REPORT TO THE CITY COUNCIL July 26, 2018 FROM: JEFF CARDELL, Director Personnel Services Department BY: KEN PHILLIPS, Labor Relations Manager Personnel Services Department SUBJECT ..Title Actions pertaining to the Fresno Airports Public Safety Officers/Operating Engineers, Local 3 (FAPSO/OE3) for Unit 11 - Airport Public Safety Officers 1. ***Adopt a Memorandum of Understanding between the City of Fresno and the Fresno Airports Public Safety Officers/Operating Engineers, Local 3 (FAPSO/OE3) for Unit 11 - Airport Public Safety Officers (Subject to Mayor's veto) 2. ***RESOLUTION - 2nd Amendment to FY 2019 Salary Resolution No. 2018-159, amending salaries in Exhibit 11 - Airport Public Safety Officers, as required by the adoption of the successor Memorandum of Understanding between the City of Fresno and the Fresno Airports Public Safety Officers/Operating Engineers, Local 3 (FAPSO/OE3) for Unit 11 - Airport Public Safety Officers (Subject to Mayor's veto) ..Body RECOMMENDATION 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 11, Airport Public Safety Officers represented by FAPSO/OE3; and (2) adopt the Second Amendment to the Fiscal Year 2019 Salary Resolution No. 2018-159 to amend salaries in Exhibit 11. EXECUTIVE SUMMARY The City and FAPSO/OE3 reached a tentative agreement on a successor MOU which will replace the MOU that expires on June 30, 2018. The MOU provides for an agreement from July 1, 2018 through September 1, 2020, increases to salaries, and other changes. To implement the MOU it is necessary to approve the Second Amendment to FY 2019 Salary Resolution No. 2018-159, amending Exhibit 11 to implement salary adjustments as stated in the MOU. BACKGROUND The City and FAPSO/OE3 met in June, 2018 to work towards reaching agreement on a successor MOU. The parties reached a tentative agreement on June 8, 2018. Members of the Unit ratified on June 11, 2018. Major points of the attached MOU are summarized below: * Term: Two years effective July 1, 2018 to September 1, 2020. * Wages: o 3% general wage increase effective September 3, 2018. o 3% general wage increase effective September 2, 2019. * Pension Changes: Limited reopener to negotiate amending FMC Sections on Pension changing the additional contribution made by employees to the employee's "normal" cost. * Uniform Allowance: Increase uniform allowance from $790 to $1,000 per year. * Night Shift Premium: Premium pay at $1.50 per hour for all hours worked between 7:30 p.m. to 7:30 a.m. * Bilingual Premium: Exams to be done throughout the year instead of December only. Languages to be as listed in the Salary Resolution. * Workers Compensation: Benefits to be in accordance with California Labor Code and the MOU. * Health and Welfare - Permanent Part Time Employees: Permanent Part Time Employees to have same premium payments as full time employees - mirrors changes for all units and insures compliance with the Affordable Care Act. * Acting: Allow payment for Acting after 48 hours of service in the higher class. * Reopeners: Fresno Municipal Code provisions on Personnel, Civil Service Regulations, and Employer- Employee Relations. 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 $29,562 to the Airports Enterprise Fund in Fiscal Year 2019, and approximately $47,224 to the Airports Enterprise Fund in Fiscal Year 2020. Attachments: City of Fresno - FAPSO/OE3 MOU - Redline City of Fresno - FAPSO/OE3MOU - Final Costing for Proposed MOU Resolution - Second Amendment to FY 2019 Salary Resolution No. 2018-159 Salary Tables - Second Amendment to FY 2019 Salary Resolution No. 2018-159_Redline Salary Tables - Second Amendment to FY 2019 Salary Resolution No. 2018-159_Final