REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Oliver Chi, City Manager
PREPARED BY: John Clark, Interim Director of Administrative Services
Subject:
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Adopt Resolutions No. 2021-25 and 2021-26 approving Side Letter Agreements to modify the Memorandum of Understandings (MOU) between the City and the Huntington Beach Municipal Teamsters (HBMT) and Management Employees’ Organization (MEO) through December 31, 2021
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Statement of Issue:
The Memoranda of Understanding (MOUs) between the City and the Huntington Beach Municipal Teamsters (HBMT) and the Management Employees’ Organization (MEO) expired on September 30, 2020, and October 31, 2020, respectively. Subsequently, the City met and conferred with HBMT and MEO, reaching agreement to modify and extend the existing MOUs through December 31, 2021.
Financial Impact:
There is no immediate, direct financial impact to these Side Letter Agreements. There will be indirect costs over time, as employees who use this 20-hour leave bank maintain their current leave accruals to draw down at a future date. The total indirect costs of the 20-hour leave bank for HBMT and MEO is $268,821 and $128,855, respectively.
Recommended Action:
recommendation
A) Adopt Resolution No. 2021-25, “A Resolution of the City Council of the City of Huntington Beach Amending the Memorandum of Understanding (MOU) Between the City and the Huntington Beach Municipal Teamsters (HBMT) by Adopting the Side Letter of Agreement;” and,
B) Adopt Resolution No. 2021-26, “A Resolution of the City Council of the City of Huntington Beach Amending the Memorandum of Understanding (MOU) Between the City and the Management Employees’ Organization (MEO) by Adopting the Side Letter of Agreement.”
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Alternative Action(s):
Do not adopt these resolutions and direct staff to: (1) continue to meet and confer with HBMT and MEO, or (2) utilize the impasses procedures contained within the City’s Employer-Employee Relations Resolution.
Analysis:
The Huntington Beach Municipal Teamsters represent approximately 375 employees in the City, and the Management Employees’ Organization represent around 100 employees.
Following the expiration of these Memoranda of Understanding (MOUs) in late 2020, representatives from the City and the Associations met and conferred, ultimately reaching agreement to extend the existing terms of the MOUs through the end of this calendar year, with only minor modifications to contract provisions. These agreements were reached in large part due to the negative impacts of COVID-19 and the economic uncertainty brought on by the pandemic, as well as the impacts of staff departures through the City’s Separation Incentive Program.
Key changes in the proposed Side Letter Agreements include the following:
• Term of Agreements
Extended through December 31, 2021
• Leave Benefits
Employees shall receive twenty (20) hours of personal time that must be used during the term of the agreements, or it is forfeited with no cash value.
• Employee Impacts
There will be no additional employee impacts during the term of the agreements.
All negotiated provisions are outlined in the Side Letter Agreements (Attachments Nos. 1-2).
Environmental Status:
Not applicable.
Strategic Plan Goal:
Non Applicable - Administrative Item
Attachment(s):
1. Resolution No. 2021-25, “A Resolution of the City Council of the City of Huntington Beach Amending the Memorandum of Understanding (MOU) Between the City and the Huntington Beach Municipal Teamsters (HBMT) by Adopting the Side Letter of Agreement.”
2. Resolution No. 2021-26, “A Resolution of the City Council of the City of Huntington Beach Amending the Memorandum of Understanding (MOU) Between the City and the Huntington Beach Management Employees’ Organization (MEO) by Adopting the Side Letter of Agreement.”