TO: HONORABLE MAYOR FROM: Jennifer Schembri
AND CITY COUNCIL
SUBJECT: SEE BELOW DATE: May 6, 2022
Approved Date
05/06/22
SUBJECT: TERMS OF SIDE LETTER AGREEMENTS BETWEEN THE CITY OF
SAN JOSE, THE INTERNATIONAL UNION OF OPERATING
ENGINEERS, LOCAL NO. 3, MUNICIPAL EMPLOYEES’
FEDERATION, AND THE CITY ASSOCIATION OF MANAGEMENT
PERSONNEL AND AMENDING THE PAY PLAN
RECOMMENDATION
Adopt a resolution to:
A. Approve the terms of a Side Letter Agreement with the International Union of Operating Engineers, Local No. 3 (OE#3) to provide the following:
1. Provide employees in the Automation Engineer I (1361) classification with an approximate 5.00% pensionable pay increase effective the beginning of the first full pay period after the Side Letter Agreement has been signed by all parties and has been approved by the City Council;
2. Provide employees in the Automation Engineer II (1363) classification with an approximate 5.00% pensionable pay increase effective the beginning of the first full pay period after the Side Letter Agreement has been signed by all parties and has been approved by the City Council;
3. Provide employees in the Automation Engineer III (1364) classification with an approximate 5.00% pensionable pay increase effective the beginning of the first full pay period after the Side Letter Agreement has been signed by all parties and has been approved by the City Council; and
B. Approve the terms of a Side Letter Agreement with the Municipal Employees’ Federation, AFSCME, Local 101 (MEF) to provide the following:
1. Provide employees in the Senior Automation Engineer I (1367) classification with an approximate 5.00% pensionable pay increase effective the beginning of the first full pay period after the Side Letter Agreement has been signed by all parties and has been approved by the City Council;
COUNCIL AGENDA: 05/17/22
FILE: 22-693
ITEM: 2.8
HONORABLE MAYOR AND CITY COUNCIL
May 6, 2022
Subject: Terms of a Side Letter Agreements Between the City of San Jose and the International Union of Operating Engineers, Local No. 3 (OE#3), Municipal Employees’ Federation, AFSCME, Local 101 (MEF), and the City Association of Management Personnel, IFPTE, Local 21 (CAMP)
2. Provide employees in the Senior Automation Engineer II (1368) classification with an approximate 5.00% pensionable pay increase effective the beginning of the first full pay period after the Side Letter Agreement has been signed by all parties and has been approved by the City Council; and
C. Approve the terms of a Side Letter Agreement with the City Association of Management Personnel, IFPTE, Local 21 (CAMP) to provide the following:
1. Provide employees in the Automation Engineer Supervisor (1365) classification with an approximate 5.00% pensionable pay increase effective the beginning of the first full pay period after the Side Letter Agreement has been signed by all parties and has been approved by the City Council; and
D. Amend the City of San Jose Pay Plan as follows:
1. Amend the City of San Jose Pay Plan to increase the annual salary range of the classification of Automation Engineer I (1361) to $74,048.00 – $90,084.80, effective May 29, 2022;
2. Amend the City of San Jose Pay Plan to increase the annual salary range of the classification of Automation Engineer II (1363) to $90,084.80 – $109,491.20, effective May 29, 2022;
3. Amend the City of San Jose Pay Plan to increase the annual salary range of the classification of Automation Engineer III (1364) to $99,715.20 – $121,284.80, effective May 29, 2022;
4. Amend the City of San Jose Pay Plan to increase the annual salary range of the classification of Senior Automation Engineer I (1367) to $106,600.00 – $129,833.60, effective May 29, 2022;
5. Amend the City of San Jose Pay Plan to increase the annual salary range of the classification of Senior Automation Engineer II (1368) to $117,187.20 – $142,812.80, effective May 29, 2022; and
6. Amend the City of San Jose Pay Plan to increase the annual salary range of the classification of Automation Engineer Supervisor (1365) to $128,918.40 – $157,081.60, effective May 29, 2022.
OUTCOME
Adoption of the resolution will approve Side Letter Agreements between the City and OE#3, the City and MEF, and the City and CAMP to allow for a special pensionable pay increase for the following classifications:
HONORABLE MAYOR AND CITY COUNCIL
May 6, 2022
Subject: Terms of a Side Letter Agreements Between the City of San Jose and the International Union of Operating Engineers, Local No. 3 (OE#3), Municipal Employees’ Federation, AFSCME, Local 101 (MEF), and the City Association of Management Personnel, IFPTE, Local 21 (CAMP)
Classification Union Pensionable
Increase
Automation Engineer I (1361) OE#3 5.00%
Automation Engineer II (1363) OE#3 5.00%
Automation Engineer III (1364) OE#3 5.00%
Senior Automation Engineer I (1367) MEF 5.00%
Senior Automation Engineer II (1368) MEF 5.00%
Automation Engineer Supervisor (1365) CAMP 5.00%
Further, the City of San Jose’s Pay Plan will be amended to change the salary ranges for the classifications noted above in accordance with the terms of the Side Letter Agreements.
BACKGROUND
Classifications in the Automation Engineer series, formerly known as the Industrial Process Control Specialist series, are responsible for various tasks, including, but not limited to, performing work in the design, installation, configuration, operation and maintenance of the San José – Santa Clara Regional Wastewater Facility’s Distributed Control System, its industrial control network, and its data historian systems and perform related work as required.
As part of the City’s efforts to fill vacancies, the City has taken efforts to update classification specifications to clarify and streamline minimum and desirable qualifications, and ensure that the duties contained in classification specifications align with the City’s expectations for incumbents in these positions. As a result of recent recruitments in the Automation Engineer series that failed to yield many applicants, the City made updates to the classification specifications for the Automation Engineer I/II/III, Senior Automation Engineer I/II, and Automation Engineer Supervisor classifications, including revisions to minimum qualifications, revised competencies, skills, and abilities. These revisions were approved by the Civil Service Commission on April 7, 2022. Simultaneously, the City identified that recruitment and retention issues exist within the Automation Engineer series.
As a result of the classification specification revisions and the identification of recruitment and retention issues within this classification series, the City conducted a survey that found that there were very few agencies within the City’s marketplace that have comparable classifications.
Although the City found very few agencies with comparable classifications, the City and unions reached agreements to provide these classifications with the following special pensionable wage increases:
HONORABLE MAYOR AND CITY COUNCIL
May 6, 2022
Subject: Terms of a Side Letter Agreements Between the City of San Jose and the International Union of Operating Engineers, Local No. 3 (OE#3), Municipal Employees’ Federation, AFSCME, Local 101 (MEF), and the City Association of Management Personnel, IFPTE, Local 21 (CAMP)
Classification Union Pensionable
Increase
Date of
Agreement
Automation Engineer I (1361) OE#3 5.00% April 7, 2022
Automation Engineer II (1363) OE#3 5.00% April 7, 2022
Automation Engineer III (1364) OE#3 5.00% April 7, 2022 Senior Automation Engineer I (1367) MEF 5.00% April 14, 2022 Senior Automation Engineer II (1368) MEF 5.00% April 14, 2022 Automation Engineer Supervisor (1365) CAMP 5.00% April 11, 2022
These Side Letter Agreements are attached to this memorandum. The increases shown in the table, above, would result in the following changes to the salary ranges of classifications within the Automation Engineer series:
Classification
Current Pensionable
Salary Range
(Annual)
New Pensionable
Salary Range
(Annual)
Automation Engineer I (1361) $70,512.00 – $85,800.00 $74,048.00 – $90,084.80 Automation Engineer II (1363) $85,800.00 – $104,270.40 $90,084.80 – $109,491.20 Automation Engineer III (1364) $94,972.80 – $115,502.40 $99,715.20 – $121,284.80 Senior Automation Engineer I (1367) $101,524.80 – $123,656.00 $106,600.00 – $129,833.60 Senior Automation Engineer II (1368) $111,612.80 – $136,011.20 $117,187.20 – $142,812.80 Automation Engineer Supervisor (1365) $122,782.40 – $149,593.60 $128,918.40 – $157,081.60
In addition to the pensionable rates of pay indicated above, per Article 12.1.1 of the MEF MOA, incumbents in the Senior Automation Engineer I/II classifications currently receive a 5.00% ongoing non-pensionable compensation increase. Similarly, per Article 10.1 of the CAMP MOA, incumbents in the Automation Engineer Supervisor classification also currently receive a
5.00% ongoing non-pensionable compensation increase. OE#3 has no such ongoing non- pensionable compensation increase language in its MOA.
ANALYSIS
The following is a summary of the key provisions contained in the Side Letter Agreements:
Automation
Engineer I Base
Pay Increase
Effective the first pay period after the agreement has been signed by all parties and has been approved by the City Council, employees in the Automation Engineer I classification shall receive a pensionable base pay increase in the amount of 5.00%. This will result in an increase to the top and bottom of the salary range in the Pay Plan for the Automation Engineer I classification.
HONORABLE MAYOR AND CITY COUNCIL
May 6, 2022
Subject: Terms of a Side Letter Agreements Between the City of San Jose and the International Union of Operating Engineers, Local No. 3 (OE#3), Municipal Employees’ Federation, AFSCME, Local 101 (MEF), and the City Association of Management Personnel, IFPTE, Local 21 (CAMP)
Automation
Engineer II Base
Pay Increase
Effective the first pay period after the agreement has been signed by all parties and has been approved by the City Council, employees in the Automation Engineer II classification shall receive a pensionable base pay increase in the amount of 5.00%. This will result in an increase to the top and bottom of the salary range in the Pay Plan for the Automation Engineer II classification.
Automation
Engineer III Base
Pay Increase
Effective the first pay period after the agreement has been signed by all parties and has been approved by the City Council, employees in the Automation Engineer III classification shall receive a pensionable base pay increase in the amount of 5.00%. This will result in an increase to the top and bottom of the salary range in the Pay Plan for the Automation Engineer III classification.
Senior
Automation
Engineer I Base
Pay Increase
Effective the first pay period after the agreement has been signed by all parties and has been approved by the City Council, employees in the Senior Automation Engineer I classification shall receive a pensionable base pay increase in the amount of 5.00%. This will result in an increase to the top and bottom of the salary range in the Pay Plan for the Senior Automation Engineer I classification.
Senior
Automation
Engineer II Base
Pay Increase
Effective the first pay period after the agreement has been signed by all parties and has been approved by the City Council, employees in the Senior Automation Engineer II classification shall receive a pensionable base pay increase in the amount of 5.00%. This will result in an increase to the top and bottom of the salary range in the Pay Plan for the Senior Automation Engineer II classification.
Automation
Engineer
Supervisor Base
Pay Increase
Effective the first pay period after the agreement has been signed by all parties and has been approved by the City Council, employees in the Automation Engineer Supervisor classification shall receive a pensionable base pay increase in the amount of 5.00%. This will result in an increase to the top and bottom of the salary range in the Pay Plan for the Automation Engineer Supervisor classification.
CONCLUSION
Due to the recruitment and retention issues in the Automation Engineer series, it is recommended that the City Council adopt the Administration’s recommendation outlined in this memorandum which would provide a pensionable base pay increase to the Automation Engineer I (1361), Automation Engineer II (1363), Automation Engineer III (1364), Senior Automation Engineer I (1367), Senior Automation Engineer II (1368), and Automation Engineer Supervisor (1365) classifications, as indicated above.
HONORABLE MAYOR AND CITY COUNCIL
May 6, 2022
Subject: Terms of a Side Letter Agreements Between the City of San Jose and the International Union of Operating Engineers, Local No. 3 (OE#3), Municipal Employees’ Federation, AFSCME, Local 101 (MEF), and the City Association of Management Personnel, IFPTE, Local 21 (CAMP)
Based on the recommended adjustments to the salary ranges of the various classification as set forth above, the City of San Jose’s Pay Plan will be amended to change the salary ranges for the classifications in accordance with the terms of the Side Letter Agreements
EVALUATION AND FOLLOW-UP
No further follow-up with the City Council related to this action is anticipated at this time.
CLIMATE SMART SAN JOSE
The recommendation in this memo has no effect on Climate Smart San José energy, water, or mobility goals.
PUBLIC OUTREACH
This memorandum has been posted on the City Clerk’s website as part of the May 17, 2022, City Council Meeting Agenda.
COORDINATION
This memorandum was coordinated with the City Manager’s Budget Office, and the City Attorney’s Office.
COMMISSION RECOMMENDATION/INPUT
No commission recommendation or input is associated with this action.
COST SUMMARY/IMPLICATIONS
The additional ongoing costs pertaining to the base pay increase for the Automation Engineer I (1361), Automation Engineer II (1363), Automation Engineer III (1364), Senior Automation Engineer I (1367), Senior Automation Engineer II (1368), and Automation Engineer Supervisor (1365) classifications are approximately $77,000, which is all funded by the San José – Santa Clara Treatment Plant Operating Fund. With City Council approval of the recommended actions, these increased costs will be adjusted, as necessary, for 2022-2023 as part of a future budget process and will be factored into the development of the 2023-2024 Base Budget, which
HONORABLE MAYOR AND CITY COUNCIL
May 6, 2022
Subject: Terms of a Side Letter Agreements Between the City of San Jose and the International Union of Operating Engineers, Local No. 3 (OE#3), Municipal Employees’ Federation, AFSCME, Local 101 (MEF), and the City Association of Management Personnel, IFPTE, Local 21 (CAMP)
may result in future permit fee increases. Given the current level of vacancies, the increased costs for the remainder of 2021-2022 are anticipated to be absorbed within the Environmental Services Department’s existing budget. If necessary, the Administration will bring forward any increases to the existing appropriation in 2021-2022 as part of the year-end budget process.
CEQA
Not a Project, File No. PP17 008, General Procedure & Policy Making resulting in no changes to the physical environment.
JENNIFER SCHEMBRI
Director of Employee Relations
Director of Human Resources
The principal author of this memorandum was Bill Gold, Senior Executive Analyst in the Office of Employee Relations. For questions, please contact Jennifer Schembri, Director of the Office of Employee Relations and Director of Human Resources, at (408) 535-8150.
Attachment
SIDE LETTER AGREEMENT
BETWEEN
THE CITY OF SAN JOSE
AND
THE INTERNATIONAL UNION OF OPERATING ENGINEERS, LOCAL NO. 3 (OE#3) SPECIAL WAGE INCREASE – AUTOMATION ENGINEER I/II/III
Effective the first full pay period after this agreement is signed by all parties below and approved by the City Council in open session, employees in the classifications list ed below shall receive the following pensionable wage increase:
Classification Pensionable Increase
Automation Engineer I (1361)
(formerly known as Industrial Process Control Specialist I) 5.00% Automation Engineer II (1363)
(formerly known as Industrial Process Control Specialist II) 5.00% Automation Engineer III (1364)
(formerly known as Industrial Process Control Specialist III) 5.00% This will res ult in an increase to the top and bottom of the salary range of employees in the classifications noted above.
This side letter agreement shall become effective on the first full pay period after this agreement has been signed by all parties below and approved by the City Council in open session.
FOR THE CITY: FOR THE UNION:
______________________________ __________________________________ Elsa Cordova Date Jeremy Cabaccang Date
Assistant to the City Manager Business Representative, OE#3 Office of Employee Relations
04/07/22 04/07/22
SIDE LETTER AGREEMENT
BETWEEN
THE CITY OF SAN JOSE
AND
THE MUNICIPAL EMPLOYEES’ FEDERATION, AFSCME, LOCAL 101 (MEF) SPECIAL WAGE INCREASE – SENIOR AUTOMATION ENGINEER I/II Effective the first full pay period after this agreement is signed by all parties below and approved by the City Council in open session , employees in the classifications list ed below shall receive the following pensionable wage increase:
Classification Pensionable
Increase
Senior Automation Engineer I (1367)
(formerly known as Industrial Process Control Senior Specialist I) 5.00% Senior Automation Engineer II (1368)
(formerly known as Industrial Process Control Senior Specialist II) 5.00% This will res ult in an increase to the top and bottom of the salary range of employees in the classifications noted above.
This side letter agreement shall become effective on the first full pay period after this agreement has been signed by all parties below and approved by the City Council in open session.
FOR THE CITY: FOR THE UNION:
______________________________ __________________________________ Jennifer Schembri Date John Tucker Date
Director of Employee Relations Business Representative, AFSCME Director of Human Resources
______________________________ __________________________________ Elsa Cordova Date Cindy Harlin Date
Assistant to the City Manager President, MEF
Office of Employee Relations
4/14/20224/14/2022
4/14/2022
SIDE LETTER AGREEMENT
BETWEEN
THE CITY OF SAN JOSE
AND
THE CITY ASSOCIATION OF MANAGEMENT PERSONNEL, IFPTE, LOCAL 21 (CAMP) SPECIAL WAGE INCREASE – AUTOMATION ENGINEER SUPERVISOR
Effective the first full pay period after this agreement is signed by all parties below and approved by the City Council in open session , employees in the classification listed below shall receive the following pensionable wage increase:
Classification Pensionable Increase
Automation Engineer Supervisor (1365)
(formerly known as Industrial Process Control Supervisor) 5.00% This will res ult in an increase to the top and bottom of the salary range of employees in the classification noted above.
This side letter agreement shall become effective on the first full pay period after this agreement has been signed by all parties below and approved by the City Council in open session.
FOR THE CITY: FOR THE UNION:
______________________________ __________________________________ Jennifer Schembri Date Elizabeth Kamya Date
Director of Employee Relations Business Representative, CAMP Director of Human Resources
4/11/2022
4/11/2022