REPORT TO THE CITY COUNCIL January 16, 2020 FROM: JEFF CARDELL, Director Personnel Services Department BY: KEN PHILLIPS, Labor Relations Manager Personnel Services Department SUBJECT ..Title Actions pertaining to the City of Fresno Management Employees Association (CFMEA) for Unit 14 1. ***Adopt a successor Memorandum of Understanding between the City of Fresno and the City of Fresno Management Employees Association (CFMEA) for Unit 14 - Management Classes (Subject to Mayor's veto) 2. ***RESOLUTION - 4th Amendment to FY 2020 Salary Resolution No. 2019-135, amending Exhibit 14, Unit 14 - Management Classes (CFMEA), to convert Executive Pay Ranges to Salary Step Ranges; provide a salary increase for respective classes as required by the Memorandum of Understanding between the City of Fresno and the City of Fresno Management Employees Association; and to remove the classification of Transit Maintenance Manager (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 14, Management Classes, represented by CFMEA; and (2) adopt the Fourth Amendment to the Fiscal Year 2019 Salary Resolution No. 2019-135 to amend Exhibit 14. EXECUTIVE SUMMARY The City and CFMEA reached a tentative agreement on a successor MOU which will replace the MOU that expired on September 29, 2019. The MOU provides for an agreement through January 2, 2022, change from salary ranges to a salary step plan, increases to salaries, and other changes. To implement the MOU it is necessary to approve the Fourth Amendment to FY 2019 Salary Resolution No. 2019-135, amending Exhibit 14 to implement salary steps and adjustments as stated in the MOU. Further, Exhibit 14 is being amended to remove the classification of Transit Maintenance Manager consistent with Exhibit 16, Benchmarked Deleted Job Classifications or Deleted Pay Step. The MOU and Salary Resolution Amendment are effective January 6, 2020. BACKGROUND The City and CFMEA started meeting in June 2019 to work towards reaching agreement on a successor MOU. Members of the Unit ratified on December 10, 2019. Major points of the attached MOU are summarized below: * Term: Two years. January 6, 2020 to June 2, 2022. (Beginning of first pay period in 2020 to end of the last pay period in FY 2021.) * Wages: o Conversion of salary ranges to a nine step salary step plan. o 2% general wage increase effective January 6, 2020. o 2.5% general wage increase effective the first pay period in FY 2021. * Annual Leave: Elimination of two tier accrual effective July 1, 2020. All employees to accrue at classic employee accrual levels of 15.5 hours per month for less than 10 years of service and 18.83 hours per month for 10 or more years of service. * Supplemental Sick Leave: Update language to clarify that employees must exhaust Annual Leave as well as any frozen Sick Leave before using Supplemental Sick Leave. * Bilingual Certification Program: Include language to codify that employees who fail to recertify will no longer receive bilingual pay and general language cleanup. * Long Term Disability: Add language to codify the process of leave integration with the City's long term disability plan. * Dues Deduction: Incorporate Side Letter modifying provisions on dues deductions in compliance with Senate Bill 866. * New Employee Orientation/Employee Information: Incorporate Side Letter on AB 119 requirement that employee organizations have the right to address new employees at New Employee Orientation, and that the City will provide contact information on all employees in the Unit. * Unit Description: Update from Management Confidential to Management to more accurately reflect description of the Unit and to maintain consistency with references in the Salary Resolution. * Gender References: Change gender specific references to gender neutral references in conformance with state regulations. Removal of the Transit Maintenance Manager Classification from Exhibit 14 In June 2018, Council approved the Fiscal Year 2019 Salary Resolution which among other changes, included a new Exhibit 16 for classifications that were deleted and simultaneously benchmarked for use by Retirement when employees have qualifying service in those deleted classes. Transit Maintenance Manager was among the deleted and benchmarked classes in Exhibit 16, but was inadvertently not removed from Exhibit 14. The removal of the classification corrects this oversight. 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 an additional salary and benefit expenses of approximately $164,535 to all funds in Fiscal Year 2020, of which the General Fund share is approximately $61,874, and approximately $586,062 to all funds in Fiscal Year 2021, of which approximately $220,335 is the General Fund share. The Fiscal Year 2020 Budget includes additional resources for these additional expenses. Attachments: City of Fresno - CFMEA MOU - Redline City of Fresno - CFMEA MOU - Final Costing for Proposed MOU Resolution - Fourth Amendment to FY 2020 Salary Resolution No. 2019-135 Salary Tables - Fourth Amendment to FY 2019 Salary Resolution No. 2019-135 - Redline Salary Tables - Fourth Amendment to FY 2018 Salary Resolution No. 2019-135 - Final