REPORT TO THE CITY COUNCIL FROM: MARISSA SANCHEZ, Director Personnel Services Department BY: STEPHANIE HERNANDEZ, Principal Labor Relations Analyst Personnel Services Department SUBJECT ..Title Actions pertaining to the City of Fresno Management Employees Association (CFMEA) for Unit 14 1. ***Adopt a successor Memorandum of Understanding between the City of Fresno and the City of Fresno Management Employees Association (CFMEA) for Unit 14 - Management Classes (Subject to Mayor's Veto) 2. ***RESOLUTION: Adopt the First Amendment to FY 2023 Salary Resolution No. 2022-152, amending Exhibit 14, Unit 14 - Management Classes (CFMEA), to provide a salary increase for respective classes as required by the Memorandum of Understanding between the City of Fresno and the City of Fresno Management Employees Association (CFMEA) (Subject to Mayor's veto) ..Body RECOMMENDATION It is recommended Council (1) approve the attached successor Memorandum of Understanding (MOU) to implement wages, hours and other terms and conditions of employment for City employees in Unit 14, Management Classes represented by CFMEA; (2) adopt the First Amendment to the Fiscal Year 2023 Salary Resolution No. 2022-152 to amend Exhibit 14, retroactively effective January 3, 2022 and June 20, 2022. EXECUTIVE SUMMARY The City and CFMEA have reached a tentative agreement on a successor MOU which will replace the MOU that expired on January 2, 2022. The MOU provides for an agreement from August 1, 2022 through June 16, 2024, increases to wages, and other changes in terms or conditions of employment. BACKGROUND The City and CFMEA started meeting in December 2021 to work towards reaching agreement on a successor MOU. The parties reached a tentative agreement on June 23, 2022. Members of the Unit ratified on July 7, 2022. Major changes to the MOU are summarized below. * Term: August 1, 2022 through June 16, 2024 * Wages: o FY22: 3% wage increase, retroactively effective 1/3/2022 o FY23: 3% wage increase, retroactively effective 6/20/2022 o FY24: 3% wage increase, effective 6/19/2023 * Holiday Leave: Addition of one (1) Personal Business Day of eight (8) hours in January of each year; active employees on the effective date of the MOU will receive eight (8) hours on the first day of the month following Council approval. * Deferred Compensation: Increase City contribution by $25 to $75 per month. * Health Reimbursement Arrangement: Increase value factor from 40% to 80% and expand use to qualified medical expenses. * Special HRA Bank: Creation of a Special HRA Bank. Hours accrued above the Annual Leave accumulation limit will be placed in the Special HRA Bank and converted to the employee's HRA account upon retirement. * Professional Engineer (PE) License Renewal Reimbursement: Add reimbursement of up to $180 every two years for PE license renewal fees. * Benefits for Permanent Part-Time (PPT) Employees: Add a new section to address benefits for PPTs. * Protected Sick Leave: Revise language to be consistent with updates to state law; codify use of Supplemental Sick Leave as Protected Sick Leave consistent with the law. * Leave Integration with State Disability Insurance (SDI)/ Paid Family Leave (PFL) and Long Term Disability (LTD): Codify process of integrating leave with SDI/PFL; revise timing for notifying the City of an LTD claim/integration election and Notice of Award. * Annual Leave: Language cleanup to remove outdated accrual rate language; other language cleanup. In addition to the above, there was language clean up throughout the MOU. The City Attorney's Office has approved the new MOU and Salary Resolution Amendment as to form. ENVIRONMENTAL FINDINGS By the definition provided in the California Environmental Quality Act Guidelines Section 15378 this item does not qualify as a "project" and is therefore exempt from the California Environmental Quality Act requirements. LOCAL PREFERENCE Local preference is not implicated because this item does not involve public contracting or bidding with the City of Fresno. FISCAL IMPACT Approval of the MOU and Salary Resolution Amendment will result in estimated salary and benefit expenses of $407,504 to the General Fund and $1,155,472 to All Funds in FY23, and $502,447 to the General Fund and $1,430,043 to All Funds in FY24, for a total of $909,951 to the General Fund and $2,585,515 to All Funds for the term of the MOU, which expires 6/16/2024. Attachments: City of Fresno and CFMEA MOU - Redline City of Fresno and CFMEA MOU - Final Costing for Proposed MOU Resolution - First Amendment to FY 2023 Salary Resolution No. 2022-152 Salary Tables - First Amendment to FY 2023 Salary Resolution No. 2022-152 - Redline Salary Tables - First Amendment to FY 2023 Salary Resolution No. 2022-152 - Final