HomeMy WebLinkAboutReso 101-2004RESOLUTION NO. 101-2004
CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA
A RESOLUTION ACCEPTING AGREEMENTS WITH THE SOUTH
SAN FRANCISCO CHAPTERS OF THE CONFIDENTIAl. UNIT,
TEAMSTERS LOCAL 856; INTERNATIONAL UNION OF
OPERATING ENGINEERS, LOCAL 39; INTERNATIONAL
ASSOCIATION OF FIREFIGHTERS (IAFF), LOCAL 1507; THE
SOUTH SAN FRANCISCO POLICE ASSOCIATION, THE PUBLIC
SAFETY MANAGERS UNIT, THE MID-MANAGEMENT UNIT, AND
THE EXECUTIVE MANAGEMENT UNIT
WHEREAS, staff recommends authorizing agreements with the South San Francisco
Chapters of the Confidential Unit, Teamsters Local 856; International Union of Operating Engineers,
Local 39; International Association of Firefighters (IAFF), Local 1507; the South San Francisco
Police Association, the Public Safety Managers Unit, the Mid-management Unit, and the Executive
Management Unit for the "Fresh Start" program to reduce the short-term cost of paying for PERS
rates; and
WHEREAS, attached is the final document that incorporates the agreed-upon language based
on the negotiations held with this bargaining unit; and
WHEREAS, Locals 856, 39, and 1507 are the recognized bargaining agencies for these
diverse groups of City staff.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San
Francisco that the City Council hereby authorizes the South San Francisco Chapters of the
Confidential Unit, Teamsters Local 856; International Union of Operating Engineers, Local 39;
International Association of Firefighters (IAFF), Local 1507; the South San Francisco Police
Association, the Public Safety Managers Unit, the Mid-management Unit, and the Executive
Management Unit.
BE IT FURTHER RESOLVED that the City Manager is hereby authorized to execute the
agreements on behalf of the City of South San Francisco.
I hereby certify that the foregoing Resolution was regularly introduced and adopted by the
City Council of the City of South San Francisco at a regular meeting held on the 13th day of October
2004 by the following vote:
AYES:
Councilmembers Joseph A. Femekes, Richard A. Garbarino and Pedro Gonzalez,
Vice Mayor Raymond L. Green and Mayor Karyl Matsumoto
NOES: None.
ABSTAIN: None.
ABSENT: None.
ATTEST:
/C~y Clerk
SEP-29-2004 1S:39 SSF HUMAN RESOURCES 6S0 S29 G69S P.04/06
Side Letter ! to the Current Memorandum of Understanding
Between the
City of South San Francisco
and the
Confidential Unit, Teamsters Local 8~6
WHBREAS, the City of South San Francisco (City) agreed in 2002 tn enhance the
Califomia Public Employees Retirement System (PERS) retirement benefit it provides tn
employees represented by the Confidential Unit, Teamsters Local 856 (Local $56) fi'om the
retirement benefit commonly known as 2% at 55 to the retirement benefit commonly known as
2.7% at 55; and
WHEREAS, the City's agreement to provide Local 856 employees with the enhanced
2.7% at 55 retirement benefit is set forth in Section H of the current Memorandum of
Understanding between the City and Local 856 with effective dates July I, 2000 through
June 30, 2003 and extended to June 30, 2006 (MOU); and subsequently extended tn June 30,
2008 as indicated in Side Letter J signed by both parties, and
WHEREAS, in addition tn thc higher "normal cost" associated with the City providing
Local $56 employees with this enhanced retirement benefit, tho City also has to pay an additional
contribution to PERS tn pay for the "anfunded liability" associated with the cost of providing
enhanoed 2.7% at 55 retirement benefits tn employees who retire relatively soon, such that the
City's contffbutions to PERS during these employees' employment are not sufficient to cover the
costs of these employees' retirements; and
WHEREAS, PERS is offering certain public agencies, who are facing 6nancial hardship,
the opportunity to participate in their "Fresh Start" program to reduce the short-term cost of
paying for these unfunded liabilities; and
WHBRBAS, the Fresh Start program would permit thc City to increase the iI~mher of
years within which it would have to pay for the unfunded Iiabilitics associated with providing the
Local 856 employees with the 2.7% at 55 benefit from thc usual 12 or 13 years, tn 30 ycars, with
the result that the City would have a lower PERS employer ratc in the short term; and
WHEREAS, the City's financial condition is such that short-term financial savings
offered by the Fresh Start program would help the City in its efforts to minimize or avoid layoffs,
and tn retain essential and valuable services; and
WHBRBAS, the City has in the recent past calculated wage increases for Local 856
employees by first comparing certain categories of compensation (total compensation) with the
amounts paid/provided by certain survey agencies, and then adjusting Local 856 employees'
SEP-ag-2004 15:39 SSF HUMRN RESOURCES 650 8~9 G698 P.0~706
Confidential Unit, Teamsters Local 856
Side Letter Re PHRS Fresh Start
Septembm' 15, 2004
App~l~x I
Page 2
wages, as and if required, to keep Local 856 employees at the 60th percentile of the survey
agencies; and
WI-~S, the City has, in the past, included the City's PERS employer contribution in
the City's total compensation that has been cot, pared to the applicable survey agencies; and
WHEREAS, the City savings which otherwise would occur due to a decrease in the
employer rate under the PEP~ Fresh Start program would be lost if this r~duced PEPS employer
con~'ibution rate was used to determine the City's total compensation, since the reduced
cmploy~ rate could result in a corresponding increase in employee wages under the previously
used formula to ~nsure employees remain at the 60th percentile in total compensation among the
survey agencies; and
WHEREAS, employees would not suffer any adverse affect if the City participated in the
Fresh Start Program and the City's employer rate was, accordingly lowered, since employees
would be entitled to the same 2.7% at 55 PEPS benefit, the City already pays the employee's
PEKS contribution, and participation in the Fresh Start program would not adversely affect
employee's wages or other benefits; and
WHEREAS, thc City and Local 856 have m~t and conferred rcgarding the benefits of the
Fresh Start program, and have agreed as set forth below to modify how the City will conduct
total compensation comparisons affecting Local 856 employees, if any, during thc r~maining
term of their current MOU:
IT IS I-IF~I~.~Y AGREED THAT, if the City participates in the PEPS Fresh Start
pmgram:
1. The decrease in the City's PERS employer rate that results from the City's participation
in the Fresh Start program shall not cause the City to pay more in wage or other compensation or
benefits to Local 856 employees than if the City had not participated in the Fresh Start program.
2. For the rew~.i~der of this contract term, any total compensation comparison used by the
City or Local 856 for the purpose of determining whether any or a particular wage increase is
required or appropriate, the City's to~! compensation for Local 856 employees shall include
what the City's total PERS employer rate would have bean if the City had not participated in the
Fresh Start program. Put differently, the City will include in its total compensation for survey
comparison purposes the sum of its actual employer rate and tho percentage difference between
its actual rate and what the PERS employer rate would have been if the City had not participated
in the Fresh Start program. The following example demonstrates the parties' agrecm~t on how
they will use the City's PERS employer rate in any total compensation comparison that the
parties decided to do, or are required to do, during the 2005-06 Fiscal Year.
ELK.9/I~(M
SEP-29-2004 i5:39 SSF HUMRN RESOURCES ~S0 S2~ B~8 P.0B/06
Confidential UnR, Teamsters Local 856
Side Letler Re PER5 Fresh Start
September 1 $, 2004
Appendix !
Page 3
Total Employer Rate in l~ 2005l
If.D.,o not Participate in Fr..esh Start
15.65%
Total Employer Rate in FY 2005
If Do participate in Fresh S~
13.448%
Differen~ -2.20%
Under this example, if the parties chose to or are required to conduct a total compensation
comparison to survey agencies in the 2005-2006 Fiscal Year to dote, urine whether a wage
increase was appropriate or r0quired, thc City's total compensation for purposes of the
comparison would include the 15.55% employer rate rather than the 13.44'8% rate the City will
actually have tn contribute as its employer contribution in the 2005-06 Fiscal Year.
3. This Side Letter shall only be effective during thc term of the current MOU, and shall
expire effective June 30, 2006.
4. This Side Letter shall be limited to total compensation surveys m~dated by the current
MOU, or any written agreement between the City and Local 856, executed subsequent to this
Side Letter and prior to June 30, 2006, that requires the City to conduct a total comp~sation
survey for the purpose of analyzing wage or some other element of total compensation.
~or Lo, al 85~: Name and Title
~r~ M. Nagel,~C~-t~ M~nager
Date
Date
A. Bower, Director'--Human Resources
~ Daie/
$:/Employ~e Rehalm~SRelati~'~7.onflConf L/gt 5id~ L~ 1 Fresh 8~zrt. DOC
The "To~1 Emptoy~r Ra~s" used iu this esnm.~l~ v/era provided to ~ City by pILR5.
ELI(.-g/14/04
SSF HUMRN RESOURCES
P.02/06
Side Letter J to the Current Memorandum of Understanding
Between the
City of South San Francisco
and the
Confidential Unit, Teamsters Loea1856
WHEREAS, the City of South San Francisco (City) and the Confidential Unit, Teamsters
Local 856 (Looal 856) previously agreed to a Memorandum of Undgrstandi~g with effective
dates July 1, 2000 through Sune 30, 2003 and extended to June 30, 2006 (MOU); and
WHEREAS, the City and Local 856 have mot and conferred in good faith on the subject
of and conditions for extending tho current MOU by two years to be effective through June 30,
2008.
IT IS HEREBY AGI~RRD THAT THE CURKENT MOU BETWE. RN THE CITY AND
LOCAL 856 SHALL BE EXTENDED FOR TWO YEARS AND EFFECTIVE THROUGH
~ 30, 2008 ACCORDING TO AND SUBJECT TO THE CONDITIONS SET FORTH
BELOW:
1. WageIncreases
Effective the payperiod including July 1, 2006, the base rate of pay for all employees
shall be increased by 3.0%.
Effective the payperiod including July 1, 2007, the base rate of pay for all employees
shall bc increased, if and to the extent required, to keep employees at thc 60th percentile in total
compensation of the previously agreed upon survey agencies, using the same methodology as
used during the cun'ent MOU.
2. VEBA
Employees in this unit shall continue to be eligible to participate in the Voluntary
Employee Benefit Association (VEBA) program previously provided by the City. VEBA
contributions are pre-tax, pre-FICA (Social Security/Medicare) and may be used for Post~
retirement Unreimbursed Expenses only (such as medical and dental prescriptions or copays).
Participants may use accrued, unused vacation payoffs to be automatically deposited into the
employee's VRBA account each January, provided thc employee has utilized a minimum of 64
hours of paid vacation during the previous calendar year. Upon separation from employment,
the employee may designate that the remainiug portion of any unused vacation, discrefionsry
holiday, sick, and/or admhaistrative leave payoffs be deposited into his/her VEBA account
SER-29-2004 iS:38 SSF HUMAN RESOURCES
~ide Letter J Between City of SSF and Coafid~tial Unit, Teamsters Looal
PaE~ 2
650 829 6698
P.03/06
3. Maintenance of Benefits
During the 2007-08 and 2008-09 fiscal years, both the City and Local 856 agree to
maintain the current level of health a~d welfare benefits, subject to the Re-opener provision
below.
4, Re-Openers
During the 2006-07 and 2007-08 fiscal years, both the City and Local 856 will have the
right to re-open for negotiations one subject that is included, specifically discussed, and
governed by the curr~nt MOU.
Should either the City or Local 856 wish to re-open any subject covered by the current
MOU contract extension, it must notify the other party no later than May 1st, except that a party
that receives notice that the other party wishes to re-open a section of the MOU shall have 30
calendar days to respond that it also wishes to re-open a section of the MOU. Thus, for example,
if the City received notice from Local 856 on May 1, 2006 that Local 856 wished to re-open a
section of the MOU, the City would have until May 31, 2006 to notify Local 856 that the City
also wanted to re-open a section of the MOU. Any notice that a party wishes to re-open a section
of the MOU pursuant to its fights under this Side Letter must be in writing, and specify the
section of the MOU.
While the parties are not obligated to reach agreement on any re-open~ issue, they shall
meet and confer in good faith. The parties shall not be required to utilize or exhaust any
impasse, impasse resolution, or arbitration procedure that, in the absence of this paragraph, they
otherwise would be required to exhaust or utilize under any City policy, rule or practice,
agreement, or state or federal law.
This Side Letter shall not affect the parties' previously held meet and confer fights and
obligsfions except as specifically set forth in this Side Letter.
JtsephkLanthier, President, Teamsters, Local 856
Confidential Unit
Jenni~fi~~ower, Director of Human Rosources
Date
Date
Date
Side Letter to the Current Memorandum of Understanding
Between the
City of South San Francisco
and the
International Union of Operating Engineers, Local 39
WHEREAS, the City of South San Francisco (City) agreed in 2002 to enhance the
California Public Employees Retirement System (PERS) retirement benefit it provides to
employees represented by the International Union of Operating Engineers, Local 39 (Local 39)
from the retirement benefit commonly known as 2% at 55 to the retirement benefit commonly
known as 2.7% at 55; and
WHEREAS, the City's agreement to provide Local 39 employees with the enhanced
2.7% at 55 retirement benefit is set forth in Section 7.12.4 of the current Memorandum of
Understanding between the City and Local 39 with effective dates January 1, 2003 through
December 31, 2007 (MOU); and
WHEREAS, in addition to the higher "normal cost" associated with the City providing
Local 39 employees with this enhanced retirement benefit, the City also has to pay an additional
contribution to PERS to pay for the "unfunded liability" associated with the cost of providing
enhanced 2.7% at 55 retirement benefits to employees who retire relatively soon, such that the
City's contributions to PERS during these employees' employment are not sufficient to cover the
costs of these employees' retirements; and
WHEREAS, PERS is offering certain public agencies, who are facing financial hardship,
the opportunity to participate in their "Fresh Start" program to reduce the short-term cost of
paying for these unfunded liabilities; and
WHEREAS, the Fresh Start program would permit the City to increase the number of
years within which it would have to pay for the unfunded liabilities associated with providing the
Local 39 employees with the 2.7% at 55 benefit from the usual 12 or 13 years, to 30 years, with
the result that the City would have a lower PERS employer rate in the short term; and
WHEREAS, the City's financial condition is such that short-term financial savings
offered by the Fresh Start program would help the City in its efforts to minimize or avoid layoffs,
and to retain essential and valuable services; and
WHEREAS, the City has in the recent past calculated wage increases for Local 39
employees by first comparing certain categories of compensation (total compensation) with the
amounts paid/provided by certain survey agencies, and then adjusting Local 39 employees'
wages, as and if required, to keep Local 39 employees at the 60th percentile of the survey
agencies; and
International Union of Operating Engineers, Local 39
Side Letter Re PERS Fresh Start
September 15, 2004
Appendix F
Page 2
WHEREAS, the City has, in the past, included the City's PERS employer contribution in
the City's total compensation that has been compared to the applicable survey agencies; and
WHEREAS, the City savings which otherwise would occur due to a decrease in the
employer rate under the PERS Fresh Start program would be lost if this reduced PERS employer
contribution rate was used to determine the City's total compensation, since the reduced
employer rate could result in a corresponding increase in employee wages under the previously
used formula to ensure employees remain at the 60th percentile in total compensation among the
survey agencies; and
WHEREAS, employees would not suffer any adverse affect if the City participated in the
Fresh Start Program and the City's employer rate was, accordingly lowered, since employees
would be entitled to the same 2.7% at 55 PERS benefit, the City already pays the employee's
PERS contribution, and participation in the Fresh Start program would not adversely affect
employee's wages or other benefits; and
WHEREAS, the City and Local 39 have met and conferred regarding the benefits of the
Fresh Start program, and have agreed as set forth below to modify how the City will conduct
total compensation comparisons affecting Local 39 employees, if any, during the remaining term
of their current MOU:
IT IS HEREBY AGREED THAT, if the City participates in the PERS Fresh Start
program:
1. The decrease in the City's PERS employer rate that results from the City's participation
in the Fresh Start program shall not cause the City to pay more in wage or other compensation or
benefits to Local 39 employees than if the City had not participated in the Fresh Start program.
2. For the remainder of this contract term, any total compensation comparison used by the
City or Local 39 for the purpose of determining whether any or a particular wage increase is
required or appropriate, the City's total compensation for Local 39 employees shall include what
the City's total PERS employer rate would have been if the City had not participated in the Fresh
Start program. Put differently, the City will include in its total compensation for survey
comparison purposes the sum of its actual employer rate and the percentage difference between
its actual rate and what the PERS employer rate would have been if the City had not participated
in the Fresh Start program. The following example demonstrates the parties' agreement on how
they will use the City's PERS employer rate in any total compensation comparison that the
parties decided to do, or are required to do, during the 2004-05, 2005-06, and 2006/07 Fiscal
Years.
~.m-gn4/04 S:kEmployee RelationskEERelations\Op Eng\OE Side Letter F Fresh Start. DOC
International Union of Operating Engineers, Local 39
Side Letter Re PERS Fresh Start
September 15, 2004
Appendix F
Page 3
Total Employer Rate in FY 2005~ If Do not Participate in Fresh Start ........... 16.051
Total Employer Rate in FY 2005 If Do Participate in Fresh Start ................... 13.448
Difference .......................................................................................................... 2.60
Total Employer Rate in FY 2006 If Do not Participate in Fresh Start ............ 15.65
Total Employer Rate in FY 2006 If Do Participate in Fresh Start ................... 13.448
Difference .......................................................................................................... 2.20
Total Employer Rate in FY 2007 If Do not Participate in Fresh Start ............ 15.268
Total Employer Rate in FY 2007 If Do Participate in Fresh Start ................... 13.448
Difference .......................................................................................................... 1.82
Under this example, if the parties chose to or are required to conduct a total compensation
comparison to survey agencies in the 2004-2005 Fiscal Year to determine whether a wage
increase was appropriate or required, the City's total compensation for purposes of the
comparison would include the 16.051% employer rate rather than the 13.448% rate the City will
actually have to contribute as its employer contribution in the 2004-05 Fiscal Year.
3. This Side Letter shall only be effective during the term of the current MOU, and shall
expire effective December 31, 2007.
4. This Side Letter shall be limited to the VEBA provision listed below and total
compensation surveys mandated by the current MOU, or any written agreement between the City
and Local 39, executed subsequent to this Side Letter and prior to December 31, 2007, that
requires the City to conduct a total compensation survey for the purpose of analyzing wage or
some other element of total compensation.
5. Employees in this unit shall continue to be eligible to participate in the Voluntary
Employee Benefit Association (VEBA) program previously provided by the City. VEBA
contributions are pre-tax, pre-FICA (Social Security/Medicare) and may be used for Post-
retirement Unreimbursed Expenses only (such as medical and dental prescriptions or copays).
Participants may use accrued, unused vacation payoffs to be automatically deposited into the
employee's VEBA account each January, provided the employee has utilized a minimum of 64
hours of paid vacation during the previous calendar year. Upon separation from employment,
the employee may designate that the remaining portion of any unused vacation, discretionary
holiday, sick, and/or administrative leave payoffs be deposited into his/her VEBA account.
The "Total Employer Rates" used in this example were provided to the City by PERS.
E1K-9/14/04 S:~Employee RelationsXEERelations\Op Eng\OE Side Letter F Fresh Start. DOC
dW/'W~,/WUW4 UW:42 41bWblbWb4
S2P-29-200~ 1S:]~ SSF HUMAN RESOURCES
IUUL LUUAL~W
850 229 689B
P.BS/B5
Internat. ional Urdon of Opera. ting Engineor~, Local 39
Side Letter Re PERS Fresh Start
September 15, 2004
Appencl/x F
?age 4
For 1%c~39: Lyma%ohg, ~'~ss Agent
For Local 39: Jerry Kalmar
Date
Date
~. Bower, Director of Human Resources
EIK-9I 1 ~d~$
S:~mployee RelatimasXLrl~elation~\OP Eng\OE Side Letter F Fresh Start. DOC
TOTAL P,B5
Side Letter H to the Current Memorandum of Understanding
Between the
City of South San Francisco
and the
International Association of Firefighters, Local 1507
WHEREAS, the City of South San Francisco (City) agreed in 2002 to enhance the
California Public Employees Retirement System (PERS) retirement benefit it provides to employees
represented by the International Association of Firefighters, Local 1507 (Local 1507) from the
retirement benefit commonly known as 2.5% at 50 to the retirement benefit commonly known as
3.0% at 50; and
WHEREAS, the City's agreement to provide Local 1507 employees with the enhanced 3%
at 50 retirement benefit is set forth in Section 8.10 of the current Memorandum of Understanding
between the City and Local 1507 with effective dates January 1, 2001 through June 30, 2006
(MOU); and subsequently extended to June 30, 2009 as indicated in Side Letter I signed by both
parties.
WHEREAS, in addition to the higher "normal cost" associated with the City providing
Local 1507 employees with this enhanced retirement benefit, the City also has to pay an additional
contribution to PERS to pay for the "unfunded liability" associated with the cost of providing
enhanced 3% at 50 retirement benefits to employees who retire relatively soon, such that the City's
contributions to PERS during these employees' employment are not sufficient to cover the costs of
these employees' retirements; and
WHEREAS, PERS is offering certain public agencies, who are facing financial hardship, the
oppommity to participate in their "Fresh Start" program to reduce the short-term cost of paying for
these unfunded liabilities; and
WHEREAS, the Fresh Start program would permit the City to increase the number of years
within which it would have to pay for the unfunded liabilities associated with providing Local 1507
employees with the 3.0% at 50 benefit from the usual 12 or 13 years, to 30 years, with the result that
the City would have a lower PERS employer rate in the short term; and
WHEREAS, the City's financial condition is such that short-term f'mancial savings offered
by the Fresh Start program would help the City in its efforts to minimize or avoid layoffs, and to
retain essential and valuable services; and
WHEREAS, the City has in the recent past calculated wage increases for Local 1507
employees by fa'st comparing certain categories of compensation (total compensation) with the
amounts paid/provided by certain survey agencies, and then adjusting Local 1507 employees'
wages, as and if required, to keep Local 1507 employees at the 60th percentile of the survey
agencies; and
Intemational Association of Firefighters, Local 1507
Side Letter Re PERS Fresh Start
September 15, 2004
Appendix H
Page 2
WHEREAS, the City has, in the past, included the City's PERS employer contribution in the
City's total compensation that has been compared to the applicable survey agencies; and
WHEREAS, the City savings which otherwise would occur due to a decrease in the
employer rate under the PERS Fresh Start program would be lost if this reduced rate was used to
determine the City's total compensation, since the reduced employer rate could result in a
corresponding increase in employee wages under the previously used formula to ensure employees
remain at the 60th percentile in total compensation among the survey agencies; and
WHEREAS, employees would not suffer any adverse affect if the City participated in the
Fresh Start Program and the City's employer rate was, accordingly, lowered, since employees
would be entitled to the same 3% at 50 PERS benefit, the City akeady pays the employee's PERS
contribution, and participation in the Fresh Start program would not adversely affect employee's
wages or other benefits; and
WHEREAS, the City and Local 1507 have met and conferred regarding the benefits of the
Fresh Start program, and have agreed as set forth below to modify how the City will conduct total
compensation comparisons affecting Local 1507 employees, if any, during the term of their current
MOU:
IT IS HEREBY AGREED THAT, if the City participates in the PERS Fresh Start program:
1. The decrease in the City's PERS employer rate that results from the City's participation in
the Fresh Start program shall not cause the City to pay more in wage or other compensation or
benefits to Local 1507 employees than if the City had not participated in the Fresh Start program.
2. For any total compensation comparison used by the City or Local 1507 for the purpose of
determining whether any or a particular wage increase is required or appropriate, the City's total
compensation for Local 1507 employees shall include what the City's total PERS employer rate
would have been if the City had not participated in the Fresh Start program. Put differently, the
City will include in its total compensation for survey comparison purposes the sum of its actual
employer rate and the percentage difference between its actual rate and what the PERS employer
rate would have been if the City had not participated in the Fresh Start program. The following
example demonstrates the parties' agreement on how they will use the City's PERS employer rate
in any total compensation comparison that the parties decided to do, or are required to do, during
the 2005-06, 2006-07, 2007-08, and 2008-09 Fiscal Years.
Total Employer Rate in FY 2005~
If Do not Participate in Fresh Start
32.463%
Total Employer Rate in FY 2005
If Do Participate in Fresh Start Difference
27.562% -4.90%
The "Total Employer Rates" used in this example were provided to the City by PERS.
ELK~09/15/04
lmtemational Association of Firefighters, Local 1507
Side Letter Re PERS Fresh Start
September 15, 2004
Appendix H
Page 3
Under this example, if the parties chose to or are required to conduct a total compensation
comparison to survey agencies in the 2005-06 Fiscal Year to determine whether a wage increase
was appropriate or required, the City's total compensation for purposes of the comparison would
include the 32.463% employer rate rather than the 27.562% rate the City will actually have to
contribute as its employer contribution in the 2005-06 Fiscal Year.
Total Fire Employer Rate in FY 2004/05 If Do not Participate in Fresh Start ............................................ 32.463
Total Fire Employer Rate in FY 2004/05 If Do Participate in Fresh Start ................................................. 27.562
Difference .................................................................................................................................................... 4.90
Total Fire Employer Rate in FY 2005/06 If Do not Participate in Fresh Start ........................................... 31.762
Total Fire Employer Rate in FY 2005/06 If Do Participate in Fresh Start ................................................. 27.562
Difference ................................................................................................................................... ; ................ 4.20
Total Fire Employer Rate in FY 2006/07 If Do not Participate in Fresh Start ........................................... 31.10
Total Fire Employer Rate in FY 2006/07 If Do Participate in Fresh Start ................................................. 27.562
Difference .................................................................................................................................................... 3.54
Total Fire Employer Rate in FY 2007/08 If Do not Participate in Fresh Start ........................................... 30.49
Total Fire Employer Rate in FY 2007/08 If DO Participate in Fresh Start ................................................. 27.562
Difference .................................................................................................................................................... 2.92
Total Fire Employer Rate in FY 2008/09 If Do not Participate in Fresh Start ........................................... 29.91
Total Fire Employer Rate in FY 2008/09 If Do Participate in Fresh Start ................................................. 27.562
Difference .................................................................................................................................................... 2.34
3. This Side Letter shall only be effective during the term of the current MOU and its extension
signed September 2004, and shall expire effective June 30, 2009.
4. This Side Letter shall be limited to total compensation surveys mandated by the current
MOU, or any written agreement between the City and Local 1507, executed subsequent to this Side
Letter and prior to June 30, 2006, that requires the City to conduct a total compensation survey for
the p,urpose of analyzing wag~ or some other elemenX~of total compensation.
l~ike I~ause, Chapter Pre~ent/ .... ,~ Date
IAFF, Local 150~-- .......... [
Ba/ryM. Nagel
City Manager
· I~~f ~n ~
Resources
SSEmployee RelationskEERelations\lAFFklAFF Side Lettex H Fr~h Start. DOC
Date
Date
ELK-09~15~04
Side Letter I to the Current Memorandum of Understanding Between the
City of South San Francisco
and the
International Association of Firefighters, Local 1507
WHEREAS, the City of South San Francisco (City) and Intemational Association of
Firefighters, Local 1507 (IAFF) previously agreed to a Memorandum of Understanding with
effective dates July 1, 2001 to June 30, 2006 (MOU); and
WHEREAS, the City and IAFF have met and conferred in good faith on the subject of
and conditions for extending the current MOU by three years to be effective through June 30,
2009.
IT IS HEREBY AGREED THAT THE CURRENT MOU BETWEEN THE CITY AND
IAFF SHALL BE EXTENDED FOR THREE YEARS AND EFFECTIVE THROUGH
JUNE 30, 2009 ACCORDING TO AND SUBJECT TO THE CONDITIONS SET FORTH
BELOW:
1. Wage Increases
Effective the payperiod including July 1, 2006, the base rate of pay for all employees
shall be increased by 3.0%.
Effective the payperiod including July 1, 2007, the base rate of pay for all employees
shall be increased, if and to the extent required, to keep employees at the 60th percentile in total
compensation of the previously agreed upon survey agencies, using the same methodology as
used during the current MOU, except as modified and agreed to in the Side Letter between the
City and IAFF regarding the PERS Fresh Start Program, signed by the parties.
Effective the payperiod including July 1, 2008, the base rate of pay for all employees
shall be increased, if and to the extent required, to keep employees at the 60th percentile in total
compensation for the previously agreed upon survey agencies, using the same methodology as
used during the current MOU, except as modified and agreed to in the Side Letter between the
City and IAFF regarding the PERS Fresh Start Program, signed by the parties.
2. Paramedic/Firefighter Promotions to Fire Apparatus Engineer
During the term of this MOU and its extension and no later than November 1, 2004, a
Paramedic/Firefighter who promotes to a Fire Apparatus Engineer shall be y-rated at the same
base pay as the individual received as a Paramedic/Firefighter so that the promotion does not
cause a decrease in the individual's base pay. The y-rated level of base pay for the new Fire
Side Letter I Between City of SSF and IAFF
Page 2
Apparatus Engineer shall cease once the individual's pay step in the Fire Apparatus Engineers
salary range would equal or exceed the individual's y-rated amount.
3. Fitness For Duty
The City and IAFF have previously met and conferred and currently intend to meet and
confer further on the subject of fitness for duty. The parties agree that these fitness for duty
discussions have not been part of, and will not be incorporated into, the current MOU or this
MOU extension. The parties' agreement to this MOU extension does not modify their respective
fights and obligations on the subject of fitness for duty or affect the parties' fights or ability to
continue to discuss this subject.
4. VEBA
Employees in this unit shall continue to be eligible to participate in the Voluntary
Employee Benefit Association (VEBA) program previously provided by the City. VEBA
contributions are pre-tax, pre-FICA (Social Security/Medicare) and may be used for Post-
retirement Unreimbursed Expenses only (such as medical and dental prescriptions or copays).
Participants may use accrued, unused vacation payoffs to be automatically deposited into the
employee's VEBA account each January, provided the employee has utilized a minimum of 64
hours of paid vacation during the previous calendar year. Upon separation from employment,
thd employee may designate that the remaining portion of any unused vacation, discretionary
holiday, sick, and/or administrative leave payoffs be deposited into his/her VEBA account.
5. Re-Openers
During the 2006-07, 2007-08, and 2008-09 fiscal years, both the City and IAFF will have
the right to re-open for negotiations one subject that is included, specifically discussed, and
governed by the current MOU.
Should either the City or IAFF wish to re-open any subject covered by the current MOU
contract extension, it must notify the other party no later than August 1 st, except that a party that
receives notice that the other party wishes to re-open a section of the MOU shall have 30
calendar days to respond that it also wishes to re-open a section of the MOU. Thus, for example,
if the City received notice from IAFF on August 1, 2006 that IAFF wished to re-open a section
of the MOU, the City would have until August 31, 2006 to notify IAFF that the City also wanted
to re-open a section of the MOU. Any notice that a party wishes to re-open a section of the
MOU pursuant to its fights under this Side Letter must be in writing, and specify the section of
the MOU.
While the parties are not obligated to reach agreement on any re-opener issue, they shall
meet and confer in good faith. The parties shall not be required to utilize or exhaust any
impasse, impasse resolution, or arbitration procedure that, in the absence of this paragraph, they
otherwise would be required to exhaust or utilize under any City policy, rule or practice,
agreement, or state or federal law.
ELK-9/30/04
S:\Ernployee Relations~EERelations'dAFF~IAFF Side Letter I.DOC 714926-1
Side Letter I Between City of SSF and IAFF
Page 3
This Side Letter shall not affect the parties' previously held meet and confer rights and
obligations except as specifically set forth in this Side Letter.
i~& Kralise; Chapter President
IAFF, Local 1507
Date
Date
J wer
Diro~tdr of Human Resources
' { '//D~te
ELK-9/30/04 714926-1
S:kEmployee RelationskEERelations~IAFF\IAFF Side Letter I.DOC
Side Letter H to the Current Memorandum of Understanding
Between the
City of South San Francisco
and the
South San Francisco Police Association
WHEREAS, the City of South San Francisco (City) agreed in 2002 to enhance the
California Public Employees Retirement System (PERS) retirement benefit it provides to
employees represented by the Police Association from the retirement benefit for sworn police
members commonly known as 2% at 50 to the retirement benefit commonly known as 3.0% at
50 and the retirement benefit for miscellaneous police members commonly known as 2% at 55 to
the retirement benefit commonly known as 2.7% at 55; and
WHEREAS, the City's agreement to provide Association employees with the enhanced
3% at 50 retirement benefit is set forth in Section 6.2.2.4 and G3 of the current Memorandum of
Understanding and its extension between the City and the Association with effective dates
January 1, 2001 through December 31, 2004 and extended from January 1, 2005 through
December 31, 2006 (MOU); and
WHEREAS, in addition to the higher "normal cost" associated with the City providing
Association employees with this enhanced retirement benefit, the City also has to pay an
additional contribution to PERS to pay for the "unfimded liability" associated with the cost of
providing enhanced 3% at 50 and 2.7% at 55 retirement benefits to employees who retire
relatively soon, such that the City's contributions to PERS during these employees' employment
are not sufficient to cover the costs of these employees' retirements; and
WHEREAS, PERS is offering certain public agencies, who are facing financial hardship,
the oppommity to participate in their "Fresh Start" program to reduce the short-term cost of
paying for these unfunded liabilities; and
WHEREAS, the Fresh Start program would permit the City to increase the number of
years within which it would have to pay for the unfunded liabilities associated with providing
Association employees with the 3.0% at 50 and 2.7% at 55 benefit from the usual 12 or 13 years,
to 30 years, with the result that the City would have a lower PERS employer rate in the short
term; and
WHEREAS, the City's financial condition is such that short-term financial savings
offered by the Fresh Start program would help the City in its efforts to minimize or avoid layoffs,
and to retain essential and valuable services; and
WHEREAS, the City has in the recent past calculated wage increases for Association
employees by first comparing certain categories of compensation (total compensation) with the
South San Francisco Police Association
Side Letter Re PERS Fresh Start
September 30, 2004
Appendix H
Page 2
amounts paid/provided by certain survey agencies, and then adjusting Association employees'
wages, as and if required, to keep Association employees at the 60th percentile of the survey
agencies; and
WHEREAS, the City has, in the past, included the City's PERS employer contribution in
the City's total compensation that has been compared to the applicable survey agencies; and
WHEREAS, the City savings which otherwise would occur due to a decrease in the
employer rate under the PERS Fresh Start program would be lost if this reduced rate was used to
determine the City's total compensation, since the reduced employer rate could result in a
corresponding increase in employee wages under the previously used formula to ensure
employees remain at the 60th percentile in total compensation among the survey agencies; and
WHEREAS, employees would not suffer any adverse affect if the City participated in the
Fresh Start Program and the City's employer rate was, accordingly, lowered, since employees
would be entitled to the same 3% at 50 and/or 2.7% at 55 PERS benefit, the City already pays
the employee's PERS contribution, and participation in the Fresh Start program would not
adversely affect employee's wages or other benefits; and
WHEREAS, the City and Association have met and conferred regarding the benefits of
the Fresh Start program, and have agreed as set forth below to modify how the City will conduct
total compensation comparisons affecting Association employees, if any, during the term of their
current MOU:
IT IS HEREBY AGREED THAT, if the City participates in the PERS Fresh Start
program:
1. The decrease in the City's PERS employer rate that results from the City's participation
in the Fresh Start program shall not cause the City to pay more in wage or other compensation or
benefits to Association employees than if the City had not participated in the Fresh Start
program.
2. For any total compensation comparison used by the City or Association for the purpose
of determining whether any or a particular wage increase is required or appropriate, the City's
total compensation for Association employees shall include what the City's total PERS employer
rate would have been if the City had not participated in the Fresh Start program. Put differently,
the City will include in its total compensation for survey comparison purposes the sum of its
actual employer rate and the percentage difference between its actual rate and what the PERS
employer rate would have been if the City had not participated in the Fresh Start program. The
following example demonstrates the parties' agreement on how they will use the City's PERS
employer rate in any total compensation comparison that the parties decided to do, or are
required to do, during the 2005-06 Fiscal Year
South San Francisco Police Association
Side Letter Re PERS Fresh Start
September 30, 2004
Appendix H
Page 3
Total Police Employer Rate in FY 2005~ If Do not Participate in Fresh Start ............................................ 33.528
Total Police Employer Rate in FY 2005 If Do Participate in Fresh Start .................................................. 27.750
Difference .................................................................................................................................................. 5.78
Total Police Employer Rate in FY 2006 If Do not Participate in Fresh Start ............................................ 32.509
Total Police Employer Rate in FY 2006 If Do Participate in Fresh Start .................................................. 27.750
Difference .................................................................................................................................................. 4.76
Total Miscellaneous Employer Rate in FY 2005 If Do not Participate in Fresh Start ................................ 16.051
Total Miscellaneous Employer Rate in FY 2005 If Do Participate in Fresh Start ..................................... 13.448
Difference 2.60
Total Miscellaneous Employer Rate in FY 2006 If Do not Participate in Fresh Start ............................... 15.65
Total Miscellaneous Employer Rate in FY 2006 If Do Participate in Fresh Start ..................................... 13.448
Difference
.................................................................................................................................................. .20
Under this example, if the parties chose to or are required to conduct a total compensation
comparison to survey agencies in the 2004-05 Fiscal Year to determine whether a wage increase
for sworn police members was appropriate or required, the City's total compensation for
purposes of the comparison would include the 33.528% employer rate rather than the 27.750%
rate the City will actually have to contribute as its employer contribution in the 2004-05 Fiscal
Year.
3. This Side Letter shall only be effective during the term of the current MOU, and shall
expire effective December 31, 2006.
4. This Side Letter shall be limited to total compensation surveys mandated by the current
MOU, or any written agreement between the City and Association, executed subsequent to this
Side Letter and prior to December 31, 2006, that requires the City to conduct a total
compensation survey for the purpose of analyzing wage or some other element of total
compensation.
Name, Title Date
Police Association
pNoa~icee' AT~?o ciation~,)~
The "Total Employer Rates" used in this example were provided to the City by PERS.
South San Francisco Police Association
Side Letter Re PERS Fresh Start
September 30, 2004
Appendix H
Page 4
Bavr~ M. Nagel
City Manager
Date
Je '
~o~ Human Resources
ELK S:~Employee RelationshEERelations~Police~A Side Letter H Fresh Start. DOC
Side Letter I to the Current Memorandum of Understanding Between the
City of South San Francisco
and the
South San Francisco Police Association
WHEREAS, the City of South San Francisco (City) and the South San Francisco Police
Association (Association) previously agreed to a Memorandum of Understanding with effective
dates January 1, 2001 to December 31, 2004 and extended from January 1, 2005 through
December 31, 2006 (MOU); and
WHEREAS, the City and Association have met and conferred in good faith on the
subject of and conditions for extending the current MOU by two years to be effective through
December 31, 2008.
IT IS HEREBY AGREED THAT THE CURRENT MOU BETWEEN THE CITY AND
ASSOCIATION SHALL BE EXTENDED FOR TWO YEARS AND EFFECTIVE THROUGH
DECEMBER 31, 2008 ACCORDING TO AND SUBJECT TO THE CONDITIONS SET
FORTH BELOW:
1. Wage
Effective the payperiod including January 1, 2006, the base rate of pay for all employees
shall be increased, if and to the extent required, to keep employees at the 60th percentile in total
compensation of the previously agreed-upon survey agencies, using the same methodology as
used during the current MOU, except as modified and agreed to in the Side Letter between the
City and the Association regarding the PERS Fresh Start Program, signed by the parties in
October 2004, and as set forth in the remainder of this paragraph.
For the payperiod including January 1, 2005, the base rate of pay for all employees shall
be increased, if and to the extent required, to keep employees at the 60th percentile in total
compensation of the previously agreed-upon survey agencies using the same methodology as
agreed to during the current MOU, except the PERS rates will be those rates established on
7/1/04 by PERS for survey agencies. For the 2006 adjustment only, the modified Fresh Start
survey methodology agreed to in the October 2004 Side Letter shall be further modified for any
survey agency that also contracts for PERS' Fresh Start Program. Specifically, that agency's
PERS employer contribution rate used to determine that agency's total compensation in the
survey shall be the agency's employer contribution rate (not adjusted due to the Fresh Start
Program), unless the parties are able to confirm, and thus utilize, what would have been that
agency's actual higher PERS employer contribution rate had the agency not contracted for the
Fresh Start Program. If the prior Fresh Start contribution rate cannot be established, the City will
use the South San Francisco Fresh Start percentage modifier.
Side Letter I Between City of SSF and PA
Page 2
Effective the pay period including January 1, 2007, the base rate of pay for all employees
shall be increased by the same percentage as any increase in the CPI (U) for the San Francisco,
Oakland, San Jose area during the 2006 calendar year (i.e. the percentage increase for the 12-
month period from January 1, 2006 to December 31, 2006).
Effective the pay period including January 1, 2008, the base rate of pay for all employees
shall be increased, if and to the extent required, to keep employees at the 60th percentile in total
compensation of the previously agreed-upon survey agencies, using the same methodology as
used during the current MOU, except as modified and agreed to in the Side Letter between the
City and the Association regarding the PERS Fresh Start Program, signed by the parties in
September 2004.
2. VEBA
Employees in this unit shall continue to be eligible to participate in the Voluntary
Employee Benefit Association (VEBA) program previously provided by the City. VEBA
contributions are pre-tax, pre-FICA (Social Security/Medicare) and may be used for Post-
retirement Unreimbursed Expenses only (such as medical and dental prescriptions or copays).
Participants may use accrued, unused vacation payoffs to be automatically deposited into the
employee's VEBA account each January, provided the employee has utilized a minimum of 64
hours of paid vacation during the previous calendar year. Upon separation from employment,
the employee may designate that the remaining portion of any unused vacation, discretionary
holiday, sick, and/or administrative leave payoffs be deposited into his/her VEBA account.
3. Benefits
In September 2004, the City has also been negotiating MOU and Compensation Plan
extensions with its other employee groups, including IAFF Local 1507, AFSCME Local 1569,
Teamsters Local 856, IUOESEL Local 39, the Public Safety Managers Unit, the Mid-
Management Unit, and the Executive Management Unit (hereafter, "the 2004 Negotiations").
The City agrees that the Association shall be entitled to receive any increase in health and
welfare benefits, including any enhancement to health, retirement, or leave benefits, granted to
any of the above-referenced other employee groups during the 2004 Negotiations, if the cost of
the increase if applied to the Association would be valued at 0.5% or more of the Association's
base salary. This fight shall not extend, however, to any wage increase negotiated by or granted
to any other employee group. This provision also shall not apply to any increase that another
employee group may have negotiated or will receive as a result of a re-opener provision in their
MOU or Compensation Plan.
4. Re-Opener
Both the City and Association shall have the right to re-open for negotiations any aspect
of the salary survey referenced in Section 2 of this Side Letter, that would otherwise be used to
calculate the wage increase, if any, for Association employees in 2008. Should either the City or
ELK-9/30/IM 714926-1
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Side Letter I Between City of SSF and PA
Page 3
Association wish to re-open on the subject of the salary survey, it must notify the other party, in
writing, between January 1, 2007 and June 1, 2007. While the parties are not obligated to reach
agreement on any change in the salary survey methodology, they shall meet and confer in good
faith. Any change must be "mutually agreed" to without utilizing or exhausting any impasse,
impasse resolution, arbitration procedure, or imposition of the change that, in the absence of this
paragraph, they otherwise would be required to exhaust or utilize under any City policy, rule or
practice, agreement, or state or federal law.
Name, Title
Police Association
Date
Date
ELK-9/30/04
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714926-1
Side Letter G to the Current Compensation Plan
Between the
City of South San Francisco
and the
Mid-management Unit
WHEREAS, the City of South San Francisco (City) agreed in 2002 to enhance the
California Public Employees Retirement System (PERS) retirement benefit it provides to
unrepresented Mid-management unit employees from the retirement benefit commonly known as
2% at 55 to the retirement benefit commonly known as 2.7% at 55; and
WHEREAS, the City's agreement to provide the Mid-management employees with the
enhanced 2.7% at 55 retirement benefit is set forth in Section 7.12.4 of the current Compensation
Plan between the City and the Mid-management Unit with effective dates July 1, 2000 to
June 30, 2003 extended from July 1, 2003 through September 30, 2007 (CP); and
WHEREAS, in addition to the higher "normal cost" associated with the City providing
Mid-management Unit employees with this enhanced retirement benefit, the City also has to pay
an additional contribution to PERS to pay for the "unfunded liability" associated with the cost of
providing enhanced 2.7% at 55 retirement benefits to employees who retire relatively soon, such
that the City's contributions to PERS during these employees' employment are not sufficient to
cover the costs of these employees' retirements; and
WHEREAS, PERS is offering certain public agencies, who are facing financial hardship,
the opportunity to participate in their "Fresh Start" program to reduce the short-term cost of
paying for these unfunded liabilities; and
WHEREAS, the Fresh Start program would permit the City to increase the number of
years within which it would have to pay for the unfunded liabilities associated with providing the
Mid-management Unit employees with the 2.7% at 55 benefit from the usual 12 or 13 years, to
30 years, with the result that the City would have a lower PERS employer rate in the short term;
and
WHEREAS, the City's financial condition is such that short-term financial savings
offered by the Fresh Start program would help the City in its efforts to minimize or avoid layoffs,
and to retain essential and valuable services; and
WHEREAS, the City has in the recent past calculated wage increases for Mid-
management Unit employees by first comparing certain categories of compensation (total
compensation) with the amounts paid/provided by certain survey agencies, and then adjusting
Mid-management Unit employees' wages, as and if required, to keep Mid-management Unit
employees at the 60th percentile of the survey agencies; and
Mid-management Unit
Side Letter Re PERS Fresh Start
September 15, 2004
Appendix G
Page 2
WHEREAS, the City has, in the past, included the City's PERS employer contribution in
the City's total compensation that has been compared to the applicable survey agencies; and
WHEREAS, the City savings which otherwise would occur due to a decrease in the
employer rate under the PERS Fresh Start program would be lost if this reduced PERS employer
contribution rate was used to determine the City's total compensation, since the reduced
employer rate could result in a corresponding increase in employee wages under the previously
used formula to ensure employees remain at the 60th percentile in total compensation among the
survey agencies; and
WHEREAS, employees would not suffer any adverse affect if the City participated in the
Fresh Start Program and the City's employer rate was, accordingly lowered, since employees
would be entitled to the same 2.7 at 55 PERS benefit, the City akeady pays the employee's
PERS contribution, and' participation in the Fresh Start program would not adversely affect
employee's wages or other benefits; and
WHEREAS, the City and Mid-management Unit have met and conferred regarding the
benefits of the Fresh Start program, and have agreed as set forth below to modify how the City
will conduct total compensation comparisons affecting Mid-management Unit employees, if any,
during the remaining term of their current CP:
IT IS HEREBY AGREED THAT, if the City participates in the PERS Fresh Start
program:
1. The decrease in the City's PERS employer rate that results from the City's participation
in the Fresh Start program shall not cause the City to pay more in wage or other compensation or
benefits to Mid-management Unit employees than if the City had not participated in the Fresh
Start program.
2. For the remainder of this contract term, any total compensation comparison used by the
City or Mid-management Unit for the purpose of determining whether any or a particular wage
increase is required or appropriate, the City's total compensation for Mid-management Unit
employees shall include what the City's total PERS employer rate would have been if the City
had not participated in the Fresh Start program. Put differently, the City will include in its total
compensation for survey comparison purposes the sum of its actual employer rate and the
percentage difference between its actual rate and what the PERS employer rate would have been
if the City had not participated in the Fresh Start program. The following example demonstrates
the parties' agreement on how they will use the City's PERS employer rate in any total
compensation comparison that the parties decided to do, or are required to do, during the 2004-
05, 2005-06, and 2006-07 Fiscal Years.
ELK-9/14/04C:kDo¢llmellts and Settings\jbower~Local Settings\Temporary Internet Files\OLK94hMM_Side_Letter G Fresh_Startl.dc
Mid-management Unit
Side Letter Re PERS Fresh Start
September 15, 2004
Appendix G
Page 3
Total Employer Rate in FY 2005~ If Do not Participate in Fresh Start ........... 16.051
Total Employer Rate in FY 2005 If Do Participate in Fresh Start ..................13.448
Difference .......................................................................................................... 2.60
Total Employer Rate in FY 2006 If Do not Participate in Fresh Start ............ 15.65
Total Employer Rate in FY 2006 If Do Participate in Fresh Start ..................13.448
Difference .......................................................................................................... 2.20
Total Employer Rate in FY 2007 If Do not Participate in Fresh Start ............ 15.268
Total Employer Rate in FY 2007 If Do Participate in Fresh Start ..................13.448
Difference .......................................................................................................... 1.82
Under this example, if the parties chose to or are required to conduct a total compensation
comparison to survey agencies in the 2004-2005 Fiscal Year to determine whether a wage
increase was appropriate or required, the City's total compensation for purposes of the
comparison would include the 16.051% employer rate rather than the 13.448% rate the City will
actually have to contribute as its employer contribution in the 2004-05 Fiscal Year.
3. This Side Letter shall only be effective during the term of the current CP, and shall expire
effective September 30, 2007.
4. This Side Letter shall be limited to total compensation surveys mandated by the current
CP, or any written agreement between the City and Mid-management Unit, executed subsequent
to this Side Letter and prior to September 30, 2007, that requires the City to conduct a total
compensation survey for the purpose of analyzing wage or some other element of total
Financial Services Supervisor 9/30/04
For Mid-management Unit: Name and Title Date
Ba ~rt~y~!~-Nagel City 19lanager
Date
The "Total Employer Rates" used in this example were provided to the City by PERS.
ELK-9/~4/04C:kDocuments and Settings\jbowerkLocal Settings\Temporary Interact FilesXOLK94X:MM_Side_Letter G Fresh_Startl.dc
Mid-management Unit
Side Letter Re PERS Fresh Start
September 15, 2004
Appendix G
Page 4
Je r, Director of Human Resources
//Date
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Side Letter H to the Current Compensation Plan
Between the
City of South San Francisco
and the
Mid-management Unit
WHEREAS, the City of South San Francisco (City) and the Mid-management employees
previously agreed to a Compensation Plan with effective dates July 1, 2000 through June 30,
2003 and extended to September 30, 2007 (CP); and
WHEREAS, the City and Mid-management representatives have met and conferred in
good faith on the subject of and conditions for again extending the current Compensation Plan by
two years to be effective through September 30, 2009.
IT IS HEREBY AGREED THAT THE CURRENT COMPENSATION PLAN
BETWEEN THE CITY AND THE MID-MANAGEMENT UNIT SHALL BE EXTENDED
FOR TWO YEARS AND EFFECTIVE THROUGH JUNE 30, 2009 ACCORDING TO AND
SUBJECT TO THE CONDITIONS SET FORTH BELOW:
1. Wage Increases
Effective the payperiod including July 1, 2006, the base rate of pay for all employees
shall be increased by the same percentage as any increase in the CPI(U) for the San Francisco,
Oakland, San Jose area for the previous 12-month period.
Effective the payperiod including July 1, 2007, the base rate of pay for all employees
shall be increased, if and to the extent required, to keep employees at the 60th percentile in total
compensation of the previously agreed upon survey agencies, using the same methodology as
used during the current CP.
Effective the payperiod including July 1, 2008, the base rate of pay for all employees
shall be increased, if and to the extent required, to keep employees at the 60th percentile in total
compensation of the previously agreed upon survey agencies, using the same methodology as
used during the current CP.
2. Me Too Salary Clause
Effective the payperiod including July 1, 2006, the base rate of pay for all employees
shall be increased by the CPI as indicated in the Wage Increase section above. However, if the
CPI is .5% of salary or more below the fixed rate increase as granted IAFF on that same date,
this unit shall receive the fixed rate of 3%. For example, if the increase is CPI(U) 2.51% or
greater, this will be the increase given the Mid-management unit. If this CPI(U) increase is
2.50% or less, employees shall receive an increase of 3.0%.
Side Letter H Between City of SSF and Mid-management Unit
Page 2
3. Maintenance of Benefits
During the 2007-08 and 2008-09 fiscal years, both the City and the Mid-management
Unit agree to maintain the current level of health and welfare benefits, subject to the Re-opener
provision below.
4. Re-Openers
During the 2007-08 and 2008-09 fiscal years, both the City and the Mid-management
Unit representations will have the fight to re-open for negotiations one subject that is included,
specifically discussed, and governed by the current CP.
Should either the City or the Mid-management Unit wish to re-open any subject covered
by the current CP contract extension, it must notify the other party no later than September 1st,
except that a party that receives notice that the other party wishes to re-open a section of the CP
shall have 30 calendar days to respond that it also wishes to re-open a section of the CP. Thus,
for example, if the City received notice from the Mid-management Unit on September 1, 2007
that it wished to re-open a section of the CP, the City would have until October 1, 2007 to notify
the Mid-management Unit that the City also wanted to re-open a section of the CP. Any notice
that a party wishes to re-open a section of the MOU pursuant to its fights under this Side Letter
must be in writing, and specify the section of the CP.
While the parties are not obligated to reach agreement on any re-opener issue, they shall
meet and confer in good faith. The parties shall not be required to utilize or exhaust any
impasse, impasse resolution, or arbitration procedure that, in the absence of this paragraph, they
otherwise would be required to exhaust or utilize under any City policy, rule or practice,
agreement, or state or federal law.
This Side Letter shall not affect the parties' previously held meet and confer fights and
obligations except as specifically set forth in this Side Letter.
f/l(a~nan, MidC-mana~ment Unit
09/30/04
Date
Date
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Side Letter H Between City of SSF and Mid-management Unit
Page 3
Jennif~A(. l~wer, Director of Human Resources
Date
ELK-9/30/04
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714926-1
Side Letter J to the Current Compensation Plan
Between the
City of South San Francisco
and the
Public Safety Managers Unit Employees
WHEREAS, the City of South San Francisco (City) and the Public Safety Managers Unit
(PSM) previously agreed to a Compensation Plan with effective dates January 1, 2002 to
December 31, 2004 (CP); and
WHEREAS, the City and PSM have met and conferred in good faith on the subject of
and conditions for extending the current CP by 18 months years to be effective through June 30,
2006.
IT IS HEREBY AGREED THAT THE CURRENT CP BETWEEN THE CITY AND
PSM SHALL BE EXTENDED FOR EIGHTEEN MONTHS AND EFFECTWE THROUGH
JUNE 30, 2006 ACCORDING TO AND SUBJECT TO THE CONDITIONS SET FORTH
BELOW:
1. "Me Too" Compensation and Benefits
During this CP extension, the City will continue to provide wage increases to Fire
Service Public Safety Managers and Police Service Public Safety Managers according to the
same "me too" practice as it previously has under the current CP (See CP, Section 2.1). The
City also will continue during the term of the CP extension its current practices of providing
those benefits previously provided to Fire Service Public Safety Managers as provided for
employees represented by IAFF and providing those benefits as previously provided to Police
Service Public Safety Managers as provided for employees represented by the Police
Association.
2. VEBA
Employees in this unit shall continue to be eligible to participate in the Voluntary
Employee Benefit Association (VEBA) program previously provided by the City. VEBA
contributions are pre-tax, pre-FICA (Social Security/Medicare) and may be used for Post-
retirement Unreimbursed Expenses only (such as medical and dental prescriptions or copays).
Participants may use accrued, unused vacation payoffs to be automatically deposited into the
employee's VEBA account each January, provided the employee has utilized a minimum of 64
hours of paid vacation during the previous calendar year. Upon separation ~om employment,
the employee may designate that the remaining portion of any unused vacation, discretionary
holiday, sick, and/or administrative leave payoffs be deposited into his/her VEBA account.
Side Letter J Between City of SSF and Public Safety Managers Unit
Page 2
3. Dental Benefits Study
Section C. 1. of Appendix C to the current CP concerns the possibility of employees
covered by the CP exploring the feasibility of increasing dental benefits and sets a deadline for a
possible modification of January 1, 2003. The parties agree that this deadline shall be extended
to December 31, 2005.
4. Re-Openers
From January 1, 2005 through June 30, 2006, both the City and PSM will have the right
to re-open for negotiations one subject that is included, specifically discussed, and governed by
the current CP.
Should either the City or PSM wish to re-open any subject covered by the current CP
contract extension, it must notify the other party no sooner than August 1, 2005 and no later than
October 1, 2005, except that a party that receives notice that the other party wishes to re-open a
section of the CP shall have 30 calendar days to respond that it also wishes to re-open a section
of the CP. Thus, for example, if the City received notice from PSM on August 1, 2005 that PSM
wished to re-open a section of the CP, the City would have until August 31, 2005 to notify PSM
that the City also wanted to re-open a section of the CP. Any notice that a party wishes to re-
open a section of the CP pursuant to its rights under this Side Letter must be in writing, and
specify the section of the CP.
While the parties are not obligated to reach agreement on any re-opener issue, they shall
meet and confer in good faith. The parties shall not be required to utilize or exhaust any
impasse, impasse resolution, or arbitration procedure that, in the absence of this paragraph, they
otherwise would be required to exhaust or utilize under any City policy, rule or practice,
agreement, or state or federal law.
This Side Letter shall not affect the parties' previously held meet and confer fights and
obligafi.~e?ept ~/specifically set forth in this Side Letter.
Public S~[ty Manager Representative,
Bob ~tta;ion Chief
Public Safety Manager Representative
Mike/l~snan, Police~L4euten.ant
BarrfM. Nagel Ci~~er
Jenniferf~. Bower, Director of Human Resources
ELK-9/30/04
S:kEmploy~e Rel~tio~kEERelationskPSIVl~Side Lett~ J PSM,DOC
Date
Date
714926-1
Side Letter I to the Current Compensation Plan
Between the
City of South San Francisco
and the
Public Safety Managers Unit Employees
WHEREAS, the City of South San Francisco (City) agreed in 2002 to enhance the
California Public Employees Retirement System (PERS) retirement benefit it provides to Public
Safety Managers Unit employees from the retirement benefit for both of its public safety sworn
members commonly known as 2.5% at 55 to the retirement benefit commonly known as 3% at
50; and
WHEREAS, the City's agreement to provide Public Safety Managers Unit employees
with the enhanced 3% at 50 retirement benefit is set forth in Section 5.9.1.5 of the current
Compensation Plan between the City and Public Safety Managers Unit (CP) with effective dates
January 1, 2002 through December 31, 2004; and extended to June 30, 2006 (see Side Letter J).
WHEREAS, in addition to the higher "normal cost" associated with the City providing
Public Safety Managers Unit employees with this enhanced retirement benefit, the City also has
to pay an additional contribution to PERS to pay for the "unfunded liability" associated with the
cost of providing enhanced 3% at 50 retirement benefits to employees who retire relatively soon,
such that the City's contributions to PERS during these employees' employment are not
sufficient to cover the costs of these employees' retirements; and
WHEREAS, PERS is offering certain public agencies, who are facing financial hardship,
the opportunity to participate in their "Fresh Start" program to reduce the short-term cost of
paying for these unfunded liabilities; and
WHEREAS, the Fresh Start program would permit the City to increase the number of
years within which it would have to pay for the unfunded liabilities associated with providing the
Public Safety Managers Unit employees with the 3% at 50 benefit from the usual 12 or 13 years,
to 30 years, with the result that the City would have a lower PERS employer rate in the short
term; and
WHEREAS, the City's financial condition is such that short-term financial savings
offered by the Fresh Start program would help the City in its efforts to minimize or avoid layoffs,
and to retain essential and valuable services; and
WHEREAS, the City has, in the past, included the City's PERS employer contribution in
the City's total compensation that has been compared to the applicable survey agencies; and
Public Safety Managers Unit Employees
Side Letter Re PERS Fresh Start
September 28, 2004
Appendix I
Page 2
WHEREAS, the City savings which otherwise would occur due to a decrease in the
employer rate under the PERS Fresh Start program would be lost if this reduced PERS employer
contribution rate was used to determine the City's total compensation, since the reduced
employer rate could result in a corresponding increase in employee wages under the previously
used formula to ensure employees remain at the 60th percentile in total compensation among the
survey agencies; and
WHEREAS, employees would not suffer any adverse affect if the City participated in the
Fresh Start Program and the City's employer rate was, accordingly lowered, since employees
would be entitled to the same 3% at 50 PERS benefit, the City already pays the employee's
PERS contribution, and participation in the Fresh Start program would not adversely affect
employee's wages or other benefits; and
WHEREAS, the City and Public Safety Managers Unit have met and conferred regarding
the benefits of the Fresh Start program, and have agreed as set forth below to modify how the
City will conduct total compensation comparisons affecting Public Safety Managers Unit
employees, if any, during the remaining term of their current CP:
IT IS HEREBY AGREED THAT, if the City participates in the PERS Fresh Start
program:
1. The decrease in the City's PERS employer rate that results from the City's participation
in the Fresh Start program shall not cause the City to pay more in wage or other compensation or
benefits to Public Safety Managers Unit employees than if the City had not participated in the
Fresh Start program.
2. For the remainder of this contract term, any total compensation comparison used by the
City or Public Safety Managers Unit for the purpose of determining whether any or a particular
wage increase is required or appropriate, the City's total compensation for Public Safety
Managers Unit employees shall include what the City's total PERS employer rate would have
been if the City had not participated in the Fresh Start program. Put differently, the City will
include in its total compensation for survey comparison purposes the sum of its actual employer
rate and the percentage difference between its actual rate and what the PERS employer rate
would have been if the City had not participated in the Fresh Start program. The following
example demonstrates the parties' agreement on how they will use the City's PERS employer
rate in any total compensation comparison that the parties decided to do, or are required to do,
during the 2004-05, 2005-06, and 2006-07 Fiscal Years.
ELK-9/14/04 S:kEmployee RelationsLEERelationskPSMkPSM Side Letter I Fresh Start. DOC
Public Safety Managers Unit Employees
Side Letter Re PERS Fresh Start
September 28, 2004
Appendix I
Page 3
Total Police Employer Rate in FY 2005 If Do Participate in Fresh Start ...................................................
Difference ....................................................................................................................................................
Total Police Employer Rate in FY 2006 If Do not Participate in Fresh Start .............................................
Total Police Employer Rate in FY 2006 If Do Participate in Fresh Start ...................................................
Total Police Employer Rate in FY 2005 If Do not Participate in Fresh Start .............................................. 33.528
27.750
5.78
32.509
Difference 27.750
.................................................................................................................................................... .76
Total Police Employer Rate in FY 2007 If Do not Participate in Fresh Start ............................................. 31.55
Total Police Employer Rate in FY 2007 If Do Participate in Fresh Start ...................................................27.750
Difference
.................................................................................................................................................... 3.80
Total Fire Employer Rate in FY 2005 If Do not Participate in Fresh Start ................................................. 32.463
Total Fire Employer Rate in FY 2005 If Do Participate in Fresh Start ......................................................27.562
Difference .................................................................................................................................................... 4.90
Total Fire Employer Rate in FY 2006 If Do not Participate in Fresh Start ................................................ 31.762
Total Fire Employer Rate in FY 2006 If Do Participate in Fresh Start ......................................................27.562
Difference .................................................................................................................................................... 3.54
Total Fire Employer Rate in FY 2007 If Do not Participate in Fresh Start ................................................ 30.49
Total Fire Employer Rate in FY 2007 If Do Participate in Fresh Start ......................................................27.562
Difference
.................................................................................................................................................... .92
Under this example, if the parties chose to or are required to conduct a total compensation
comparison to survey agencies in the 2004-2005 Fiscal Year to determine whether a wage
increase was appropriate or required for police employees, the City's total compensation for
purposes of the comparison would include the 33.528% employer rate rather than the 27.750%
rate the City will actually have to contribute as its employer contribution in the 2004-05 Fiscal
Year.
3. This Side Letter shall only be effective during the term of the current Compensation Plan,
and shall expire effective June 30, 2006.
4. This Side Letter shall be limited to total compensation surveys mandated by the current
Compensation Plan, or any written agreement between the City and Public Safety Managers
Unit, executed subsequent to this Side Letter and prior to December 31, 2004, that requires the
City to conduct a total compensation survey for the purpose of analyzing wage or some other
element of total compensation.
ELK-9/14/04 S:XEmployee Relations~EERelations~PSM~PSM Side Letter I Fresh Start. DOC
Public Safety Managers Unit Employees
Side Letter Re PERS Fresh Start
September 28, 2004
Appendix I
Page 4
For Public Safety Managers Unit:
Bob~ma~ lion Chief
For Public Safety Managers Unit:
Mike Brosnan, Police Lieutenant
B~ M. Nagel ~ty-'l~"~'-ager
e~t(r A. BcJwer, D~ of l-luma~Resources
Date
Date
Date
E~.K-9/~4/04 S:kEmployee RelationskEERelationskPSIvlkPSM Side Letter I Fresh Start. DOC
Side Letter to the Current Compensation Plan
Between the
City of South San Francisco
and the
Executive Management Employees
WHEREAS, the City of South San Francisco (City) agreed in 2002 to enhance the
California Public Employees Retirement System (PERS) retirement benefit it provides to
Executive Management employees from the retirement benefit for its miscellaneous members
commonly known as 2% at 55 to the retirement benefit commonly known as 2.7% at 55; and for
public safety executive management employees fi:om the retirement benefit for its public safety
sworn members commonly known as 2.5% at 55 to the retirement benefit commonly known as
3% at 50; and
WHEREAS, the City's agreement to provide Executive Management employees with the
enhanced 2.7% at 55 and 3% at 50 retirement benefit is set forth in Section H of the current
Compensation Plan (CP) between the City and Executive Management with effective dates
July 1, 2000 through September 30, 2003 and extended from July 1, 2003 through September 30,
2006; and
WHEREAS, in addition to the higher "normal cost" associated with the City providing
Executive Management employees with this enhanced retirement benefit, the City also has to pay
an additional contribution to PERS to pay for the "unfunded liability" associated with the cost of
providing enhanced 2.7% at 55 and the 3% at 50 retirement benefits to employees who retire
relatively soon, such that the City's contributions to PERS during these employees' employment
are not sufficient to cover the costs of these employees' retirements; and
WHEREAS, PERS is offering certain public agencies, who are facing financial hardship,
the opportunity to participate in their "Fresh Start" program to reduce the short-term cost of
paying for these unfunded liabilities; and
WHEREAS, the Fresh Start program would permit the City to increase the number of
years within which it would have to pay for the unfunded liabilities associated with providing the
Executive Management employees with the 2.7% at 55 and 3% at 50 benefit fi:om the usual 12 or
13 years, to 30 years, with the result that the City would have a lower PERS employer rate in the
short term; and
WHEREAS, the City's financial condition is such that short-term financial savings
offered by the Fresh Start program would help the City in its efforts to minimize or avoid layoffs,
and to retain essential and valuable services; and
Executive Management Employees
Side Letter Re PERS Fresh Start
September 30, 2004
Appendix I
Page 2
WHEREAS, the City has in the recent past calculated wage increases for Executive
Management employees by first comparing certain categories of compensation (total
compensation) with the amounts paid/provided by certain survey agencies, and then adjusting
Executive Management employees' wages, as and if required, to keep Executive Management
employees at the 75th percentile of the survey agencies; and
WHEREAS, the City has, in the past, included the City's PERS employer contribution in
the City's total compensation that has been compared to the applicable survey agencies; and
WHEREAS, the City savings which otherwise would occur due to a decrease in the
employer rate under the PERS Fresh Start program would be lost if this reduced PERS employer
contribution rate was used to determine the City's total compensation, since the reduced
employer rate could result in a corresponding increase in employee wages under the previously
used formula to ensure employees remain at the 75th percentile in total compensation among the
survey agencies; and
WHEREAS, employees would not suffer any adverse affect if the City participated in the
Fresh Start Program and the City's employer rate was, accordingly lowered, since employees
would be entitled to the same 2.7% at 55 PERS benefit and/or the 3% at 50 PERS benefit, the
City already pays the employee's PERS contribution, and participation in the Fresh Start
program would not adversely affect employee's wages or other benefits; and
WHEREAS, the City and Executive Management have met and conferred regarding the
benefits of the Fresh Start program, and have agreed as set forth below to modify how the City
will conduct total compensation comparisons affecting Executive Management employees, if
any, during the remaining term of their current CP:
IT IS HEREBY AGREED THAT, if the City participates in the PERS Fresh Start
program:
1. The decrease in the City's PERS employer rate that results from the City's participation
in the Fresh Start program shall not cause the City to pay more in wage or other compensation or
benefits to Executive Management employees than if the City had not participated in the Fresh
Start program.
2. For the remainder of this contract term, any total compensation comparison used by the
City or Executive Management for the purpose of determining whether any or a particular wage
increase is required or appropriate, the City's total compensation for Executive Management
employees shall include what the City's total PERS employer rate would have been if the City
had not participated in the Fresh Start program. Put differently, the City will include in its total
compensation for survey comparison purposes the sum of its actual employer rate and the
percentage difference between its actual rate and what the PERS employer rate would have been
ELK-9/14/04 S:kEmployee RelationskEERelationskXmgmtkXmgmt Side Letter I Fresh Start. DOC
Executive Management Employees
Side Letter Re PERS Fresh Start
September 30, 2004
Appendix I
Page 3
if the City had not participated in the Fresh Start program. The following example demonstrates
the parties' agreement on how they will use the City's PERS employer rate in any total
compensation comparison that the parties decided to do, or are required to do, during the 2004-
05, 2005-06, and 2006-07 Fiscal Years.
Total Miscellaneous Employer Rate in FY 2005~ If Do not Participate in Fresh Start ............................... 16.051
Total Miscellaneous Employer Rate in FY 2005 If Do Participate in Fresh Start ...................................... 13.448
Difference .................................................................................................................................................... 2.60
Total Miscellaneous Employer Rate in FY 2006 If Do not Participate in Fresh Start ............................... 15.65
Total Miscellaneous Employer Rate in FY 2006 If Do Participate in Fresh Start ...................................... 13.448
Difference .................................................................................................................................................... 2.20
Total Miscellaneous Employer Rate in FY 2007 If Do not Participate in Fresh Start ............................... 15.268
Total Miscellaneous Employer Rate in FY 2007 If Do Participate in Fresh Start ...................................... 13.448
Difference
.................................................................................................................................................... .82
Total Police Employer Rate in FY 2005 If Do not Participate in Fresh Start .............................................. 33.528
Total Police Employer Rate in FY 2005 If Do Participate in Fresh Start ................................................... 27.750
Difference .................................................................................................................................................... 5.78
Total Police Employer Rate in FY 2006 If Do not Participate in Fresh Start ............................................. 32.509
Total Police Employer Rate in FY 2006 If Do Participate in Fresh Start ................................................... 27.750
Difference 4.76
Total Police Employer Rate in FY 2007 If Do not Participate in Fresh Start ............................................. 31.55
Total Police Employer Rate in FY 2007 If Do Participate in Fresh Start ................................................... 27.750
Difference
Total Fire Employer Rate in FY 2005 If Do not Participate in Fresh Start ................................................. 32.463
Total Fire Employer Rate in FY 2005 If Do Participate in Fresh Start ......................................................27.562
Difference .................................................................................................................................................... 4.90
Total Fire Employer Rate in FY 2006 If Do not Participate in Fresh Start ................................................ 31.762
Total Fire Employer Rate in FY 2006 If Do Participate in Fresh Start ......................................................27.562
Difference .................................................................................................................................................... 3.54
Total Fire Employer Rate in FY 2007 If Do not Participate in Fresh Start ................................................ 30.49
Total Fire Employer Rate in FY 2007 If Do Participate in Fresh Start ......................................................27.562
Difference
.................................................................................................................................................... .92
Under this example, if the parties chose to or are required to conduct a total compensation
comparison to survey agencies in the 2004-2005 Fiscal Year to determine whether a wage
increase was appropriate or required for miscellaneous employees, the City's total compensation
for purposes of the comparison would include the 16.051% employer rate rather than the
13.448% rate the City will actually have to contribute as its employer contribution in the 2004-05
Fiscal Year.
3. This Side Letter shall only be effective during the term of the current Compensation Plan,
and shall expire effective September 30, 2006.
The "Total Employer Rates" used in this example were provided to the City by PERS.
ELK-9/14/04 S:~mployee Relations\EERelationsXXmgmtD~magmt Side Letter I Fresh Start. DOC
Executive Management Employees
Side Letter Re PERS Fresh Start
September 30, 2004
Appendix I
Page 4
4. This Side Letter shall be limited to total compensation surveys mandated by the current
Compensation Plan, or any written agreement between the City and Executive Management,
executed subsequent to this Side Letter and prior to September 30, 2006, that requires the City to
conduct a total compensation survey for the purpose of analyzing wage or some other element of
total compensation.
For ~xecutive Management: Name and Title
Date
Ban~y~ Nagel :City Manager
Date
ELK-9/14/04 SSEmployee Relations~EERelationsXXmgmtXXmgmt Side Letter I Fresh Start. DOC