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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />NOVEMBER 17, 2015 <br />TITLE: <br />MEMORANDUM OF UNDERSTANDING <br />WITH THE SERVICE EMPLOYEES <br />INTERNATIONAL UNION (STRATEGIC <br />PLAN NO. 7,6) <br />CITY MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />E] As Recommended <br />E] As Amended <br />E] Ordinance on I" Reading <br />Ordinance on 2nd Reading <br />E] Implementing Resolution <br />El Set Public Hearing For_ <br />CONTINUED TO <br />FILE NUMBER <br />Authorize the City Manager and Clerk of the Council to execute a Memorandum of <br />Understanding with the Service Employees International Union, subject to non - substantive <br />changes approved by the City Manager and City Attorney, regarding wages and other terms and <br />conditions of employment for a two -year period ending June 30, 2017. <br />DISCUSSION <br />The City and the Service Employees International Union (SEIU) recently completed contract <br />negotiations, resulting in a new Memorandum of Understanding. The provisions of this <br />agreement include: <br />1) Term: A two -year term, from July 1, 2015 through June 30, 2017. <br />2) Salary: A 2.5% increase on both July 1, 2015 and July 1, 2016 with a "me too" guarantee <br />to receive a higher salary increase if any other bargaining unit negotiates a greater <br />increase. <br />3) Medical Insurance: Effective January 1, 2016, the City's contribution toward medical <br />insurance will be indexed to the premium cost for the Kaiser Permanente HMO Other <br />Southern California plan as opposed to the rate of the lowest cost HMO medical plan <br />offered for all unit employees regardless of hire date. <br />4) Retirement Health Savings Plan: The current Medical Retirement Subsidy Plan may be <br />replaced with a Retirement Health Savings Plan for individual employees. The City will <br />exchange its 1.75% contribution for a 1.25% pension - qualified contribution (equal value) <br />effective January 1, 2016 or when accounts are established. <br />25A -1 <br />