SR-11-07-1978-11GSanta Monica, CeOifornia, November 7, 1978
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Ratification of Proposed Memorandum of Understanding with
Individual Management Employees
Introduction
This report transmits a proposed Memorandum of Understanding (MOU) with
Individual Management Employees and recommends Council ratification
thereof.
Background
The Council, at its meeting of September 26, 1978, adopted a motion authorizing
City staff to complete negotiations with those employee organizations whose
MOU expired June 30, 1978. The City Council subsequently has ratified MOU's
with the Santa Monica Library Guild, Local 1634 (AFSCME), the Santa Monica
Library Non - Professionals, Local 1634 (AFSCME), and the Santa Monica Library
Custodian's Association.
Wage and benefit determinations need to be made for three remaining groups
of employees: Individual Confidential Employees, the unit represented by
Statewide Employees Association, and Individual Management Employees.
Management employees consist of fifteen positions representing the highest
levels in the City service excluding the positions of City Manager, City
Attorney and City Clerk. Traditionally, wage and benefit determinations for
this group have been made annually by City Council by resolution. The
suggested approach, recommended herein, and supported by the affected employees,
is that of a multi -year MOU where the employees are individual signatories
thereto. This is the same manner in which the Council has dealt with the
TO: rl,iyor and Ci ty Crwnci l -2- November 7, 1978
Individual Confidential Employees for many years. The advantages of this
approach are that wages, benefits and other terms and conditions of employment
are specifically set forth on a multi -year basis, and provides equity to top
management employees. In addition, and perhaps more important, it signifies
that the City is appreciative of their efforts in successfully managing a
large, complex organization.
Affected employees have supported and executed the proposed MOU.
The basic provisions of the MOU are as follows:
1. Term of MOU: Two years, effective July 1, 1978 and ending June 30, 1980.
2. Wages: For fiscal year 1978 -79 a wage increase equal to the percentage
change in the cost of living as reflected in the percentage in-
crease in the unrevised regional consumer price index from April,
1977 to April, 1978, effective July 2, 1978. This percentage in-
crease was six - point -two percent (6.2%).
For fiscal year 1979 -80, a wage increase equal to the percentage
increase in the revised regional consumer price index from May, 1978
to May, 1979. The proposed MOU also contains the identical clause
found in MOU's with other employees regarding an additional 2% in
January, 1980, should double -digit inflation occur, which is unlikely.
3. Benefits: Medical /Dental: The City agrees to continue the current contribu-
tion towards medical and dental insurance and maintain this benefit
during the term of the MOU including any supercomposite rate that
TO: Mayor and City Cpincil -3- November 7, 1978
i
may be negotiated with the medical insurance carrier. Also
proposed is the continuation of the current $45.00 per month
per employee contribution rate applicable to additional insurance
and benefits which the Council approved last year.
Deferred Compensation: Effective January 1, 1979, the City
agrees to contribute to the City's deferred compensation plan
an amount equal to the amount the employee contributes towards
said plan on his or her behalf but subject'to a limitation of
$25.00 per employee per month. This benefit is identical to that
received by employees in the Management Team Associates unit
(MTA) who work under the department heads.
Management Leave Days: Three such days for FY 78 -79 and three
additional days for FY 79 -80. The management leave days benefit
is now enjoyed by three units; Confidential Employees, Management
Team Associates and Supervisory Team Associates.
Sick Leave: No increase in the sick leave accrual rate is proposed.
However, like many other employees have had the option of being
compensated for up to six (6) unused sick leave days annually,
it is proposed that up to nine such unused sick leave days be
compensated.
Other included provisions are the same as those contained in the
MOU's of other organized and represented employees.
TO: Mayor and City Cr �cil -4-
November 7, 1978
Alternatives
1. Follow the past practice of adopting an annual resolution covering wages
and benefits of top management.
2. Adopt a resolution covering two fiscal years including the proposals
outlined in this report.
3. Adopt a different wage and benefit structure than outlined in this report
either by a single -year salary and wage resolution; a multi -year salary reso-
lution; a multi -year MOU; or a single -year MOU
4. Adopt the multi -year MOU approach containing the provisions outlined
previously.
Recommendation
It is recommended that alternative #4 be approved and that the Council adopt
a resolution ratifying the proposed MOU.
Prepared by: DAVID P. DOLTER
Acting City Manager
DPD:dar