TITLE
Recommendation to adopt resolution approving the Terms and Conditions of Employment for members of the Association of Long Beach Employees (ALBE) bargaining unit, pursuant to Government Code Section 3505, et seq. (Citywide)
DISCUSSION
The City and ALBE representatives held over 14 meet and confer sessions regarding a new Memorandum of Understanding (MOU). After engaging in a lengthy period of bargaining, including a fair consideration of ALBE's proposals, the City and ALBE are at impasse in these negotiations and future meetings would be futile.
The attached Exhibit A to the Resolution specifies the Terms and Conditions of Employment including provisions of the City's Last, Best and Final Offer, submitted to the Association of Long Beach Employees (ALBE), for the period of October 1, 2016 through September 30, 2018, and is required to implement the salary and benefit elements. These Terms and Conditions of Employment are in accordance with instructions issued by the City Council.
ALBE's Last, Best and Final Offer was made on August 31, 2017. The City rejected ALBE's offer. The City's Last, Best and Final Offer was made to ALBE on September 13, 2017. ALBE rejected the City's offer on September 28, 2017. ALBE also declined to utilize a mediator or invoke the fact-finding option to alleviate the impasse. Under Government Code Section 3505, et seq., the City has the option to unilaterally implement the City's Last, Best and Final Offer for a one-year period.
In accordance with City Council's instructions to implement the City's Last, Best and Final Offer, the attached Resolution and the Terms and Conditions of Employment document provide for compensation provisions consistent with recent agreements reached with the other miscellaneous bargaining units. The adoption of the Resolution and Terms and Conditions of Employment document will not establish a new MOU, but will change some of the terms and conditions of employment under which the parties are currently operating. ALBE will retain the ability to negotiate a new MOU that will cover the period starting October 1, 2018.
The proposed Terms and Conditions of Employment are for a one-year term from the date of City Council adoption, including the following major provisions:
1. General Wage Increase:
• 2 percent effective October 1, 2016
• 2 percent effective October 1, 2017
2. Floor Warden Skill Pay - Effective the first full pay period after City Council ratification, the Floor Warden Skill pay will be eliminated.
3. Specialty Pays - Effective the first full pay period after City Council ratification, increase the Standby pay rate from $1.50 to $2.00. Increase the Higher Class Pay rate from $0.80 to $1.60. Skilled and General Basic get a $250 boot allowance per employee per year with the department's discretion to do twice a year.
4. Overtime - The bargaining unit agrees to meet and confer over changes to City overtime policies, ordinances and resolutions.
5. 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.
6. Represented Time-off- 350 hours with no carry over hours.
This matter was reviewed by Principal Deputy City Attorney Gary J. Anderson and by Budget Operations Administrator Grace Yoon on September 28, 2017.
TIMING CONSIDERATIONS
City Council action is requested on October 3, 2017, to ensure timely implementation of the Terms and Conditions of Employment provisions.
FISCAL IMPACT
The proposed Terms and Conditions of Employment has a total estimated annual net fiscal impact of $456,000 in the General Fund (GF) and $2.3 million across All Funds once completely implemented in FY 18. The FY 17 portion of the cost is an estimated $246,000 in the General Fund (GF) and $1.2 million 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 will be addressed as part of the 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,
ALEJANDRINA BASQUEZ
DIRECTOR OF HUMAN RESOURCES
APPROVED:
PATRICK H. WEST
CITY MANAGER