HomeMy WebLinkAbout03.a. Review draft Position Paper to authorize the General Manager to execute a three-year extension of the contract with Industrial Employers and Distributors Association (IEDA) to provide labor negotiation and relations services Page 1 of 3
Item 3.a.
CENTRAL SAN BOARD OF DIRECTORS
POSITION PAPER
DRAFT
MEETING DATE: MARCH 6, 2018
SUBJECT: REVIEW DRAFT POSITION PAPER TO AUTHORIZE THE GENERAL
MANAGER TO EXECUTE A THREE-YEAR EXTENSION OF THE
CONTRACT WITH INDUSTRIAL EMPLOYERS AND DISTRIBUTORS
ASSOCIATION (I EDA) TO PROVIDE LABOR NEGOTIATION AND
RELATIONS SERVICES
SUBMITTED BY: INITIATING DEPARTMENT:
TEJI O'MALLEY, HUMAN RESOURCES OPERATIONS - POD - HUMAN RESOURCES
MANAGER
REVIEWED BY: ANN SASAKI, DEPUTY GENERAL MANAGER
ISSUE
Board authorization is required for the General Manager to execute service agreements in an amount
greater than $100,000 and to add additional monies for all contracts over$100,000.
BACKGROUND
At the Board Workshop in October 2013, the Board determined that it would be prudent to engage the
services of a labor relations expert well before the expiration of the District's Memoranda of Understanding
(MOUs)with its labor unions in December 2017. After interviewing three agencies, the Committee
recommended I EDA. On September 4, 2014, the Board authorized the contract with I EDA for labor
negotiation services effective October 2014 through January 2018. The District recently extended that
contract for six months through June 30, 2018.
1 EDA charges employers a single monthly fee that is based upon the number of employees and number
of bargaining units. The monthly fee does not change regardless of the needs of the employer during the
fee cycle. This addresses the fluidity of the amount of work that an employer may need during the
contracted time. The current monthly fee is $3,712.82, which will be adjusted for inflation every July 1. The
District has spent$101,304.96 to date on this contract.
Founded in 1937, 1 EDA is a non-profit agency that provides human resources (HR) services to over 150
private and public sector employers. I EDA has been providing the District with negotiation representation
(chief spokesperson role) and labor relations analysis on various HR-related matters since October
2014. If the Board extends the contract, Mr. Bruce Heid will continue to act as the Chief Negotiator for the
March 6, 2018 Regular ADMIN Committee Meeting Agenda Packet- Page 3 of 58
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District. In addition, the District will continue to have access to a staff of negotiators and other in-house
experts who specialize in a range of labor relations and HR services. I EDA staff possesses extensive
knowledge of the local labor market as they have many local public agencies including counties, cities, and
special districts as clients.
ALTERNATIVES/CONSIDERATIONS
Do not approve the contract extension with I EDA. This is not recommended as I EDA has been providing
services for the current labor negotiations since October 2014, and I E DA will continue to do that as well as
provide labor relations expertise and advise on other HR issues.
FINANCIAL IMPACTS
I n total, the District has paid $101,304.96 as part of the initial contract with I EDA. The estimated total cost
of the three additional years and the six-month extension currently in effect is $165,515.04, and attached is
an estimated fee schedule reflecting that total. Funds for the contract are available in the Operating
Budget.
COMMITTEE RECOMMENDATION
The Administration Committee reviewed this matter at its February 22, 2018 meeting and recommended...
RECOMMENDED BOARD ACTION
Approve a three-year extension of the contract with I EDA, add additional monies, and authorize the
General Manager to execute the contract amendment, effective March 15, 2018.
ATTACHMENTS:
Estimated Fee Schedule
March 6, 2018 Regular ADMIN Committee Meeting Agenda Packet- Page 4 of 58
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Estimated Cost of IEDA Contract Extension
Time Period Monthly Cost Cost for the
Time Period
January 2018 — June 2018 $3,712.82 $22,276.92
July 2018 — June 2019 $3,842.77 $46,113.24
July 2019 — June 2020 $3,977.27 $47,727.24
July 2020 — June 2021 $4,116.47 $49,397.64
Total Cost of Three-Year Extension $165,515.04
Note:
The most recent inflation adjustment which took effect on July 1, 2017 was 3.47%. For
the purposes of this estimate, a 3.5% inflation increase was applied to each one-year
period.
March 6, 2018 Regular ADMIN Committee Meeting Agenda Packet- Page 5 of 58