CITY COUNCIL STAFF REPORT
Meeting: August 16, 2022
Subject
Approve the July 1, 2022 through June 30, 2025 Memorandum of Understanding setting the salary and terms and conditions of employment for the Operating Engineers Local No. 3 Union, AFL-CIO (OE3).
Recommended Action
Adopt the Draft Resolution 22-XXX amending the Memorandum of Understanding (MOU) for the Operating Engineers Local No. 3 Union, AFL-CIO (OE3) based on the attached tentative agreements; Adopt Resolution 22-XXX to approve budget modification 23-232, increasing budget appropriations by $471,742 ensuring that there are sufficient budget appropriations to cover the costs associated with the negotiated contract; and Approve the corresponding Salary Schedule for OE3 employees effective July 1, 2022.
Description
The City has reached a tentative agreement with the Operating Engineers Local No. 3 Union, AFL-CIO (OE3). The negotiated package is within City Council parameters for the Fiscal Years (FY) 2022 ‐ 2025. Key provisions of the tentative labor agreements are summarized below:
Term – 3 years, July 1, 2022 through June 30, 2025
Cost of Living adjustments (COLAs): 5.0% in year one; for years 2 and 3 of the MOU, Operating Engineers Local No. 3 Union, AFL-CIO (OE3) has agreed to reopen negotiations concerning COLAs for FY23-24 and FY24-25 A one-time $3,800 non-pensionable lump sum payment in recognition of employees’ contributions throughout the COVID-19 pandemic Adding Juneteenth as a paid holiday starting in 2023.
Clarifying the bereavement leave section to provide consideration of the death of an individual not listed above and whom they have a close and significant relation with and allowance of up to 40 hours of leave based on Human Resources Department's approval Equity increase to the City Sponsored Recreation and Wellness Programs (Rec Bucks) from $400 to $500 per employee per year to be at the same level as other represented and unrepresented staff Title 2 of the California Code of Regulations, section 570.5, requires that the pay schedule of every CalPERS agency be approved and adopted by the agency's governing body pursuant to public meeting law. The City's Salary Schedule for OE3 employees is attached for the Council's review and approval, effective July 1, 2022.
Fiscal Impact
The City will incur an additional cost of $471,742 in the first year (FY2022-23) for OE3 employees. The total additional cost for CEA, OE3, Unrepresented, and Appointed employees is $2,372,559. A budget adjustment for increased costs in the first year is recommended. At the time of the adopted budget, costs related to the labor contracts were unknown and not included in the adopted budget.
Prepared by: Vanessa Guerra, Human Resources Manager
Reviewed by: Kristina Alfaro, Director of Administrative Services Approved for Submission by: Dianne Thompson, Assistant City Manager Attachments:
A - MOU- OE3 2022-2025 CLEAN
B - MOU- OE3 2022-2025 Redline
C - OE3 Side Letter Agreement 11-30-21 – signed
D - 2022-07-18 Side Letter Agreement – Healthcare
E - 2022-07-18 Side Letter Agreement - Lump Sum
F - 2021-04-20 Final OE3 POP Plan Side Letter Agreement G - Draft Resolution amending the OE3 MOU
H – Draft Resolution for budget modification 23-232 OE3