SR-08-27-2013-3J - 603-001Supplemental
City of
Santa it Council Report
Santa nionica°
City Council Meeting: August 27, 2013
Agenda Item: ,5—J
To: Mayor and City Council
From: Donna C. Peter, Director of Human Resources
Subject: Supplemental Information on Memoranda of Understanding with the
Administrative Team Associates, the Santa Monica Municipal Employees
Association, and the Supervisory Team Associates, and Revised
Executive Pay Plan
Recommended Action
Staff recommends that the City Council adopt the attached modified Resolution
authorizing the City Manager to execute an individual Memorandum of Understanding
(MOU) with the Administrative Team Associates and the Supervisory Team Associates,
as well as a Revised Executive Pay Plan
Executive Summary
Negotiations for successor MOU's resulted in new agreements with each employee
bargaining unit which are presented for approval. Revisions are also being proposed to
the Executive Pay Plana The total cost of the negotiated changes is approximately
$548,200 for Fiscal Year 2013-2014. The budget impact of these changes was included
in the General Fund FY 2013-14 through FY 2017-18 Five Year Financial Forecast.
FY 2013-15 appropriations for all funds will be included in the FY 2013-14 Mid -Year
Budget for Council approval.
Background
On June 30, 2013 the current Memoranda of Understanding (MOU's) with three existing
City bargaining groups expired. These groups include the Administrative Team
Associates (ATA), the Municipal Employees Association (MEA), and the Supervisory
Team Associates (STA). Per the terms and conditions of the three existing MOU's,
negotiations for successor MOU's commenced this spring and resulted in new
agreements that have been ratified by two of the groups. The Santa Monica Municipal
Employees Association reached a tentative agreement but has been unable to schedule
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a ratification meeting which required modifying the previous staff report and resolution.
However, it is anticipated that a ratification meeting will take place in early September. If
the tentative agreement is ratified, it will be brought back to City Council for approval.
There is no expiration date for the Executive Pay Plan (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
One-year agreements were negotiated with ATA, and STA. Typically, the terms for
EPP are amended on an annual basis. While there is no contract expiration for EPP,
this amendment would set salaries for EPP employees for a two-year period through
June 30, 2015.
Salaries
The one-year agreements with ATA and STA provide for a 1.0% cost of living salary
adjustment (COLA) for FY2013-2014 or the equivalent amount in contribution towards
the deferred compensation plan. The revised EPP also provides for a 1.0% COLA for
FY2013-2014. However, no cost of living adjustments will be provided to EPP salaries
in FY 2014-2015.
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
give the EPP parity with other City bargaining groups for a cost -of -living -adjustment
(COLA) for Fiscal Year 2013-2014. However, with this amendment the EPP will set
salaries for a two year period through Fiscal Year 2014-2015.
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Miscellaneous Items
The remaining notable miscellaneous changes made to the various MOU's include
allowing ATA and STA employees to cash -out accrued but unused vacation hours,
changing requirements in how ATA employees account for time off, and clarifying
language to streamline processes, save costs, and/or to update language to reflect
current practices.
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 approximately $548,200 for FY2013-2014. The budget
impact of these changes was included in the General Fund FY 2013-14 through FY
2017-18 Five Year Financial Forecast. FY 2013-15 appropriations for all funds will be
included in the FY 2013-14 Mid -Year Budget for Council approval.
Prepared by: Michael Earl
Human Resources Manager
Approved:
Forwarded to Council:
Donna C. Peter Rod Gould
Director of Human Resources City Manager
Attachments:
UW ON= NR117i1
3
dam
Ya it CouncilReport
CitSanta Moniea
City Council Meeting: August 27, 2013
Agenda Item: 3--5
To: Mayor and City Council
From: Donna C. Peter, Director of Human Resources
Subject: Memoranda of Understanding with the Administrative Team Associates,
the Santa Monica Municipal Employees Association, and the Supervisory
Team Associates, and 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 Santa Monica Municipal Employees Association,
and the Supervisory Team Associates, as well as a Revised Executive Pay Plan
Executive Summary
Negotiations for successor MOU'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 approximately
$1,240,106 for Fiscal Year 2013-2014. The budget impact of these changes was
included in the General Fund FY 2013-14 through FY 2017-18 Five Year Financial
Forecast. FY 2013-15 appropriations for all funds will be included in the FY 2013-14
Mid -Year Budget for Council approval.
Background
On June 30, 2013 the current Memoranda of Understanding (MOU's) with three existing
City bargaining groups expired. These groups include the Administrative Team
Associates (ATA), the Municipal Employees Association (MEA), and the Supervisory
Team Associates (STA). Per the terms and conditions of the three existing MOU's,
negotiations for successor MOU's commenced this spring and resulted in new
agreements that have been ratified by the membership of each group.
1
There is no expiration date for the Executive Pay Plan (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
One-year agreements were negotiated with ATA, MEA, and STA. Typically, the terms
for the EPP are amended on an annual basis. While there is no contract expiration for
EPP, as stated above, this amendment would set salaries for EPP employees for a two-
year period through June 30, 2015.
Salaries
The one-year agreements with ATA, MEA, and STA provide for a 1.0% cost of living
salary adjustment (COLA) for FY2013-2014 or the equivalent amount in contribution
towards the deferred compensation plan. The revised EPP also provides for a 1.0%
COLA for FY2013-2014. However, no cost of living adjustments will be provided to EPP
salaries in FY 2014-2015.
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
give the EPP parity with other City bargaining groups for a cost -of -living -adjustment.
(COLA) for Fiscal Year 2013-2014. However, with this amendment the EPP will set
salaries for a two year period through Fiscal Year 2014-2015.
Miscellaneous Items
The remaining notable miscellaneous changes made to the various MOU's include
allowing ATA, MEA, and STA employees to cash -out accrued but unused vacation
hours, changing requirements in how ATA employees account for time off, and clarifying
language to streamline processes, save costs, and/or to update language to reflect
current practices.
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 approximately $1,240,106 for FY2013-2014. The
budget impact of these changes was included in the General Fund FY 2013-14 through
FY 2017-18 Five Year Financial Forecast. FY 2013-15 appropriations for all funds will
be included in the FY 2013-14 Mid -Year Budget for Council approval.
Prepared by: Michael Earl
Human Resources Manager
Approved:
Donna C. Peter
Director of Human Resources
Attachments:
A. Resolution
N
Forwarded to Council:
Rod Gould
City Manager
City Council Meeting: August 27, 2013 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 Administrative
Team Associates, the Municipal Employees Association, and the Supervisory Team
Associates, 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 Administrative Team Associates, the Municipal
Employees Association, and the Supervisory Team Associates, as well as participants
of the Executive Pay Plan:
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES RESOLVE AS FOLLOWS:
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 Administrative Team Associates (FY2013-2014), the Municipal Employees
Association (FY2013-2014), the Supervisory Team Associates (FY 2013-2014), as well
as execute a revised Executive Pay Plan (FY2013-2015).
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:
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Reference:
Resolution No. 10765