Title
Adoption of Resolution Approving a Memorandum of Understanding between the Management and Confidential Employees Association 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 MCEA, representing approximately 122 City employees, expired on June 30, 2025. Negotiations between the City of Alameda (City) and MCEA 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, one-time healthcare premium cost offset, administrative leave, and increases to safety shoe/boot reimbursements. Additionally, the agreement includes agreement to meet and confer during the term of the MOU for implementation of a 401(a) plan and forty-hour workweek for exempt MCEA classifications. Elements of the proposed MOU are summarized below.
MCEA 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), 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 Base Revenue Index (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, five (5) classifications will receive equity adjustments ranging from 2.76% to 6.98% upon City Council approval. Administrative Technician I, Administrative Technician II, and Administrative Technician III classifications will receive a one-time equity adjustment of 2.76% effective the first full pay period following July 1, 2025. The Library Services Manager classification will receive a one-time equity adjustment of 6.98% effective the first full pay period following July 1, 2025. The Recreation Manager classification will receive a one-time equity adjustment of 4.29% effective the first full pay period following July 1, 2025.
The MOU provides one-time lump sum non-PERSable payments 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 agreed to provide up to an additional three (3) days of Administrative Leave, commensurate with the employee’s regular workday schedule, upon employee request, to exempt management employees in recognition of work performed outside of their normal work week. The additional hours of Administrative Leave are subject to supervisor approval and are not available for cash out and will be forfeited if unused.
The City and MCEA agreed to increase the compensatory time off (CTO) cap to eighty hours. On the last pay date of the fiscal year, CTO hours exceeding forty hours, up to a maximum of forty hours, will be cashed out.
The City and MCEA also reached agreement to provide reimbursement of $350 per fiscal year for employees required to wear safety boots and include the classification of Plan Check Engineer to the list of eligible classifications to receive the safety boot reimbursement; move the half day “holi-eve” for Christmas Eve or New Years to the Floating Holiday bank for a total of four Floating holidays per fiscal year; and expand immediate family members, which codifies City practice, for the Funeral Leave provision.
Finally, the City and MCEA agreed to meet and confer on implementation of a 401(a) plan for the 1% City matching contribution to MCEA member’s deferred compensation and reviewing exempt MCEA classifications for transition to a forty (40) hour workweek.
ALTERNATIVES
City Council may consider a number of alternatives, including:
• Approve the resolution as recommended. The City has bargained in good faith with MCEA and reached a successor agreement that provides equity adjustments to the median, modest wage increases, and workplace improvements.
• 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 upon in the MCEA MOU are shown in Table 1 below.
Table 1
The cost of the increased boot allowance and CTO cash out is expected to be approximately $30,000 annually. It is anticipated that additional fiscal year costs will be included in future fiscal year budgets.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is in conformance with the Alameda Municipal Code and all policy documents.
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 MCEA 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
Financial Impact section reviewed,
Ross McCarthy, Finance Director
Exhibits:
1. Memorandum of Understanding between MCEA and the City of Alameda, July 1, 2025 through June 30, 2027 - Redline
2. Memorandum of Understanding between MCEA and the City of Alameda, July 1, 2025 through June 30, 2027 - Clean
3. MCEA Salary Schedule, Effective July 13, 2025