HomeMy WebLinkAboutItem No. 08 - Approve the Side Letter to the 2021-2026 Memorandum of Understanding (MOU) with8)Approve the Side Letter to the 2021-2026 Memorandum of Understanding (MOU) with
LIUNA Local 777 (LIUNA)
Authorize the City Manager to Execute the Side Letter to the MOU with LIUNA Local 777
Amending the Changes of Benefits for Union-Represented and Non-Represented
Employees for the Period of October 8, 2024, to June 30, 2026.
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REPORT TO CITY COUNCIL
To:Honorable Mayor and Members of the City Council
From:Jason Simpson, City Manager
Prepared by:Shannon Buckley, Assistant City Manager
Date:October 8, 2024
Subject:Approve the Side Letter to the 2021-2026 Memorandum of Understanding
(MOU) with LIUNA Local 777 (LIUNA)
Recommendation
Authorize the City Manager to Execute the Side Letter to the MOU with LIUNA Local 777
Amending the Changes of Benefits for Union-Represented and Non-Represented Employees for
the Period of October 8, 2024, to June 30, 2026.
Background
On August 24, 2021, the City Council and the employees represented by LIUNA Local 777
(LIUNA) adopted a Memorandum of Understanding (MOU) from July 1, 2021 to June 30, 2026.
In light of inflation and a challenging hiring environment, the City is providing an adjustment to
employee benefits to improve recruitment and retention. The City is explicitly experiencing
recruitment challenges due to other agencies directly competing with the City for talent and
offering employee benefit packages that have outpaced those offered by the City back on August
24, 2021.
The City Council discussed the details associated with the MOU and provided final direction to
staff in Closed Session on August 13, 2024.
Discussion
In a recent survey, 70% of employers cited staffing issues as the number one challenge currently
facing their organization. It is not just government agencies; all economic sectors and industries
across each sector are experiencing personnel problems due to the “Great Resignation” and other
factors. Cities, including the City of Lake Elsinore, and other government agencies are not
immune from these impacts and are experiencing staffing challenges.
LIUNA Side Letter
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As such, the City Council is adjusting benefits to help with succession planning, stem the tide of
job transfers outside the organization, and help promote the long-term sustainability of the City’s
trained workforce.
Highlights
1.Medical, Dental, Vision, & Life Insurance
The City has established a voluntary Section 125 Plan under the regulations of the Internal
Revenue Service. The City shall provide each employee with a Cafeteria Contribution
amount per month beginning December 1, 2024. An employee shall be covered under
mandatory benefits as outlined in the contract between the City and the carrier(s). The
employee can then apply the remainder of the Cafeteria Contribution to optional benefits
provided by the City, including health insurance premiums, dental insurance premiums,
vision insurance premiums, additional life insurance premiums, flexible spending
accounts, and other supplemental insurance premiums. A monthly benefit is available if
an employee waives coverage that meets guidelines.
Monthly cafeteria contribution amounts will be as follows:
•Effective December 1, 2024 - $2,900 per month
•Effective December 1, 2025 - $2,900 per month
Monthly opt-out arrangement (waiver of coverage) will be as follows:
•Effective January 1, 2025 - $500 per month
•Effective January 1, 2026 - $500 per month
Fiscal Impact
The City’s benefit cost for the next year for the Side Letter changes is estimated to be an increase
of $304,320.
Attachments
Attachment 1 - 10/3/2024 Side Letter
Attachment 2 – 2021-2026 MOU 07-01-2021
City Manager’s Office
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SIDE LETTER TO
2021-2026 MEMORANDUM OF UNDERSTANDING
BETWEEN
CITY OF LAKE ELSINORE AND LIUNA UNION LOCAL 777
This side letter of agreement (“Agreement”) memorializes an agreement entered into between
the City of Lake Elsinore (“City”) and LIUNA Union Local 777 (“Union”) (collectively “Parties”)
with respect to the following:
WHEREAS, the Parties entered into a Memorandum of Understanding with a term of July 1,
2021 to June 30, 2026 (“2021-2026 MOU”); and
WHEREAS, the Parties agreed to a limited re-opener centered around the Cafeteria Plan for the
2021-2026 MOU, and
WHEREAS, the Parties have met and conferred in good faith pursuant to the Meyers-Milias-
Brown Act and have completed the meet and confer process;
NOW THEREFORE, the Parties have agreed to the following:
1. Effective December 1, 2024, the Cafeteria Plan allowance will increase to $2,900.00 per
month.
2. Effective January 1, 2025, the opt-out arrangement will increase to $500 per month for
those employees that choose not to participate in the the City’s Cafeteria Plan (as long
as requirements are met).
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This Agreement is subject to final approval by the City Council of the City of Lake Elsinore.
Date of agreement:
ON BEHALF OF THE CITY OF LAKE ELSINORE
Dated:_____________________
APPROVED AS TO LEGAL FORM
Dated:_____________________
ON BEHALF OF LIUNA, LOCAL 777
Dated:_____________________
and
Dated:_____________________
Jason Simpson, City Manager
Nate J. Kowalski, AALRR
City Labor Relations Counsel
Hector Gonzales, LIUNA 777
Lake Elsinore Chapter President
Jaime Gonzalez, LIUNA 777
Labor Relations Representative