Title
Adoption of Resolution Approving a Memorandum of Understanding (MOU) between the International Brotherhood of Electrical Workers (IBEW) and the City of Alameda for a Three Year Term Commencing on December 27, 2015 and Ending December 26, 2018. (Human Resources 2510)
Body
To: Honorable Mayor and Members of the City Council
From: Jill Keimach, City Manager
Re: Adoption of Resolution Approving a Memorandum of Understanding (MOU) between the International Brotherhood of Electrical Workers (IBEW) and the City of Alameda for a Three Year Term Commencing on December 27, 2015 and Ending December 26, 2018
BACKGROUND
The Compensation Plan with IBEW covers 34 allocated positions and commenced December 27, 2012 and expired December 26, 2015. The City has been in negotiations with IBEW since September 2015 in an effort to reach an agreement on the terms and conditions of employment. Employee salary and benefits have continued consistent with the expired contract until a successor agreement is approved.
With the approval of the IBEW Contract the City will have long term agreements in place with all City bargaining units. Contracts with all miscellaneous units expire on December 26, 2018 and Public Safety Contracts expire December 18, 2021.
During this round of negotiations, the City’s overarching goal was to provide employees a fair cost of living adjustment and associated benefits, balancing the improved economy and the City’s known long-term liabilities. An additional consideration was to create consistency across all miscellaneous bargaining units, which streamlines administration allowing staff to devote effort to more pressing matters, to the benefit of all employees.
The revised Memorandum of Understanding (MOU) submitted for approval represents a three-year agreement commencing on December 27, 2015 and ending on December 26, 2018. Elements of the proposed Memorandum of Understanding (MOU) are summarized below. This item will go before the Public Utilities Board (PUB) at its June 20, 2016 meeting. A copy of the final resolution will be provided at the City Council meeting.
DISCUSSION
The proposed MOU provides salary increases as follows: three percent (3%) effective the first pay-period following approval of the agreement by City Council (expected June 26, 2016); three percent (3%) effective January 8, 2017; and three percent (3%) effective January 7, 2018.
A salary survey has been completed and classifications in the IBEW bargaining unit will receive equity adjustments ranging from 1% to 10% effective the first pay period following City Council approval of the contract. The equity adjustments will allow AMP to be competitive in recruiting and retaining employees with specialized skills. It is critical for AMP to provide a competitive wage to compete with the growing workforce needs that exist throughout the industry. AMP is funded entirely through electric customer rates and is accounted for as a separate enterprise fund of the City; therefore, increases in wages and benefits at AMP do not affect the City's General Fund.
The City will continue to make medical, dental, and life insurance available for eligible employees through a contribution to the Flexible Benefit Amount. The IBEW Flexible Benefit Amount will be increased in January 2017 and January 2018. These increases will be equal to 50% of the increase to the Kaiser premiums based on the coverage level elected by each employee. Unlike previous contracts, IBEWs Flexible Benefit Amount will not increase after the contract expiration. The parties will need instead to negotiate any increases to the flexible benefit amount.
Two of the City’s critical goals in this round of negotiations were to (i) establish an equitable and consistent cost-sharing of medical benefits with all of its miscellaneous bargaining units and (ii) to tie increases in the City’s contribution towards health insurance costs to the increases to Kaiser Bay Area Health Plan rates. Kaiser rates have historically been more moderate then Blue Shield health rates, allowing the City to better control healthcare cost. In resolving the IBEW contract, the City has now been able to achieve this consistency starting in Fiscal Year 2017-18 with all miscellaneous bargaining units. Additionally, IBEWs Dental Insurance provision has been updated to match all other miscellaneous City groups.
The City and AMP also reached agreement to provide alternative work schedules to employees. These work schedules differ by classification and need but provide 12 hour shifts for all Systems Operators where 24 hour coverage is needed. Other employees will work 9/80 schedules as the needs of the Department allow. Both schedules are cost neutral and include a provision that allows either the City or IBEW to discontinue the alternate work schedules upon 30 days’ notice.
The City and IBEW also reached agreement on standby pay, which is paid when an employee is placed on a mandatory standby schedule and must respond to work within a certain period of time. This change impacts only a few select classifications. Also, agreed to was the creation of a Compensatory Time Off bank with a maximum accrual of 64 hours allowing employees to select to receive leave hours in lieu of cash payment for overtime hours worked.
The parties also agreed to move the 6% rubber glove premium provided to Line Workers into base pay. There is no increase in cost as a result of this change.
The parties also agreed to a handful of other clarifying language changes including updating the language on pay for acting and additional duties, the language on rest and break periods as well as the language on leaves of absence and sick time to ensure conformance with state and federal laws. Language has also been added regarding the proration of holidays based on hire dates.
FINANCIAL IMPACT
Positions in IBEW are entirely funded through electric customer rates, which are accounted for in a separate enterprise fund of the City.
The contract with IBEW does not provide for retroactivity to the contract expiration date for the wage increases or the equity adjustments. Recommended increases will not be effective until the first pay-period following City Council approval of the contract (expected June 26, 2016). As a result the impact in Fiscal Year 2015-16 is estimated to be under $10,000. This is an estimated savings of $152,000 over an effective date of January 1, 2016.
The cost for fiscal year 2016-17 will be approximately $427,000 for the implementation of salary, equity and other benefit adjustments. This increase was included in the proposed 2016-17 budget for the Alameda Municipal Power.
The increased cost for fiscal year 2017-18 will be approximately $201,000 above FY 2016-17, which is to be included in the proposed 2017-18 budget for Alameda Municipal Power.
The partial cost for fiscal year 2018-19 will be approximately $138,000 above FY 2017-18, which is to be included in the proposed 2018-19 budget for Alameda Municipal Power.
The above impact includes projected CalPERS retirement rate increases.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with the Alameda Municipal Code.
ENVIRONMENTAL REVIEW
This action is exempt from the California Environmental Quality Act (CEQA) because it is not a project which has a potential for resulting in either a direct physical change in the environment, pursuant to Guideline section 15378.
RECOMMENDATION
Adopt a resolution approving a Memorandum of Understanding (MOU) between the International Brotherhood of Electrical Workers (IBEW) and the City of Alameda for a three year term commencing on December 27, 2015 and ending December 26, 2018.
Respectfully submitted,
Nancy Bronstein, Human Resources Director
By,
Nancy Bronstein, Human Resources Director
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibits:
1. Proposed Public Utilities Board Resolution
2. Memorandum of Understanding between the City of Alameda and International Brotherhood of Electrical Engineers
3. Redlined version of Memorandum of Understanding between the City of Alameda and the International Brotherhood of Electrical Engineers