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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, GENERAL MANAGEMENT UNIT,
AND PROFESSIONAL/TECHNICAL MANAGEMENT UNIT AND
THE CITY OF ANAHEIM; AND APPROVAL OF RELATED
BUDGET AMENDMENTS
ATTACHMENT (Y/N): YES ITEM # 21
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, General Management Unit (“AFSCME General Unit”) and the City of Anaheim, effective July 1, 2023 through June 30, 2027. 2) By Resolution, adopt a Memorandum of Understanding (“MOU”) between the American Federation of State, County, and Municipal Employees (“AFSCME”), Local 2002, Professional/Technical Management Unit (“AFSCME Professional- Technical Unit”) and the City of Anaheim, effective July 1, 2023 through June 30, 2027.
3) By Motion, increase the Fiscal Year 2023/24 budget in the amount of $4,962,116.
DISCUSSION:
The AFSCME, General Unit, represents approximately 170 full-time employees and one current part-time employee serving in a broad spectrum of 177 management classifications throughout all departments of the City. These include such classifications as Deputy/Assistant Director (other than Deputy Human Resources Director) and Assistant Utilities General Manager positions, Financial Accounting Manager, Housing Coordinator, City Engineer, Principal Planner, Community Preservation Supervisor, Principal Electrical Engineer, Risk Manager, Chief Assistant City Attorney – Prosecution, Adoption of Memorandum of Understanding between the City of Anaheim and AFSCME – General Management Unit and Professional/Technical Management Unit
September 26, 2023
Administrative Services Manager, Assistant to the City Manager, Building Official, City Librarian, Crime Analysis Supervisor, Fire Marshal, Housing Authority Manager, Information Systems Manager, and Police Communications Manager.
The AFSCME, Professional-Technical Unit, includes 181 classifications with 217 incumbents in roles such as Principal Accountant, Event Manager II, Electrical Capital Improvement Projects Manager, Senior Planner, Fire Training Facilities Administrator, Senior Management Auditor, Payroll Manager, Deputy City Attorney IV, and the Human Resources Analyst series.
Following a period from Fiscal Year 2008/2009 through Fiscal Year 2020/2021, employees in the classifications now represented by AFSCME were eligible to receive merit increases (on average two percent (2%) annually). However, the salary ranges for these classifications were not adjusted during this twelve year period to reflect cost of living increases or compaction with subordinate classifications that continued to receive cost of living increases during the period. The initial AFSCME MOUs, effective December 24, 2021 through June 30, 2023, included a three percent (3%) increase in July 2021 and another in July 2022 as well as a five percent (5%) increase to the salary range maximums. Despite these changes, salary growth for AFSCME classifications fell behind cost of living increases and changes in compensation for classifications represented by other bargaining units across the City, most significantly those representing classifications in the line of supervision of AFSCME classifications. These factors set the stage for the negotiation process that led to the proposed MOUs presented for City Council approval.
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 General Unit classifications is 15% and 11% in the Professional/Technical Management Unit. The average years of service of employees in the General Unit is approximately thirteen years. The average years of service of employees in the Professional/Technical Unit is approximately eight years.
The proposed MOUs, resulting from a seven month negotiation process, represent the tentative agreement reached with the units on September 17, 2023 and subsequently ratified by the AFSCME members on September 19, 2023. The terms and conditions for the Management Unit and the Professional/Technical Unit were negotiated together and the provisions of the tentative agreement equally apply to both units. 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;
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;
Adoption of Memorandum of Understanding between the City of Anaheim and AFSCME – General Management Unit and Professional/Technical Management Unit
September 26, 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;
Modify standby assignment pay to a daily rate of one-and-a-half (1.5) hour at the employee’s base rate of pay for each day of standby duty, and two (2) hours at the employee’s base rate of pay for each recognized holiday when assigned standby; 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).
Two reopeners are included in the MOU 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 agreed 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.
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 $4,962,116 of which nearly 40% ($1,942,146) is General Fund. The impact of the MOU changes over the four-year term of the MOUs is approximately $42,132,510, not including future costs of reopener agreements.
The breakdown of the necessary FY 2023/24 budget amendment by department is as follows:
Adoption of Memorandum of Understanding between the City of Anaheim and AFSCME – General Management Unit and Professional/Technical Management Unit
September 26, 2023
City Council $8,028
City Administration $127,452
City Attorney $400,723
City Clerk $28,345
Finance $384,528
Human Resources $213,552
Community Services $371,489
Police $153,814
Fire & Rescue Department $228,575
Economic Development $63,575
Housing & Community Development $301,761
Public Works $564,823
Planning & Building $295,413
Convention, Sports & Entertainment $307,837
Public Utilities $1,512,201
Respectfully submitted,
Gretchen R. Beatty
Acting Human Resources Director
Attachments:
1. Resolution (AFSCME General Unit)
2. Memorandum of Understanding (AFSCME General Unit)
3. Memorandum of Understanding (AFSCME General Unit) (Track Changes)
4. Resolution (AFSCME Professional-Technical Unit)
5. Memorandum of Understanding (AFSCME Professional-Technical Unit)
6. Memorandum of Understanding (AFSCME Professional-Technical Unit) (Track Changes)