REPORT TO THE CITY COUNCIL FROM: TJ MILLER, Interim Director Personnel Services Department BY: STEPHANIE HERNANDEZ, Principal Labor Relations Analyst 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: Adopt the Tenth Amendment to Fiscal Year 2023 Salary Resolution No. 2022-152, 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 Fiscal Year 2023; and (2) adopt the Tenth Amendment to the Fiscal Year 2023 Salary Resolution No. 2022-152, amending salaries in Exhibit 3, Unit 3, Non-Supervisory White Collar (FCEA) to implement said equity adjustments. EXECUTIVE SUMMARY The City and FCEA reached a tentative agreement on a Side Letter of Agreement to provide equity adjustments for agreed upon Unit 3 classes for Fiscal Year 2023, which implements a fourth phase of recommended compensation adjustments resulting from the 2018 Classification and Compensation Study of classes represented by FCEA. The side letter provides equity adjustments to 68 classes, which includes the completion of recommended equity adjustments for 28 classes. The side letter also includes equity adjustments resulting from the classification and compensation study for Emergency Services Dispatcher I/II/III of 4.75%, 4.91%, and 1.17%, respectively. The equity adjustments resulting from the study for Emergency Services Dispatchers, as well as adjustments above the study results to address critical recruitment and retention concerns, are being addressed separately in the Ninth Amendment to the FY23 Salary Resolution. To implement the Side Letter of Agreement it is necessary to approve the Tenth Amendment to Fiscal Year 2023 Salary Resolution 2022-152, amending Exhibit 3, Unit 3, Non-Supervisory White Collar (FCEA). The Side Letter of Agreement and Salary Resolution Amendment are effective March 27, 2023. BACKGROUND In 2018, the City completed a Classification and Compensation Study of classes represented by FCEA resulting in recommended classification and compensation adjustments to some 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. The first phase of equity adjustments was implemented in Fiscal Year 2019, with the second and third phases subsequently implemented in Fiscal Year 2020 and Fiscal Year 2022, respectively. Additionally, the Memorandum of Understanding (MOU) between the City and FCEA adopted by Council on December 9, 2021 contains a provision requiring the City to allocate funds for the implementation of equity adjustments in Fiscal Year 2023.The recommended Side Letter of Agreement with FCEA and Salary Resolution Amendment implements equity adjustments that satisfies the MOU provision. The City Attorney's Office has approved the Side Letter of Agreement and the Salary Resolution Amendment as to form. This is the fourth phase in an anticipated six phase process, with the next two phases' implementation being contingent upon future budgets supporting the remaining balance to complete the study. 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 There is not a fiscal impact to approve the Side Letter of Agreement and Salary Resolution Amendment as the additional salary and benefit expenses of approximately $52,309 to the General Fund and $95,034 to All Funds was budgeted in Fiscal Year 2023. The approximate $226,670 to the General Fund and $411,812 to All Funds will become part of the base budget in FY24. Attachments: City of Fresno/FCEA Side Letter of Agreement - Class & Comp Equity Adjustments Resolution - Tenth Amendment to FY 2023 Salary Resolution No. 2022-152 Salary Tables - Tenth Amendment to FY 2023 Salary Resolution No. 2022-152 - Redline Salary Tables - Tenth Amendment to FY 2023 Salary Resolution No. 2022-152 - Final