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CITY OF GLENDALE, CALIFORNIA
REPORT TO THE CITY COUNCIL
AGENDA ITEM
Report: Memorandum of Understanding (MOU) between the City of Glendale and the Glendale City Employees’ Association (GCEA).
1. Resolution Approving and Adopting the GCEA MOU Commencing July 1, 2024, through June 30, 2027.
2. Resolution providing for the establishment of classification titles and compensation for employees covered by the Glendale City Employees’ Association MOU.
3. Resolution providing for the establishment of one classification title and compensation for Electrical Line Mechanic Supervisor II covered by the Glendale Management Association MOU.
3. Resolution providing for the establishment of classification titles and cost of living adjustment for Executives.
COUNCIL ACTION
Item Type: Action Item
Approved for May 7, 2024 calendar
EXECUTIVE SUMMARY
The Glendale City Employees’ Association (GCEA) serves as the bargaining representative for a broad spectrum of non-management, rank-and-file city employees, excluding sworn police, sworn fire personnel, and utility field workers. It is the largest and most diverse bargaining unit, encompassing approximately 690 employees across various roles, including librarians, engineers, police and fire communications staff, parking enforcement officers, maintenance workers, and administrative staff. Reflecting the wide range of occupations it represents, the GCEA entered negotiations with a comprehensive and detailed set of proposals aimed at addressing both overarching organizational concerns and specific departmental issues. The previous MOU, effective since September 2021, provided modest cost-of-living increases averaging 1.5% annually over its three-year duration.
Since December 2023, the City has been engaged in negotiations with the GCEA, and after extensive discussions, staff is now ready to present resolutions for a new three- year MOU with the GCEA, effective from July 1, 2024, to June 30, 2027. The Council is 2{{section.number}}a
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reminded that MOU agreements stipulate the wages, hours, terms, and conditions of employment. Staff is confident that this agreement strikes a fair balance by maintaining competitive compensation and addressing the City’s budget constraints in a fiscally prudent manner.
RECOMMENDATION
That the attached Resolutions and Memorandum of Understanding between the City of Glendale and GCEA be approved as submitted. Additionally, that the attached Resolutions relating to the updated compensation for Electrical Line Mechanic Supervisor II and the FY 25/26 and FY 26/27 4% cost-of-living adjustment for Executives be approved as submitted.
ANALYSIS
Starting in December 2023, negotiations between the City and GCEA have been ongoing with the aim of reaching an agreement on a MOU.
The focus of this year’s negotiations has been to maintain a competitive structure while also addressing the fiscal realities of the organization. The GCEA negotiating team has raised concerns about the rising cost of living (COLA) in the region, which has made it difficult for their members to keep pace with earlier MOU agreements that offered relatively modest compensation adjustments. They have argued that this erosion of purchasing power has made life challenging for their members. Additionally, the GCEA has emphasized concerns about the cost of medical insurance and has sought to achieve parity with other bargaining units within the City in terms of out-of-pocket medical expenses. They have also requested an increase in the safety boot allowance, hazard pay for trash truck mechanics, enhancements to certain professional certifications, and the implementation of a public works technician pay program.
From the City’s perspective, maintaining a fair and competitive compensation and benefits structure is an equally high priority, as doing so assists in recruitment outreach and in the retention of quality personnel. The loss of talented and experienced staff to other jurisdictions has been an ongoing concern. The City’s negotiation team was also extremely cognizant of the arguments raised by the GCEA regarding the high cost-of- living, including concerns over inflation, and how it impacts our employees. Having said that, the City is grappling with increasing employment-related costs relating primarily to pension expenses that are projected to climb throughout the City’s multi-year financial forecast and uncertainty still exists in regard any new revenue streams that may impact the overall financial outlook.
Considering these challenges, staff is pleased to bring forth a three-year MOU agreement between the City and GCEA, which will run effective July 1, 2024, through June 30, 2027.
The proposed MOU is the culmination of over four months and over a dozen negotiation sessions between the City and GCEA negotiation teams. Staff believes that this tentative agreement, which provides fair cost-of-living adjustments (COLA) in each of the three years, relief on medical insurance costs and adjustments to targeted special pay categories, places the employees in a more competitive position within the labor market 3{{section.number}}a
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and addresses their concerns over the cost-of-living.
As outlined, the proposed three-year GCEA MOU includes the following COLAs:
•FY 24/25: 6.5% COLA, effective upon adoption of MOU.
•FY 25/26: 4% COLA, effective July 1, 2025.
•FY 26/27: 4% COLA, effective July 1, 2026.
Additionally, starting June 1, 2024, medical insurance premiums for all GCEA unit employees will be aligned with those of the GMA/General Manager bargaining unit which includes a 50-50 split on any new plan premiums. From the first day of the pay period that includes July 1, 2024, employees will also be eligible for up to six weeks of paid bonding leave within the twelve months following the birth, adoption, or foster care placement of a child.
The agreement also stipulates that, effective the same date, the GCEA salary schedule will be simplified from nine steps to six steps:
•Current Step 9 will become new Step 6.
•Current Step 8 will become new Step 5.
•Current Step 7 will become new Step 4.
•Current Step 6 will become new Step 3.
•Current Step 5 will become new Step 2.
•Current Step 4 will become new Step 1.
Employees on the current Steps 1 to 3 as of this date will be transitioned to the new Step 1, and the existing Steps 1 to 3 will be eliminated.
The MOU also includes adjustments in special pay categories affecting roles in Integrated Waste Truck Mechanical Maintenance, Commercial Refuse, Fleet Services, and Public Works Technician positions.
The MOU document, attached as Exhibit 1, is marked with red lines to highlight changes from the previous agreement. It was ratified by the GCEA on April 24, 2024, with a 90% approval rate, significantly exceeding the required two-thirds majority.
Staff recommends that the City Council adopt this proposed MOU. The accompanying Classification and Compensation Resolution included in this report, specifies the agreed- upon salary adjustments for GCEA represented employees including those in Employee Relations Confidential classifications. Unless otherwise noted, these terms will become effective on July 1, 2024.
The city is currently facing citywide compensation compaction issues. In each of the MOUs approved thus far, the concerns brought forward during the negotiation process have been addressed. While plans are in place to further address these issues 4{{section.number}}a
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comprehensively during the next negotiation cycle starting in July 2027, the staff proposes a 4% cost-of-living adjustment for Executives that matches those of the GMA bargaining unit for the second and third year of their MOU to maintain alignment with the GMA’s adjustments.
FISCAL IMPACT
The primary costs of the three-year agreement set forth in these Resolutions are related to the compensation adjustments, specifically COLA, and other extra/certification pay adjustments spread over three years. The breakdown below represents costs for each of the three years of the proposed City/GCEA MOU in addition to the two other resolutions.
Term Fiscal Year Cost
GCEA Class/Comp Resolution
May-June 2024 2023/24 $ 775,396
Year One 2024/25 $ 6,309,061
Effective June 1, 2024, increase City Contributions to
medical premiums to match GMA and continue with 50-50 cost sharing every plan year, thereafter.
Year Two 2025/26 $ 10,012,897
Year Three 2026/27 $ 13,645,413
Total $ 30,742,767
May-June 2024 of the City/GCEA MOU will cost $775,396 and the cost will be absorbed within the affected departments’ FY 2023/24 budget. No appropriation is requested at this time.
Executives/Resolution
Year Two – 4% COLA 2025/26 $ 181,265
Year Three – 4% COLA 2026/27 $ 371,688
Total $ 552,953
GMA Class/Comp Resolution
The updated compensation for Electrical Line Mechanic Supervisor II will cost $97,814.
ENVIRONMENTAL REVIEW (CEQA/NEPA)
This item is not subject to CEQA review.
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CAMPAIGN DISCLOSURE
This item is exempt from campaign disclosure requirements.
ADMINISTRATIVE ACTION
Submitted by:
Paula Adams, Chief Human Resources Officer
Prepared by:
Paula Adams, Chief Human Resources Officer
Approved by:
Roubik R. Golanian, P.E., City Manager
EXHIBITS/ATTACHMENTS
Classification and Compensation Resolution, which contains salary range amounts for classifications covered by the GCEA bargaining unit, GMA bargaining unit, and the Executive Classifications.
Text of proposed Memorandum of Understanding between the City of Glendale and Glendale City Employees’ Association. Three-year agreement commencing July 1, 2024, through June 30, 2027.
Exhibit A – Salary Schedule pending approval.