Title
Adoption of Resolution Approving a Memorandum of Understanding (MOU) Between the Alameda Police Officers Association Non-Sworn Unit (PANS) and the City of Alameda for a Forty-Two Month Term Commencing December 27, 2018 and Ending June 30, 2022. (Human Resources 2510)
Body
To: Honorable Mayor and Members of the City Council
From: David L. Rudat, Interim City Manager
EXECUTIVE SUMMARY
The City of Alameda has nine labor groups and administers two compensation plans. This includes four Public Safety groups and five miscellaneous groups. Labor agreements with the four Public Safety groups expire in December 2021. The agreements with the five miscellaneous groups and the two Compensation Plans expired in December 2018. The City has been actively negotiating with the five miscellaneous groups for successor agreements. These groups are:
• Alameda City Employees Association (ACEA)
• Management and Confidential Employees Association (MCEA)
• Electrical Utility Professionals of Alameda Association (EUPA)
• International Brotherhood of Electrical Workers (IBEW)
• Alameda Police Officers Association Non-Sworn (PANS)
The two compensation plans provide for salary and benefits for the Executive Management Team (EXME) and the Alameda Municipal Power Unrepresented Management Employees (AMPU) at the City’s Electric Utility.
The City has reached agreement on a 42-month MOU with PANS and is recommending approval of the new labor agreement. PANS members have ratified this agreement.
BACKGROUND
The memorandum of understanding with PANS, which covers approximately 21 employees, commenced December 27, 2015 and expired on December 26, 2018. Since October 2018 the City has been in negotiations with PANS in an effort to reach agreement on the terms and conditions of employment. Employee salary and benefits continue until a successor agreement is approved.
During this round of negotiations, the overarching goal focused on clarifying hours of work, vacation accruals, sick leave accruals and preparation for implementation of a new Human Resources Information System during the term of the agreement. Negotiations also focused on providing across the board salary increases as well as administrative leave for the single management classification of the bargaining unit in order to keep Alameda competitive in the surrounding labor market.
The revised Memorandum of Understanding (MOU) submitted for approval represents a forty-two month agreement, commencing December 27, 2018 and ending June 30, 2022. Elements of the proposed MOU are summarized below.
DISCUSSION
The proposed MOU provides salary increases as follows: three percent (3.0%) effective January 6, 2019; three percent (3.0%) effective the first full pay period following January 1, 2020; two percent (2.0%) effective the first full pay period following January 1, 2021; and one percent (1.0%) effective the first full pay period following January 1, 2022.
Additionally, the Public Safety Communications Supervisor classification will receive eighty hours of Administrative Leave per fiscal year in part to recognize the incumbent’s work requirement beyond their normal work schedule to support a 24-hour per day, 365 day per year operation.
In recognition of dedication and loyalty to the City and to retain valued employees, the City will provide employees, who complete one year of service and contribute at least one-half of one percent (0.5%) of their base salary to a deferred compensation program, a matching contribution of one percent (1%) to the employee’s deferred compensation plan account.
The City and PANS also agreed to increase the uniform allowance as follows: one thousand dollars ($1,000) effective the first full pay period following approval by the City Council; one thousand fifty dollars ($1,050) effective the first full pay period following January 1, 2020; one thousand and one hundred ($1,100) effective the first full pay period following January 1, 2021; and one thousand and one hundred fifty dollars ($1,150) effective the first full pay period following January 1, 2022.
The City will continue to make a monthly contribution for medical insurance for eligible employees through a contribution to the Flexible Benefit Amount. The medical contribution amount will remain consistent with the limits implemented in the 2018 plan year. In the 2019 plan year, employees were able to choose from ten health plans, six of which are fully covered by the City’s medical contribution amount.
The City and PANS also agreed on language to clarify and update provisions including provisions on the City’s retirement plan, overtime, compensatory time, the probationary period, and vacation and sick leave accruals.
Other clarifying language changes are included in the proposed MOU. These proposed language changes include updates to comply with state and federal law and to clarify use of City facilities, discrimination, vacation scheduling and proof of illness. The City and PANS agreed to further discussions regarding the processing of Catastrophic Leave and State Disability Insurance programs; process of bidding for a work shift; and excise tax liability under the Affordable Care Act. Unless otherwise noted, all provisions will be effective on January 6, 2019. A draft MOU is attached.
FINANCIAL IMPACT
The financial impact of PANS MOU in Fiscal Year 2018-19 is approximately $48,400 for the implementation of salary and other benefit changes. Fiscal Year 2018-19 Budget assumes most of the increases provided in the MOU. The financial impact on the Fiscal Year 2019-20 and Fiscal Year 2020-21 and Fiscal Year 2021-22 labor costs will be approximately $96,600, $87,200 and $51,200 (6 months), respectively. The total cost of the 42-month contract is estimated at $282,800. These costs will be incorporated into future budgets.
Labor costs for the PANS bargaining group are allocated to the Police Department and are fully charged to the General Fund.
It is anticipated that the Police Department will be able to absorb the increased cost in their Fiscal Year 2018-19 Budget. Any necessary budget adjustments for Fiscal Year 2018-19 will be presented to the City Council as part of the Mid-Year Budget review.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with the Alameda Municipal Code.
ENVIRONMENTAL REVIEW
This action is not a project under Public Resources Code Section 21065 or California Environmental Quality Act (CEQA) guidelines Section 15378 because it does not have potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment.
RECOMMENDATION
Adopt a Resolution approving a Memorandum of Understanding (MOU) between the Alameda Police Officers Association Non-Sworn Unit (PANS) and the City of Alameda for a forty-two month term commencing December 27, 2018 and ending June 30, 2022.
Respectfully submitted,
Nancy Bronstein, Human Resources Director
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibits:
1. MOU (Redline)
2. MOU