REPORT TO THE CITY COUNCIL October 12, 2017 FROM: JEFF CARDELL, Director Personnel Services Department BY: KEN PHILLIPS, Labor Relations Manager Personnel Services Department SUBJECT ..Title Actions pertaining to the Fresno Airport Public Safety Supervisors, Operating Engineers, Local 3 (FAPSS/OE3) for Unit 15, Airport Public Safety Supervisors 1. ***Adopt a Memorandum of Understanding between the City of Fresno and the Fresno Airport Public Safety Supervisors, Operating Engineers, Local 3 (FAPSS/OE3) for Unit 15, Airport Public Safety Supervisors (Subject to Mayor's Veto) 2. ***RESOLUTION - 5th amendment to FY 2018 Salary Resolution No. 2017-176, 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 the Fresno Airport Public Safety Supervisors, Operating Engineers, Local 3 (FAPSS/OE3) (Subject to Mayor's Veto) ..Body RECOMMENDATIONS It is recommended Council: (1) approve the attached 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; and (2) adopt the Fifth Amendment to the Fiscal Year 2018 Salary Resolution No. 2017-176 to amend salaries in Exhibit 15. EXECUTIVE SUMMARY The City and FAPSS/OE3 reached a tentative agreement on a successor MOU which will replace the MOU that expired on June 30, 2017. The MOU provides for an agreement from October 16, 2017 through June 23, 2019, increases to wages, and other changes in terms or conditions of employment. To implement the MOU it is necessary to approve the Fifth Amendment to FY 2018 Salary Resolution No. 2017-176, amending Exhibit 15 to implement wage increases as stated in the MOU. The MOU and Salary Resolution Amendment are effective October 16, 2017. BACKGROUND The City and FAPSS started meeting in March 2017 to work towards reaching agreement on a successor MOU. After engaging in mediation on September 5, 2017, the parties reached a tentative agreement on September 7, 2017. Members of the Unit voted to ratify the tentative agreement. Major changes to the MOU are summarized below. * Term: October 16, 2017 to June 23, 2019. * Wages and Pension: o Increase wages by 3% on October 16, 2017 and an additional 3% on October 15, 2018. o Reopener on making the additional pension contribution currently being paid by new employees which reduced the City share of pension costs, a part of the employee's normal cost. * By-Laws: FAPSS/OE3 to provide the City with its By-Laws and to provide the City with updates as they occur. * Premium Pay: o Shift Differential - Employees who work a 7:00 p.m. to 7:00 a.m. shift to receive shift premium pay of $1.50 per hour. o Bilingual: Examinations will be conducted throughout the year. Eligible languages will be listed in the Salary Resolution. * Health Reimbursement Arrangement: HRA accounts to be book accounts at the City's option. * Uniform Allowance: The Uniform Allowance is to be increased from $790 to $1,000 per year. * Reopeners: The City and FAPSS/OE3 agree to reopeners on the Personnel, Civil Service Regulations, and Employer-Employee relations provisions of the FMC. In addition to the above, there was language clean up throughout the MOU, much of which resulted from a review of MOUs by the City Attorney's Office. The City Attorney's Office has approved the new MOU 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 MOU and Salary Resolution Amendment will result in an additional salary and benefit expenses of approximately $14,610 to Airports enterprise funds in Fiscal Year 2018, and approximately $31,882 to Airports enterprise over the term of the MOU. There is no cost to the General Fund. Attachments: City of Fresno - FAPSS/OE3 MOU - Redline City of Fresno - FAPSS/OE3 MOU - Final Costing for Proposed MOU Resolution - Fifth Amendment to FY 2018 Salary Resolution No. 2017-176 Salary Tables - Fifth Amendment to FY 2018 Salary Resolution No. 2017-176 - Redline Salary Tables - Fifth Amendment to FY 2018 Salary Resolution No. 2017-176 - Final