REPORT TO THE CITY COUNCIL FROM: SUMEET MALHI, Director Personnel Services Department BY: JENNIFER MISNER, Assistant Director Personnel Services Department YER TAYLOR, Senior Human Resources Analyst Personnel Services Department SUBJECT ..Title Actions pertaining to the Fresno Police Officers Association, FPOA-Management for Unit 9 1. ***Adopt a successor Memorandum of Understanding between the City of Fresno and Fresno Police Officers Association (Police Management - Unit 9) (Subject to Mayor's Veto) 2. ***RESOLUTION: Adopt the Second Amendment to FY 2025 Salary Resolution No. 2024-120, amending Exhibit 9, Unit 9 - Police Management (FPOA), to provide a salary increase for respective classes as required by the Memorandum of Understanding between the City of Fresno and Fresno Police Officers Association (Police Management - Unit 9) (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 9, Police Management, represented by FPOA; and (2) adopt the Second Amendment to FY 2025 Salary Resolution No. 2024-120 to amend Exhibit 9. EXECUTIVE SUMMARY The City and Fresno Police Officers Association (Police Management - Unit 9) reached a tentative agreement on a successor MOU which will replace the MOU that expired on June 16, 2024. The MOU provides for an agreement from June 17, 2024 through June 15, 2025, increases to wages, and other changes in terms or conditions of employment. Upon Council approval of the Second Amendment to the FY25 Salary Resolution, Exhibit 9 of the FY25 Salary Resolution will be updated to reflect the amended Exhibit 9 as approved by Council. BACKGROUND The City and Fresno Police Officers Association (Police Management - Unit 9) started meeting in April 2024 to work towards reaching agreement on a successor MOU. The parties reached a tentative agreement on July 30, 2024. Members of the Unit ratified on August 8, 2024. Significant changes to the MOU are summarized below. * Term: June 17, 2024 through June 15, 2025. * Salaries: FY25: 3% wage increase, effective June 17, 2024. * Deferred Compensation Contribution Changes: Correct deferred compensation process and modify deferred compensation process in order for employees to receive the benefit. * Vacation Leave Cash Out Option at Retirement: Agree to a vacation leave cash out option at time of retirement. * Health Reimbursement Arrangement (HRA): Codify current process and add clarifying language throughout section. * Service Uniform Allowance: Codify current uniform allowance process and allow members separating to get prorated uniform allowance on last paycheck. * Police Reform / Reimaging Efforts: Agree to remove Police Reform / Reimaging Efforts section. * Management Leave & Supplemental Management Leave: Separate the Management Leave and Supplemental Management Leave into 2 separate sections, clarify that the Management Leave cash out is not compensable for retirement purposes, and agree to remove language from side letter. * Protected Sick Leave: Strike out Section G and move under Sick Leave section by replacing and removing the Retirement Attendance Incentive paragraph completely, renumber the Leaves Section to G, and remove the AB 1522 language from Protected Sick Leave paragraph. * Health and Welfare Trust: Language cleanup to accurately reflect that City and employee contributions are based on a percentage, and updates to remove obsolete cost sharing language. * Holiday Leave & Special Holiday Leave: Separate the Holiday and Special Holiday Leave sections and add clarifying language. 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 additional salary and benefit expenses of $256,570 to the General Fund and $256,570 to All Funds in FY25 for the term of the MOU, which expires June 15, 2025. Attachments: City of Fresno and FPOA-Management MOU - Redline City of Fresno and FPOA-Management MOU - Final Costing for Proposed FPOA-Management MOU Resolution - Second Amendment to FY 2025 Salary Resolution No. 2024-120 Salary Tables - Second Amendment to FY 2025 Salary Resolution No. 2024-120 - Redline Salary Tables - Second Amendment to FY 2025 Salary Resolution No. 2024-120 - Final