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Home My WebLink AboutDoc 273 - Labor Agrmt IUOEDeschutes County Board of Commissioners 1300 NW Wall St., Suite 200, Bend, OR 97701-1960 (541) 388-6570 - Fax (541) 385-3202 - www.deschutes.org AGENDA REQUEST & STAFF REPORT For Board Business Meeting of May 25, 2011 DATE: May 10, 2011 FROM: Erik Kropp Administrative Services ext. 6584 TITLE OF AGENDA ITEM: Consideration and approval of Memorandum of Understanding 2011-273 between Deschutes County and International Union of Operating Engineers, Local 701. PUBLIC HEARING ON THIS DATE? No. BACKGROUND AND POLICY IMPLICATIONS: The International Union of Operating Engineers (IUOE), Local 701 is the labor union representing Deschutes County represented employees in the Road and Solid Waste departments. The current collective bargaining agreement between IUOE and the County is a 4 year agreement that expires on June 30, 2011. IUOE proposed extending the term of the current collective bargaining agreement for one additional year, July 1, 2011 through June 30, 2012. The proposed extension includes a 0% cost of living adjustment (COLA) for July 1, 2011 through June 30, 2012 and provides a cap on the employee monthly health care premium at $95. Currently, employees pay $50 per month and the County Administrator proposed budget recommends an employee contribution of $65 per month beginning July 1, 2011. The County's bargaining team included Christopher Bell, Erik Kropp, Tracy Scott, Tom Blust, Timm Schimke, and Kelli Candella. The County's bargaining team tentatively agreed to the MOU and one- year contract extension and recommends its approval. FISCAL IMPLICATIONS: The contract has no direct fiscal impacts, as it contains no wage or benefit increases. RECOMMENDATION & ACTION REQUESTED: Staff recommends approval and signature of Memorandum of Understanding 2011-273 between Deschutes County, Oregon and International Union of Operating Engineers, Local 701. ATTENDANCE: Erik Kropp, Deputy County Administrator Christopher Bell, Assistant Legal Counsel DISTRIBUTION OF DOCUMENTS: County Counsel's Office Personnel Department County Administrator's Office DESCHUTES COUNTY DOCUMENT SUMMARY (NOTE: This form is required to be submitted with ALL contracts and other agreements, regardless of whether the document is to be on a Board agenda or can be signed by the County Administrator or Department Director. If the document is to be on a Board agenda, the Agenda Request Form is also required. If this form is not included with the document, the document will be returned to the Department. Please submit documents to the Board Secretary for tracking purposes, and not directly to Legal Counsel, the County Administrator or the Commissioners. In addition to submitting this form with your documents, please submit this form electronically to the Board Secretary.) Date: May 17, 2011 Please complete all sections above the Official Review line. Contractor/Supplier/Consultant Name: Contractor Contact: Mark Holliday Type of Document: MOU. Department: Admin. Services IUOE, Local 701 Contractor Phone #: Goods and/or Services: MOU extending the term of the current collective bargaining agreement between Deschutes County and the International Union of Operating Engineers, Local 701, dated July 1, 2006 through June 30, 2011 for one additional year, July 1, 2011 through June 30, 2012. Background & History: The International Union of Operating Engineers (IUOE), Local 701 is the labor union representing Deschutes County represented employees in the Road and Solid Waste departments. The current collective bargaining agreement between IUOE and the County is a 4 year agreement that expires on June 30, 2011. IUOE proposed extending the term of the current collective bargaining agreement for one additional year, July 1, 2011 through June 30, 2012. The proposed extension includes a 0% cost of living adjustment (COLA) for July 1, 2011 through June 30, 2012 and provides a cap on the employee monthly health care premium at $95. Currently, employees pay $50 per month and the County Administrator proposed budget recommends an employee contribution of $65 per month beginning July 1, 2011. The County's bargaining team included Christopher Bell, Erik Kropp, Tracy Scott, Tom Blust, Timm Schimke, and Kelli Candella. The County's bargaining team tentatively agreed to the MOU and one-year contract extension and recommends its approval. Agreement Starting Date: July 1,2011 Annual Value or Total Payment: n/a Ending Date: ❑ Insurance Certificate Received check box) Insurance Expiration Date: June 30, 2012 Check all that apply: ❑ RFP, Solicitation or Bid Process ❑ Informal quotes (<$150K) ❑ Exempt from RFP, Solicitation or Bid Process (specify — see DCC §2.37) 5/17/2011 Funding Source: (Included in current budget? Yes If No, has budget amendment been submitted? Yes No No Is this a Grant Agreement providing revenue to the County? Yes No Special conditions attached to this grant: Deadlines for reporting to the grantor: If a new FTE will be hired with grant funds, confirm that Personnel has been notified that it is a grant -funded position so that this will be noted in the offer letter: 1 I Yes No Contact information for the person responsible for grant compliance: Name: Phone #: Departmental Contact and Title: Erik Kropp, Deputy County Administrator Phone #: x6584 Signature Date Department Director Approval: g/1 -1 Li j Distribution of Document: Who gets the original document and/or copies after it has been signed? Include complete information if the document is to be mailed. Official Review: County Signature Required (check one): El BOCC ❑ Department Director (if <$25K) ❑ Administrator (if >$25K but <$150K; if >$150K, BOCC Order No. Legal Review 1,/� - Date S Document Number - 13 5/17/2011 MEMORANDUM OF UNDERSTANDING Between DESCHUTES COUNTY, OREGON And INTERNATIONAL UNION OF OPERATING ENGINEERS, LOCAL 701 In Tight of the current economic situation the parties hereby enter into this Memorandum of Understanding (MOU) to extend the term of the current Collective Bargaining Agreement between Deschutes County, Oregon (County), and the International Union of Operating Engineers, Local 701 (Union), dated July 1, 2006, through June 30, 2011 (Agreement), for one additional year, July 1, 2011, through June 30, 2012. The Union withdraws its option under Article 20:01 to open the Agreement for modification, therefore the Agreement was not opened and, except as agreed to herein, all terms and conditions contained in the Agreement, and all practices developed or arising between the parties during the term of the Agreement, remain in place and unaltered. The parties acknowledge and agree that, for the purposes of entering into any subsequent collective bargaining agreement after the expiration of the Agreement, any and all such practices shall not be binding on the parties unless such practices are either adopted by interim agreement of the parties or expressly included in the terms of any subsequent collective bargaining agreement after expiration of the Agreement and this MOU. Furthermore, where the current Agreement has terminology relating to the last year of the Agreement, i.e. "through June 30, 2011", "for the 2010 -2011 contract year", or words to that effect, those dates are now interpreted to mean "through June 30, 2012" or "for the 2011— 2012 contract year." The parties acknowledge and agree that their agreement to extend the Agreement until June 30, 2012, shall affect Articles 14:01 and 17:01 as follows: Page 1 of 2 • Compensation, Article 14:01, and Exhibit "B", Compensation Plan, the COLA for July 1, 2011 through June 30, 2012, shall be a 0% increase. Dc.201.-2 • Health, Welfare and Retirement, Article 17:01, Subsection (A), Health Insurance, the County shall maintain at least the current level of benefits for 701 Union members through June 30, 2012, and no greater than a $95.00 payroll deduction per month per employee for health insurance premium shall be deducted for the Agreement year of 2011-2012. It is hereby agreed between the Union and the County that the Agreement which expires June 30, 2011, shall be extended through June 30, 2012, as amended and explained herein, effective July 1, 2011. DATED this Day of 2011. BOARD OF COMMISIONSER OF DESCHUTES COUNTY, OREGON TAMMY BANEY, Commissioner ALAN UNGER, Commissioner TONY DEBONE, Commissioner ATTEST: Recording Secretary 7 MARK HOLLIDAY BUSINESS MANAGER AND FINANCIAL SECRETARY INTERNATIONAL UNION OF OREGATING ENGINEERS, LOCAL 701 Page 2 of 2 REVIEWED LEGAL COUNSEL