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  Agenda Item   31.    
City Council Meeting
Meeting Date: 07/20/2021  
FROM: Mario Maldonado

Approval of Memorandums of Understanding between the City of Brea and: 1) the Brea Management Association; 2) the Brea City Employees’ Association; 3) the Administrative And Professional Employees’ Association.
Adopt resolution approving Memorandums of Understanding (MOUs) with the Brea Management Association (BMA), the Brea City Employees’ Association (BCEA), and the Administrative and Professional Employees’ Association (APEA)
The economic and social disruption caused by the COVID-19 global pandemic has been devastating and impacted city operations including labor relations. All our labor contracts expired in June 2020 and due to the pandemic, we worked with the majority of labor association to delay contract negotiations for one year. As the public health orders started to allow for more in person meetings, the City’s negotiation team began to meet with various employee associations to try and reach agreement on terms and conditions of employment for new labor contracts (Memorandums of Understanding or MOUs). Considerable progress has been made rather quickly, and successor MOUs with the Brea Management Association, the Brea City Employees’ Association, and the Administrative and Professional Employees’ Association are now ready for City Council consideration. The terms reached in the attached agreements are consistent with the maximum financial authority provided to the City’s bargaining team by the City Council.

Over the last few years contracts with employee associations have reflected modest changes to the terms of employment, reflecting the City’s concerns for maintaining a balanced budget with an eye to sustaining healthy reserves. In all three of these proposed contracts, salaries have been maintained in the first year, and instead, a one-time non-CalPERS lump sum in the amount of $2,400 per employee is offered. In the second and third year of the contracts, a three percent (3%) cost of living increase in salaries is scheduled for each of the contracts.

In additions, the MOUs also include an update to MOU language on how employees are able to use their maximum annual sick leave accruals of personal sick leave per fiscal year to deal with medical and/or dental needs of immediately family members. We are also proposing to modify MOU language to provide that paid leave shall be regarded as hours works for purposes of calculating federally mandated overtime payments. These two items will help us remain competitive in the labor market as these benefits are standard in comparable jurisdictions.
The City has been working with labor groups to prudently “hold the line” on personnel costs for several years now. However, these contract adjustments are needed for the City to stay competitive in the current labor market if Brea is going to continue to attract and maintain quality employees. The City’s bargaining team has been meeting in good faith with BMA, BCEA, and APEA and have now reached tentative agreements with these employee associations. This action authorizes the City to enter into new MOUs (labor agreements) with 3 associations through June 30, 2023. The estimated net financial impact of entering into the agreements with these associations for FY 20-21 through FY 22-23 are as follows:

BMA - $216,186
BCEA - $508,580
APEA - $781,010

The net financial impact is $888,378 to the General Fund and $617,398 to the Non-General Funds for a total of $1,505,776.  The projected budget for FY 21-22 and FY 22-23 already includes $446,626 and $310,393, for the General Fund and Non-General Funds, respectively for a total of $757,019.   The remainder of $748,757 will be included in the FY 21-22 First Quarter Budget Adjustments and programmed in the FY 22-23 budget as applicable.  There are sufficient revenues over expenditures projected to cover these costs.

William Gallardo, City Manager
Prepared by: Mario E. Maldonado, Human Resources Manager
Concurrence: Cindy Russell, Administrative Services Director
Resolution Labor Agreements

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