Title
Adoption of Resolution Approving a Memorandum of Understanding Between the Alameda City Employees Association and the City of Alameda for a Forty-Two Month Term Commencing December 28, 2018 and Ending June 30, 2022. (Human Resources 2510)
Body
To: Honorable Mayor and Members of the City Council
From: Dave 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)
• Police 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 Managers (AMPU) at the City’s Electric Utility (Alameda Municipal Power).
The City has now reached agreement on a 42-month Memorandum of Understanding (MOU) with ACEA and is recommending approval of the new labor agreement. ACEA members have ratified this agreement.
BACKGROUND
The prior agreement with ACEA, representing approximately one hundred and twenty one city employees expired December 27, 2018. Negotiations between the City and ACEA commenced in July 2018. 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 equity adjustments for specific classifications in order to keep Alameda competitive in the surrounding labor market.
The revised MOU submitted for approval represents a forty-two month agreement, commencing December 28, 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 upon City Council approval; 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, in current year, nine classifications will receive equity adjustments ranging from 5% to 13.6%. The Plan Check Engineer and Transportation Engineer classifications will receive an equity adjustment of 10% effective January 6, 2019. The Assistant Engineer, Junior Engineer, Planner I, Planner II, and Planner III classifications will receive a 5% equity adjustment effective January 6, 2019, and additional 5% equity adjustment the first pay period in January 2020.
The Associate Engineer classification will receive an equity adjustment effective January 6, 2019 to match their salary with the Public Works Project Manager I classification, which equates to a 13.6% increase. Also, the Parks Maintenance Worker II classification will receive an equity adjustment effective January 6, 2019 to match their salary with the Maintenance Worker II classification, which equates to a 9% increase.
In conjunction with the equity adjustments, the classifications of Plan Check Engineer, Transportation Engineer and Associate Engineer will be changed from non-exempt to exempt from the overtime pay provisions of the Fair Labor Standards Act (FLSA). These classifications meet the requirements under the FLSA for the learned professional exemption.
The City and ACEA also reached an agreement to increase certain special compensation pays including the Safety Boot/Shoe allowance from $205 per year to $250 per year and bilingual pay from $60 per month to $100 per month. Furthermore, a new Commercial Driver’s License pay was added that provides $65 per month to employees working in a classification that requires possession and maintenance of a commercial driver’s license.
In recognition of dedication and loyalty to the City and to retain valued employees, the City will provide employees with fifteen or more years of service the opportunity to sell two weeks of vacation back each year, subject to the IRS rules.
The City and ACEA also agreed to increase the total number of floating holidays from three and a half (3.5) floating holidays to five and a half (5.5) floating holidays. Additionally, the City will provide a half day for employees on the day before Thanksgiving and a half day for employees on either Christmas Eve or New Year’s Eve.
The City will continue to make a monthly contribution for employee medical insurance for eligible employees through a contribution to the Flexible Benefit Amount. The ACEA 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.
Agreement was also reached to add a classification dispute provision that provides represented employees with the opportunity, upon request, to meet with the Human Resources Director and City Manager should an employee not be in agreement with the findings of a classification study.
The City and ACEA also agreed on language to clarify and update provisions on the City’s retirement plan, standard work day and workweek for represented employees, the probationary period, acting pay, additional duties pay, and vacation accruals.
Other clarifying language changes included in the proposed MOU are: updates to comply with state and federal law; updates to clarify use of City facilities, advance notice, discrimination, vacation scheduling, proof of illness; and the cash out of compensatory time when employees change labor units. MOU was updated to include language for renewal of the Class A and B licenses and to revise drug and alcohol testing policy pursuant to Department of Transportation regulations at a later date. The City and ACEA also agreed to further discussions regarding the processing of Catastrophic Leave and State Disability Insurance programs. Unless noted otherwise all provisions are effective January 6, 2019. A draft MOU is attached.
FINANCIAL IMPACT
The financial impact of the ACEA MOU in Fiscal Year 2018-19 is approximately $396,000 for the implementation of salary and other benefit changes. This includes $174,000 for six months of salary increases, $64,300 in equity adjustments and up to $128,000 if: all eligible employees choose to sell back vacation this calendar year; all eligible employees receive the increase in bilingual pay; and all employees get increased life insurance benefit. The financial impact on the Fiscal Year 2019-20, Fiscal Year 2020-21 and Fiscal Year 2021-22 labor costs will be approximately $689,200, $645,775 and $433,700 (6 months), respectively. The estimated total cost for the 42-month contract is $2,164,675. These cost will be incorporated into future budgets.
Labor costs for the ACEA bargaining group are allocated among various funds in the City. In terms of dollar value, approximately 25% is allocated to the various departments in General Fund and 75% is charged to other City funds.
It is anticipated that most City departments will be able to absorb the increased cost in their Fiscal Year 2018-19 Budget. Any necessary budget adjustments for Fiscal Year 2018-19 related to MOU changes 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 California physical change in the environment.
RECOMMENDATION
Adopt a Resolution approving a Memorandum of Understanding (MOU) between the Alameda City Employees Association (ACEA) and the City of Alameda for a forty-two month term commencing December 28, 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