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sr-022310-1g~ __ ~;~Yof City Council Report Santa hionica~ City Council Meeting: February 23, 2010 Agenda Item: 1G To: Mayor and City Council From: Donna C. Peter, Director of Human Resources Subject: Amendment to the Memorandum of Understanding with the Santa Monica Firefighters, Local 1109 Recommended Action Staff recommends that Council adopt the attached Resolution authorizing the .City Manager to execute an amendment to the Memorandum of Understanding (MOU) between the City of Santa Monica and the Santa Monica Firefighters Local 1109 (the Union) changing the process by which employees who perform work as Fire Safety Officers are paid through the City's payroll system and adding language to the MOU that clarifies past practice regarding the appropriate salary step at which promoted employees are to be placed. Executive Summary The current MOU between the City of Santa Monica and the Santa Monica Firefighters Local 1109 is not due to expire until June 30, 2010. Recently, two issues have arisen which are not addressed in the current MOU that needed to be resolved prior to the time the current MOU expires. City staff has met and conferred with the Union regarding these issues and an agreement has been tentatively reached by the parties. In order to ensure a clear understanding of the terms of the discussion, the attached resolution authorizes the City Manager to add clarifying language to the current MOU regarding these two issues. There is no additional fiscal impact to this change. Background Certain events and activities conducted within the City require, as a condition of holding the event, that fire safety personnel be assigned to the location to enforce the uniform fire code and perform other fire and life safety functions. Examples of these events include filming shot on location throughout the City and other large scale events such as the recent Cirque de Soliel. Sworn Fire Safety personnel are assigned to these evehts as Fire Safety Officers. Historically, the costs associated with staffing these events are paid by the event organizer or contractor directly to the individual assigned to the event. 1 These personnel are existing sworn fire department personnel acting under the authority of the City and performing the work while in a City uniform. Having these personnel compensated as independent contractors .paid directly by the event organizers can blur the employment relationship and has a potential impact on workers' compensation, general liability, payroll taxes, and employment relations. The second issue addressed by the proposed amendment to the existing MOU between the City and the Fire Union concerns the appropriate salary step at which promoted employees are to be placed. The City's practice for supervisory classifications across the various bargaining groups has been that when an employee is promoted he/she shall be placed at a salary step that provides minimum compensation of at least 5% above the highest paid subordinate ,that the promoted employee supervises not to exceed the top step of the salary range. The language in the current Fire MOU does not specify that minimum 5% differential although that has been the past practice. Current contract language and adjustments made to the salary ranges in the previous MOU could result in a promoted employee receiving less than 5% above the highest paid subordinate. This became evident with recent Fire Captain promotions. Discussion The proposed MOU amendment regarding compensation of employees performing fire safety officer functions would result in these employees being paid directly through the City's payroll system instead of being paid as independent contractors by the event organizer. Employees in these assignments would be compensated consistent with existing pay practices and would receive the same rate of pay as they currently receive from the event organizers (a rate which is already set by the City). Event organizers would still be responsible for these costs through a reimbursement under their contract or event permit issued by the City. This change is consistent with how event organizers and permitt holders are charged by the City for other required services such as those provided by the Police Department. 2 The second part of the proposed amendment to the MOU relates to the salary step at which a promoted employee is placed. The amendment provides that a promoted employee's salary shall be at a step in the salary range that. provides a minimum of 5% differential above the highest paid subordinate employee not to exceed the established top step in the salary range. As stated above, this is consistent with the established practice and is consistent with the language in other MOUs for supervisory classifications in the various bargaining units. Financial Impacts & Budget Actions There is no significant fiscal impact for these changes. The costs associated with personnel assigned to perform fire safety officer functions would be reimbursed to the City by the event organizer or contractor in an amount that is the same as the event organizer or contractor would have paid directly to the assigned employee. There is no additional cost for the assigned personnel. This change is also consistent with how the City is reimbursed for other costs associated with these types of permitted or contracted events. There is potential for a nominal fiscal impact for the MOU amendment that relates to promotional salary steps. However, any nominal cost can be absorbed within the Fire Department budget as there are adequate funds already included in the department's budgeted salaries. Prepared by: Michael A. Earl, Human Resources Manager Approved: Forwarded to Council: ® .~ Donna C. Peter Rod Gould Director of Human Resources City Manager Attachments: A. Resolution Amending the SMFF Local 1109 MOU 3 Reference Resolution No. 10458 (CCS).