Title
Adoption of Resolution Approving a Memorandum of Understanding (MOU) Between the City of Alameda and the Electric Utility Professionals Association of Alameda (EUPA) 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 (the City) 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 Management Employees (AMPU) at Alameda Municipal Power (AMP), the City’s Electric Utility.
New agreements with ACEA, MCEA, and PANS were approved by the City Council on January 15, 2019.
The City has now reached agreement on a forty-two month MOU with EUPA and is recommending approval of the new labor agreement. EUPA members have ratified this agreement.
BACKGROUND
The prior agreement with EUPA, representing approximately thirty-eight employees, expired on December 26, 2018. Negotiations between the City and EUPA commenced in September 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 and title changes 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. EUPA 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; 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 Senior Electrical Engineer classification will receive an equity adjustment of 6.5%, the Line Superintendent will receive an equity adjustment of 2.85%, and the Engineering Manager will receive an equity adjustment of 2.0%. Furthermore, the City has agreed to complete a job description review and salary study of the Utility Information Systems Billing Technician, Utility Information Systems Billing Specialist, Financial Services Supervisor, and Administrative Services Coordinator within 60 days of MOU adoption by the City Council.
EUPA and the City have also reached an agreement in this round of negotiations to suspend the Assigned Standby Pay provision. All employees remain required to respond to off hour calls as soon as they are available as stated in their job descriptions, the AMP Emergency Management Plan, and as required under California Government Code §3100. The parties have maintained the option to reestablish this program during the term of the agreement.
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. Additionally, the City will contribute a maximum of 1% of an employee’s base salary for employees who have completed one year of service and who contribute at least 0.5% of their base salary to a deferred compensation account.
The City and EUPA also reached an agreement on bilingual pay, which will be increased from $60 a month to $100 per month, and on educational reimbursement, which will increase from $750 to $1,250 per fiscal year.
The City and EUPA 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 per holiday to 9 hours per holiday in order to recognize the 9 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 EUPA 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. Additionally, the City agreed to cover EUPA members’ vision insurance premiums beginning in January 2020. However, the City’s maximum contribution toward medical and vision insurance premiums cannot exceed the City’s maximum contribution for Plan B participants.
The City and EUPA also agreed on language to clarify and update provisions including those on the City’s retirement plan, standard work day and work week for represented employees, salary upon promotion, the probationary period, acting pay, additional duties pay, sick and vacation accruals, and the creation of a Labor Management Committee.
The City and EUPA also agreed to retitle four classifications to better reflect the duties and responsibilities performed. These changes are listed below:
|
Recommended Title |
Current Classification Title |
|
Support Services Manager |
Support Services Supervisor |
|
Procurement Analyst |
Buyer |
|
Account Manager |
Customer Programs Coordinator |
|
Senior Account Manager |
Senior Customer Programs Coordinator |
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, and proof of illness. The City and EUPA 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
Labor costs for the EUPA bargaining group are paid out of the Alameda Municipal Power (AMP) Budget. The financial impact of the EUPA MOU in Fiscal Year 2018-19 is approximately $153,000 for the implementation of salary and other benefit changes. This includes $79,000 for six months of salary increases, a savings of $13,500 from the suspension of standby pay, $13,000 in equity adjustments, and up to $67,750 if: all eligible employees choose to sell back vacation this calendar year; all employees participate in the deferred compensation program; and all eligible employees receive the increase in bilingual pay. The financial impact on the FY 2019-20, FY 2020-21, and FY 2021-22 labor costs will be approximately $262,000, $241,000 and $190,000, respectively. The total cost for the forty-two month contract is estimated at $833,000. These costs will be incorporated into future AMP budgets.
If AMP staff determines that budget adjustments for Fiscal Year 2018-19 related to MOU changes are necessary, they will be presented to the Public Utilities Board 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 Electric Utility Professionals Association (EUPA) 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
3. Public Utilities Board Resolution 5156