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Committee advances package of 30-plus MOUs after DHR outlines modest first-year costs
Summary
The committee heard Department of Human Resources present a package of MOUs covering dozens of city and RDA bargaining units, noting near‑zero increases in year one and phased cost‑of‑living steps thereafter; the committee moved the package forward as a committee report.
The Government Audit and Oversight Committee advanced a broad package of memoranda of understanding covering many city bargaining units and several Redevelopment Agency agreements. Martin Graham, employee relations director at the Department of Human Resources, said the package includes roughly 26 city contracts and five RDA contracts, negotiated against a difficult budget backdrop that staff estimated as a $370 million deficit for FY 2012–13.
Graham said most MOUs contain little or no base pay growth in year one, with negotiated cost‑of‑living increases beginning in year two that were structured to produce approximately a 1.75% fiscal impact in fiscal year 2013–14 while reflecting a 3% contractual CPI‑linked rate on an ongoing basis. Graham also said the package included limited reforms to premium/travel pay provisions, modest changes to lead‑pay transparency, and adjustments to employee health‑plan support that reduce employer contribution for the two lowest‑cost plans to 90% of employee‑only coverage as an incentive to choose lower‑cost plans.
Supervisor questions addressed wellness task force coordination, harmonizing benefits for Redevelopment Agency employees moved into city service, and oversight of implementation. The committee moved items 6–36 forward as a committee report with recommendation.
