Title
Adoption of Resolution Approving a Memorandum of Understanding (MOU) Between the Management and Confidential Employees Association (MCEA) 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: 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 of 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 Management Employees (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 MCEA and is recommending approval of the new labor agreement. MCEA members have ratified this agreement.
BACKGROUND
The prior agreement with MCEA, representing approximately eighty-eight management and confidential employees expired December 26, 2018. Negotiations between the City and MCEA 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 27, 2018 and ending June 30, 2022. MCEA employees have ratified this agreement. 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 the current year, the Executive Assistant classification will receive an equity adjustment of approximately nine percent (9.0%), matching their salary to that of the Administrative Technician III. The Deputy City Clerk will receive an equity adjustment to increase their salary five percent (5.0%) above the Executive Assistant salary and the Assistant City Clerk will receive an equity adjustment of five percent (5.0%) of their base pay.
In compensation for classifications required to be on stand-by and to return to work during off time; the City will extend the Stand-By Pay provision to include all Public Works Supervisors, Public Works Superintendent, Parks Supervisor, Parks Manager, Recreation Manager, and Recreation Services Manager classifications.
The City and MCEA reached an agreement on bilingual pay, which will be increased from $60 a month to $100 per month.
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 MCEA also agreed to increase the number of hours employees receive for the ten authorized City holidays and three and one half floating holidays from 7.5 hours/8 hours per holiday to 9 hours/9.5 hours per holiday in order to recognize the 9/9.5 hour-days worked by the employees in this labor group. Additionally, the City will provide a half day off for employees on the day before Thanksgiving and a half day off 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 MCEA 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 MCEA also agreed on language to clarify and update provisions including those 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 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, advance notice, discrimination, vacation scheduling and proof of illness. The City and MCEA agreed to further discussions regarding the processing of Catastrophic Leave and State Disability Insurance programs. Unless otherwise noted all provisions are effective January 6, 2019. A draft MOU is attached.
FINANCIAL IMPACT
The financial impact of the MCEA MOU in Fiscal Year 2018-19 is approximately $345,000 for the implementation of salary and other benefit changes. This includes $172,000 for six months of salary increases, $40,000 in equity adjustments and up to $128,000 if: all eligible employees choose to sell back vacation this calendar year; all employees receiving standby pay choose to receive payment instead of taking time-off; and all eligible employees receive the increase in bilingual pay. The financial impact on the FY 2019-20 and FY 2020-21 and FY 2021-22 labor costs will be approximately $578,000, $523,600 and $378,800 (6 months), respectively. The total cost for the 42-month contract is estimated at $1.8 million. These costs will be incorporated into future budgets.
Labor costs for the MCEA bargaining group are allocated among various funds in the City. In terms of dollar value, approximately 50% is allocated to the various departments in the General Fund and 50% 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 physical change in the environment.
RECOMMENDATION
Adopt a Resolution approving a Memorandum of Understanding (MOU) between the Management and Confidential Employees Association (MCEA) 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