TITLE
Recommendation to adopt resolution approving the 2015-2019 Memorandum of Understanding with the Long Beach City Attorneys Association. (Citywide)
DISCUSSION
In accordance with instructions from the City Council, a Memorandum of Understanding (MOU) agreement has been reached with the Long Beach City Attorneys Association (LBCAA). LBCAA represents approximately 33 employees in the City Attorney's Office in such classifications as Deputy City Attorney, Workers Compensation Claim Examiner, and Legal Assistant.
Since February 2016, City management has met with LBCAA representatives to discuss their successor MOU terms, which expired September 30, 2015. A tentative agreement has been reached and jointly signed by representatives of the City and LBCAA.
The proposed compensation provisions are consistent with recent agreements reached with the International Association of Machinists and Aerospace Workers (1AM) and the other miscellaneous bargaining units. The proposed MOU includes a four-year term, from October 1, 2015 through September 30, 2019, and the following major provisions:
1. General Wage Increase:
• 2 percent effective October 1, 2016
• 2 percent effective October 1, 2017
• 2 percent effective October 1, 2018
2. One-Time Lump Sum Payment - A one-time ad hoc payment of 3 percent of annual base pay will be provided on a prorated basis to current eligible employees that worked during October 1, 2015 to September 30, 2016.
3. Economic Crisis Provision - Allows the City to re-open the MOU if the City faces a fiscal hardship as defined by Long Beach Municipal Code Section 3.94.030.C. Changes to the MOU provisions must be based on mutual agreement.
4. Floor Warden Skill Pay - Effective the first full pay period after City Council ratification, the Floor Warden Skill pay will be eliminated.
5. Overtime - Effective the first full pay period after City Council ratification, the City will calculate overtime based on Federal Fair Labor Standard Act (FLSA) requirements to only include time actually worked for bargaining unit members eligible to receive FLSA overtime. During the term of the MOU, the LBCAA agrees to meet and confer over changes to City overtime policies, ordinances and resolutions.
6. Healthcare - The formula for employees' contribution towards healthcare costs is slightly adjusted to increase the employee portion. The maximum cap for increases to family coverage was raised from $25 to $30 and the employee premium share formula was adjusted to allow the City to place amounts over the cap into a bank that can be applied to the employee rates in the future. In addition, LBCAA agreed to work through the Health Insurance Advisory Committee (HIAC) to manage employee benefit costs increases.
7. The proposed agreement also contains a commitment to provide a letter of understanding to provide a budget adjustment to the City Attorney's Office to allow for merit increases for their Attorneys.
This matter was reviewed by Principal Deputy City Attorney Gary J. Anderson on September 19, 2017 and by Assistant Finance Director Lea Eriksen on September 15, 2017.
TIMING CONSIDERATIONS
City Council action is requested on October 3, 2017, to ensure timely implementation of the MOU provisions.
FISCAL IMPACT
This agreement has a total estimated annual net fiscal impact of $112,000 in the General Fund (GF) and $292,000 across All Funds once completely implemented in FY 19. The FY 17 portion of the cost is $37,000 in the General Fund (GF) and $95,000 across All Funds. In addition, in FY 17, there are one-time costs estimated at $42,000 in the General Fund (GF) and $121,000 across All Funds. It is projected that there will be no impact to the FY 17 General Fund budget as the FY 17 costs will be covered by higher than expected
revenues, vacancy savings, and additional funding achieved from taking less conservative budgetary actions, such as reducing charges for insurance and funding for unfunded retirement liabilities. Costs for FY 18 and FY 19 will be addressed as part of those annual budget or mid-year budget adjustment processes. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
BODY
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Respectfully Submitted,
ALEJANDRA BASQUEZ
DIRECTOR OF HUMAN RESOURCES
APPROVED:
PATRICK H. WEST
CITY MANAGER