EAST PALO ALTO
CITY COUNCIL
STAFF REPORT
DATE: July 19, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Patrick Heisinger, Interim City Manager
BY: Patrick Heisinger, Interim City Manager
SUBJECT: Compensation Adjustments and Agreements with SEIU, MEA, and Unrepresented Employment Groups
Recommendation
Adopt a Resolution:
1. Approving the terms of the Tentative Agreement jointly agreed to between the City of East Palo Alto, Service Employees International Union Local 521 (SEIU) and IFPTE Local 21, Management Employees Association (MEA);
2. Approving Cost of Living Adjustments for Non-Bargaining, Unrepresented Confidential Restricted Classifications;
3. Directing the Interim City Attorney to draft an amendment to the employment agreement with the Interim City Manager to provide a Cost of Living Adjustment and other benefits consistent with those received by SEIU, MEA, and other non-represented personnel and authorizing the Mayor to execute such an amendment; and
4. Appropriating $790,000 for FY 2022-23 from the General Fund Reserve to account for the compensation adjustments described in the staff report.
Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:
Priority No. 3: Increase Organizational Effectiveness and Efficiency Background
Service Employees International Union Local 521 (SEIU) represents City employees pursuant to the Employer Employee Resolution of the City adopted November 21,1983 for the regular full-time employees assigned to the classes set forth in the Memorandum of Understanding (MOU), except for those employees in confidential positions in those classifications, which are unrepresented.
The IFPTE Local 21, represents City management employees pursuant to City Resolution No. 48-83 adopted on November 21,1983 for the regular full-time employees assigned to the classes set forth in the Memorandum of Understanding (MOU), except for those employees in confidential positions in those classifications, which are unrepresented. .
The City and SEIU and the City and MEA have been parties to a series of Memoranda of Understandings setting forth the wages, hours and other terms and conditions of employment for the members of their respective bargaining units.
The most recent MOU with SEIU expired on July 30, 2022, and the MOU with MEA expired on July 31, 2022. On June 21, 2022, representatives of the City, MEA, and SEIU met to begin negotiating the terms and conditions for new MOUs in a coalition-style bargaining. The City’s negotiators, MEA representatives, and SEIU representatives met on four (4) occasions and exchanged proposals. The parties agreed to the general terms and conditions of the proposed tentative agreement on July 1, 2022. The Bargaining Unit representatives agreed to the developed proposals and the membership ratified the Tentative Agreement and notified the City on July 12, 2022. Although there is joint Tentative Agreement, each unit will continue to have a separate MOU.
Analysis
Major components of the TA between the City and the Bargaining Units are provided below and will be incorporated into the redline version of the MOUs, which will be brought before the City Council for review at a later date.
Issue Tentative Agreement
Duration 17 months (August 1, 2022 – December 31, 2023) COLA (Cost of Living
Adjustment)
5.0% first full pay period immediately following adoption by City Council.
One-Time Lump Sum One-time payment of $2,500 effective the first full payroll following Dec 1, 2022.
Leave Cash Out Cash out up to 80 hours of leave consistent with the process language of their respective MOUs.
The MOUs between the City of East Palo Alto and SEIU and between the City of East Palo Alto and MEA are competitive agreements that reflect the City’s desire to address challenging current and forward wage parity issues and includes a compensation package that will not only attract new talent but also retain existing employees.
Unrepresented Employees
The Interim City Manager recommends extending the same COLA adjustment, one-time lump sum payment, and the vacation pay-out modification as SEIU/MEA may receive to the unrepresented employees. This would include the Interim City Manager, who would have received a COLA adjustment if he were still in the Assistant City Manager position. If the City Council approves the recommendations in this report, the salary for Assistant City Manager will exceed the salary currently being received by the Interim City Manager.
Fiscal Impact
If the City Council approved the terms of the Tentative Agreement between the City of East Palo Alto and the bargaining units, it will result in an estimated additional expenditure in Year 1 of approximately $790,000 in fiscal year 2022-23 and expenditure in Year 2 of approximately $563,000 in fiscal year 2023-24.
Public Notice
The public was provided notice of this agenda item by posting the City Council agenda on the City’s official bulletin board outside City Hall and making the agenda and report available on the City’s website and at the San Mateo County Library located at 2415 University Avenue, East Palo Alto.
Environmental
Environmental The action being considered does not constitute a “Project” within the meaning of the California Environmental Quality Act (CEQA), pursuant to CEQA Guideline section 15378 (b)(5), in that it is a government administrative activity that will not result in direct or indirect changes in the environment.
Attachments
1. Resolution
2. Exhibit A:?Signed Tentative Agreement