SR-10-22-2013-3KCity Council Meeting: October 22, 2013
Agenda Item: 3-ice
To: Mayor and City Council
From: Donna C. Peter,'Director of Human Resources
Subject: Resolution Authorizing the City Manager to Execute Individual
Memorandum of Understanding with the Fire Executive Management
Association
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 Fire
Executive Management Association.
Executive Summary
Negotiations for an MOU with the newly formed Fire Executive Management
Association resulted in a new agreement which is presented for approval. The total cost
of the negotiated changes is $42,777 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
In July of 2011 the City and the Santa Monica Firefighter's Association - Local 1109,
reached agreement on a new Memorandum of Understanding (MOU). As part of that
agreement the Deputy Fire Chief classification was removed from their bargaining
group. For approximately one year, the Deputy Fire Chief classification was
unrepresented but continued to receive the salary and benefits granted it under the
previous MOU. In January of 2013 the two Deputy Fire Chiefs initiated the formal
process of establishing the Fire Executive Management Association (FEMA) as a
recognized bargaining unit for purposes of negotiating with the City regarding terms
and conditions of employment. On April 25, 2013, FEMA was officially designated as
the representative of the Deputy Fire Chiefs. However, negotiations for a new
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Memorandum of Understanding were unable to begin until late May. Tentative
agreement was reached on October 10th.
Discussion
Term of Agreement
A one -year agreement was negotiated with FEMA. The negotiated agreement would
expire June 30, 2014.
Salaries
The one -year agreement provides for the maintenance of a 10.9% differential between
the classification of Battalion Chief and Deputy Fire Chief and addresses any potential
salary compaction issues.
Performance Based incentive Bonus /Annual Performance Bonus
The agreement with FEMA eliminates the annual performance bonus, which currently
provides a 1% to 7% bonus. In the place of the performance bonus, the base salary of
covered employees for FEMA would increase by 3.8 %. This is consistent with the
elimination of performance bonuses for other City bargaining groups in July 2012.
Management Incentive Pay /Administrative Bonus
Employees in the classification of Deputy Fire Chief currently receive Management
Incentive Pay and an Administrative Assignment Bonus. Under the terms of the
negotiated agreement, these bonuses would be eliminated and an equivalent amount
would be rolled into the base salary of covered employees effective July 1, 2013.
Miscellaneous Items
The remaining notable miscellaneous changes to be included in the MOU would allow
FEMA employees to cash -out accrued but unused vacation hours, and clarify language
to streamline processes and /or update language to reflect current practices.
E
Financial Impacts & Budget Actions
The total cost of the negotiated changes contained in the new agreement is
approximately $42,777 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: Donna C. Peter
Approved: Forwarded to Council:
Donna C. Peter Rod Gould
Director of Human Resources City Manager
Attachments:
® Resolution
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Reference:
Resolution No. 10775 & MOU
No. 9819
(CCS)