REPORT TO THE CITY COUNCIL FROM: MARISSA SANCHEZ, Director Personnel Services Department SUBJECT ..Title Actions pertaining to the Fresno City Employees Association (FCEA) for Unit 3 1. ***Adopt a Side Letter of Agreement with the Fresno City Employees Association (FCEA) for Unit 3, Non-Supervisory White Collar (Subject to Mayor's Veto) 2. ***RESOLUTION- Adopting the Seventeenth Amendment to Fiscal Year 2022 Salary Resolution No. 2021-176, amending Exhibit 3, Unit 3, Non-Supervisory White Collar (FCEA), as required by the Side Letter of Agreement with the Fresno City Employees Association (Subject to Mayor's Veto) ..Body RECOMMENDATION It is recommended Council: (1) approve the attached Side Letter of Agreement with the Fresno City Employees Association (FCEA), Unit 3, Non-Supervisory White Collar agreeing to equity adjustments for identified classification; and (2) adopt the Seventeenth Amendment to the Fiscal Year 2022 Salary Resolution No. 2021-176, amending salaries in Exhibit 3, Unit 3, Non-Supervisory White Collar (FCEA) to implement said equity adjustments. EXECUTIVE SUMMARY Pursuant to the successor Memorandum of Understanding (MOU) between the City and FCEA, the parties are required to meet each February during the term of the MOU beginning in 2022 to discuss classification and compensation recommendations resulting from the 2018 Classification and Compensation Study of classes represented by FCEA. Additionally, the MOU requires the City to allocate no less than $400,000 in General Fund costs in Fiscal Year 2022 for the implementation of equity adjustments for classes with remaining recommended increases. The City and FCEA have met and reached a tentative agreement on a Side Letter of Agreement to provide equity adjustments in Fiscal year 2022 for identified classifications which implements a third phase of recommended compensation adjustments and meets the requirements of the MOU. To implement the Side Letter of Agreement it is necessary to adopt the Seventeenth Amendment to Fiscal Year 2022 Salary Resolution 2021-176, amending Exhibit 3, Unit 3, Non-Supervisory White Collar (FCEA). The Side Letter of Agreement and Salary Resolution Amendment are effective May 9, 2022. Due to the MOU provision requiring that the City implement equity adjustments in Fiscal Year 2022, it is recommended this item not be continued to a future date. BACKGROUND In 2018, the City completed a Classification and Compensation Study of classes represented by FCEA resulting in recommended classification and compensation adjustments to certain classes on the basis of internal and external salary alignment, addressing recruitment and retention challenges, and streamlining the classification structure. Due to limited availability of resources, the City and FCEA agreed to implement results of the study in phases. Additionally, the MOU between the City and FCEA adopted by Council on December 9, 2021 contains a provision requiring the City to allocate no less than $400,000 in General Fund costs for the implementation of equity adjustments in Fiscal Year 2022.The recommended Side Letter of Agreement with FCEA and Salary Resolution Amendment implements equity adjustments with an ongoing cost that satisfies the MOU provision, provides compensation adjustments to classes with critical recruitment or retention issues, and addresses, in part, internal and external equity. The City Attorney's Office has approved the Side Letter of Agreement and the 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 Side Letter of Agreement and Salary Resolution Amendment will result in additional salary and benefit expenses of approximately $49,026 to the General Fund and $92,895 to All Funds in Fiscal Year 2022; and approximately $424,895 to the General Fund and $805,092 to All Funds in ongoing costs. Attachments: City of Fresno/FCEA Side Letter of Agreement - Class & Comp Equity Adjustments Resolution - Seventeenth Amendment to FY 2022 Salary Resolution No. 2021-176 Salary Tables - Seventeenth Amendment to FY 2022 Salary Resolution No. 2021-176 - Redline Salary Tables - Seventeenth Amendment to FY 2022 Salary Resolution No. 2021-176 - Final