REPORT TO COUNCIL
SUBJECT
Title
Approve a Memorandum of Understanding between the City of Sunnyvale and the Sunnyvale Employees’ Association/IFPTE Local 21; and Adopt Two Resolutions Implementing Changes Associated with the New MOU: (1) Resolution Amending the City's Salary Resolution by Updating Medical Insurance Contribution Provisions and the Schedule of Pay to Increase Salaries for Pay Plan Category B (Employees Represented by the Sunnyvale Employees’ Association/IFPTE Local 21), and Pay Plan Category G (Unrepresented Classified Confidential Employees); and (2) Resolution Approving Amendments to the City’s Contribution for CalPERS Medical Insurance for Management, Sunnyvale Employees’ Association/International Federation of Professional and Technical Engineers (SEA/IFPTE Local 21), and Confidential Employees and Annuitants (Retirees)
Report
BACKGROUND
A Tentative Agreement has been reached between the City of Sunnyvale (City) and the Sunnyvale Employees’ Association/International Federation of Professional and Technical Engineers, Local 21 (SEA/IFPTE Local 21) on a successor Memorandum of Understanding (MOU). SEA/IFPTE Local 21 represents non-management miscellaneous full-time employees. This report recommends approval of the MOU, which if approved by the City Council, will be in effect from July 1, 2022 through June 30, 2026.
Pursuant to the existing provisions of the Salary Resolution Article 1.000, Unrepresented Classified Confidential (pay plan category G) employees receive the same treatment for wages, benefits, and leaves as pay plan category B (SEA/IFPTE Local 21) employees, except for benefits associated with FLSA exempt designation (as defined in Articles 3.910, 4.000, 4.100, and 4.300). Unrepresented Classified Confidential (pay plan category G) employees are not organized and do not negotiate for any changes to their wages, hours, and/or other terms and conditions of employment. The action outlined in this Report to Council provides for the same salary and benefits changes recommended for category B employees to be implemented for category G employees.
The MOU between the City and SEA/IFPTE Local 21 expired on June 30, 2022.
Representatives for the City and SEA/IFPTE Local 21 began the meet and confer process in March 2022 and met 16 times to reach an agreement. A Tentative Agreement was reached on July 20, 2022, and the City was notified on July 29, 2022 that the SEA/IFPTE Local 21 membership ratified the Tentative Agreement.
EXISTING POLICY
Council Policy 7.3.1 Legislative Management - Goals and Policies, Goal 7.3D: Maintain a quality work force, consistent with state and federal laws, City Charter, and adopted policies in order to assure that City services are provided in an effective, efficient, and high-quality manner.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” with the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(4) in that is a fiscal activity that does not involve any commitment to any specific project which may result in a potential significant impact on the environment.
DISCUSSION
The significant provisions of the new SEA/IFPTE Local 21 MOU are as follows:
Term
July 1, 2022 to June 30, 2026.
Salary
• Effective July 10, 2022: 6.0% across the board increase.
• Effective July 9, 2023: 4.0% across the board increase.
• Effective July 7, 2024: 3.5% across the board increase.
• Effective July 6, 2025: 3.5% across the board increase
The salary increase is effective on July 10, 2022, as it is the beginning of the pay period in which the tentative agreement was reached.
Hazardous Duty Pay
Effective the first full pay period following Council approval, the following classifications will be added to the list of classifications receiving 1.5% Hazardous Duty Pay: Equipment Mechanic, Greenskeeper, Lead Equipment Mechanic, Principal Water Pollution Control Operator, Senior Greenskeeper, Senior Water Pollution Control Operator, Senior Water Pollution Control Plant Mechanic, Water Pollution Control Operator 1, Water Pollution Control Operator 2 and Water Pollution Control Plant Mechanic.
In addition, Hazardous Duty Pay for all classifications receiving Hazardous Duty Pay, including the additional classifications listed above, will be concurrently rolled into base pay. The City will be updating the job descriptions for all classifications receiving Hazardous Duty Pay to reflect the change to the base pay and hazardous duties performed.
Medical Contribution
Effective the first full pay period after Council approval, the City’s health insurance contribution will be increased from 80% to 85% of the average of the family monthly premiums for CalPERS Region 1 Blue Shield Access HMO plan and the CalPERS Region 1 Kaiser HMO plan
Additionally, Article 5.505 of the Salary Resolution provides that each year, the City’s contribution for medical coverage for active management employees shall be no less than the highest City contribution for any of the represented employee groups. As a result of these provisions and in order to meet the CalPERS requirement that the City’s medical contribution be the same amount for employees and retirees, the City’s contribution to CalPERS for retiree medical coverage shall be increased appropriately.
Effective October 1, 2022, the City’s PEMHCA contribution for medical coverage for retirees in SEA/IFPTE Local 21, Confidential and Management will be $1,015.75, an increase of $10.27 per retiree per month.
Vision Insurance
The two-party vision insurance that is currently paid on behalf of employees will be added to the City’s cafeteria contribution, with the implementation of the ERP.
Compensatory Time Off (Comp Time)
Remove obligation to cash out accrued hours in excess of 60 hours at the end of the calendar year.
Class A and B Driver’s License Compensation
Class A and B Driver’s License compensation will be paid on a weekly basis, rather than bi-weekly basis, with the implementation of the ERP.
Bilingual/Translator Premium
Bilingual/Translator Premium compensation will be paid on a weekly basis, rather than bi-weekly basis, with the implementation of the ERP.
General Language clean up
Update Comparable Agencies, remove historical date-specific language, provide gender-neutral language, correct typos and grammatical issues, and clarify language.
Corresponding Salary and Benefit Changes for Unrepresented Classified Confidential (Category G) Employees
Based on the Salary Resolution Article 1.000, it is recommended that the same salary and benefits changes recommended for category B employees to be implemented for unrepresented classified confidential (category G) employees.
FISCAL IMPACT
The estimated one-year and twenty-year costs of the successor MOU above the compensation assumptions used in the FY 2022/23 Adopted budget are as follows:
|
Group |
FY 2022/23 |
20-Year |
|
SEA/IFPTE Local 21 |
$1.6 million |
$77.6 million |
|
Unrepresented Confidential |
$89,000 |
$4.4 million |
|
Total |
$1.7 million |
$82.0 million |
The FY 2022/23 impact can be absorbed within the City’s operating budget, and the revised estimates will be incorporated in the City’s 20-Year Plan.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, at the Sunnyvale Public Library, Senior Center, Community Center and in the Department of Public Safety Lobby. In addition, the agenda and report are available at the Sunnyvale Public Library, Office of the City Clerk, and on the City's website.
ALTERNATIVES
1. Authorize the City Manager to Execute the Memorandum of Understanding between the City of Sunnyvale and the Sunnyvale Employees’ Association/IFPTE Local 21; and Adopt Two Resolutions Implementing Changes Associated with the New MOU: (1) Resolution Amending the City's Salary Resolution by Updating Medical Insurance Contribution Provisions and the Schedule of Pay to Increase Salaries for Pay Plan Category B (Employees Represented by the Sunnyvale Employees’ Association/IFPTE Local 21), and Pay Plan Category G (Unrepresented Classified Confidential Employees); and (2) Resolution Approving Amendments to the City’s Contribution for CalPERS Medical Insurance for Management, Sunnyvale Employees’ Association/International Federation of Professional and Technical Engineers (SEA/IFPTE Local 21), and Confidential Employees and Annuitants (Retirees).
2. Do Not Authorize the City Manager to Execute the Memorandum of Understanding between the City of Sunnyvale and the Sunnyvale Employees’ Association/IFPTE Local 21, and do not adopt the related resolutions.
3. Provide other direction to staff.
STAFF RECOMMENDATION
Recommendation
Alternative 1: Authorize the City Manager to Execute the Memorandum of Understanding between the City of Sunnyvale and the Sunnyvale Employees’ Association/IFPTE Local 21; and Adopt Two Resolutions Implementing Changes Associated with the New MOU: (1) Resolution Amending the City's Salary Resolution by Updating Medical Insurance Contribution Provisions and the Schedule of Pay to Increase Salaries for Pay Plan Category B (Employees Represented by the Sunnyvale Employees’ Association/IFPTE Local 21), and Pay Plan Category G (Unrepresented Classified Confidential Employees); and (2) Resolution Approving Amendments to the City’s Contribution for CalPERS Medical Insurance for Management, Sunnyvale Employees’ Association/International Federation of Professional and Technical Engineers (SEA/IFPTE Local 21), and Confidential Employees and Annuitants (Retirees).
Staff
Prepared by: Tina Murphy, Director, Human Resources
Reviewed by: Teri Silva, Assistant City Manager
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1. Memorandum of Understanding between the City of Sunnyvale and the Sunnyvale Employees’ Association/IFPTE Local 21, 2022-2026 - redlined version
2. Memorandum of Understanding between the City of Sunnyvale and the Sunnyvale Employees’ Association/IFPTE Local 21, 2022-2026 - finalized version
3. Resolution Amending the City's Salary Resolution by Updating Medical Insurance Contribution Provisions and the Schedule of Pay to Increase Salaries for Pay Plan Category B (Employees Represented by the Sunnyvale Employees’ Association/IFPTE Local 21) and Pay Plan Category G (Unrepresented Classified Confidential Employees)
4. Resolution Amending the City’s Contribution for CalPERS Medical Insurance for Management, Sunnyvale Employees’ Association/International Federation of Professional and Technical Engineers (SEA/IFPTE Local 21), and Confidential Employees and Annuitants (Retirees)