Adopt Resolution 2022-082 authorizing the City Administrator to execute the Memorandum of Understanding between the City of Carmel-by-the-Sea and the Carmel by-the-Sea General Employees Unit, effective July 1, 2022.

Adopt Resolution 2022-082 authorizing the City Administrator to execute the Memorandum of Understanding between the City of Carmel-by-the-Sea and the Carmel by-the-Sea General Employees Unit, effective July 1, 2022.

The City of Carmel by-the-Sea General Employees Unit includes approximately 21 classifications and is represented by Laborers’ International Union of North America, United Public Employees of California, LiUNA/UPEC) Local 792. With the 2019-2022 MOU between the City and LIUNA set to expire in June 30, 2022, the negotiations teams for both parties met numerous times over the past several months in an effort to reach agreement on a successor MOU. At the Council’s request, the City and LIUNA agreed to adopt an interest based-type approach to the meetings, through which the negotiations teams started from a big picture approach and then working methodically, translated the broader concepts into shared interests and conceptual ideas, which the parties ultimately drew from to develop proposals. 

The resulting shared interests and topics for exploration included:

Shared interest: Long Term Fiscal Stability/ Prudent Fiscal Management

Topics explored: New/modified terms and conditions that are non-PERSable

Shared interest: Maintaining service levels/service quality

Topics explored: Workload and staffing levels, physical work environments

Shared interest: Stability in Labor Relations

Topics explored: Term of MOU, use of Joint Labor Management Committees for continued discussions, use of re-openers to permit flexibility within a multi-year term

Shared interest: Employee retention/recruitment

Topics explored: Competitive total compensation, reduced out-of-pocket expenses for employees

Ultimately, the parties reached tentative agreement and on July 27, 2022, the membership voted to ratify the following major provisions for a successor MOU:

Term:  July 1, 2022 through June 30, 2024

• With the exception of the base increases and new 6^thsalary step for qualifying employees, all other negotiated changes would take effect following Council adoption.

Total Compensation:

• Base salary increases:  1^st year: 7%; 2^nd year: 4%
• Merit/longevity: addition of 6^th salary step with 3% increment for employees with at least 10 years and two most recent performance ratings of satisfactory or better
• $25 increase to City’s deferred compensation match (up to maximum of $50 match)
• New option for 100% City paid premiums for lowest cost PPO plan; continuing option for City/employee premium contributions of 80/20 for other plans.
• New possibility for advanced/certification pay with details to be determined through Joint Labor Management Committee
• Additional general leave day (limited to same-year use) for each year of the MOU
• Additional 30 minutes of paid time for attending medical appointments

Limited re-opener

• In the second year of the MOU, once estimated rates are known for the 2023 plan year, if the cost to the City of paying 100% of the premiums for the lowest cost PPO plan is projected to increase by more than 20% compared to the cost in the first year.

 Quarterly and topic-specific JLMCs

• Including but not limited to (without waiving management rights):

o   Working conditions: the manner by which bargaining unit positions are filled (possible internal promotion/transfer preference), how work is performed (current employee vs. contract worker) and how it is assigned, workspace enhancements, training/professional development (scope, career ladders), remote work/telework possibilities, out-of-class issues.

o   Revision/update to City of Carmel incentive pay for certain advanced certificates/licenses as set forth in Section 4.4.

o   Informal Salary Review of Remaining Unit Positions and Consideration of Potential Career Ladders for Library Assistant I/II.

These recommended terms align with the goals identified by the City and LiUNA/UPEC Local792 as shared interests through the interest based-type process employed for these negotiations.

The General Employees Unit annual payroll is $3,117,966.  Year 1 salary increase (7%) is $218,258 and absorbed in the current adopted operating budget.   Year 2 salary increase (4%) is $133,449 and will be budgeted in the FY 23/24 operating budget. The fiscal impact does not reflect the increases to the CalPERS unfunded liability (UAL) based on the negotiated salary increases.