City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: JULY 19, 2022 FROM: HUMAN RESOURCES DEPARTMENT WARDS: ALL
SUBJECT: REVISIONS TO THE MEMORANDUM OF UNDERSTANDING WITH THE SERVICE EMPLOYEES INTERNATIONAL UNION (SEIU) LOCAL 721 – REFUSE UNIT, AND RELATED REVISIONS TO THE FRINGE BENEFIT AND SALARY PLAN – SUPPLEMENTAL APPROPRIATION ISSUE:
Approve a successor Memorandum of Understanding with the Service Employees International Union Local 721 – Refuse Unit.
RECOMMENDATION:
That the City Council:
Approve the attached Memorandum of Understanding (MOU) effective July 1, 2022, through June 30, 2025, which incorporate negotiated revisions; Authorize the City Manager, or designee, to execute the Memorandum of Understanding on behalf of the City; Adopt the attached Resolution amending the Master Fringe Benefits and Salary Plan to reflect the revised MOU provisions as outlined in Exhibit A and Exhibit B attached thereto; and, With at least five affirmative votes, authorize the Chief Financial Officer, or designee, to record supplemental appropriations in the approximate amount of $610,000 in Fiscal Year 2022/23 and $416,000 in Fiscal Year 2023/24 in the applicable accounts of the Refuse Fund.
BACKGROUND:
The City began labor negotiations with the Service Employees International Union – Refuse (SEIU Refuse) Unit in May 2022, as the prior MOU was due to expire on June 30, 2022. Labor negotiation meetings continued through June 29, 2022 until a mutual agreement was reached.
DISCUSSION:
The City entered into and has successfully concluded labor negotiations with the SEIU Refuse Unit. Provisions of the tentative agreement are pending formal SEIU Refuse member ratification with the formal member ratification scheduled to occur before July 19, 2022. The tentative agreement reached between the City and the Union is herein presented for City Council approval:
Labor Contract Period: July 1, 2022, through June 30, 2025.
Salaries:
Date
Salary Increase
Year 1: Effective the first pay period following July 1, 2022, or first pay period after City Council approval, whichever is later 5% increase to base salary
Year 1: Per the terms of the previous SEIU Refuse MOU, the City met in good faith regarding a classification and compensation study of all bargaining unit classifications. As a result, the City agreed to implement the study at 100% of the January 1, 2022, average effective July 1, 2022, or the first pay period after City Council approval, whichever is later.
7.6% increase to base salary (Exhibit B)
Year 2: Effective the first pay period following July 1, 2023 3% increase to base salary
Year 3: Effective the first pay period following July 1, 2024 3% increase to base salary
All represented (SEIU Refuse) City employees as of the date payment is made will receive a one-time non-PERSable stipend of $10,000 to be paid with the first pay period following July 1, 2022, or the first pay period after City Council approval, whichever is later.
Holidays: Add Juneteenth holiday effective 2023.
Deferred Compensation: Effective Fiscal Year 2022/23, the City will contribute $25 per month toward the employee’s deferred compensation plan provided the employee contributes a minimum of $25 per month.
Life Insurance: The City will increase the amount of City-provided term life insurance from $10,000 to $100,000.
Other changes: Additional miscellaneous changes have been made to non-economic terms throughout the contract, as reflected in the attached red-lined MOU.
Unrepresented Classifications
In order to maintain the existing salary differential between the Senior Solid Waste Operator and the Solid Waste Operator Supervisor I and II, and avoid salary compaction issues, these unrepresented classifications’ base salary will also be increased by 7.6%, consistent with the compensation study findings as shown on Exhibit B; however, these positions will not receive any of the Cost of Living Salary adjustments afforded to the SEIU Refuse unit as these unrepresented classifications follow increases that are afforded to the Unrepresented units and will be adjusted accordingly at the time the Unrepresented units salary increases are approved by City Council.
STRATEGIC PLAN ALIGNMENT:
This council item contributes to Strategic Priority 5 – High Performing Government and Goal 5.1. Attract, develop, engage and retain a diverse and highly skilled workforce across the entire City organization.
This action aligns with each of the Cross-Cutting Threads as follows:
Community Trust – Fairly negotiated salaries and benefits provide the City the ability to retain and attract skilled employees that can provide high quality public service and increase community trust and engagement. The salary and benefits package is published and presented in this City Council Agenda to ensure all elements are visible and transparent.
Equity – The Union negotiation process ensures that employees receive fair wages, competitive benefits, and good working conditions resulting in a workforce that, in turn, also serves the community in a fair and equitable way.
Fiscal Responsibility – To ensure responsible management of the City’s financial resources all fiscal impacts were carefully assessed by the City’s Finance and City Manager’s Departments.
Innovation – The City and Union engaged in creative discussions and sought solutions that would allow both parties to benefit from the updated/new provisions in the contract. Creative ideas from both parties were shared that allowed for a successful agreement.
Sustainability & Resiliency – The City of Riverside is committed to meeting the needs of its changing workforce while also implementing contracts that are sustainable to the City.
FISCAL IMPACT:
The total compounded cost over the life of the MOU is approximately $1.6 million. The compounded fiscal impact of the proposed MOU for SEIU Refuse is approximately $709,000 in FY 2022/23, $416,000 in FY 2023/24, and $508,000 in FY 2024/25 in the Refuse Fund. Sufficient funds for the requested supplemental appropriations are available in the Refuse Fund’s cash reserves.
The Refuse Fund is currently operating in a deficit position. Changes in the recycling market have resulted in revenues no longer offsetting the cost of processing, transportation, and residual disposal. An increase in tonnage and new state-mandated programs are also contributing to excess costs. The five-year financial plan for the Refuse Fund, as presented in the recently adopted FY 2022-2024 Biennial Budget, projected operating losses through FY 2024/25 and operating gains of less than $100,000 for FY 2025/26 and FY 2026/27. With the incorporation of the fiscal impact of the proposed MOU, Refuse Fund reserves are projected to fall below $100,000 by FY 2026/27.
Prepared by: Rene Goldman, Human Resources Director
Certified as to availability
of funds: Edward Enriquez, Interim Assistant City Manager/Chief Financial Officer/City Treasurer
Approved by: Rafael Guzman, Assistant City Manager
Approved as to form: Phaedra A. Norton, City Attorney
Attachments:
Comprehensive Memorandum of Understanding for SEIU Refuse Resolution Amending the Fringe Benefits and Salary Plan Exhibit A – Amended Fringe Benefits and Salary Plan
Exhibit B – Salary Range Table
Revisions to the SEIU Refuse MOU – Page 2