REPORT TO THE CITY COUNCIL
June 25, 2015
FROM: JEFF CARDELL, Director
Personnel Services Department
BY: KEN PHILLIPS, Labor Relations Manager
Personnel Services Department]
SUBJECT
Title
1. ***Adopt a Memorandum of Understanding between the City of Fresno and Fresno Airports Safety Supervisors/Operating Engineers, Local 3 (FAPSS/OE3) - Unit 15 (Airport Public Safety Supervisors)
2. ***Adopt a Side Letter of Agreement between the City of Fresno and FAPSS/OE3 (Airport Public Safety Supervisors - Unit 15) on pensions for new employees
3. ***RESOLUTION - 6th amendment to Salary Resolution No. 2014-108, amending salaries in Exhibit 15, Airport Public Safety Supervisors (FAPSS)
Body
RECOMMENDATION
It is recommended that Council: 1) approve the attached Memorandum of Understanding (MOU) to implement changes in wages, hours and other terms and conditions of employment for City employees in Unit 15, represented by FAPSS/OE3; 2) approve a Side Letter of Agreement on Pensions for New Employees in Unit 15; and 3) approve the Sixth Amendment to the Salary Resolution No. 2014-108, amending salaries in Exhibit 15.
EXECUTIVE SUMMARY
The City has been in MOU negotiations with FAPSS/OE3 since April 2012. The parties were able to reach tentative agreement on a successor MOU that replaces an MOU which expired on June 30, 2012. FAPSS/OE3 members ratified the tentative successor agreement on June 10, 2015. Highlights of the agreement include a 2% wage increase this month and another 2% increase on July 1, 2016, employee payment of a portion of the City's share of retirement costs - 1% for current employees and 3% for new employees, P.O.S.T. premium pay, a reduction in the City's share of heath care premiums matching the reductions taken by other employees, a reduction in holiday leave accruals, and a change to the supplemental sick leave, providing a lifetime cap of 80 hours. This unit has participated in furloughs and had a change in work schedules which resulted in a reduction in take home pay.
Agreement was also reached on a reopener relative to pensions for new employees. Council is asked to approve the new MOU, the Side Letter of Agreement and the Salary Resolution Amendment implementing the salary increases.
BACKGROUND
The City and FAPSS have been in negotiations since April 2012. A tentative agreement was reached on June 9, 2015 and FAPSS/OE3 members ratified the agreement on June 10, 2015. The successor MOU includes the following, along with other updates as identified in the attached document.
· Term: Through June 30, 2017.
· Wages and Pension.
o 2% general wage increase effective June 29, 2015.
o 2% general wage increase effective July 1, 2016.
o Effective June 29, 2015, current employees will pick-up 1% of the City's share of retirement.
o Effective June 29, 2015, any new hires will pick up 3% of the City's share of retirement.
· Health Care Premiums.
o Employees to pay an amount equal to 75% of the premium currently in place, along with 50% of the increase effective July 1, 2015.
o Employees to pay 50% of any future increases in health care premiums except that the employee share of premiums is limited to a maximum of 30%, with the City paying 70%.
o Reopener language if other units negotiate better terms on payment of premiums.
· P.O.S.T. Premium Pay: 5% of base pay for obtaining a Supervisory P.O.S.T. certificate.
· Drug Testing (new):
o Prospective hires will be drug tested before hire.
o Employees will participate in random drug testing.
· Holidays:
o Holiday accruals reduced by one personal holiday.
· Supplemental Sick Leave: Those employees who have not yet accrued 80 hours can accrue up to 80 hours. Once 80 hours has been accrued, no new accrual.
· Vacation Accrual:
o New hires with less than 10 years will accrue 96 hours per year instead of 120 hours per year.
o Employees hired on or after June 29, 2015 with 10 years or more will accrue 120 hours per year instead of 160 hours per year.
o Employees hired on or after June 29, 2015 will have an accrual cap of twice their annual accrual of vacation.
· Sick Leave:
o Sick leave accrual, which has been unlimited, will be capped at 900 hours.
o Employees with more than 520 hours of sick leave on June 29, 2015, will have all leave over 520 hours put in a special bank which will not count towards the sick leave cap.
· Bilingual Certification: Certified employees will be tested for recertification every five years.
· Permanent Part Time Employees: Added language regarding part time employees from a side letter.
· Workers' Compensation: Added language to acknowledge one year limit on workplace injury pay under Labor Code Section 4850.
· Agreed to a side letter on a pension reopener to discuss pension benefits for new employees.
The City Attorney's Office has approved the new MOU, the new side letter of agreement on Pensions, and the 6th Amendment to Salary Resolution No. 2014-108 as to form.
ENVIRONMENTAL FINDINGS
Not applicable.
LOCAL PREFERENCE
Not applicable.
FISCAL IMPACT
Approval of the MOU and Salary Resolution Amendment will result in increased salary and benefit expenses in Fiscal Year 2015-2016 of approximately $20,077. None of this cost is in the General Fund. The increased salary and benefit cost in Fiscal Year 2016-2017 is approximately $37,317.
Attachments:
FAPSS/OE3 MOU, Redline Version, with Exhibits I and II
FAPSS/OE3 MOU, Final, with Exhibits I and II
6th Amendment to Salary Resolution No. 2014-108
Summary of Estimated Savings/Costs of MOU