Title
Adoption of Resolution Approving a Memorandum of Understanding between the Alameda City 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 ACEA, representing approximately 130 City of Alameda (City) employees, expired on June 30, 2025. Negotiations between the City and ACEA 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, City matching contributions to employee deferred compensation, increases to Class A/B driver pay, and increases to safety shoe/boot and tool reimbursements. Elements of the proposed MOU are summarized below.
ACEA 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 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), 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 (i.e., 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, ten (10) classifications will receive equity adjustments ranging from 2.75% to 10.44%, upon City Council approval.
• Permit Technician I, Permit Technician II, and Permit Technician III classifications will receive a one-time equity adjustment of 2.75% effective the first full pay period following July 1, 2025.
• Planner I, Planner II, and Planner III classifications will receive a one-time equity adjustment of 6.96% effective the first full pay period following July 1, 2025.
• The Plans Examiner classification will receive a one-time equity adjustment of 10.44% effective the first full pay period following July 1, 2025.
• The Library Technician classification will receive a one-time equity adjustment of 4.49% effective the first full pay period following July 1, 2025.
• The Librarian classification will receive a one-time equity adjustment of 4.50% effective the first full pay period following July 1, 2025.
• The Senior Librarian classification will receive a one-time equity adjustment of 4.39% 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 a 1% contribution into members’ deferred compensation plans with a minimum employee contribution of 0.5%.
The City and ACEA also reached agreement to increase Commercial Driver’s License pay to $200 monthly, increase reimbursement of $400 per fiscal year for employees required to wear safety boots, increase the annual tool reimbursement to $1,250 for Fleet Mechanics; move the half day “holi-eve” for Christmas Eve or New Years to the Floating Holiday bank for a total of six Floating holidays per fiscal year, and expand the number of funeral leave days to include a full week off for 5-day per week employees as well as expand the definition of qualifying immediate family members.
ALTERNATIVES
City Council may consider a number of alternatives, including:
• Approve the resolution as recommended. The City has bargained in good faith with ACEA 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 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 ACEA MOU as shown in Table 1 below.
Table 1
|
|
COLA |
Equity |
One-Time |
Total |
|
FY 25-26 |
$164,000 |
$117,000 |
$135,000 |
$416,000 |
|
FY 26-27 |
$336,000 |
$120,000 |
$135,000 |
$591,000 |
The cost of the increased boot allowance, tool allowance, and Class A/License is approximately $20,000 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 the ACEA 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 ACEA and the City of Alameda, July 1, 2025 through June 30, 2027 - Redline
2. Memorandum of Understanding between ACEA and the City of Alameda, July 1, 2025 through June 30, 2027 - Clean
3. ACEA Salary Schedule, Effective July 13, 2025