MEMORANDUM ON PROPOSED AGREEMENT
,.
/MEMORANDUM1TO:
The City Commission of the C-ity of Clearwater
l
Agenda No. 10
Meetl ng Date: 8/5/76
5 U BJ ECTo PROPOSED AGREEMENT BETWEEN CITY OF CLEAR WATER AND
o THE CLEARWATER EMPLOYEES ASSOCIATION
RECOM MENDATION: The Agreement between th~ City of Clearwater and the
Clearwater Employees Association dated August 5, 1976, and ending September 30, 1977,
covering wages, fringe benefits and working conditions be approved with an effective date
of August 5, 1976, (Contract provides for wages to become effective at the beginning
of the first pay period after September: 30, 1976, ) and authorize hold-back pay.
ISO And that the appropriate officials be authorized to execute same.
BACKGROUND: After negotiating with the Clearwater Employees Association
(CEA) since December, 1974, impasse was reached in late June of 1976. At this point,
the major item of disagreement was wages. The Union was demanding a 15% across-the-
board increase in wages. The Administration was offering a 5% across-the-board wage
increase plus selected wage adjustments amounting to approximately 1 % of covered payroll.
In addition, the Administration's offer included increased cost of major medical and
hospitalization insurance premium amounting to approximately 1. 662% of payroll;
increased cost of pension and social security benefits amounting to approximately. 558%
of payroll; and life insurance and hold-back pay referred to in the attached memo from
Finance Director, dated July 28, 1976, amounting to approxima tely .835% of covered
payroll. The items referred to above have a value of 9.085% of covered payroll.
Because of impasse, a meeting was scheduled with the Federal Mediator
in Tampa as the next step in the Bargaining Process. During the meeting, held on
July 6, 1976, with the mediator, the Union would not accept the Administration's o.ffer.
The major problem was the one (1) percent selected wage adjustments which they
considered as an inappropriate item for bargaining because the inclusion of the item
reduced the dollars available for an acros s -the- board wage increase. It was the Adminis-
tration's position that selected wage adjustments were appropriately included in the
City's offer even though only the CEA could bargain for positions in their bargaining unit.
Based upon this, the City Administration reluctantly dropped its position on selected
wage adjustments and agreement was then reached to increase by one (1) percent the
across-the-board wage offer to six (6) percent.
The contract with this modification was ratified by the membership of the
CEA in an election held on July 14, 1976, by a margin of 8 to 1.
Mo'st of the provisions of the Civil Service Rules & Regulations pertaining
to fringe benefits are incorporated in the proposed contract. Certain fringe benefit
items such as paid holidays, paid vacations, and sick leave were modified by the contract.
In the case of holidays, the number of paid holidays was increased from 7 to 9 per year.
This gives the CEA employees the same number of paid holidays now enjoyed by employees
covered by F.O. P. and 1. A. F. F. contracts. Paid vacations were also increased to
where they now parallel the schedules given to Police and Fire personnel in their
contracts. The same is true of sick leave provisions.
The proposed budget for fiscal year 1976/77 provided funding for the
wage increases and benefits recommended.
.----
Commission Disposition:
Follow-up Action:
Date:
~ Affected
Parties
Notified
of Meeting
Agreement
Memo, Fin. Dix.
?~t'?c?i'c#
Da t e B S e que n t i a I
Reference
~ Not Required
o Not Required
Costs: $653.347
Fundi ng Sou rce:
o Capital Improve-
ment Budget
.~ Operating Budget
o Other
~Attachments:
Submitted by:
fiutEJ'tf
City Manager
Advertised:
Paper:
Originating Department:
Administration
Appropriation Code
/
o None
w- \d'\ - CO ( 2-)
I
Gerald WeimeritAsst. CttY'M,,1a ann aa,.gg, , ,r ',," ?,',',',',' ',.,.,','",/, ' '
Clark lowrey, Finance Direc~
C Ij' OF CLEARWATER
Inte~p.rtment Corre.pondence Sheet
TO:
FROM:
COPIES:
SUBJECT:
In Fiscal 1976/77,<when new payroll and budget accounting procedures are implemented,
it wJllbe necessary that hours reported to Finance for pay, budget, and cost accounting.
purposes bea fCictual,recordoftime>actually worked, and the cost category in which
such work was performed.. The present procedure whereby approximately 800 City employees
are paid through the date of payment cannot be continued. It is imperative that as
soon as possible an City employees be on the same pay schedule~ i.e., pay checks issued
one week. after the week in which work was perfonned.
It does not seem appropriate to force this change by arbitrarily withholding one week1s
pay from over 800 City employees.. It is suggestedit therefor, that the conversion be
effected by the following measures:
1. TheCorrmission must be requested to authorize an adjustment amountitJio one
week1s pay to an employees, to be paid as indicated in 3. and 4.'below.
This action is imperative if we are to achieve the required standard pay
procedure for. a 11 employees. '
The. date presently being printed on time sheets refl ects the date of payment.
Thiswillbec:hanged when this, process is implemented to show the date throuyh
which hours are reported on that time, sheet (i. e., time worked will be reported
through the Friday before, date payment will be made).
Employees who now have one week held back will be paid the adjustment in cash,
in <addition to t~eir regular pay.
4. For employees who do not' have the one week held back:
Time sheets submitted at time of implementation will cover one
week1stime only, to include the date referred to in 2 above.
This wilrji"ut time reporting for all categories of employees
onthe'same.base (i.e..through the week before date of payment).
The same time sheet will also authorize payment of the one week
adjustment. These personnel will thus receive a normal pay check,
which amount will consist of pay for oneweekls time, and the one
week adjustment. The City will then owe them paYfOr one week1s work,
which will be' paid when the emp 1 oyee retires or termi na tes, as is now
the case with personnel referr.ed to in 3. above.
Adjustment of Pay Procedures
DA TE:
(Conti nued)
~.
"
~"
I
Cllly OF CLEARWATER
Inte.:!.p.rtment Correspondence Sheet
TO:
Gerald. Weimer" Asst. City Mgr..
FROM:
Adjustment of Pay Procedures
Page 2.
COPIES:
SUBJECT:
DATE: July 28, 1976
Theimrnedfatacashcost>ofthisconversion will be approximately $55,190.00 as
indicated in the following computation;.
No..
Employees
TOTAL PAYROLL (Less CErA Employees)
LESS:. Deferred Liabil ities (1 Week
Pay at Time of Termination to
pe,rmi"t pre, sent1.y Paid Through
Date of Payment)' ,
1191
Bi-Week1y
Payroll
$ 465,461
Bonus (One
Week Pay)
$ 232,730
853
$ , 355,081
$ , 177,540
CASH PAYMENT, (Cash Adjustment ofl Week
Pay to Personnel Now Being Paid
One Week in Arrears) 338
$ 110,380
$ 55,190
The cash impact of the deferred adjustment will be distributed, largely by chance,
over a considerable number of years as employees tenninate or retire. r would suggest
that no attempt be, made to projec,t annual increments or otherwise to provide ,advance-
funding for this purpose. r believe it is safe to assume that this annual cost can
be readily absorped in the salary budgets of succeeding years by virtue of normal
salary savings, and by the fact that replacement personnel will have one weekls pay
held back automatically.