Title
Staff Report for a City of San Leandro City Council Resolution that Approves the San Leandro City Employees’ Association (SLCEA) Memorandum of Understanding and Confidential Employees’ Group Compensation Plan with no Salary Increase through December 31, 2021
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.
BACKGROUND
The San Leandro City Employees’ Association (SLCEA) represents the largest group of employees in the City. The Confidential Employee Group is a small group of employees in the City Manager’s Office, City Clerk division, and Human Resources division. In recognition of the City’s financial challenges due to the COVID-19 pandemic, both SLCEA and Confidential employees have agreed to forego a salary increase through December 31, 2021.
Employees would typically receive an annual cost-of-living (COLA) adjustment, which has averaged 3% over the last 5 years. Concessions in labor costs from these employee groups will greatly contribute to cost savings and help to avoid layoffs or reductions in services to the community. City executives and managers already agreed to forego a salary increase in the San Leandro Management Organization’s Memorandum of Understanding approved by the City Council on September 28, 2020.
Analysis
The San Leandro City Employees Association (SLCEA) Memorandum of Understanding (MOU) expires on December 31, 2020. SLCEA represents 334 full-time equivalent employees. The City and SLCEA representatives met and conferred in good faith and successfully reached a tentative agreement for the period covering January 1, 2021 through December 31, 2021.
The Confidential Employees Group represents eight (8) employees from the City Manager’s Office, City Clerk’s division, and Human Resources division. Confidential employees are not represented by a bargaining unit, but because they are similarly situated to SLCEA employees, confidential employees have historically received the same provisions afforded to SLCEA. The proposed agreement would be for the period covering July 1, 2020 through December 31, 2021.
The proposed agreements were accepted by SLCEA and the Confidential Employees Group, and are presented to the City Council for its approval. The major elements of the agreements include providing a matching (non-pensionable) contribution towards employees’ deferred compensation 457 account up to 2% of base salary, providing 40 hours of parental leave, and increasing bilingual pay.
Previous Action
• On February 16, 2016, by Resolution No. 2016-015, the City Council approved the prior SLCEA MOU for the period January 1, 2016 through December 31, 2020.
• On March 7, 2016, by Resolution No. 2016-034, the City Council approved the prior Confidential Employees Group Compensation Plan for the period July 1, 2015 through June 30, 2020.
Fiscal Impacts
By foregoing a cost-of-living salary increase and implementing the proposed changes, the net savings would be $66,574 for the remainder of FY 2020-2021 and $78,044 for the first half of FY 2021-2022.
ATTACHMENT(S)
Attachment(s) to Staff Report
• San Leandro City Employees’ Association Memorandum of Understanding
• Confidential Employee Group Compensation Plan
PREPARED BY: Emily Hung, Human Resources Manager, City Manager’s Office