sr-072412-3d (4),®
City of
.Santa Monica'
To: Mayor and City Council
City Council Report
City Council Meeting: July 24, 2012
Agenda Item: 3 —D
From: Donna C. Peter, Director of Human Resources
Subject: Resolution Authorizing the City Manager to Execute Individual
Memoranda of Understanding with the Management Team Associates, the
Public Attorney's Union, the Public Attorney's Legal Support Staff Union
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
Management Team Associates, the Public Attorney's Union, and the Public Attorney's
Legal Support Staff Union, as well as execute a revised Executive Pay Plan.
Executive Summary
Negotiations for successor MOU's resulted in new agreements with the Management
Team Associates, the Public Attorneys Union and the Public Attorneys' Legal Support
Staff Union which are presented for approval. Revisions are also being proposed to the
Executive Pay Plan. The total cost of the negotiated changes is $565,000 for Fiscal
Year 2012 -2013. Funds are included in the Adopted FY2011 -2013 budget and the
costs associated with agreements that extend into Fiscal Years 2013 -15 are below the
current projections used in the budget forecast.
Background
On June 30, 2012 the current one year Memoranda of Understanding (MOU's) with
three City bargaining groups expired. These groups include the Management Team
Associates (MTA), the Public Attorneys Union (PAU) and the Public Attorney's Legal
Support Staff Union (PALSSU). 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.
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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 its provisions as well as give the EPP parity with other City bargaining groups for
a cost -of- living- adjustment (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.
Discussion
Term of Agreements
Typically, the terms for the EPP are amended on an annual basis; however there is no
contract expiration. A two -year agreement was negotiated with MTA. Three -year
agreements were negotiated with PAU and PALSSU.
Salaries
All tentative agreements call for a 3.0% cost of living salary adjustment (COLA) for
FY2012 -2013. This will provide parity with the increases provided to other employee
groups who previously entered into multi -year agreements. COLAs for subsequent
years of the proposed MOUs for MTA, PAU, and PALSSU would be based on those
which are agreed to in future negotiations with the other non - safety miscellaneous
bargaining groups.
Performance Based Incentive Bonus /Annual Performance Bonus
The agreements with MTA and the Executive Pay Plan would eliminate the annual
performance bonus, which currently provides a performance bonus between 1% and
5 %. In last year's negotiations the maximum eligible bonus for both groups was
reduced from 10% to 5 %.This year's negotiations resulted in the complete elimination of
the bonuses. PALSSU's performance bonuses, which were previously between 1% -
10% will also be eliminated. In the place of performance bonuses, the base salaries of
covered employees for MTA, PALSSU as well as the Executive Pay Plan, would be
increased by 3.8 %. For PAU represented employees eligible for a performance bonus
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(Deputy City Attorney III at Step 5), the maximum potential performance based incentive
bonus has been reduced from the current 10% to 5 %. Effective June 30, 2015
performance bonuses for this group will also be eliminated. Effective July 1, 2012 a
3.8% increase in the salary would occur for the Deputy City Attorney III classification in
place of the reduced and subsequent elimination of performance bonuses in this three
year agreement.
Cashable Leave Days
Effective July 1, 2012 two of PALSSU's current non - cashable days would be converted
to cashable days. Effective July 1, 2013, two one -time cashable leave days would be
available to PALSSU and must be used by June 30, 2014.
Vacation
A provision was added to all three agreements, as well as the Executive Pay Plan,
providing for the option to cash out up to 40 hours of vacation annually with specific
restrictions. The new provision helps to reduce accrued vacation balances which have
a higher cost when paid out to employees when they leave employment with the City.
Financial Impacts & Budget Actions ,
The total cost in FY 2012 -13, over FY 2011 -12, of the negotiated COLA in the new
agreements, along with the changes made to the EPP, is $565,000. It is projected that
the elimination and modification of performance bonuses for these groups will yield
annual savings from budgeted and forecasted amounts of over $60,000 beginning in FY
2012 -13, and increasing to over $170,000 in FY 2015 -16. No additional appropriations
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for the FY2012 -2013 budget are necessary
Budget authority for subsequent years will
be requested in each budget cycle for Council approval.
Prepared by: Donna C. Peter
Approved:
Donna C. Peter
Director of Human Resources
Attachments:
A. Resolution
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Forwarded to Council:
Rod Gould
City Manager
City Council Meeting July 24, 2012
Santa Monica, California
RESOLUTION NUMBER (CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SANTA MONICA AUTHORIZING THE CITY MANAGER TO
EXECUTE VARIOUS MEMORANDA OF UNDERSTANDING AS WELL AS EXECUTE
A REVISED EXECUTIVE PAY PLAN
WHEREAS, the City administration and representatives of the Management
Team Associates, the Public Attorney's Union and the Public Attorney's Legal Support
Staff Union as well as representatives of the Executive Pay Plan have met and
conferred under the terms of Ordinance No. 801 (CCS) and have reached agreement
on wages, hours and other terms and conditions of employment; and
WHEREAS, Section 2.06 of Ordinance No. 801 (CCS) of the City of Santa
Monica requires preparation of a written Memorandum of Understanding between the
administration and employees as well as written agreement with the Executive Pay Plan
if an agreement can be reached; and
WHEREAS, Section 2.06 of Ordinance No. 801 (CCS) further provides that any
such Memorandum.of Understanding and written agreement shall not be binding unless
and until presented to the governing body for determination; and
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WHEREAS, the purpose of the Memorandum of Understanding and written
agreement is to promote and provide harmonious relations, cooperation, and
understanding between the City and the Management Team Associates, the Public
Attorney's Union, and the Public Attorney's Legal Support Staff Union, as well as
participants of the Executive Pay Plan;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES RESOLVE AS FOLLOWS:
SECTION 1. The City Council of the City of Santa Monica does hereby approve
and authorize the City Manager to execute an individual Memorandum of
Understanding with the Management Team Associates (FY2012- 2014), the Public
Attorneys Union (FY2012- 2015), and the Public Attorneys Legal Support Staff Union
(FY2012- 2015), as well as execute a revised Executive Pay Plan (FY2012- 2013).
SECTION 2. The City Clerk shall certify to the adoption of this Resolution, and
thenceforth and thereafter the same shall be in full force and effect.
APPROVED AS TO FORM:
`a
Reference Contract Nos.
9619 (CCS) through 9621
(CCS) and Resolution No.
10701 (CCS)