APPROV AL OF AGREEMENTS WITH AEA, AMSP,
CAMP, AND MEF; APPROV AL OF SIDE LETTER
AGREEMENTS TO AMEND CERTAIN ARTICLES IN
THE CURRENT MOAS WITH ABMEI, ALP, POPRA,
SJPDA, OE#3, AND IBEW ; AND CHANGES FOR
EXECUTIVE MANAGEMENT AND PROFESSIONAL
EMPLOYEES IN UNIT 99 AND OTHER
UNREPRESENTED EMPLOYEES (UNITS 81/82) FOR
FISCAL YEARS 2023 -2024, 2024- 2025, AND 2025- 2026
September 12, 2023
Jennifer Schembri, Director of Employee Relations and Director of Human Resources Jim Shannon, Budget Director
Item 3.4
NEGOTIATION TEAMS
MEF Negotiating T eam
John T ucker AFSCME Business Agent
Cindy Harlin MEF President
Dan Gibson MEF T eam Member
Rachel Atkins MEF T eam Member
Austin Carrell MEF T eam Member
Nick Rovetto MEF T eam Member
Ben Martinez MEF T eam Member
Kevin Johnson MEF T eam Member
Juliette Licon MEF T eam Member
David Parker MEF T eam Member
IFPTE Negotiating T eam
Liz Kamya IFPTE Representative
Romandha Celestin IFPTE Representative
Krista De La T orre IFPTE Representative
Jesse Perez AMSP President
Moses Arroyo AMSP T eam Member
Sean Archer AMSP T eam Member
Julie Jennings CAMP President
Kat Estrada CAMP T eam Member
David Nerhood CAMP T eam Member
Florin Lapustea AEA President
Jim Bittner AEA T eam Member
Aric Johnson AEA T eam Member
• We would also like to thank Mary Sunzeri (SJPDA), Jeremy Cabaccang (POPRA and OE#3), T erra Chaffe (ALP), Frank Crusco (IBEW), and Long Vu (IBEW) for their efforts on reaching subsequent Side Letter Agreements with the City City Negotiating T eam
Burke Dunphy Elsa Cordova Bill Gold Rikki Nguyen Jim Shannon Bonny Duong Katherine Brown Jeff Provenzano Jenny Choi Hal Spangenberg
BACKGROUND
• The City’s collective bargaining agreements with AEA, AMSP , CAMP , and MEF expired on June 30, 2023
• In March 2023, negotiations commenced with MEF , AEA, AMSP , and CAMP on successor agreements
• On June 19, 2023, the parties reached impasse, and in July and August 2023, the parties participated in impasse mediation sessions facilitated by a state mediator • On August 15, 2023, the City reached overall tentative agreements on the terms to be contained in a successor Memoranda of Agreement (MOAs) with AEA, AMSP , CAMP , and MEF • The City subsequently reached Side Letter Agreements with ABMEI, ALP , POPRA and SJPDA to amend the terms of their respective MOAs regarding compensation and City-Paid Parental Leave • The City also reached subsequent Side Letter Agreements with OE#3 and IBEW related to the observance of Lunar New Year
KEY PROVISIONS OF AGREEMENTS
Te r m July 1, 2023, through June 30, 2026
Pensionable General Wage Increase for
Fiscal Year 2023-2024
(AEA, AMSP , CAMP , and MEF)
6% pensionable base pay increase effective September 17, 2023 Pensionable General Wage Increase for
Fiscal Year 2023-2024
(ABMEI, ALP , POPRA, SJPDA, Unit 99, and
Units 81/82)
Employees in ABMEI, ALP , POPRA, SJPDA, Unit 99, and Units 81/82 will receive a pensionable base pay increase of approximately 1.00%, for a total of 6.00% in Fiscal Y ear 2023-2024 effective September 17, 2023
Pensionable General Wage Increase for
Fiscal Year 2024-2025
4% pensionable base pay increase effective the first pay period in FY 2024-2025 Effective the first full pay period in January 2025, a 1% pensionable base pay increase Pensionable General Wage Increase for
Fiscal Year 2025-2026
3.50% pensionable base pay increase of approximately 3.50 effective the first pay period in FY 2025-2026
If the revised 5-Y ear Forecast included as part of the 2025-2026 Proposed Operating Budget includes a $10 million dollar surplus or more in Fiscal Year 2025-2026, the general wage increase will be 4.00%.
KEY PROVISIONS OF AGREEMENTS
Paid Parental Leave
The Paid-Parental Leave Program will become permanent. For eligible births, adoptions, or foster care placements, full-time employees will receive a maximum total of 320 hours of paid time off and shall be eligible to use a maximum total of 120 hours of their available sick leave for City-Paid Parental Leave reasons.
Lunar New Y ear
Lunar New Y earshall be observed as a City-observed holiday and New Y ear’sEve Day shall no longer be a City-observed holiday
Employees shall be entitled to either an additional eight (8) hours of executive leave or an additional eight (8) hours of personal leave to observe a personal holiday that is not observed by the City
Public Safety Radio Dispatcher
Certification Pay (MEF) / Crisis
Intervention Training Pay (SJPDA)
Employees in PSRD classifications who possess an Emergency Fire Dispatch (EFD) certification and an Emergency Medical Dispatch (EMD) certification shall be eligible to receive a 3.75% non-pensionable premium pay
Employees in SJPDA who sign-up or have completed the Crisis Intervention T raining will be eligible to receive the 3.75% Crisis Intervention Training non-pensionable premium pay
Employee Assistance Program (EAP) for
Part-Time Unbenefited Employees (MEF)
Effective January 1, 2024, the City will provide part-time unbenefited employees up to five (5) visits per issue type per 12-month period
GENERAL FUND BUDGETARY IMPLICATIONS AND ADJUSTMENTS
• In 2023-2024, total ongoing costs of the compensation and benefit increases is approximately $28.7 million, of which approximately $13.8 million is in the General Fund. • Of the $13.8 million in ongoing increased costs to the General Fund, ongoing funding previously set aside in the Salaries and Benefits Reserve for negotiated wage increases for these employees and classification-specific salary adjustments totals $11.0 million, leaving an ongoing shortfall of $2.8 million in the first year of the agreements. • In accordance with City Council Policy 1-18, Section 2, Fiscal Integrity – which specifies that “ongoing operating program costs will not exceed the amount of ongoing revenue to finance those costs” – approval of the labor agreements must also be accompanied by ongoing expenditure offsets in 2023-2024 to ensure that ongoing cost obligations do not exceed the ongoing revenues expected to be received in 2023-2024, and that the General Fund remains in balance.
GENERAL FUND BUDGETARY IMPLICATIONS AND ADJUSTMENTS
DEPT PROPOSAL TITLE FTE AMOUNT
No Service Impacts:
City-Wide - Sick Leave Payments Upon Retirement ($650,000) Parks, Rec, and
Neigh Svcs (PRNS)
- PRNS Water Budget Reduction ($150,000)
City-Wide - Banking Services ($100,000)
Minimal to No Service Impacts:
Multiple - Vacancy Eliminations (9.56) ($830,000)
Public Works - General Vehicle Replacements ($250,000)
Service Impacts:
PRNS - Placemaking/Viva CalleSJ and Viva Parks (2.50) ($570,000) City-Wide - Council District Outdoor Activation ($250,000) TOTAL (12.06) ($2,800,000)
FUTURE BUDGETARY IMPLICATIONS
• Additional actual and expected cost impacts from the employee compensation increases are anticipated to put negative pressure on the 2024- 2025 and 2025-2026 General Fund budget development processes. • Absent any improvement in projected economic conditions, estimates for other revenue sources, and/or other expenditure costs, double-digit General Fund shortfalls may occur.
• Because community needs and expectations to expand various services already exceeds the City’s limited budgetary capacity, the General Fund faces a service level/structural shortfall from a practical perspective. • The City Council is anticipated to engage in difficult budgetary tradeoff considerations for the foreseeable future.
RECOMMENDATION
A. Adopt a resolution to approve:
1. The terms of collective bargaining agreements with AEA, AMSP , CAMP and MEF
2. The terms of Side Letter agreements with ABMEI, POPRA, SJPDA, OE#3 and IBEW
3. Approve and amend compensation and benefit changes for executive management and professional employees in Unit 99 and other unrepresented employees in Units 81/82
B. Adopt the related 2023-2024 Appropriation Ordinance amendments in various funds as detailed in Attachment J
C. Approve the changes to budgeted positions in various departments as detailed in Attachment K
DISCUSSION AND QUESTIONS