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 Amalgamated Transit Union, Local 1027 (ATU) for Unit 6 1. ***Adopt a successor Memorandum of Understanding between the City of Fresno and the Amalgamated Transit Union, Local 1027 (ATU) (Bus Drivers and Student Drivers - Unit 6) (Subject to Mayor's Veto) 2. ***RESOLUTION: Adopt the Second Amendment to FY 2023 Salary Resolution No. 2022-152, amending Exhibit 6, Unit 6 - Bus Drivers and Student Drivers (ATU), to provide a salary increase for respective classes as required by the Memorandum of Understanding between the Amalgamated Transit Union, Local 1027 (ATU) (Bus Drivers and Student Drivers - Unit 6) (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 6, Bus Drivers and Student Drivers represented by ATU; (2) adopt the Second Amendment to the Fiscal Year 2023 Salary Resolution No. 2022-152 to amend Exhibit 6. EXECUTIVE SUMMARY The City and ATU have reached a tentative agreement on a successor MOU which will replace the MOU that expired on October 25, 2020. The MOU provides for an agreement from August 1, 2022 through June 15, 2025, increases to wages, and other changes in terms or conditions of employment. The Salary Resolution amendment changing the FY 23 Salary Resolution is sufficient to accomplish authority for the retroactive wage increase for FYs 21 and 22 because the authorization will be memorialized in this Staff Report, the legislative history, and the MOU itself. Council cannot retroactively amend previous Salary Resolutions because each one rescinds the previous iteration (i.e., there is nothing for Council to amend). BACKGROUND The City and ATU started meeting in November 2020 to work towards reaching agreement on a successor MOU and paused negotiations in February 2021 due to the COVID-19 pandemic and uncertainty with the City's fiscal sustainability. Negotiations resumed in September 2021. The parties reached a tentative agreement on July 10, 2022. Members of the Unit ratified on July 10, 2022. Major changes to the MOU are summarized below. * Term: August 1, 2022 through June 15, 2025 * Wages: o FY21: 3% wage increase, retroactively effective 10/26/2020 o FY22: 3% wage increase, retroactively effective 6/21/2021 o FY23: o 3% wage increase, retroactively effective 6/20/2022 o 5% Longevity Step, retroactively effective 6/20/2022. Drivers qualify for the Longevity Step once they reach 20,000 hours of driving a bus for the City. o FY24: 3% wage increase, effective 6/19/2023 o FY24: 3% wage increase, effective 6/17/2024 * Holiday Leave: Addition of one (1) Personal Business Day of eight (8) hours in January of each year; active employees on August 1, 2022 will receive a one-time credit of eight (8) hours in their Holiday bank. * Health Reimbursement Arrangement: o Increase in the value factor from 40% to 80%; o Expand use to include qualified medical expenses; and o 32 hours credited to a Special HRA Bank to be converted to the HRA account upon retirement. * Employee Incentive Time Off: Discontinued effective 9/26/2022. Employees may use or cash out existing balances for one year, at which time remaining balances will be automatically cashed out. * Use of Video in Discipline: Use of video for the purposes of investigating a triggering incident will be limited to 30 minutes before/after defined incidents. Triggering incidents identified by Risk Management, the City Attorney's Office, and/or the Police Department, during their reviews of bus footage for any reason, may be referred to the Department of Transportation for additional investigation. The Department will be able to review 30 minutes before and 30 minutes after the triggering incident referred. If an incident is referred to the Department, the Department shall notify ATU of the triggering incident. * Schedules: o The City and ATU to establish a working group which will be in effect for no more than six (6) months, and may be extended upon mutual agreement, to solicit feedback on the development of a new shift structure to reduce split shifts, forced overtime, unscheduled absences, and Driver fatigue. Feedback may include Driver surveys regarding preferences on shift options such as length, splits, and spread. Time spent by ATU members will be considered City Business. o FAX and ATU will meet prior to sign-ups to discuss the system schedule. Such time will be considered Union Business. * Alternative Workweek Work Schedules: Modification of alternative workweek work schedule provisions to remove the limitation on the number of 4/10 assignments and corresponding days off which may be established by the Department. * Platform Instructors: Increase compensation from one hour at straight time to four hours at straight time. * Attendance Incident Fines: Increase the disciplinary fine for the 7th incident by $50 to $150, and for the 8th incident by $150 to $450. * Driver Rest Period: Revised from a minimum of 8 hours to a minimum of 9 hours. * State Disability Insurance (SDI)/Paid Family Leave (PFL): Clean up to clarify existing practice; modify timing for when employees must notify the City of filing a claim and benefits provided by SDI/PFL. * Workers' Compensation Alternative Dispute Resolution (ADR) Program: Limited reopener to discuss and evaluate the feasibility of establishing an ADR program. 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 $3,045,989 to All Funds in FY23, $2,529,860 to All Funds in FY24, and $3,179,492 to All Funds in FY25, for a total of $8,755,342 to All Funds for the term of the MOU. Attachments: City of Fresno and ATU MOU - Redline City of Fresno and ATU MOU - Final Costing for Proposed MOU Resolution - Second Amendment to FY 2023 Salary Resolution No. 2022-152 Salary Tables - Second Amendment to FY 2023 Salary Resolution No. 2022-152 - Redline Salary Tables - Second Amendment to FY 2023 Salary Resolution No. 2022-152 - Final