ALBANY UNIFIED SCHOOL DISTRICT BOARD AGENDA BACKUP Regular Meeting of April 26, 2016 ITEM:
APPROVE RATIFICATION OF TENTATIVE AGREEMENT BETWEEN THE SERVICE EMPLOYEES INTERNATIONAL UNION (SEIU) AND THE ALBANY UNIFIED SCHOOL DISTRICT (AUSD) – 2015-2016
PREPARED BY:
CYNTHIA ATTIYEH, HUMAN RESOURCES DIRECTOR
TYPE OF ITEM: REVIEW AND ACTION _______________________________________________________________________________________ PURPOSE: The purpose of this item is for the Board of Trustees to approve the ratification of the Tentative Agreement (TA) between the Albany Unified School District (AUSD) and Service Employees International Union (SEIU) for 20152016. BACKGROUND INFORMATION: On May 10, 2016, representatives for the District and SEIU reached a Tentative Agreement (TA) to resolve bargaining for the 2015-2016 school year. The SEIU bargaining unit has ratified the tentative agreement for the 2015-2016 school year. This agenda item is intended to meet the public disclosure requirements of Assembly Bill1200 (1991/1213) and Assembly Bill2756 (2004/52). More specifically, AB 2756 amended Government Code Section 3547.5 to provide in part that, "before a public school employer enters into a written agreement with an exclusive representative covering matters within the scope of representation, the major provisions of the agreement, including, but not limited to, the costs that would be incurred by the public school employer under the agreement for the current and subsequent fiscal years, shall be disclosed at a public meeting of the public school employer."
DETAILS Under the terms of the agreement, the parties have agreed: for the 2015-2016 school year the District will place a 2.0% general compensation increase on the salary schedule effective July 1, 2015. There is also language that acknowledges the forty-two hundredths percent (.42%) cost increase of health and welfare benefits that is paid by the District.
KEY QUESTIONS AND ANSWERS: Q. Will there be more negotiations? A. Yes, the current contract ends 6/30/16 and we will begin bargaining for 2016-2019. FINANCIAL INFORMATION:
STRATEGIC OBJECTIVES ADDRESSED:
Objective #3: Communicate and Lead Together. Goal: All stakeholders will collaborate and communicate about decisions that guide the sites and district. Recommendation: Approve ratification of tentative agreement between the Service Employees International Union (SEIU) and the Albany Unified School District (AUSD) – 2015-2016
Certification of the District’s Ability to Afford the Costs of a Collective Bargaining Agreement This disclosure document must be signed by the District Superintendent and Chief Business Official prior to the public disclosure. The District projects the total monetary cost of the settlement to be as follows: Year 1: Year 2: Year 3:
$22,550 $22,972 $23,401
Please check one of the following: __X__ No budget revisions are necessary for the District to afford this settlement. _____
Budget revisions are necessary for the District to afford this settlement. These revisions are itemized below. The District’s budget assumptions are attached, which become an integral part of this document.
Note that if the District does not adopt all of the revisions in the current fiscal year, the County Superintendent is required to issue a qualified or negative certification on the next Interim Report per Government Code (GC) 3547.5(c).
Budget Adjustment Categories
Increase (Decrease) Year 1
Revenues/Other Financing Sources Incorporated in 2nd Interim Report
$0
Expenditures/Other Financing Uses Incorporated in 2nd Interim Report
$0
Ending Balance Increase (Decrease)
$0
1 of 2
Increase (Decrease) Year 2
Increase (Decrease) Year 3
In accordance with the requirements of Government Code Section 3547.5, the Superintendent and Chief Business Official of the Albany Unified School District hereby certify that the District can meet the costs incurred under the Collective Bargaining Agreement between the District and the Service Employees International Union Bargaining Unit(s), during the term of the agreement, from July 1, 2014 to June 30, 2016.
__________________________________________
___________________
District Superintendent (Signature)
Date
Valerie Williams __________________________________________
District Superintendent (Type Name) __________________________________________
____________________
Chief Business Official (Signature)
Date
Allan Garde _________________________________________
Chief Business Official (Type Name)
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School District:
Albany Unified
Public Disclosure of Collective Bargaining Agreement In Accordance with AB 1200 (Chapter 1213/1991), GC 3547.5
Name of Bargaining Unit: Service Employees International Union
Certificated _____ Classified ____X_____
The proposed agreement covers the period beginning July 1, 2014 and ending June 30, 2016 and will be acted on by the Governing Board at its meeting on April 26, 2016. Note: This form, along with a copy of the proposed agreement, must be submitted to the County Office at least ten (10) working days prior to the date the Governing Board will take action. A.
Proposed Change in Compensation Annual Cost Prior to
Compensation
Fiscal Impact of Proposed Agreement
Proposed Agreement FY 2016 1.
Salary Schedule (This is to include Step & Column, which is also reported separately in item 6)
$
900,488
Year 1
Year 2
Year 3
Increase/(Decrease)
Increase/(Decrease)
Increase/(Decrease)
FY 2016
FY 2017
FY 2018
$
17,945
$
1.99% 2.
Other Compensation Stipends, Bonuses, Longevity, Overtime Differential, Callback or Standby Pay, etc.
9,184
$
1.02% $
0.00%
-
9,276 1.03%
$
0.00%
0.00%
2a. Description of Other Compensation
3.
Statutory Benefits - STRS, PERS, FICA, WC, UI, Medicare, etc.
$
232,424
$
-
$
-
$
-
$
4,605
$
2,467
$
2,821
1.98% 4.
1.06%
$
305,820
$
-
$
0.00% 5.
Total Compensation - Add Items 1 through 4 to equal 5
$
1,438,732
$
22,550
Step & Column - Due to movement plus any changes due to settlement. This is a subset of item No. 1.
7.
Total number of represented Employees (Use FTEs)
8.
Total Compensation Average Cost per Employee
$
-
$
20.025 $
71,847
$
$
11,651
0.00%
$
0.81%
12,097 0.84%
-
$
9,184
$
9,276
1,126
$
-
$
-
20.025 $
0.00%
1 of 7
0.00%
1.57% 6.
1.21%
Health/Welfare Plans
0.00%
0.00%
4/11/2016
School District:
Albany Unified
Public Disclosure of Collective Bargaining Agreement In Accordance with AB 1200 (Chapter 1213/1991), GC 3547.5 9.
What was the negotiated percentage increase approved? For example, if the increase in "Year 1" was for less than a full year, what is the annualized percentage of that increase for "Year 1"? 2% retroactive to July 1, 2015
10.
Were any additional steps, columns or ranges added to the schedules? (If yes, please explain.) No.
11.
Please Include comments and explanations as necessary. (If more room is necessary, please attach additional sheet.) None
B.
Proposed Negotiated Changes in Non-compensation Items (e.g. class size adjustments, staff development days, teacher prep time, classified staffing ratios, etc.)
None
C.
What are the Specific Impacts (Positive or Negative) on Instructional and Support Programs to Accommodate the Settlement? Include the impact of changes such as staff reductions or increases, program reductions or increases, elimination or expansion of other services or programs (e.g. counselors, librarians, custodial staff, etc.).
None
D.
What Contingency Language is Included in the Proposed Agreement (e.g. reopeners, etc.)? None
E.
Will this Agreement Create, Increase, or Decrease Deficit Financing in the Current or Subsequent Year(s)? "Deficit Financing" is defined to exist when a fund's expenditures and other financing uses exceed its revenues and other financing sources in a given year. If yes, explain the amounts and justification for doing so.
This will increase deficit spending, but the District is still maintaining a 9% reserve through June 30, 2019. These cost increases were incorporated in the 2015/16 2nd Interim Report.
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4/11/2016
School District:
Albany Unified
Public Disclosure of Collective Bargaining Agreement In Accordance with AB 1200 (Chapter 1213/1991), GC 3547.5 F.
Identify Other Major Provisions that do not Directly Affect the District's Costs; such as Binding Arbitration, Grievances Procedures, etc. None
G.
Source of Funding for Proposed Agreement 1. Current Year LCFF
2. If this is a single year agreement, how will the ongoing cost of the proposed agreement be funded in subsequent years (I.e., what will allow the district to afford this contract)?
3. If this is a multiyear agreement, what is the source of funding, including assumptions used, to fund these obligations in subsequent years? (Remember to include compounding effects in meeting obligations.) LCFF
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4/11/2016
School District:
Albany Unified
Public Disclosure of Collective Bargaining Agreement In Accordance with AB 1200 (Chapter 1213/1991), GC 3547.5 H. Impact of Proposed Agreement on Current Year Operating Budget (Ed. Code 42142) Column 1 Latest BoardApproved Budget Before Settlement As of: 3/8/2016
Column 2 Cost of Adjustments as a Result of Settlement
Column 3 Other Revisions Costs Increases (Decreases)
Column 4 Total New Budget (Col 1+2+3)
Revenues LCFF Sources (8010-8099)
$
29,015,560
$
-
$
-
$
29,015,560
Remaining Revenues (8100-8799)
$
15,911,890
$
-
$
-
$
15,911,890
$
44,927,450
$
-
$
-
$
44,927,450
1000 Certificated Salaries
$
20,428,373
$
-
$
-
$
20,428,373
2000 Classified Salaries
$
5,369,641
$
-
$
-
$
5,369,641
3000 Employee Benefits
$
12,035,176
$
-
$
-
$
12,035,176
4000 Books and Supplies
$
1,826,820
$
-
$
-
$
1,826,820
5000 Services and Operating Expenses
$
4,105,124
$
-
$
-
$
4,105,124
6000 Capital Outlay
$
19,300
$
-
$
-
$
19,300
7000 Other Outgo
$
(199,359) $
-
$
-
$
(199,359)
Total Revenues Expenditures
Total Expenditures
$
43,585,075
$
-
$
-
$
43,585,075
Operating Surplus (Deficit)
$
1,342,375
$
-
$
-
$
1,342,375
Other Sources and Transfers In
$
-
$
-
$
-
$
-
Other Uses and Transfers Out
$
(117,928) $
-
$
-
$
Current Year Increase (Decrease) In Fund Balance
$
1,224,447
-
$
-
$
1,224,447
Beginning Balance
$
7,028,167
$
7,028,167
Current Year Ending Balance
$
8,252,614
$
-
$
-
$
8,252,614
Nonspendable and Restricted 9711-9740
$
854,728
$
-
$
-
$
854,728
Reserved for Economic Uncertainties 9789 (3%)
$ 1,311,090.09
$
$
-
$
1,311,090
Committed and Assigned 9770-9780
$
1,300,000
$
$
-
$
1,300,000
Unassigned/Unappropriated 9790
$
4,786,796
$
4,786,796
$
(117,928)
Components of Ending Balance
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-
4/11/2016
School District:
Albany Unified
Public Disclosure of Collective Bargaining Agreement In Accordance with AB 1200 (Chapter 1213/1991), GC 3547.5 If the total amount of the adjustment in Column 2 on page 4 does not agree with the amount of the Total Compensation Increase in Section A, line 5, page 1 (e.g. increase was partially budgeted), explain the variance below: No budget changes required as the budget amenments were already incorporated in the 2015/16 2nd Interim Report.
Please include any additional comments and explanations of page 4 as necessary:
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4/11/2016
School District:
Albany Unified
Public Disclosure of Collective Bargaining Agreement In Accordance with AB 1200 (Chapter 1213/1991), GC 3547.5 I.
Impact of Proposed Agreement on Current Year Unrestricted Reserves
1.
State Reserve Standard
a.
Total Expenditures, Transfers Out, and Uses (Page 4, Column 4, total Expense & Other Uses and Transfers Out (Must include restricted and unrestricted expenditures)
b.
State Standard Minimum Reserve Percentage for this District
c.
State Standard Minimum Reserve Amount for this District (For districts with less than 1,001 ADA, this is the greater of Line a. times Line b. or $50,000.
$
43,703,003 3.00%
$
1,311,090
a. General Fund Budgeted Unrestricted Reserve for Economic Uncertainties
$
1,311,090
b. General Fund Budgeted Unrestricted Unassigned/Unappropriated Amount
$
4,786,796
c. Special Reserve Fund 17-Budgeted Reserve for Economic Uncertainties
$
-
d. Special Reserve Fund 17-Budgeted Unassigned/Unappropriated Amount
$
-
e. Article XIII-B Fund 72-Budgeted Reserve for Economic Uncertainties
$
-
Article XIII-B Fund 72-Budgeted Unassigned/Unappropriated Amount
$
-
$
6,097,886
2.
f.
Budgeted Unrestricted Reserve (After Impact of Proposed Agreement)
g. Total District Budgeted Unrestricted Reserves 3.
Do unrestricted reserves meet the state standard minimum reserve amount?
YES ___X____ NO _______
If NO, how do you plan to restore your reserves?
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4/11/2016
School District:
Albany Unified
Public Disclosure of Collective Bargaining Agreement In Accordance with AB 1200 (Chapter 1213/1991), GC 3547.5 Revised MYP Including the Effects of Collective Bargaining
Revenues LCFF Sources Federal Revenue Other State Revenue Local Revenue Total Revenue
District Name: Albany Unified School District General Fund Multi-Year Projections Budget Year: 2015/16 ADA: 3,707.62 ADA: 3,718.30 COLA: 0% COLA: 0% Deficit: 0% Deficit: 0% Year: 2015/16 Year: 2016/17 29,015,560 30,067,922 1,097,463 1,036,221 4,337,809 6,725,583 8,088,844 7,587,803 44,927,450 43,029,755
Expenditures Certificated Salaries Step & Column Adjustment Cost-of-Living Adjustment Other Adjustments Classified Salaries Step & Column Adjustment Cost-of-Living Adjustment Other Adjustments Employee Benefits Books & Supplies Services, Other Operating Exp Capital Outlay Other Outgo Direct Support/Indirect Costs Total Expenditures Operating Surplus (Deficit)
20,428,373 0 0 0 5,369,641 0 0 0 12,035,176 1,826,820 4,105,124 19,300 0 (199,359) 43,585,075 1,342,375 0
Other Financing Sources & Transfers In(Positive figure) Other Financing Uses & Transfers Out (Neg Figure)
(117,928)
20,428,373 359,898 0 (556,844) 5,369,641 60,593 0 (51,500) 12,596,280 1,347,703 3,592,527 0 0 (199,359) 42,947,312 82,443 0
ADA: 3,745 COLA: 0% Deficit: 0% Year: 2017/18 31,176,549 1,036,221 4,337,809 7,596,299 44,146,878
20,230,257 367,635 0 0 5,378,734 61,477 0 0 13,592,172 1,393,878 3,649,256 0 0 (199,359) 44,474,050 (327,172) 0
(132,531)
(96,531)
(50,088)
(423,703)
Current Yr Inc(Dec) in Fund Balance
1,224,447
Beginning Fund Balance Audit Adjustments/Restatements
7,028,167
8,252,614
8,202,526
Ending Balance
8,252,614
8,202,526
7,778,823
Restricted Balance
2,154,728
2,063,273
1,751,013
Required Reserve
1,311,090
1,292,360
1,338,560
Unrestricted Balance (Incl Revolving)
4,786,796
4,846,893
4,689,250
Comments (Major changes):
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4/11/2016
Albany Unified School District Public Disclosure of Collective Bargaining Agreement In accordance with AB1200 (Chapter 1213/1991) and GC 3547.5.
Certification of Board Action The disclosure document must be signed by the district Superintendent or designee at the time of public disclosure and by the President or Clerk of the Governing Board at the time of formal board action on the proposed agreement.
The information provided in this document summarizes the financial implications of the proposed agreement and is submitted to the Governing Board for public disclosure of the major provisions of the agreement (as provided in the "Public Disclosure of Proposed Collective Bargaining Agreement") in accordance with the requirements of AB 1200 and Government Code 3547.5.
District Superintendent (or Designee) (Signature)
Date
After public disclosure of the major provisions contained in this summary, the Governing Board, at its meeting on April 26, 2016, took action to approve the proposed Agreement with the Service Employees International Union Bargaining Unit.
President (or Clerk), Governing Board (Signature)
Date
Special Note: The Alameda County Office of Education reserves the right to ask any additional questions or request any additional information we feel is necessary to review the district properly under AB 1200,
including a copy of the Tentative Agreement.
C:\Users\agarde\Google Drive\Negotiations\AB1200\2015-16\SEIU\#5 AB 1200 Coll. Bargaining Public Disc Board Action - SEIU
Revised 04/28/2011
