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Home My WebLink About06- Letter of Understanding and Agreement Union Letter of Understanding and Agreement This Letter of Understanding and Agreement is made and entered into this /C/-!j.. day of --OUP'ii 2006, by and between the City of Bozeman, hereinafter referred to <is the "City", and. he Montana PublIc Employees AssociatIOn, herein after referred to as the "Union". WHEREAS the City has adopted a pay philosophy which advances the City's II1tent to attract, motIvate, and retain the best employees; WHEREAS the Parties recognize that the Gallatin Valley economy has had a negative impact on the City's ability to meet the objectives of this pay philosophy; WHEREAS, 111 September of 2004, in compliance with the current collective bargainll1g agreement between the City and the Union, an Alternate Pay Committee completed a market study and recommended a "market value" for each covered position; WHEREAS there is disagreement between the parties regarding the Market Study implementation language found in Article 7 of the Collective Bargaining Agreement between the City and the Union; WHEREAS the parties have agreed to establish the current market value of the covered positions by applymg two (2) three percent (3%) cost of living adjustments to the market values established by the Alternate Pay Committee; THEREFORE, the parties mutually agree as follows: Effective July 1,2006: I) Union Employees whose pay IS less than minimum market wIll have their pay increased to reflect the current minimum market pay; Addendum A of this Agreement shows the agreed upon pay rates, effective 7/1/06, for each Union member in this category; 2) Union Employees whose pay is at or above mid-market will receive a 3% pay adjustment. This adjustment will not be added to base. The employee can specify whether this payment will be made in one installment, or in equal installments over a twelve (12) month period beginning in the July, 2006 pay period and ending in the June, 2007 pay period. The value of this lump sum payment will be properly applied for calculating overtime rates, but will not increase the employee's base pay. The last column of Addendum A shows the value of the 3% for each Union member m this category. Part time employees who fall into this category will receive this adjustment on an 'as earned' basis. 1 3) New Employees will be hired at the minimum market pay rate unless there is a bona fide recruitment problem. In the case of a bona fide recruitment problem, the entry level pay will not exceed the mid market rate. Addendum B of Agreement shows the agreed upon pay rates, effective July 1,2006, by covered position. 4) a. Current employees who are promoted or transferred to a position within the bargaining unit will be placed at the same rate of payor at minimum market pay for the new position, whichever is greater. b. Current employees who are voluntarily demoted to a position within the bargaining unit will be plaeed at minimum market pay for the new position. 5) The Building Inspection division certification pay agreed upon through the April 26, 2006 Memorandum of Understanding will continue to be provided; 6) All employees will receive a copy of the class specification upon which the market study was based, and will sign a copy ofthis specification, for inclusion in the employee's pcrsonnel file. 7) Should any new Union positions be established, the City's Payroll Officer will undertake a market survey of similarly-situated positions and, in consultation with the City's Human Resources Director, recommend a "market value" pay rate. The Association will be consulted with the results of this process. WHEREAS, On April 25, 2005 the City was informed by the Montana Public Employee Retirement Board (PERB) that there were legal questions surrounding the City's long-standing practice of including city-provided "health insurance amounts in base-pay" calculations for retirement purposes, and the pre-tax treatment of these health insurance amounts. WHEREAS, the City desires to continue thc "health insurance in base-pay" practice because of the long-term benefit it provides for our employees. WHEREAS, after discussion with the PERB and Legal Counsel, the City has been advised to amend all labor contracts to re-iterate that the pre-tax treatment of "health insurance in base-pay" has been an agreed treatment since its inception in 1996. WHEREAS, On December 19,2005, the City amended its Flexible Benefits Plan to retro- actively deem all "health insurance in base-pay" amounts prior to December 2005 be taken on a pre-tax basis. THEREFORE, the parties mutually agree to Amend Article 8, Section B, as follows: Recognizing the previous intent of employees and the City, as retleeted in Article 8, section B of the prior collective bargaining agreement, to allow employees to participate in an l.R.C. 9 125 plan whereby employees can contribute toward the purchase of health/dental Iv is ion insurance on a pre-tax basis, and seeking to clarify the employees options under such plan, Article 8, scction B of the collective bargaining agreement is hereby retroactively amended to July 1, 1996 as 2 follows: Effective July 1, 1996, the City's contribution toward employee's health.ldentaI/vision insurance will be added to the employee's gross pay. This portion of the employee's gross pay is hereinafter referred to as the "Contribution." As part of this collective bargaining agreement, employee's are required to participate in the City's health/dental/vision insurance plan on either a pre-tax or post-tax basis. If an employee elects to participate on a pre-tax basis, the employee shall authorize a payroll deduction from the employee's gross pay cqual to the Contribution toward employee's health/dental/vision insurance. This deduction from the employee's gross pay will be paid into a fund maintained to provide health.ldentaI/vision insurance benefits for employees. If an employee elects to participate on a post-tax basis, the Contribution shall be taxable income to the cmployee and the employee shall authorize the payment of the Contribution value, after its deemed receipt, toward the employee's health/dentaI/vision insurance. Including the City's contribution toward employee's health.ldentaI/vision insurance in the employee's gross pay serves the purpose of augmenting the employee's eventual retirement benefit. It is hereby acknowledged that both employee and employer retirement contributions will be rcquired on this additional gross income--causing a decrease to the net income of the employee. It is also the intent of the employees and the City that the Contribution be excluded from the determination of the employee's "regular rate" of compensation as that phrase is defined under 29 U.S.C. S 207(e)(4). In the event that any subsequent law, court, arbitrator, or other lawful authority detennines that the inclusion of the City's heaIth/dentaI/vision insurance contribution in the employee's gross pay should be included in overtime compensation calculations, then the partics agree that there will be a corresponding adjustment to the affected hourly rate of pay to carry out the intent of this provision. The intent of such adjustment will be to result in the least net financial effect on both the employee and the employer. IN WITNESS WHEREOF, the Parties to this Agreement have set their hands the day and year first about written. FOR: CITY OF BOZEMAN FOR: MONTANA PUBLIC EMPLOYEES ASSOCIATION City Manager ~. ~ City Clerk '" ~~":~ ~". Executive Director Addendum A MPEA Employee Pay effective 7/1/06 Gilleen, Julie Bischof, Matt Shannon, Deanna Cifuentes, Silvia Maines, Katherine Crane, Camile Lister, Jayne Kenney-Lyden, Kim Slotness, Rhonda Stiner, Nancy Dipzinski, Michelle Schneider, Janet Vacant Woods, Phyllis Greninger, Helene Clean, Doreen Lien,Connie Maroney, Katie Avaro, Crystal Neibauer, Carol S~~~e,.~?~~.rt 1i'I~l!$t(',i!::r;;jlg Tuliback, Carl Shields, Robert Rowell, David Mellott, Joseph Thomas, Jessica Main, Renee Robinson, Joy Vacant Kerr, Hudson, Thomas Weightman, Tom Wilson, Laura Vacant Folger, Sara Vacant Goodman, Joann Babbitt, Elizabeth Biehl, Katie I3QYi?PO,,13eth Kruger, Jennifer Bie Lem M Childs, Mary McMullen, Catherine Judy Jack an, Virgi . ..Iey, Pam fYlgUgaard, Kfis Oulman, Tracy Vacant Accounting Technician Accounting Technician Accounting Technician II Accounts Payable Clerk Accounts Payable Clerk Administrative Assistant I Administrative Assistant I Administrative Assistant I Administrative Assistant I Administrative Assistant II Administrative Assistant II Administrative Assistant II Administrative Assistant II Administrative Assistant II Administrative Assistant II Administrative Assistant II Proposed 3% Employee Certification Lump Sum Pay FY07 Per Hr Pay Per Hr Amounts 14.2346 14.2346 14.8764 12.6952 12.0809 10.5654 10.3615 10.5654 10.3615 13.6875 11.8683 12.3510 11.8683 15.7500 12.4654 12.7000 15.580/3 972.24 10.5654 11.3049 12.9500 17.5534 17.5534 2.8085 17.5534 1 .4043 17.5534 2.8085 17.5534 0.7021 10.8524 10.8524 10.8524 10.8524 1,350.09 16.3470 12.1183 17.3400 151337 15.6433 14.7889 11.4736 15.9841 15.9841 1,044.4/3 I Billing Clerk II Billing Clerk III Building Inspector II Building Building Inspector II Building Inspector II Building Inspector II Building Inspector II Court Clerk Court Clerk Court Clerk Court Clerk - Restitution Vacant Vacant Woosley,J~tkl~ Knight, Martin. Kozub, Susan Engineering Inspector Evidence Tech GIS Specialist - Water/Wastewater GIS/CAD Specialist ~ Draftsman Grants Administrator Historic Preservation Officer Landfill Attendant Librarian I Librarian I Parking Enforcement Parking Enforcement Officer Parking Planner I Planner II 15.9654 10.0320 10.1019 10.1019 12;311 15.3951 19.3351 Krueger, Brian Brystor, Allyson Woods, Marilyn Glenn, Heather Cash, Michael Ba rba ra Planner II Planner II Police Information Manager Police Information Specialist Project Permit Coordinator Permit Technician 19.3351 19.3351 16.8159 12.2576 13.3034 12.4733 17.7918 17.3630 '" At or beyond midpoint 1 ,083.45 Addendum B Starting Pay by Position Effective 7/1/06 Accounting Technician Accounting Technician II Accounts Payable Clerk Administrative Assistant I Administrative Assistant II Administrative Assistant II - Fire Animal Control Officer Billing Clerk I Billing Clerk II Billing Clerk III Building Inspector I Building Inspector II Court Clerk - Restitution Engineer I (No Err or PE) Engineering Assistant Engineering Inspector Evidence Technician GIS Specialist - Water/Wastewater GIS/CAD Specialist - Draftsman Grants Administrator Historic Preservation Officer Landfill Attendant Law Enforcement Assistant Librarian I Library Aide I Library Aide II Library Assistant Library Technical Services Assistant Lifeguard Instructor III Neighborhood Coordinator Parking / Animal Enforcement Parking Clerk Parking Enforcement I Parking Enforcement II Planner I Planner II Plans Examiner II (Senior) Police Information Manager Police Information Specialist Project Permit Coordinator Project Permit Technician Zone Code Enforcement Officer Advertised Starting Position Pay 14.2346 14.8764 12.0808 10.3615 11 .8683 14.6409 13.3548 10.5654 11.3049 12.9500 15.2947 17.5534 10.8524 16.9490 15.7774 16.3471 12.0082 17.3400 15.1337 15.6433 14.7889 10.7875 11 .6627 13.5942 7.9428 9.5163 11 .1663 10.4077 8.6678 15.9654 10.8780 10.0320 10.0500 11 .2990 15.3951 19.3351 17.7918 16.8159 12.2576 13.3034 12.4 733 14.9269 Hourly Mid-Point 15.0649 16.6702 14.1683 11.8486 16.7486 16.7486 15.1106 12.7673 13.6611 14.5889 18.2096 Plus Cert Pay 20.0409 Plus Cert Pay 13.1591 19.8923 17.4394 18.7928 13.9207 19.2995 17.5149 20.2240 16.0942 12.5644 13.1668 16.3538 10.2596 11.0120 13.0711 16.4548 8.6678 18.9558 11.5154 11 .4370 11.5154 12.6300 18.1388 21.3149 20.4067 Plus Cert Pay 19.0058 13.6563 14.8721 13.8174 16.1442