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
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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.
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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,
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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%.
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• 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
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Reference Agreement
Nos. 9463 (CCS) through
9470 (CCS).
Reference Resolution No.
10605 (CCS).