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SR-10-22-2013-3JCity of Santa Monica WRMOTOW06"It ' • • 1 City Council Meeting: October 22, 2013 Agenda Item: 3 °.J To: Mayor and City Council From: Donna C. Peter, Director of Human Resources Subject: Memorandum of Understanding with the Santa Monica Municipal Employees Association Recommended Action Staff recommends that the City Council adopt the attached Resolution authorizing the City Manager to execute an individual Memorandum of Understanding (MOU) with the Santa Monica Municipal Employees Association (SMMEA). Executive Summary Negotiations for successor MOU's resulted in a new agreement with SMMEA. The total cost of the negotiated changes is approximately $417,409 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 Memorandum of Understanding (MOD's) with Santa Monica Municipal Employees Association (SMMEA) expired. Per the terms and conditions of the existing MOU, negotiations for a successor MOU commenced April 1, 2013 and resulted in a new agreement that has been ratified by SMMEA. On August 27, 2013, resolutions for the Supervisory Team Associates (STA) and the Administrative Team Associates (ATA) were adopted by City Council. The SMMEA reached a tentative agreement in August, however, due to their Association bylaws, they were unable to schedule a required ratification meeting prior to the August 27, 2013 City Council meeting. 19 Discussion Term of Agreement A one -year agreement was negotiated with SMMEA. The negotiated agreement would expire June 30, 2014. Salaries The one -year agreement provides for a 1.0% cost of living salary adjustment (COLA) for FY2013 -2014. Miscellaneous Items The remaining notable miscellaneous changes made to. the MOU includes allowing SMMEA employees to cash -out accrued but unused vacation hours, 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 agreement is approximately $417,409 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: C —' Donna C. Peter Rod Gould Director of Human Resources City Manager Attachments: A. Resolution KA Reference: MOU No. 9818 & Resolution No. 10744 (CCS)