REPORT TO THE CITY COUNCIL July 31, 2014 FROM: JEFF CARDELL, Director Personnel Services Department BY: KEN PHILLIPS, Labor Relations Manager Personnel Services Department] SUBJECT ..Title *Adopt a Side Letter of Agreement between the City of Fresno and Unit 15, Airport Public Safety Supervisors (FAPSS), represented by Operating Engineers, Local No. 3 (OE3), regarding benefits for permanent part time employees ..Body RECOMMENDATION It is recommended that Council approve the Side Letter of Agreement between the City and FAPSS/OE3 that outlines the benefits for permanent part time employees in the Unit. EXECUTIVE SUMMARY The City and FAPSS/OE3 have been negotiating the terms of a successor Memorandum of Understanding (MOU) for an extended period of time. Until October 2013, permanent part time employees were not included in the Unit and benefits for such employees were not defined in the MOU. Presently there is one permanent part time employee in the Unit resulting in a need to define the benefits that are provided to such employees in the Unit. While the City and the Union continue to meet regarding a successor MOU, the parties reached a separate agreement regarding certain terms for permanent part time employees in the Unit. There is a need to have a separate agreement because, without such agreement, the permanent part time Unit employee is unable to obtain health and welfare benefits since the Health and Welfare Trust requires a written agreement to cover part time employees. Council is asked to approve the Side Letter Agreement to allow the employee to enroll in health benefits and to further define other benefits provided to permanent part time employees in the Unit effective August 11, 2014. BACKGROUND The City and FAPSS/OE3 have been in MOU negotiations for an extended period of time. As part of the negotiations, proposals have been exchanged regarding permanent part time employees. The attached Side Letter Agreement sets forth the benefits that are to be provided to permanent part time employees in the Unit including the accumulation of leave time, health and welfare benefits, and participation in Social Security. In addition, it clarifies when a permanent part time Unit member will be eligible to participate in the City of Fresno Fire and Police Retirement System. The City Attorney's Office has reviewed and approved as to form the proposed Side Letter Agreement. In addition, the language regarding the eligibility of a permanent part time Unit member to participate in the City of Fresno Fire and Police Retirement System has been approved by the Fire and Police Retirement System, which is consistent with the authority already adopted by Council in the Fresno Municipal Code. ENVIRONMENTAL FINDINGS Not applicable. LOCAL PREFERENCE Not applicable. FISCAL IMPACT There is no General Fund impact. The Airports contribution to the Health and Welfare Trust on behalf of the existing employee will be approximately $6,900 in FY 2015. Attachment: Side Letter of Agreement with FAPSS/OE3