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BACKGROUND The PCEA membership currently includes approximately 206 employees comprised of various classifications. These classifications include but are not limited to clerical posi- tions, police dispatchers, recreation employees, planners, engineers and maintenance staff in the streets, parks, support services and utilities divisions. The current Memoran- dum of Understanding (MOU) covering PCEA members is for the period April 1, 2019 through March 31, 2022. Representatives of the City met and conferred with repre- sentatives of PCEA and developed a successor agreement with a three-year term end- ing March 31, 2025. DISCUSSION In accordance with the Meyers-Milias-Brown Act, the parties are required to meet and confer in good faith over items covered within the scope of representation, including wages, hours and other terms and conditions of employment. The significant results of the negotiations include: Term of Agreement: The expiration date of the proposed MOU is March 31, 2025. The term of this contract is the same length as the current agreement and is consistent with previous contracts secured with PCEA. Wage Adjustments: The consumer price index (CPI), which reflects the general cost -of - living increase in the San Francisco -Oakland -San Jose area has experienced a sharp incline over the past several months (approximately 4.9% in August 2021). This information, coupled with the City's desire to provide wage adjustments to maintain a stable workforce, has informed the tentative agreement before you. The proposed contract includes three separate general wage increases of 4.25% in April 2022, 3% in April 2023 and 3% in April 2024. CONCLUSION This report introduces the key elements of the successor MOU with the Pleasanton City Employees' Association/AFSCME Local 955 representing non -management personnel throughout the City of Pleasanton. All agreements reached between the parties during the meet and confer process are tentative until the contract, in its entirety, is ratified by members of the PCEA (this was completed on October 7) and approved by the City Council. It is the City of Pleasanton's practice to introduce the key elements of the proposed contract to allow for open discussion prior to Council action at a future meeting. Submitted by: Debra Gill Director of Human Resources/ Labor Relations Fiscal Review: /I Tina Olson Director of Finance Page 2 of 3 Approved by: al Nelson Fialho City Manager