The City’s current labor agreements with its employee bargaining groups will expire on June 30, 2023.  Representatives from the bargaining groups and City Administration have met and conferred in good faith regarding salary, benefits, and other terms and conditions of employment. Tentative agreements for successor Memorandums of Understanding have been reached with several of these groups.

The General and Municipal groups have both agreed to new labor agreements with three-year terms starting on July 1, 2023 and ending on June 30, 2026. The Professional group, comprised of employees funded from state grants, agreed to a one-year contract term, starting on July 1, 2023 and ending on June 30, 2024. The City’s management and executive employees are not represented as a bargaining unit and receive pay and benefit adjustments at the discretion of the City Council.

The key benefits and fiscal components for each group are as follows:
   
GENERAL SERVICES EMPLOYEES GROUP

Contract Term: Three years, starting on July 1, 2023 and ending on June 30, 2026

Base Salary Compensation

Base salary adjustments for all General Services members are as follows:

• 5% base salary adjustment effective on July 1, 2023
• 4% base salary adjustment effective on July 13, 2024
• 3% base salary adjustment effective on July 12, 2025

The grant-funded classification of Case Manager will receive an additional 1% base salary adjustment in each contract year.

One-Time Compensation

• Full-time employees (excluding all employees in the grant-funded WIOA program, including the Case Manager position) on the City’s payroll as of May 31, 2023 will receive a one-time lump-sum payment in the amount of $3,000 no later than June 30, 2023; employees must still be employed as of June 30, 2023.
• Full-time employees (excluding all employees in the grant-funded WIOA program including the Case Manager position) on the City’s payroll as of May 31, 2024 will receive a one-time lump-sum payment in the amount of $1,500 no later than June 30, 2024; employees must still be employed as of June 30, 2024.
• Full-time employees (excluding all employees in the grant-funded WIOA program including the Case Manager position) on the City’s payroll as of May 31, 2025 will receive a one-time lump-sum payment in the amount of $1,500 no later than June 30, 2025; employees must still be employed as of June 30, 2025.

Cafeteria Health Insurance Contribution

• Effective December 1, 2023, the City will increase its current insurance contribution by $100 per month to a maximum of $1,650 per month on a use or lose basis.
• Effective December 1, 2024, the City will increase its insurance contribution by $75 per month to a maximum of $1,725 per month on a use or lose basis.
• Effective December 1, 2025, the City will increase its insurance contribution by $75 per month to a maximum of $1,800 per month on a use or lose basis.

Bilingual Pay

• Effective July 1, 2023, the City will increase bilingual pay by $50 per month to $150 per month.
• Effective with the first full pay period in July 2024, the City will increase bilingual pay by $25 per month to $175 per month.

Cost Estimate of Negotiated Pay and Benefits

If approved, the total cost of the three-year MOU with the General Services Employees Group is estimated to be approximately $668,205, allocated as follows:
 

FY 23/24	$280,934
FY 24/25	$204,902
FY 25/26	$182,369
Total	$668,205

SOURCE		FY23-24	FY24-25	FY25-26	TOTAL
General Fund
	Recurring	$102,331	$88,353	$72,117	$262,801
	One-Time	$76,760	$40,299	$41,911	$158,970
General Fund Total		$179,091	$128,652	114,028	$421,771
Non-General Fund
	Recurring	$61,163	$54,893	$46,130	$162,186
	One-Time	$40,680	$21,357	$22,211	$84,248
Non-General Fund Total		$101,843	$76,250	$68,341	$246,434
All Funds
	Recurring	$163,494	$143,246	$118,247	$424,987
	One-Time	$117,440	$61,656	$64,122	$243,218
All Funds Total		$280,934	$204,902	$182,369	$668,205

• Add a new top step (Step H) to the salary schedule that is five percent (5%) higher than the current top step, and eliminate the current bottom step (Step A), making Step B become the new Step A. Any employee at the current bottom Step A as of July 1, 2023, will automatically be moved to the new Step A. All other employees will remain at the pay Step that is equivalent to their current pay, until their next applicable evaluation and merit increase.

• 5% base salary adjustment for all unit employees (excluding the positions in the Water Services and Sewer Technician Series) effective July 1, 2023.
• 4% base salary adjustment for all unit employees (excluding the positions in the Water Services and Sewer Technician Series) effective July 13, 2024.
• 3% base salary adjustment for all unit employees (excluding the positions in the Water Services and Sewer Technician Series) effective July 12, 2025.

• 6% base salary adjustment effective July 1, 2023.
• 4.5% base salary adjustment effective July 13, 2024.
• 3.5% base salary adjustment effective July 12, 2025.

• 8% base salary adjustment effective July 1, 2023.
• 6% base salary adjustment effective July 13, 2024.
• 5% base salary adjustment effective July 12, 2025.

• Full-time employees on City payroll as of May 31, 2023 will receive a one-time lump-sum payment in the amount of $2,500 no later than June 30, 2023; employees must still be employed as of June 30, 2023.
• Full-time employees on City payroll as of May 31, 2024 will receive a one-time lump-sum payment in the amount of $1,500 no later than June 30, 2024; employees must still be employed as of June 30, 2024.
• Full-time employees on City payroll as of May 31, 2025 will receive a one-time lump-sum payment in the amount of $1,500 no later than June 30, 2025; employees must still be employed as of June 30, 2025.

• Effective December 1, 2023, the City will increase its current insurance contribution by $100 per month to a maximum of $1,650 per month on a use or lose basis.
• Effective December 1, 2024, the City will increase its insurance contribution by $75 per month to a maximum of $1,725 per month on a use or lose basis.
• Effective December 1, 2025, the City will increase its insurance contribution by $75 per month to a maximum of $1,800 per month on a use or lose basis.

• Effective July 1, 2023, the City will increase the safety shoe reimbursement allowance by $25 to a maximum of $300 per year.

• Employees in the City’s Streets and Refuse divisions who are identified and pre-assigned by their supervisors to assist with clearing homeless encampments will receive a payment in the amount of $750 in the first pay period in December of each year of this contract. 
• All employees in the City’s Park’s division will receive a payment the amount of $500 in the first pay period in December of each year of this contract. 
• Homeless encampment pay will be in effect from July 1, 2023 through June 30, 2026.  After the term of this MOU, this provision will be removed unless renegotiated.

• Effective July 1, 2023, the City agrees to add an additional nine (9) hours of Personal Leave per year, for a total of 27 hours per fiscal year on a use or lose basis.

• Effective July 1, 2023, the City agrees to add SDI and PFL programs to all unit employees. Employees shall pay for all costs associated with these programs.

This estimated cost consists of both recurring costs and “one-time” costs apportioned between the General Fund and Non-General Fund budgets. The breakdown of these estimated costs, by fiscal year and funding source, is as follows:

SOURCE			FY23-24	FY24-25	FY25-26	TOTAL
General Fund
		Recurring	$89,312	$70,623	$48,308	$208,243
		One-Time	$37,390	$19,630	$20,415	$77,435
General Fund Total			$126,702	$90,253	$68,723	$285,678
Non-General Fund
		Recurring	$174,190	$158,842	$115,974	$449,006
		One-Time	$60,612	$31,821	$33,094	$125,527
Non-General Fund Total			$234,802	$190,663	$149,068	$574,533
All Funds
	Recurring		$263,502	$229,465	$164,282	$657,249
	One-Time		$98,002	$51,451	$53,509	$202,962
All Funds Total			$361,504	$280,916	$217,791	$860,211

• 3% base salary adjustment effective on July 1, 2023

• Prior to June 30, 2023, the City will provide a one-time lump sum pay adjustment of eight percent (8%) to all full-time employees.
• Employees must still be employed as of June 30, 2023
• Employees hired on or after June 17, 2023 will not be eligible for the lump sum payment.
• The calculation of the one-time pay adjustment will be as follows: base hourly rate x 2,080 hours x .08.

• Effective July 1, 2023, the City will increase bilingual pay by $50 per month to $150 per month.

• Effective December 1, 2023, the City will increase its current insurance contribution by $100 per month to a maximum of $1,650 per month on a use or lose basis.

This estimated cost consists of both recurring costs and “one-time” costs apportioned to the Non-General Fund budget. The breakdown of these estimated costs, by fiscal year and funding source, is as follows:

SOURCE		FY23-24
Non-General Fund
	Recurring	$41,515
	One-Time	$64,145
Non-General Fund Total		$105,660

• 5% base salary adjustment, effective on July 1, 2023

• Full time management employees (excluding employees in the grant-funded WIOA program) who are on City payroll as of June 30, 2023 will receive a one-time lump-sum payment equal to three percent (3%) of base annual pay based on their salary in effect as of June 30, 2023.

• Effective December 1, 2023, the City will increase its current insurance contribution by $100 per month to a maximum of $1,650 per month on a use or lose basis.

• Effective July 1, 2023, the City will provide a Deferred Compensation plan match of $50 per pay period for those management employees who contribute at least $50 or more per pay period to their deferred compensation accounts.

SOURCE			FY23-24
General Fund
		Recurring	$269,357
		One-Time	$121,486
General Fund Total			$390,843
Non-General Fund
		Recurring	$190,976
		One-Time	$76,274
Non-General Fund Total			$267,250
All Funds
	Recurring		$460,333
	One-Time		$197,760
All Funds Total			$658,093

 

If approved, the total cost of negotiated and proposed pay and benefit adjustments for all groups, including non-represented management staff, and including contractual adjustments to the City Manager’s compensation (subject to Council approval), is estimated to be approximately: 
 

FY 2023-24	$1,406,191
FY 2024-25	$485,818
FY 2025-26	$400,160
Total	$2,292,169