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SR 06-14-2016 3C (3) City Council Report City Council Meeting: June 14, 2016 Agenda Item: 3.C To: Mayor and City Council From: Donna Peter, Director, Human Resources Department Subject: Resolution Authorizing the City Manager to Execute Memorandum of Understanding with the Administrative Team Associates (ATA), Municipal Employees Association (MEA), the Public Attorneys Union (PAU), amend the Memorandum of Understanding with Santa Monica Firefighters Local 1109 IAFF, and revise the Executive Pay Plan (EPP), and the Confidential Unrepresented Employees (CUE) Pay Plan Recommended Action Staff recommends that the City Council: 1. Adopt the attached resolution accepting the tentative agreements and authorizing the City Manager to execute Memoranda of Understanding (MOU) between the City and the Administrative Team Associates (ATA), Municipal Employees Association (MEA), the Public Attorneys Union (PAU), a tentative agreement amending and modifying the terms and conditions the MOU with the Santa Monica Firefighters Local 1109 (Local 1109), and to execute revisions to the Executive Pay Plan (EPP), and the Confidential Unrepresented Employees (CUE) Pay Plan, 2. Approve the attached revised salary schedule effective as a result of the negotiated tentative agreements reached for the classifications represented by ATA, MEA, PAU, EPP and CUE. Executive Summary Negotiations for successor MOU between the City and the following bargaining units have resulted in tentative agreements: ATA, MEA and PAU. The terms of the tentative agreements are summarized below. Revisions are also being proposed to the Executive Pay Plan (EPP) and the Confidential Unrepresented Employees (CUE) Pay Plan. The total cost of the negotiated changes is approximately $1,928,300 for FY 2016-17. The budget impact of these changes was included in the General Fund FY 2015-16 through FY 2019-20 Five-Year Financial Forecast. The City engaged in the meet and confer process and has tentatively agreed to amend the current Memorandum of Understanding (MOU) between the City and the Santa Monica Firefighters, Local 1109 (Local 1109). The terms of the tentative agreement are summarized below. The total cost of the negotiated changes of $74,600 was included in the General Fund FY 2015-16 through FY 2019-20 Five-Year Financial Forecast. Background 1 of 6 The MOU's with ATA, MEA, and PAU expire June 30, 2016. Per the terms and The EPP establishes terms and conditions of employment for Department Heads and other at-will employees who receive EPP benefits as part of separate employment contracts. 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. The CUE Pay Plan establishes the salary, benefit and additional terms and conditions of employment for employees in classifications not represented by a bargaining unit, covered by the EPP, or covered by separate employment agreements. The current term of the MOU between the City and Local 1109 which was approved on August 26, 2014, describes the terms and conditions of employment and is set to expire on June 30, 2017. During negotiations for the 2014-2017 MOU certain assignment bonuses for various classifications were eliminated and included in the base salary. Unfortunately, the defined salary relationships which are set between ranks to avoid compaction issues were not adequately addressed and updated to reflect the new base salaries. The issue of compaction and the salary differentials between ranks must be addressed or else several issues arise: the supervisor-subordinate salary and working relationship is negatively impacted, the incentive to promote to a higher-rank is weakened, and a violation of the current MOU arises if the proper salary relationships are not observed. Discussion The substantive terms of the tentative agreements are summarized for each bargaining unit or group below. In one case, the term is simply being extended by one year, including a cost of living adjustment consistent with other agreements citywide as included. Unlike cost of living adjustments, these one-time payments are not built into salaries, nor are they counted in the calculation of PERS retirement benefits. Here is 2 of 6 the summary of the terms of the various agreements recommended for approval: Administrative Team Associates Term of the Agreement A one-year agreement has been negotiated with ATA effective July 1, 2016, through June 30, 2017 . Significant Negotiated Changes 1. 1.5% cost of living adjustment effective July 2016 2. One-time lump sum payment (early signing bonus), equal to $728.00 per employee, in recognition of a timely conclusion of the meet and confer process 3. Increase of $500.00 to Tuition Reimbursement, to a maximum of $2,500.00 per year 4. Non-substantive language revisions Municipal Employees Association Term of the Agreement A one-year agreement has been negotiated with MEA effective July 1, 2016, through June 30, 2017 . Significant Negotiated Changes 1. 1.5% cost of living adjustment effective July 2016 2. One-time lump sum payment (early signing bonus), equal to $440.00 per employee, in recognition of a timely conclusion of the meet and confer process 3. Non-substantive language revisions Public AUnion Term of the Agreement A one-year extension of the current agreement has been negotiated with PAU effective July 1, 2016, through June 30, 2017. Significant Negotiated Changes An extension of the current MOU includes a 1.5% cost of living adjustment effective July -the sunset clause relating to performance bonuses. 3 of 6 Santa Monica Firefighters Local 1109 IAFF Term of the Agreement The current term of the 2014-2017 MOU is not being extended and will expire on June 30, 2017. Significant Negotiated Changes 1. Effective July 1, 2016, the salary relationships between certain ranks will be modified to address the elimination of assignment bonuses and to maintain the salary relationships that have existed historically. 2. The City agreed to memorialize the employee contributions to the Retiree Health Benefit Trust which is administered by Local 1109. 3. Modify the Hazardous Materials Response Team and Urban Search and Rescue (USAR) bonuses from a flat amount of $300 to 4.00% of top step firefighter base salary to ensure salary relationships continue. 4. Update the constant staffing amount to reflect current levels. 5. Revise language regarding time off for union business. Executive Pay Plan Term of the Agreement While there is no contract expiration for the EPP, this amendment would set salaries for EPP covered employees for a one-year period through June 30, 2017. Revisions 1. 1.5% cost of living adjustment effective July 2016 Confidential Unrepresented Employees Term of the Agreement While there is no contract expiration for the CUE pay plan, this resolution would set salaries for CUE employees for a one-year period through June 30, 2017. Revisions 1. 4 of 6 bargaining unit to which the confidential unrepresented classifications are aligned. Attached is a resolution for Council consideration approving the tentative agreements and authorizing the City Manager to execute Memoranda of Understanding for ATA, MEA and PAU bargaining units, approving the tentative agreement with Local 1109 amending and modifying the terms and conditions of its MOU, revising the EPP and CUE Pay Plan, and a resolution approving the revised salary schedule effective as a result of the negotiated tentative agreements reached with the various bargaining units. Financial Impacts and Budget Actions The total cost of the negotiated changes contained in the new agreements is approximately $2,002,900 for FY 2016-17. The budget impact of these changes was included in the General Fund FY 2015-16 through FY 2019-20 Five-Year Financial Forecast. The FY 2016-17 Proposed Budget includes General Fund appropriations in Non-Departmental. FY 2016-17 appropriations for all funds will be included in the FY 2015-16 Year-End Budget for Council approval. Prepared By: Donna Peter, Director Approved Forwarded to Council Attachments: A. Resolution for MOU's B. ATA FY16-17 Salary Schedule CCM 20160614 C. MEA FY16-17 Salary Schedule CCM20160614 5 of 6 D. PAU FY16-17 Salary Schedule CCM 20160614 E. EPP FY16-17 Salary Schedule 6 of 6 AdministrativeTeamAssociates(ATA) SalaryScheduleforJune14,2016CityCouncilMeeting AdministrativeTeamAssociates(ATA) SalaryScheduleforJune14,2016CityCouncilMeeting AdministrativeTeamAssociates(ATA) SalaryScheduleforJune14,2016CityCouncilMeeting AdministrativeTeamAssociates(ATA) SalaryScheduleforJune14,2016CityCouncilMeeting AdministrativeTeamAssociates(ATA) SalaryScheduleforJune14,2016CityCouncilMeeting AdministrativeTeamAssociates(ATA) SalaryScheduleforJune14,2016CityCouncilMeeting AdministrativeTeamAssociates(ATA) SalaryScheduleforJune14,2016CityCouncilMeeting AdministrativeTeamAssociates(ATA) SalaryScheduleforJune14,2016CityCouncilMeeting AdministrativeTeamAssociates(ATA) SalaryScheduleforJune14,2016CityCouncilMeeting AdministrativeTeamAssociates(ATA) SalaryScheduleforJune14,2016CityCouncilMeeting AdministrativeTeamAssociates(ATA) SalaryScheduleforJune14,2016CityCouncilMeeting AdministrativeTeamAssociates(ATA) 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