Title
Adoption of Resolution Approving a Memorandum of Understanding between the Alameda Police Officers Association: Non-Sworn and the City of Alameda for a Twenty-Four Month Term Commencing July 1, 2025 and Ending June 30, 2027. (Human Resources 10025060)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
The prior agreement with PANS, representing approximately 22 City of Alameda (City) employees, expired on June 30, 2025. Negotiations between the City and PANS commenced in January of 2025.
The revised Memorandum of Understanding (MOU) submitted for approval represents a twenty-four month agreement, commencing July 1, 2025, and ending June 30, 2027 and includes increases to base salary through equity adjustments and Base Revenue Index (BRI) Salary Adjustments. The proposed MOU additionally provides an increase in the City’s contribution toward employee healthcare premiums, an additional floating holiday, one-time lump sum healthcare premium payments, increased meal allowance, clarifying, updating, or removing outdated provisions. Elements of the proposed MOU are summarized below.
PANS members have ratified this agreement.
BACKGROUND
The City has nine labor groups and administers two compensation plans. This includes four Public Safety groups and five miscellaneous groups.
The agreements with the five miscellaneous groups, two Public Safety groups, and the two Compensation Plans expired in June of 2025. The City has now reached agreement with the Alameda Police Officers Association (APOA), Alameda Police Officers Association: Non-Sworn (PANS), Management and Confidential Employees Association (MCEA), the Alameda City Employees Association (ACEA), and the Electrical Utility Professionals Association (EUPA). The City is currently meeting with the Alameda Police Managers Association (APMA), and the International Brotherhood of Electrical Workers, Local 1245 (IBEW) groups.
DISCUSSION
Proposed MOU wage increases for the term of the MOU will be based on the BRI, defined as one-half (50%) of the year-over-year growth measured between successive fiscal years of the combined dollar amount of the following four (4) Alameda taxes: Property tax, 1% Bradley-Burns Sales Tax, Utility Users Tax, and Transient Occupancy Tax. The minimum base wage increases will be 1% and the maximum will be 5%. The MOU provides base wage increases as follows:
• Wage increase for 2025 will be based on BRI from fiscal year 2023-2024 and 2024-2025, with the minimum increase of 1% to base wages taking effect the first full pay period following July 1, 2025. Upon finalization of the BRI calculation, any additional increase to base wages will be implemented retroactively to the first full pay period following July 1, 2025.
• Wage increase for 2026 will be based on BRI from Fiscal Year 2024-2025 and 2025-2026, with the minimum increase of 1% to base wages taking effect the first full pay period following July 1, 2026. Upon finalization of the BRI calculation, any additional increase to base wages will be implemented retroactively to the first full pay period following July 1, 2026.
Additionally, three (3) classifications will receive equity adjustments ranging from 2.04% to 7.72% upon City Council approval. Senior Public Safety Dispatcher classifications will receive a one-time equity adjustment of 4.43% effective the first full pay period following July 1, 2025. The Animal Control Officer classification will receive a one-time equity adjustment of 7.72% effective the first full pay period following July 1, 2025. The Public Safety Dispatcher classification will receive a one-time equity adjustment of 2.04% effective the first full pay period following July 1, 2025.
The MOU also provides a one-time lump sum, non-PERSable payment of $1,000 in July 2025 and $1,000 in July 2026 in recognition of rising medical costs and to offset medical premium cost increases.
The City and PANS have also agreed to increase monthly contributions to employee medical insurance for eligible employees through a contribution to the Flexible Benefit Amount. PANS medical contribution amount will be increased beginning July 1st consistent with the contribution amount provided to other miscellaneous groups and will continue to increase by 50% of the increased cost of the CalPERS Kaiser plan rate. In the 2025 plan year, employees are able to choose from eight health plans, two of which are fully covered at the family rate by the City’s medical contribution amount.
The City and PANS also agreed to provide an additional floating holiday to be taken by the end of the fiscal year, to clarify language regarding training assignment pay, and to meet and confer over establishment of a retirement health savings account.
Other clarifying language changes are included in the proposed MOU. These proposed language changes include updates to funeral leave and removal of gendered language.
ALTERNATIVES
City Council may consider a number of alternatives, including:
• Approve the resolution as recommended. The City has bargained in good faith with PANS and reached a successor agreement that provides equity salary adjustments, modest wage increases, and an increase in healthcare premium contributions.
• Deny the resolution. Staff does not recommend this alternative as it would trigger a delay in implementing a successor MOU that has been ratified by the bargaining unit.
FINANCIAL IMPACT
The financial impact of implementing salary and other special pay changes agreed to in the PANS MOU are described in the chart below.
|
|
COLA Increase |
Healthcare Contribution Increase |
Equity Increases |
Total |
|
FY 25-26 |
$32,000 |
$63,000 |
$69,000 |
$164,000 |
|
FY 26-27 |
$64,000 |
$40,000 |
$70,000 |
$174,000 |
|
TOTAL |
$96,000 |
$103,000 |
$139,000 |
$338,000 |
An additional increased cost will also include increased Meal Allowance at approximately $10,000 - $14,000 annually. The one-time non-PERSable lump payment will cost $23,000 annually.
It is anticipated that the Police Department budget will be able to absorb the increased costs within their existing Fiscal Year (FY) 2025-26 budget. Any necessary changes for FY 2026-27 will be recommended as part of the Mid-Year Budget revision process. Additional costs will be incorporated in future fiscal year baseline budgets that will be subject to City Council appropriations approval. Labor costs for the PANS bargaining group are allocated primarily to the General Fund.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with the Alameda Municipal Code.
ENVIRONMENTAL REVIEW
This action does not constitute a “project” as defined in California Environmental Quality Act (CEQA) Guidelines Section 15378 and therefore no further CEQA analysis is required.
CLIMATE IMPACT
There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.
RECOMMENDATION
Adopt a resolution approving an MOU between PANS and the City for a twenty-four month term commencing July 1, 2025 and ending June 30, 2027.
Respectfully submitted,
Noelle White, Acting Human Resources Director
By,
Steve Woo, Senior Human Resources Analyst
Financial Impact section reviewed,
Ross McCarthy, Finance Director
Exhibits:
1. Memorandum of Understanding between PANS and the City of Alameda, July 1, 2025 through June 30, 2027 - Redline
2. Memorandum of Understanding between PANS and the City of Alameda, July 1, 2025 through June 30, 2027 - Clean
3. PANS Salary Schedule, Effective July 13, 2025