REPORT TO THE CITY COUNCIL
FROM: SUMEET MALHI, Director
Personnel Services Department
BY: JENNIFER MISNER, Assistant Director
Personnel Services Department
YER TAYLOR, Senior Human Resources Analyst
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 (Management Classes - Unit 14) (Subject to Mayor’s veto)
2. ***RESOLUTION: Adopt the Sixth Amendment to FY 2025 Salary Resolution No. 2024-120, amending Exhibit 14, Unit 14 - Management Classes (CFMEA), to 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 (Management Classes - Unit 14) (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 Sixth Amendment to FY 2025 Salary Resolution No. 2024-120 to amend Exhibit 14.
EXECUTIVE SUMMARY
The City and the City of Fresno Management Employees Association (Management Classes - Unit 14) reached a tentative agreement on a successor MOU which will replace the MOU that expired on June 16, 2024. The MOU provides for an agreement from June 17, 2024 through June 15, 2025, increases to wages, and other changes in terms or conditions of employment.
Upon Council approval of the Sixth Amendment to the FY25 Salary Resolution, Exhibit 14 of the FY25 Salary Resolution will be updated to reflect the amended Exhibit 14 as approved by Council.
BACKGROUND
The City and the City of Fresno Management Employees Association (Management Classes - Unit 14) started meeting in June 2024 to work towards reaching agreement on a successor MOU. Members of the Unit ratified on October 21, 2024 and the parties reached a tentative agreement on October 22, 2024.
Significant changes to the MOU are summarized below.
• Term: June 17, 2024 through June 15, 2025, change title of article, and modification of reopeners.
• Salaries: FY25: 2% wage increase retroactively effective June 17, 2024 and a one-time lump sum payment equivalent to 1% of annual base wages to be paid in the first full pay period after Council approval.
• Holiday Leave Option into HRA: Include an option for employees to credit any amount of Holiday Leave at 100% of the employee’s base rate of pay into an HRA account at the time of retirement if eligible for HRA and add clarifying language on the cash out period throughout the fiscal year and how it is cashed out at time of separation if not eligible for HRA.
• Health Reimbursement Arrangement (HRA): Include an option for employees to credit any amount of Holiday Leave at 100% of the employee’s base rate of pay into an HRA account at the time of retirement if eligible for HRA, and some language cleanup.
• Performance Evaluations: Remove the 6-month re-evaluation, include mandatory training, and some language cleanup and clarification.
• Certificate, License, or Registration Premium Pay: Add a process for the effective date of new/renewal premium pay and discontinuance of premium pay for expired certificates/licenses/registration.
• Health and Welfare: Language cleanup to accurately reflect that City and employee contributions are based on a percentage and updates to remove obsolete cost sharing language and outdated limited reopener.
In addition to the above, there was language clean up throughout the MOU.
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 estimated additional salary and benefit expenses of $290,958 to the General Fund and $726,960 to All Funds in FY25 for the term of the MOU, which expires June 15, 2025.
Attachments:
City of Fresno and CFMEA MOU - Redline
City of Fresno and CFMEA MOU - Final
Costing for Proposed CFMEA MOU
Resolution - Sixth Amendment to FY 2025 Salary Resolution No. 2024-120
Salary Tables - Sixth Amendment to FY 2025 Salary Resolution No. 2024-120 - Redline
Salary Tables - Sixth Amendment to FY 2025 Salary Resolution No. 2024-120 - Final