CITY OF POMONA
COUNCIL REPORT
November 6, 2023
To: Honorable Mayor and Members of the City Council
From: James Makshanoff, City Manager
Submitted By: René Anderson, Human Resources/Risk Management Director SUBJECT: Adoption of ResolutionS Approving Memorandum of Understanding Between the City of Pomona and the pomona MID-MANAGEMENT/CONFIDENTIAL EMPLOYEES’ ASSOCIATION from october 1, 2023 through september 30, 2027; AND AMENDING THE FISCAL YEAR 2023-24 OPERATING BUDGET BY APPROPRIATING $271,685 FROM GENERAL FUND RESERVES AND APPROPRIATING $401,760 FROM NON-GENERAL FUND BUDGETS TO IMPLEMENT FINANCIAL IMPACTS AS A RESULT OF LABOR NEGOTIATIONS RECOMMENDATION:
It is recommended that the City Council adopt the following resolution:
RESOLUTION NO. 2023-218 – A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA, CALIFORNIA, APPROVING A FOUR (4) YEAR MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF POMONA AND the pomona MID-MANAGEMENT/ CONFIDENTIAL EMPLOYEES’ ASSOCIATION FROM OCTOBER 1, 2023 THROUGH SEPTEMBER 30, 2027 RESOLUTION NO. 2023-224 – A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA, CALIFORNIA, AMENDING THE FISCAL YEAR 2023-24 OPERATING BUDGET BY APPROPRIATING $271,685 FROM GENERAL FUND RESERVES AND APPROPRIATING $401,760 FROM NON-GENERAL FUND BUDGETS TO IMPLEMENT FINANCIAL IMPACTS AS A RESULT OF LABOR NEGOTIATIONS EXECUTIVE SUMMARY:
The Pomona Mid-Management/Confidential Employees’ Association (PMMCEA) represents approximately 100 managerial, supervisory, and confidential City employees. Approval of the proposed resolution (Attachment No.1) will result in a four-year successor Memorandum of Understanding (MOU) with PMMCEA from October 1, 2023 through September 30, 2027. The change to terms include salary increases of seven percent (7%) effective October 8, 2023, four percent (4%) effective October 1, 2024 and 2025, and five percent (5%) effective October 1, 2026; increases to Section 125 Benefit Plan contributions to help offset the increasing cost of medical insurance; a twenty-five dollar ($25) monthly contribution for CalPERS PEPRA members who also contribute a minimum $25/month to Deferred Compensation; an increase by twenty five dollars ($25) per month in Bilingual Pay for qualified employees; add Paid Parental Leave; increase annual allowance of Tuition Reimbursement to $3,500 in conjunction with three year retention commitment; and other terms as described below.
FISCAL IMPACT:
The estimated on-going incremental annualized cost for the new terms of the agreement with PMMCEA employees combined is $673k for the first year of the agreement and $1.7M in total for the second, third and fourth years of the agreement. Of these amounts, $272k is from the General Fund for the first year of the agreement. A budget amendment (Attachment No. 2) is included with this action to appropriate $272k from the General Fund and $402k from the respective Non-General Funds. Future costs for this agreement will be budgeted for in the appropriate fiscal year.
DISCUSSION:
The Pomona Mid-Management/Confidential Employees’ Association (PMMCEA) represents approximately 100 managerial, supervisory, and confidential City employees. The current MOU with PMMCEA expired on September 30, 2023. The City met and conferred with PMMCEA regarding terms and conditions of employment. These negotiations resulted in a tentative agreement, which was ratified by the employees and is being presented to the City Council for approval in the proposed four-year successor MOU (Attachment No.1). The key terms of the MOU are described below.
Term - The Term will be for four (4) years from October 1, 2023 to September 30, 2027.
Salary Increase – 7% salary increase effective October 8, 2023, 4% increase effective October 1, 2024, 4% increase effective October 1, 2025, and 5% increase effective October 1, 2026.
Medical Premiums and Section 125 Cafeteria Plan Contributions - Section 125 Benefit Plan contribution be used to pay for medical, dental or vision insurance premiums. The Cafeteria Plan contribution for Single coverage will increase by $100 per month in December 2023 and by $20 in December 2024-26. The Cafeteria Plan contribution for Two-Party coverage will increase by $250 per month in December 2023 and by $100 in December 2024-26. The Cafeteria Plan contributions for Family coverage will increase by $350 per month in December 2023 and by $200 in December 2024-26. Said increases will help offset the increasing costs of medical premiums, while still lowering the employees’ contribution toward two-party or family coverage for most medical plans. Effective December 2024, any cash remaining after being applied to medical, dental and or vision premiums will no longer be available as taxable cash to employees.
Deferred Compensation – CalPERS PEPRA members shall receive a City contribution to deferred compensation of $25 per month effective January 2024, if that employee also contributes a minimum of $25 per month toward deferred compensation.
Short-Term Disability – Effective January 2024, the elimination period is being reduced from sixty (60) calendar days to thirty (30) calendar days.
Leave of Absence for Industrial Injury/Illness – Reduce the salary continuation period on an accepted work-related injury or illness absence from sixty (60) working days to thirty (30) calendar days.
Bilingual Pay – Increase Bilingual Pay by $25/month.
Paid Parental Leave – Effective January 2024, employees will be allowed up to 80 hours per year for the birth, adoption, or foster placement of a child.
Tuition Reimbursement – Increase tuition reimbursement program from $1,500 to $3,500 per fiscal year for job-related college or university courses, in conjunction with a three-year retention commitment.
Classification & Compensation Study – During the term of this Agreement (October 1, 2023 through September 30, 2027), the parties agree to meet and confer on the cities to be surveyed for the current Class & Comp Study that is underway. Additionally, the parties will meet and confer regarding the impacts of the City’s implementation of the results and recommendations from the Study.
In addition, a thorough review of the language has been conducted to ensure minor revisions are addressed. Other modifications to language include: a reopener on the Section 125 Cafeteria Plan for year three (December 2025) and or year four (December 2026), with the understanding that any changes can only be made by mutual agreement; if any other bargaining unit receives a greater salary increase or higher increase to the Section 125 Cafeteria Plan that increase(s) would be applied to PMMCEA; and delete obsolete language. The complete MOU is included in Attachment 1, Exhibit A and shows all of the changes, with new language underlined and old language shown with strikethroughs.
Prepared by: René Anderson, Human Resources/Risk Management Director ATTACHMENT:
Attachment No. 1 – Resolution No. 2023-218
Exhibit A – Memorandum of Understanding with the Pomona Mid-Management/ Confidential Employees’ Association Attachment No. 2 – Resolution No. 2023-224
Exhibit A – FY 2023-24 Budget Appropriations By Fund
Labor Agreement with PMMCEA