Title
Resolution Approving the San Leandro City Employees Association (SLCEA) Memorandum of Understanding and the Confidential Employees’ Group Compensation Plan for a Three-Year Term (January 1, 2022 through December 31, 2024), a Side Letter of Agreement to the 2022 San Leandro Management Organization (SLMO) Memorandum of Understanding, and a Budget Appropriation in the amount of $777,217 for FY2022 and $1,873,292 for FY2023.
Staffreport
SUMMARY AND RECOMMENDATIONS
Staff recommends that the City Council approve a resolution ratifying the Memorandum of Understanding (MOU) between the City of San Leandro and the San Leandro City Employees Association (SLCEA) and the Compensation Plan for the Confidential Employees Group. Additionally, staff recommends that the City Council approve a Side Letter amending certain provisions in the San Leandro Management Organization (SLMO) Memorandum of Understanding.
BACKGROUND
The San Leandro City Employees Association Memorandum of Understanding expired on December 31, 2021. SLCEA is the largest group of employees in the City, representing approximately 245 full-time equivalent employees. The City and SLCEA representatives met, conferred in good faith and successfully reached a tentative agreement for the period covering January 1, 2022 through December 31, 2024.
The Confidential Employees Group Compensation Plan expired on December 31, 2021. This group represents eight (8) employees from the City Manager’s Office, City Clerk’s Division, and Human Resources Department. The proposed Compensation Plan is for the period covering January 1, 2022 through December 31, 2024.
The San Leandro Management Organization’s current Memorandum of Understanding was approved by the City Council for the period January 1, 2022 through December 31, 2022. A side letter of agreement is proposed to amend the MOU, specifically changing the provisions for medical contribution, holidays, and long-term disability insurance.
Analysis
The City of San Leandro aims to offer competitive wages and benefits in a high-cost geographic labor market in order to retain and attract a dedicated, high-quality workforce to serve the community. In 2021, SLCEA and Confidential Employees agreed to forego a cost-of-living salary increase due to financial challenges anticipated by the COVID-19 pandemic. The last wage increase employees received was 3% effective January 1, 2020. Market competitiveness for recruitment and retention, and the Consumer Price Index increase were significant factors that contributed to the terms negotiated.
The substantive terms of the proposed agreements are summarized for each bargaining unit or group below.
San Leandro City Employees Association (SLCEA)
• A three-year term for the period January 1, 2022 through December 31, 2024.
• Wage adjustments of 6% effective January 1, 2022, 3.25% effective January 1, 2023, and 3.25% effective January 1, 2024.
• A comprehensive classification and compensation study for all bargaining unit classifications to be completed before the end of the contract.
• An increase in the City’s contribution towards medical and dental coverage.
• The addition of Juneteenth and Cesar Chavez as recognized holidays, and the elimination of one floating holiday.
• An increase in Long-Term Disability coverage from 40% to 66.67%.
• Equity adjustments to be incrementally implemented over the three-year term for the following agreed-upon classifications that were found to be significantly below market: Accountant I/II, Environmental Protection Specialist I/II/Supervisor, Librarian/Senior Librarian, Parks Supervisor, Plant Operator-in-Training/I/II/Lead/Supervisor, Recreation Supervisor I/II.
Confidential Employees Group
The Confidential Employees Group is not represented by a bargaining unit, but because they are similarly situated to SLCEA employees, Confidential employees have historically received the same term and provisions afforded to SLCEA. The major elements that would apply include the same three-year term, wage adjustments, medical contribution, holidays, and long-term disability insurance.
San Leandro Management Organization (SLMO)
The San Leandro Management Organization MOU is for the period January 1, 2022 through December 31, 2022. However, the medical contribution, holidays, and long-term disability provisions negotiated by SLCEA were offered by the City to SLMO to maintain uniformity city-wide. A side letter amending the SLMO MOU is proposed to extend these provisions to SLMO employees.
The proposed agreements have been accepted by SLCEA, the Confidential Employees Group, and SLMO, and are presented to the City Council for approval.
Previous Actions
• On December 7, 2020, by Resolution No. 2020-151, the City Council approved the prior SLCEA MOU and Confidential Employees’ Group Compensation Plan for the period January 1, 2021 through December 31, 2021.
• On January 4, 2022, by Resolution No. 2022-009, the City Council approved the current SLMO MOU for the period January 1, 2022 through December 31, 2022.
Fiscal Impacts
There will be a fiscal impact for the proposed SLCEA and Confidential three-year agreements, and the extended provisions for SLMO, which includes the proposed wage increases, equity adjustments, and benefit changes. A 2% salary increase was included in the City’s FY2022 and FY2023 Adopted Biennial Budget. Therefore, additional funding is required from the unrestricted fund balance to the corresponding salary and benefits allocations.
Budget Authority
These labor agreements will require City Council appropriation by $777,217 for FY2022 and $1,873,292 for FY2023. Funding for FY 2024 and FY 2025 will be incorporated into the next biennial budget.
Attachment A - Resolution
Exhibit A - San Leandro City Employees Association Memorandum of Understanding
Exhibit B - Confidential Employees Group Compensation Plan
Exhibit C - San Leandro Management Organization Side Letter of Agreement
PREPARED BY: Emily Hung, Human Resources Director, Human Resources Department