201 S. Anaheim Blvd.
Suite 501
Anaheim, CA 92805
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Fax: (714) 765-5215
www.anaheim.net
CITY COUNCIL AGENDA REPORT
City of Anaheim
HUMAN RESOURCES DEPARTMENT
DATE: SEPTEMBER 26, 2023
FROM: HUMAN RESOURCES DEPARTMENT
SUBJECT: ADOPTION OF A MEMORANDUM OF UNDERSTANDING
BETWEEN THE CITY OF ANAHEIM AND THE AMERICAN
FEDERATION OF STATE, COUNTY, AND MUNICIPAL
EMPLOYEES, LOCAL 2002, CONFIDENTIAL UNIT AND THE
CITY OF ANAHEIM; AND APPROVAL OF RELATED BUDGET
AMENDMENTS
ATTACHMENT (Y/N): YES ITEM # 22
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the City Council consider the following actions:
1) By Resolution, adopt a Memorandum of Understanding (“MOU”) between the American Federation of State, County, and Municipal Employees (“AFSCME”), Local 2002, Confidential Unit (“AFSCME Confidential Unit”) and the City of Anaheim, effective July 1, 2023 through June 30, 2027.
2) By Motion, increase the Fiscal Year 2023/24 budget in the amount of $550,379.
DISCUSSION:
The AFSCME, Confidential Unit, represents approximately 52 full-time employees and 8 part-time employee serving in 39 classifications that provide administrative support to various departments of the City. These include such classifications as Executive Secretary, Administrative Assistant, Office Specialist II – Confidential, Clerk – Confidential, Legal Secretary, Claims Assistant, Audit Technician, Accounting Specialist – Confidential, and Human Resources Technician. Ten classifications in the Confidential Unit have equivalent counterparts that are represented under the Anaheim Municipal Employees Association (“AMEA”). Confidential Unit employees are distinguished from their AMEA counterparts by their primary scope of work involving personnel issues or discretion related to highly sensitive work products.
The compensation changes in the proposed MOU are anticipated to increase employee retention rates in the unit and lead to greater recruitment success for vacant positions. The current vacancy rate in budgeted AFSCME Confidential Unit classifications is 12%. The Adoption of Memorandum of Understanding between the City of Anaheim and AFSCME – Confidential Unit September 26, 2023
average years of service of employees in the Confidential Unit is approximately nine years.
The proposed MOU, a result of a seven months negotiation process, represents the tentative agreement reached with the unit on September 17, 2023 and subsequently ratified by the AFSCME members on September 19, 2023. Substantive provisions of the tentative agreement include:
Four-year term from July 1, 2023 through June 30, 2027; General wage increase of five percent (5%) effective July 7, 2023, and subsequent wage increases of five percent (5%) per year effective the first pay period in July 2024 and July 2025;
Extension of pay ranges with addition of one step, equivalent to 5%, at the top of the range;
An increase of the City’s contribution to individual employees’ Retirement Health Savings Account by an additional one percent (1%) for a total of three percent (3%) of base salary effective July 7, 2023;
Additional eight (8) hours of administrative leave, totaling twenty-four (24) hours per calendar year for full-time employees, hours expire each calendar year with no cash value;
Shorten the waiting period for dental insurance coverage from six (6) months after date of hire to one (1) complete month after hire date; Part-time thirty (30)-hour employees may enroll in any medical plans offered to full-time employees and maintain coverage so long as they remain employed and available to work thirty (30) hour a week. This enhanced benefit option is cost- neutral to the City as the City’s maximum contribution will not vary based on employee selection;
Part-time thirty (30)-hour employees granted up to thirty (30) hours of jury duty paid leave; and
Part-time employees shall receive prorated service time for their hours worked in an AFSCME part-time classification upon promotion to a full-time AFSCME classification for purposes of benefits and seniority (e.g., promotional eligibility list, vacation accrual, service awards, layoff and reinstatement).
The two reopeners in the MOU are included as follows:
1. A reopener within ninety calendar days after the completion of the citywide Classification and Compensation Study, that is currently underway, to address recommended compensation adjustments resulting from the study to be implemented in the fourth year of the MOU. In addition, the reopener will also include any general wage increases in the fourth year of the MOU.
2. A reopener within sixty calendar days of the MOU adoption to address salary compaction related to recently approved memoranda of understanding with bargaining units representing classifications in the line of supervision of AFSCME classifications.
Adoption of Memorandum of Understanding between the City of Anaheim and AFSCME – Confidential Unit September 26, 2023
Additional changes reflected in the attached track change copy of the MOU reflect updates to language, clarification of provisions, and deletions of outdated provisions.
IMPACT ON BUDGET:
The Fiscal Year 2023/24 budget will be increased by $550,379 of which nearly 61% ($334,912) is General Fund. The impact of the MOU changes over the four year term is approximately $4,614,695 over the four-year term not including future costs of reopener agreements.
The breakdown of the necessary FY 2023/24 budget amendment by department is as follows:
City Administration $37,255
City Attorney $62,969
City Clerk $8,137
Finance $24,451
Human Resources $108,448
Community Services $42,196
Police $56,579
Fire & Rescue Department $33,191
Economic Development $8,282
Housing & Community Development $18,019
Public Works $26,161
Planning & Building $33,609
Convention, Sports & Entertainment $33,335
Public Utilities $57,747
Adoption of Memorandum of Understanding between the City of Anaheim and AFSCME – Confidential Unit September 26, 2023
Respectfully submitted,
Gretchen R. Beatty
Acting Human Resources Director
Attachments:
1. Resolution (AFSCME Confidential Unit)
2. Memorandum of Understanding (AFSCME Confidential Unit)
3. Memorandum of Understanding (AFSCME Confidential Unit) (Track Changes)