REPORT TO THE CITY COUNCIL November 8, 2018 FROM: JEFF CARDELL, Director Personnel Services Department BY: KEN PHILLIPS, Labor Relations Manager Personnel Services Department SUBJECT ..Title 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 - 7th Amendment to FY 2019 Salary Resolution No. 2018-159, 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 to implement equity adjustments to salaries for certain classes, add the new classifications of Police Support Records Clerk and Police Support Records Technician, discontinue the Records Clerks' Incentive provision in the MOU and provide a prorated incentive for employees who would have otherwise received the incentive; and (2) adopt the Seventh Amendment to the Fiscal Year 2019 Salary Resolution No. 2018-159, amending salaries in Exhibit 3, Unit 3, Non-Supervisory White Collar (FCEA). EXECUTIVE SUMMARY The City and FCEA reached a tentative agreement on a Side Letter of Agreement resulting from a Classification and Compensation Study which implements an initial phase of equity adjustments to salaries for certain classes, adds the new classifications of Police Support Records Clerk and Police Support Records Technician, and discontinues the Records Clerks' Incentive provision in the MOU for employees in the classes of Administrative Clerk I/II/Senior assigned to the Police Department Records Bureau and provides a prorated amount of the incentive for the current year. To implement the Side Letter of Agreement it is necessary to approve the Seventh Amendment to FY 2019 Salary Resolution No. 2018-159, amending Exhibit 3, Unit 3, Non-Supervisory White Collar (FCEA). The Side Letter of Agreement and Salary Resolution Amendment are effective November 12, 2018. BACKGROUND In 2018, the City and FCEA completed a Classification and Compensation Study resulting in recommended classification and compensation adjustments to certain classes on the basis of internal and external equity as well as demonstrated recruitment and retention issues. Due to limited availability of resources, the City and FCEA agreed to implementation of the Study results in phases. The first phase of implementation includes Equity Increases to address critical recruitment or retention issues, and addresses, in part, internal and external equity. Additionally, as part of the study, the new classifications of Police Support Services Clerk and Police Support Services Technician were developed to better define the duties and responsibilities of incumbents assigned to the Police Department Records Bureau and Court Liaison Office/Prosecution Liaison Office. These new classifications will result in the reclassification of employees in the classes of Administrative Clerk I/II to Police Support Services Clerk and the reclassification of employees in the class of Senior Administrative Clerk to Police Support Services Technician. Further, effective November 12, 2018, the Records' Clerk Incentive provision in the MOU will be discontinued and eligible employees in the Police Department Records Bureau who would have otherwise received a Records' Clerk Incentive will receive a prorated incentive based on the time since their last incentive payment and November 11, 2018. The parties reached a tentative agreement on October 10, 2018. The City Attorney's Office has approved the Side Letter of Agreement 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 Side Letter of Agreement and Salary Resolution Amendment for will result in additional salary and benefit expenses of approximately $254,823 to the General Fund and $582,753 to All Funds in Fiscal Year 2019; and approximately $442,020 to the General Fund and $974,906 to All Funds in Fiscal Year 2020. The additional expenses have been included in the Fiscal Year 2019 budget. Attachments: City of Fresno/FCEA Side Letter of Agreement Attachment I - FCEA Classification and Compensation Equity Adjustments Costing for Side Letter of Agreement Resolution: Seventh Amendment to FY 2019 Salary Resolution No. 2018-159 Salary Tables: Seventh Amendment to FY 2019 Salary Resolution No. 2018-159 - Redline Salary Tables: Seventh Amendment to FY 2019 Salary Resolution No. 2018-159 - Final