Loading...
SR 09-13-2011 3H~- ~;tyo, City Council Report Santa DionicaW - City Council Meeting: September 13, 2011 Agenda Item: 3H To: Mayor and City Council From: Donna C. Peter, Director of Human Resources Subject: Resolution Authorizing the City Manager to Execute Individual Memoranda of Understanding with the Administrative Team Associates, the Management Team Associates, the Public Attorney's Union, the Public Attorney's Legal Support Staff Union, the Santa Monica Firefighters, Local .1109, IAFF, the Santa Monica Police Officers Association, the Supervisory Team Associates and the United Transportation Union, Local 1785, as well as a Revised Executive Pay Plan Recommended Action Staff recommends. that City Council adopt the attached Resolution authorizing the City Manager to execute an individual Memorandum of Understanding (MOU) with the Administrative Team Associates, the Management Team Associates, the Public Attorney's Union, the Public Attorney's Legal Support Staff Union, the Santa Monica Firefighters, Local 1109, the Santa Monica Police Officers Association, the Supervisory Team Associates, and the United Transportation Union, Local 1785 as well as execute a revised Executive Pay Plan. Executive Summary Negotiations for successor MOD's resulted in new agreements with each employee bargaining unit which are presented for approval. Revisions are also being proposed to the Executive Pay Plan. The total cost of the negotiated changes is $2,686,865 for Fiscal Year 2011-2012 and $3,101,923 for Fiscal Year 2012-2013. Funds are included in the Adopted FY2011-2013. budget and the costs associated with agreements that extend into Fiscal Year 2013-14 are below the current projections used in the budget forecast. Background On June 30, 2011 the current Memoranda of Understanding (MOD's) with all nine City bargaining groups expired. These groups include, the Administrative Team Associates (ATA), the Municipal Employees Association (MEA), the Management Team Associates (MTA), the Santa Monica Firefighters, Local 1109 (Local 1109), the Santa Monica 1 Police Officers Association (SMPOA), the Supervisory Team Associates (STA), and the United Transportation Union, Local 1785 (UTU). Per the terms and conditions of each MOU, negotiations for successor MOU's commenced this spring and resulted in new agreements that have been ratified by the membership of each group. A second resolution and staff report authorizing the City Manager to execute an MOU with MEA will be brought to Council separately. The Executive Pay Plan (EPP) establishes the terms and conditions for Department Heads and other at-will employees who receive the EPP benefits as part of their separate employment contracts. A revised Executive Pay Plan is being proposed to update three of its provisions as well as give the EPP parity with other City bargaining groups for acost-of-living-adjus#ment (COLA). There is no expiration date for the EPP; terms are amended as needed and typically occur as changes are made to agreements with other non-sworn employee bargaining units. Separate from negotiations with each individual bargaining unit, negotiations also took place with the Coalition of Santa Monica City Employees (Coalition) who represent the above mentioned miscellaneous (non-safety) bargaining groups concerning retirement and medical insurance premium contributions. Negotiations with the Coalition resulted in a tentative agreement establishing of second tier retirement system beginning July 1, 2012. The Resolution authorizing the City Manager to execute a final MOU with the Coalition will be brought to Council as a separate agenda item. The establishment of a second tier retirement is a potentially significant measure for containing future pension costs. Discussion Term of Agreements One-year agreements were negotiated with MTA, PAU and PALSSU. Typically, the terms for the EPP are amended on an annual basis; however there is no contract expiration. Two-year agreements were negotiated with ATA and STA. Three-year agreements were negotiated with Local 1109, SMPOA and UTU. 2 Salaries The one-year agreements with MTA, PAU and PALSSU provide fora 2.0% cost of living salary adjustment (COLA) for FY2011-2012. The revised EPP also provides fora 2.0% COLA for FY2011-2012. The two-year agreements with ATA and STA provide for a 2.0% COLA for FY2011-2012 and a 3.0% COLA for FY2012-2013. The three-year agreements with Local 1109 and SMPOA provide fora 2.0% COLA for FY2011-2012 and 3.0% COLA's for FY2012-2013 and FY2013-2014. The three-year agreement with UTU provides for a negotiated salary adjustment to the top hourly salary step for covered employees as follows: • $25.65 per hour to $26.18 per hour for FY2011-2012 • $26.18 per hour to $26.88 per hour for FY2012-2013 • $26.88 per hour to $27.58 per hour for FY2013-2014 Performance Based Incentive Bonus/Annual Performance Bonus Changes have been made to the maximum potential performance based incentive bonus in the MTA agreement, as well as the revised EPP, from the current 10% of salary to 5%. The PALSSU agreement modifies the annual perfiormance bonus where only those covered employees at the top step of their salary range will be eligible to receive a performance bonus; no change was made to the maximum potential that may be awarded. The agreement with ATA will eliminate the annual performance bonus, which is currently between 1% and 10% of annual salary. In its place, the base salaries of covered employees will be increased by 3.8%. The performance incentive bonus of $300.00 per month, currently in the .Local 1109 agreement, will be folded into base salary. No changes were made to the PAU agreement regarding the performance bonus. The remaining three contracts with SMPOA, STA and UTU do not have this provision in their contracts. Administrative/Management Incentive Pav Management Incentive pay will be discontinued in the revised EPP and the MTA agreement. These amounts will be folded into the base salary of covered employees effective October 2011. In the second year of .the ATA agreement, 3 professional/administrative incentive pay will be discontinued for employees with less than 15 years of service and shall be reduced to eight hours for all employees with 15 or more years of service. The value of the professional/administrative incentive pay is 2.31%, which will be added into the base salary of covered employees. Incentive Pay does not pertain to the Local 1109, STA, PAU, PALSSU and UTU agreements. Workers' Compensation Leave/Bereavement Leave Adjustments to salary continuation for Workers' Compensation leave were made reducing payments from 100% for the first sixty days to 100% for the first thirty days and 75% for the next thirty days. This change was made to all groups with the exception of Local 1109, SMPOA (both of which have separate benefits governed by State law) and UTU (which has a different provision). Changes to bereavement leave were made to provide consistency in the language among the various bargaining groups. This modification was made to all bargaining groups who currently have this type of leave as well as to the revised EPP. CaIPERS Contributions/Medical Contributions Both the Local 1109 and SMPOA are not represented by the Coalition with regard to retirement benefits and maintain separate provisions within their respective MOU agreements. Beginning with the FY2011-2012 proposed agreements with the Local 1109 and SMPOA sworn police and fire employees will contribute 1 % of their salaries towards the cost of their CaIPERS retirement, 2% in FY2012-2013, and 3% in FY2013- 2014. Additionally, employees represented by SMPOA will begin making contributions toward medical insurance premiums in the same manner as all other employees. Miscellaneous Items The remaining notable miscellaneous changes made to the various MOU's are mentioned below: • Local 1109: Conversion of the now current flat rate Emergency Medical Technician (EMT) bonus and .Educational Incentive to a percentage. • SMPOA: Increase to the education incentive bonus for the attainment of a Bachelor's degree from 12.0% to 12.8%. 4 • STA: In the second year of the contract one MOU (personal .leave) day will be eliminated, while current overtime provisions remain the same. • PAU/PALSSU: Conversion of two current MOU (personal leave) days that must be used each fiscal year or be forfeited may now be cashed out if not used by the end of the fiscal year. • UTU: Increase to the monthly uniform allowahce from $35.00 to $40.00 per month for each employee; negotiations with UTU also resulted in more strict policies on the use of electronic communication devices while driving, the accident review policy and sick leave usage. Financial Impacts & Budget Actions The total cost of the negotiated changes contained in the new agreements along with the changes made to the EPP is $2,686,865 for FY2011-2012 and $3,101,923 for FY2012-2013. These totals include a savings over what was included in the Adopted Budget in the amounts of $245,770 for FY2011-2012 and $890,935 for FY2012-2013. No additional appropriations for the bienhial FY 2011-2013 budget is necessary. Budget authority for FY2013-2014 will be requested in the FY2013-2015 budget cycle for City Council approval Prepared by: Donna C. Peter Approved: Forwarded to Council: Donna C. Peter Rod Gould Director of Human Resources City Manager Attachments: A. Resolution 5 Reference Agreement Nos. 9463 (CCS) through 9470 (CCS). Reference Resolution No. 10605 (CCS).