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HomeMy WebLinkAbout05. Authorize 3-year extension of contract with IEDA to provide labor negotiation and relations service Page 1 of 3 Item 5. CENTRAL SAN BOARD OF DIRECTORS ' POSITION PAPER MEETING DATE: MARCH 15, 2018 SUBJECT: 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 SERVICE SUBMITTED BY: INITIATING DEPARTMENT: TEJI O'MALLEY, HUMAN RESOURCES OPERATIONS - POD - HUMAN RESOURCES MANAGER REVIEWED BY: ANN SASAKI, DEPUTY GENERAL MANAGER Roger S. Bailey 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 E DA. On September 4, 2014, the Board authorized the contract with I E DA 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 March 15, 2018 Regular Board Meeting Agenda Packet- Page 109 of 275 Page 2 of 3 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 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 March 6, 2018 meeting and recommended Board authorization of the extension. 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. Strategic Plan re-In GOAL FOUR: Develop and retain a highly trained and innovative workforce Strategy 2- Enhance Relationships with Employees and Bargaining Units ATTACHMENTS: Estimated Fee Schedule March 15, 2018 Regular Board Meeting Agenda Packet- Page 110 of 275 Page 3 of 3 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 15, 2018 Regular Board Meeting Agenda Packet- Page 111 of 275