevity Pay
Increase Years of Service Longevity Pay
10 2% 10 - 14 2%
15 5% 15 - 19 7%
20 5% 20 and above 12%
Staff have spoken with the respective union representatives and they agree with the MOU modification. The proposed Side Letter Agreements do not change the existing benefit, but simply amends the existing language to clearly define the reported pay. This amendment shall modify the current and former MOUs:
· American Federation of State, County, and Municipal Employees (AFSCME) Local 10 ◦ MOU dated July 1, 2022 to June 30, 2025
◦ MOU dated July 1, 2021 to June 30, 2022
◦ MOU dated July 1, 2018 to June 30, 2021
◦ MOU dated July 1, 2017 to June 30, 2018
· Patterson Management and Mid-Management Employee Association (PMMEA), and ◦ MOU dated July 1, 2022 to June 30, 2025
◦ MOU dated July 1, 2021 to June 30, 2022
◦ MOU dated July 1, 2019 to June 30, 2021
◦ MOU dated July 1, 2016 to June 30, 2019
· Patterson Fire Fighters Association IAFF Local 4577
◦ MOU dated July 1, 2022 to June 30, 2025
◦ MOU dated July 1, 2021 to June 30, 2022
◦ MOU dated January 1, 2019 to June 30, 2020
Longevity Pay for unrepresented employees is contained in the Unrepresented Full-Time Employee Benefits Summary (p.7). Staff have also updated the language in the Benefits Summary and a revised Summary is attached. There is no change to any existing benefits; this modification amends the existing language to clearly define longevity pay.
FISCAL IMPACT
There is no fiscal impact associated with this item. This approval is for compliance purposes only.
ATTACHMENTS
· Side Letter Agreement between the American Federation of State, County, and Municipal Employees (AFSCME) Local 10 and the City of Patterson
· Side Letter Agreement between the Patterson Management and Mid-Management Employee Association and the City of Patterson
· Side Letter Agreement between the Patterson Firefighters Association IAFF Local 4577 and the City of Patterson
· Unrepresented Full-Time Employee Benefits Summary (page 7)