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SR-112707-1G~~~ ~;~yof City Council Report Santa Monica City Council Meeting: November 27, 2007 Agenda Item: (-~ To: Mayor and City Council From: Karen Bancroft, .Director of Human Resources Subject: Resolution Authorizing the City Manager to Execute a Memorandum of Understanding with the Public Attorneys Legal Support Staff Union Recommended Action Staff recommends that Council adopt the attached Resolution authorizing the City Manager to execute a Memorandum of Understanding (MOU) with the Public Attorneys Legal Support Staff Union (PALSSU) Executive Summary The current Memorandum of Understanding (MOU) with the Public Attorneys Legal Support Staff Union (PALSSU) expired on June 30, 2007. Per the terms and conditions of that MOU, negotiations with PALSSU for a successor MOU commenced and resulted in a new agreement that has been ratified by the membership of PALSSU. The cost of the changes to the PALSSU MOU is $119,483 for fiscal year 2007-2008. However, a restructuring that has already been implemented in the City Attorney's Office, whereby 1.0 FTE Legal Administrative Staff Assistant position has been replaced with a 1.0 FTE Staff Assistant I, will offset all but $49,580 of the increased cost of the PALSSU MOU. The restructuring will be presented to City Council as part of the FY2007-2008 mid-year budget. In addition, the new MOU calls for the establishment of a lower level Legal Secretary I job classification that will enable the City Attorney to hire new Legal Secretaries at a lower rate of pay when the higher-paid positions (Legal Secretary II) turnover. Discussion This agreement is a three-year contract from July 1, 2007 through June 30, 2010. The agreement provides: • 3.1 % cost of living adjustment for FY2007-2008 cost of living adjustments for FY2008-2009 and FY2009-2010 based on the Consumer Price Index (CPI) for the Los Angeles-Riverside-Orange County area, with a minimum of 2% and a maximum of 4%; 1 • a four percent (4%) equity adjustment for each job classification represented by PALSSU with the exception of Receptionist, Investigator and the new Legal Secretary I job classifications; • a classification and compensation study of the positions covered by the agreement during FY2007-2008 with any warranted changes being implemented as of FY2008-2009; • incorporating the cash equivalent of the current five (5) cashable MOU (personal leave) days into the salary range established for each covered job classification, with the cashable MOU days being deleted; • four (4) non-cashable MOU (personal leave) days each fiscal year that must be used by the end of the fiscal year or forfeited; • replacement of the current annual performance bonus program based solely on the employee's overall performance evaluation rating with a performance bonus program under which covered employees will be eligible for a performance bonus of 0% to 10% based on specific work and performance criteria set forth in the MOU; • an increase in the tuition reimbursement benefit from to .$1,500/fiscal year to $2,000/fiscal year to give PALSSU parity with the other City bargaining units; • an increase in the city-paid life insurance from $50,000 to 2X annual base salary raised to the next highest $1,000 to give PALSSU parity with other City bargaining units; and an increase in the out of class (acting) pay for filling in behind a permanent employee who is temporarily absent from $0.75/hour to $1.25/hour to give PALSSU parity with other City bargaining units. Financial Impacts & Budget Actions The total cost of the new contract terms for FY2007-2008 is $119,483. This amount includes the 3.1% cost of living increase ($33,890); the 4% equity adjustment for specified job classifications ($36,432); the additional cost associated with rolling the 2 cash value of the cashable MOU days into base salaries ($2,556); job reclassifications ($21,396); increase in city-paid term life insurance ($2,805) and associated PERS contribution costs ($22,404). However, the restructuring of the clerical staff in the City Attorney's Office will result in a cost savings of $69,903, with the net financial impact of the changes to the PALSSU contract and the restructuring being $49,580. The budget impact of the cost of living increase is included in each department's FY2007-08 adopted budget. The cost of the job reclassifications for General Fund employees will be transferred from funds already appropriated in the FY2007-08 Non-Departmental budget. Any remaining increase above that which is offset by the restructuring of the clerical staff will be absorbed at this time and re-evaluated at year-end for additional funding, if needed. Prepared by: Karen Bancroft, Director of Human Resources 3 Approved: Forwarded to Council: Reference Resolution No. 10260 (CCS)