Agenda Report
Fullerton City Council
MEETING DATE: JULY 18, 2023
TO: CITY COUNCIL / SUCCESSOR AGENCY
SUBMITTED BY: EDDIE MANFRO, DIRECTOR OF HUMAN RESOURCES PREPARED BY: EDDIE MANFRO, DIRECTOR OF HUMAN RESOURCES
SUBJECT: TENTATIVE AGREEMENTS BETWEEN THE CITY OF FULLERTON AND fULLERTON mUNICIPAL eMPLOYEES FEDERATION AND tHE CITY OF FULLERTON AND FULLERTON management ASSOCIATION
SUMMARY
Proposed Memorandums of Agreement (MOA) between the City of Fullerton and Fullerton Municipal Employees Federation (FMEF) and the City of Fullerton and Fullerton Management Association (FMA) reflecting tentative agreement on wages, hours, and working conditions for City Council consideration.
RECOMMENDATION
Adopt the following resolutions:
RESOLUTION NO. 2023-XXX – A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FULLERTON, CALIFORNIA, APPROVING THE MEMORANDUM OF AGREEMENT BETWEEN THE CITY AND THE FULLERTON MUNICIPAL EMPLOYEES FEDERATION RESOLUTION NO. 2023-XXX – A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FULLERTON, CALIFORNIA, APPROVING THE MEMORANDUM OF AGREEMENT BETWEEN THE CITY AND THE FULLERTON MANAGEMENT ASSOCIATION
CITY MANAGER REMARKS
The City Manager recommends approval.
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statement:
Fiscal and Organizational Stability.
FISCAL IMPACT
The following summarizes the fiscal impacts of the agreements across all City Funds:
Fiscal Year
FMEF
FMA
2023-24
$2,652,010
$659,191
2024-25
$3,925,158
$961,376
2025-26
$5,036,933
$1,243,176
2026-27
$5,892,657
$1,461,840
Total
$17,506,758
$4,325,583
The FY 2023-24 Adopted Budget has adequate funding for Year 1 (2023-24) available.
DISCUSSION
The agreements for FMEF and FMA expired on June 30, 2023. The proposed tentative agreements presented for City Council consideration result from a negotiation process that began in April with each bargaining group. The attached redline versions reflect specific changes to previous agreements, showing new language in bold print and deleted language in strike through. The following provides a summary for each bargaining group.
Fullerton Municipal Employees Federation
The FMEF is the largest bargaining unit representing City of Fullerton employees. FMEF members serve in approximately 300 positions, assigned to various non-sworn and non-management classifications in all City departments. Represented classifications include: Maintenance Worker, Account Clerk II, Customer Service Representative, Parking Control Officer, Equipment Operator, Police Records Clerk, Permit Technician, Adult Services Librarian, Code Enforcement Officer, Construction Inspector and Civil Engineer.
The following summarizes the significant changes in the MOA:
Article # Provision
4.1 Recruitment and Retention Working Group:
The Parties agree to meet quarterly to discuss recruitment and retention strategies. This provision shall not constitute a formal reopener of the MOA. 5 Term - Effective Dates
The term of the Agreement shall be from July 1, 2023 through June 30, 2027. 15 Base Salary Rates
Implementation of an 8% across-the-board increase for salary ranges in the unit effective July 22, 2023.
Implementation of a 4% across-the-board increase for salary ranges in the unit effective July 6, 2024.
Implementation of a 4% across-the-board increase for salary ranges in the unit effective July 5, 2025.
Implementation of a 3% across-the-board increase for salary ranges in the unit effective July 4, 2026. 16 (D) License Pay
Employees who possess a valid Class A or B license and are enrolled in the Department of Transportation testing program shall receive $50 per pay period.
16.1 Retention Pay Bonuses
Effective January 1, 2024, and through the remainder of the term of this MOA, the City shall provide retention bonus in the form of a gross lump sum payment when an employee achieves any of the following milestones of completed full-time regular service with the City:
15 years - $3,000
20 years - $4,500
18 Acting Pay
Provides that the acting pay rate shall be applied to all hours worked in the acting assignment, including Standby pay. 24(B & C) Employer Paid Member Contribution (EPMC)
Effective June 22, 2024, the City’s EPMC contribution shall be reduced by 1.5%.
Effective June 21, 2025, the City’s EPMC contribution shall be reduced by an additional 1.5%.
Effective June 20, 2026, the City’s EPMC contribution shall be reduced by an additional 2.0%.
Effective December 19, 2026, the City’s EPMC contribution shall be reduced by an additional 2.0%.
Employee Cost Sharing
Effective June 22, 2024, the Employee cost-sharing contribution shall be reduced by 1.5%.
Effective June 21, 2025, the Employee cost-sharing contribution shall be reduced by an additional 1.5%.
Effective June 20, 2026, the Employee cost-sharing contribution shall be reduced by an additional 2.0%.
Effective December 19, 2026, the Employee cost-sharing contribution shall be reduced by an additional 2.0%. 27 (D) Health Insurance
Effective January 1, 2024, the City will increase the flex benefit contribution for those employees enrolled in the City’s medical program by an additional $300 (a total of $350 per month).
Effective January 1, 2025, the “flex credits” for those enrolled in the City’s medical program shall be provided in three tiers based on their particular enrollment. The “flex credits” will be adjusted annually in the amount of 50% of the premium increase for each applicable tier in the Kaiser HMO plan.
If the City transitions to obtaining medical benefits through CALPERS during the term of this MOA, the parties will reopen Article 17 to meet and confer over flex credits and City medical contributions. 36 Holiday Leave Program
If any other bargaining unit receives Martin Luther King, Jr. Day as a holiday during the term of this MOA, the FMEF members shall also receive the holiday.
56.1 Reclassification
The FMEF may request that the Human Resources Department conduct up to seven (7) reclassification studies per fiscal year.
Fullerton Management Association
The FMA bargaining unit represents City of Fullerton non-sworn employees serving in various management positions throughout most departments of the City. Represented classifications include: Utility Services Supervisor, Senior Librarian, Police Communications Supervisor, Accounting Supervisor, Water Systems Manager, Airport Manager, Senior Civil Engineer and Planning Manager.
The following summarizes the significant changes in the MOA:
Article # Provision
Term – Effective Dates
The term of the Agreement shall be from July 1, 2023 through June 30, 2027. 7 Salary
Implementation of an 8% across-the-board increase for salary ranges in the unit effective July 22, 2023.
Implementation of a 4% across-the-board increase for salary ranges in the unit effective July 6, 2024.
Implementation of a 4% across-the-board increase for salary ranges in the unit effective July 5, 2025.
Implementation of a 3% across-the-board increase for salary ranges in the unit effective July 4, 2026. 8 (f) Increment Pay
Employees responsible for the production of Fourth of July, First Night, Arbor Day, and Veteran’s Day or required to work on the days of these events managing City facilities rented for private events shall receive his/her regular compensation at a time and one half rate for any hours worked in excess of the employee’s regularly scheduled 40-hour work week.
8.1 Retention Pay Bonus
Effective October 1, 2023 and through the remainder of the term of this MOA, the City shall provide retention bonus in the form of a gross lump sum payment when an employee achieves any of the following milestones of completed full-time regular service with the City:
10 years - $2,500
15 years - $3,000
20 years - $4,000
14 (B) California Public Employees’ Retirement System (CalPERS) Employer Paid Member Contribution (EPMC)
Effective June 22, 2024, the City’s EPMC contribution shall be reduced by 1.0%.
Effective June 21, 2025, the City’s EPMC contribution shall be reduced by an additional 1.0%.
Effective June 20, 2026, the City’s EPMC contribution shall be reduced by an additional 2.5%.
Effective December 19, 2026, the City’s EPMC contribution shall be reduced by an additional 2.5%.
Employee Cost Sharing
Effective June 22, 2024, the Employee cost-sharing contribution shall be reduced by 1.0%.
Effective June 21, 2025, the Employee cost-sharing contribution shall be reduced by an additional 1.0%.
Effective June 20, 2026, the Employee cost-sharing contribution shall be reduced by an additional 2.5%.
Effective December 19, 2026, the Employee cost-sharing contribution shall be reduced by an additional 2.5%. 17 Health Insurance
B2 For each person who 1) was hired before January 1, 2012, 2) has been regularly employed for 20 cumulative years or more, and 3) who retires from the date this MOA is approved by the City Council through December 31, 2024 only, the City shall provide a monthly medical contribution of $550.
B5 For any employee that retires during the term of this MOA, the City will reimburse such retirees who live outside of the City’s Medical Network for the actual cost of procuring comparable health insurance in an amount not to exceed what the City would otherwise be obligated to pay on behalf of the retiree.
D Effective January 1, 2024, the City will increase the flex benefit contribution for those employees enrolled in the City’s medical program by an additional $300 (a total of $350 per month).
Effective January 1, 2025, the “flex credits” for those enrolled in the City’s medical program shall be provided in three tiers based on their particular enrollment. The “flex credits” will be adjusted annually in the amount of 50% of the premium increase for each applicable tier in the Kaiser HMO plan.
If the City transitions to obtaining medical benefits through CALPERS during the term of this MOA, the parties will meet and confer over flex credits and City medical contributions. 26 Holiday Leave Program
If any other bargaining unit receives Martin Luther King, Jr. Day as a holiday during the term of this MOA, the FMA members shall also receive the holiday.
Included throughout the proposed agreements are amendments to reflect prior changes or outdated provisions, previously approved side letters, clarified language, reference corrections, and/or formatting changes.
Attachments:
Attachment 1 – PowerPoint Presentation
Attachment 2 – Draft Resolution 2023-XXX (FMEF)
Attachment 3 – Tentative Agreement FMEF redline version Attachment 4 – Draft Resolution 2023-XXX (FMA)
Attachment 5 – Tentative Agreement FMA redline version
cc: City Manager Eric J. Levitt
Tentative Agreements with FMEF and FMA
July 18, 2023 – Page 2