REPORT TO THE CITY COUNCIL FROM: TJ MILLER, Director Personnel Services Department SUBJECT ..Title Actions pertaining to Operating Engineers, Local Union No. 3 (Airport Public Safety Supervisors) for Unit 15 (FAPSS/OE3): 1. ***Adopt a successor Memorandum of Understanding between the City of Fresno and Operating Engineers, Local Union No. 3 (Airport Public Safety Supervisors) for Unit 15 (FAPSS/OE3) (Subject to Mayor's Veto). 2. ***RESOLUTION - Adopt the Eleventh Amendment to FY 2022 Salary Resolution No. 2021-176 amending salaries in Exhibit 15, Unit 15 - Airport Public Safety Supervisors (FAPSS), as required by the Memorandum of Understanding between the City of Fresno and Operating Engineers, Local Union No. 3 (OE3) for Unit 15 (FAPSS/OE3) (Subject to Mayor's Veto). ..Body RECOMMENDATIONS 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 15, Airport Public Safety Supervisors, represented by FAPSS/OE3; (2) adopt the Eleventh Amendment to the Fiscal Year 2022 Salary Resolution No. 2021-176 to amend salaries in Exhibit 15. EXECUTIVE SUMMARY The City and FAPSO/OE3 reached a tentative agreement on a successor MOU which will replace the MOU that expired on August 15 ,2021. The MOU provides for an agreement through December 31, 2022, increases to salaries, and other changes in terms or conditions of employment. BACKGROUND The City and FAPSS/OE3 started meeting in August 2021 to work towards reaching agreement on a successor MOU. The parties reached a tentative agreement on December 6, 2021. Members of the Unit ratified on December 6, 2021. Major points of the attached MOU are summarized below: * Term: January 17, 2022, through December 31, 2022. * Wages: o 3% wage increase, effective January 17, 2022. o Creation of a new "G" Step effective January 17, 2022. "G" Step 5% above "F" Step. Update of COLA language for DROP members and retirees to reflect the new step. o 3% wage increase, effective June 20, 2022. * Health Reimbursement Arrangement (HRA): Benefit expansion to include qualified medical expenses and an increase to the value factor from 40% to 80% of base hourly rate. * P.O.S.T. Certificate Pay: o Add Intermediate P.O.S.T. Certificate pay of 5%. o Add Advanced P.O.S.T. Certificate pay of seven 7%. o Increase Supervisory P.O.S.T. Certificate pay from 5% to 9%. * Uniform Allowance: Increase by $200 annually to $1,200. * Protected Leave: Language updates consistent with State law and other clean up. * Health Insurance Opt Out: Language updates to remove outdated implementation language and codify existing practice of employees providing proof of other health insurance when opting out of the City's Health and Welfare plan. * Limited Reopener: Meet quarterly, at minimum, for the sole purpose of discussing and evaluating the following: o Compensatory Time Off accrual limit. o Night Shift Premium hourly rate. o The impact of leave used by Permanent Part Time (PPT) employees on the applicable overtime rate pursuant to FLSA, use of Sick Leave by PPT employees for scheduled overtime beyond the employee's base hours. 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 $30,770 to All Funds in Fiscal Year 2022, and $80,182 to All Funds in Fiscal Year 2023, for a total of $110,952 for the term of the MOU which expires 12/31/2022. Attachments: City of Fresno and FAPSS MOU - Redline City of Fresno and FAPSS MOU - Final Costing for Proposed MOU Resolution - Eleventh Amendment to FY 2022 Salary Resolution No. 2021-176 Salary Tables - Eleventh Amendment to FY 2022 Salary Resolution 2021-176 - Redline Salary Tables - Eleventh Amendment to FY 2022 Salary Resolution No. 2021-176 - Final