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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.