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SR-603-014 Council Mtg: December 10, 2002 Santa Monica, CA TO: Mayor and City Council FROM: City Staff SUBJECT: Authorization for City Manager to Negotiate and Execute Employment Agreements with Certain Unclassified Employees Introduction This report recommends that the City Council authorize the City Manager and City Attorney to negotiate and execute employment agreements with unclassified employees under their direction. Background The City Charter and Municipal Code distinguish between classified employees, those subject to the protection of the Civil Service system, and unclassified employees, who serve at the will of their appointing authorities. The City Manager?s Office Administrator, City Council Office Administrator, and the support staff members in the Council and Manager?s offices are among the immediate staff of the City Manager. The City Attorney?s Office Administrator and Assistant to the City Attorney are among the staff of the City Attorney?s office. All are members of the unclassified service. At one time these positions were categorized as ?confidential? employees and covered under a memorandum of understanding for all confidential employees. The term ?confidential? has a particular meaning in employment law and relates only to 1 employees with direct participation in the collective bargaining process. In general that was not the case for staff under the direction of the City Manager and City Attorney. As a result, most of the positions were subsequently assigned to various City bargaining units and those have been covered, to the extent allowed by law, under the terms of those agreements. Discussion Because many of the provisions of collective bargaining agreements refer to rights not available to unclassified employees under the Code and Charter, and in recognition of their unclassified status, the employees and the bargaining units have agreed that it would be preferable for unclassified employees to have individual employment agreements. With Council authorization, the City Manager and City Attorney may negotiate and execute agreements with the employees that report to them. The terms of the agreements will largely follow the wage and benefit provisions of the classified service, but will appropriately recognize the unique at-will status of the employees. Budget/Financial Impact There may be incremental salary and benefit costs depending on the outcome of negotiations with the individual employees. Those costs will be reasonable and provision will be made for them at Mid-Year, should it appear that budget authorization will be exceeded. 2 Recommendation It is recommended that the City Council authorize the City Manager and City Attorney to execute employment agreements with unclassified employees under their direction. Prepared by: Susan E. McCarthy, City Manager Marsha Moutrie, City Attorney 3