SR 08-23-2016 3G
Ci ty Council
Report
City Council Meeting : August 23, 2016
Agenda Item: 3.G
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To: Mayor and City Council
From: Donna Peter, Director , Human Resources Department
Subject: Adoption of Side Letter to the Memorandum of Understanding for Public
Attorney's Union
Recommended Action
Staff r ecommends that the City Council a dopt the side l etter agreement, amending the
Public Attorneys Union (PAU) Memo randum of Understanding (MOU).
Executive Summary
The Public Attorney’s Union (PAU) and the City have met and conferred over changes
regarding eligibility criteria for performance bonuses as ou tlined in the MOU. Adoption
and approval of the side letter agreement are being made to remedy retirement
calculation issues that have arisen since the extension of the MOU. Recommendations
presented in this report do not require additional appropriatio ns at this time.
Background
On June 14, 2016, the City Council adopted and approved an extension of the PAU
MOU for FY 2016 -2017. Since the adoption of the extended MOU, bargaining unit
members have encountered issues with the way in which certain comp ensation has
been considered for retirement purposes. PAU bargaining unit members are eligible for
a performance bonus in conjunction with specific criteria regarding exemplary job
performance. The performance bonus has been a longstanding operational to ol that the
City Attorney can exercise at her discretion to reward outstanding performers. The
existing language in the MOU states that only those in the classification of Deputy City
Attorney III, and have reached the maximum base salary for at least one year, are
eligible for the performance bonus. Additionally, those employees must also have
exemplary performance documented in their performance evaluations. The City
Attorney also considers the quality, volume, difficulty and uniqueness of the employee’s
work; hours worked; when considering giving performance bonuses, which range from 1
to 5% of base salary. It should be noted that the performance bonuses were decreased
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from 10% to 5% during the FY 2012 -2015 MOU and that change is reflected in the side
l etter agreement as well.
Discussion
During the preceding months, questions from CalPERS have arisen regarding the
performance bonuses. Specifically, the requirement of Deputy City Attorney III’s to be
at Step 5 to qualify for a performance bonus. This r equirement created issues with
retirement compensation reporting, although these annual bonuses have been in
existence for many years without question from CalPERS. The City and the PAU met
and conferred over the subject and agreed to allow members within the classification of
Deputy City Attorney III to be eligible for the performance bonuses without the
requirement of having to reach the maximum base salary (Step 5), effective July 1,
2016. This change potentially impacts four individuals, who will now qualify for a
performance bonus. Because there are several Deputy City Attorneys at Step 5 who
have recently retired, adding these additional individuals will not require any budget
adjustments at this time. In revising the language to reflect this chang e, the City hopes
to bring resolution to any administrative retirement issues on a prospective basis.
Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of
recommended action. Staff will re turn to Council if specific budget actions are required
in the future.
Prepared By: Donna Peter, Director
Approved
Forwarded to Council
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Attachments:
A. Side Letter -PAU Performance Bonus 2016
SIDE LETTER OF AGREEMENT BETWEEN
THE CITY OF SANTA MONICA AND
THE PUBLIC ATTORNEYS UNION
This side letter memorializes an agreement reached between the City of Santa Monica (City)
and the Public Attorneys Union (PAU) to reflect agreed upon amendments to the July 1,
2012 -June 30, 2015 Memorandum of Understanding (MOU) entered into by the City and
PAU. All other terms and conditions of the existing MOU shall remain in full force and effect.
Effective July 1, 2016, the changes are as follows :
Article V. Performance Evaluations and Effect of Job Performance on Salary, Section 5.03
D. A Deputy Attorney III whose most recent performance rating is overall
ABOVE AVERAGE or better shall be eligible on his/her annivers ary date
to receive a performance bonus of one to five percent (1% to 5 %) of his/her
annual base salary. In deciding whether to award a bonus payment to an
eligible employee and, if so, in what amount, the City Attorney shall
consider the quality, volume, difficulty and uniqueness of the employee’s
work; hours worked; and other relevant considerations, including, for
instance, contributions to others’ work, contributions to office development
and equitable considerations. PAU and City Attorney may meet and confer
to further delineate or refine these bonus criteria.
IN WITNESS WHEREOF, the parties hereto have caused this Side Letter Agreement to be
executed this ___ day of _____________2016.
CITY OF SANTA MONICA
ATTEST: a municipal corporation
________________________ By: ________________________
DENISE ANDERSON -WARREN RICK COLE
City Clerk City Manager
APPROVED AS TO FORM:
________________________
MARSHA JONES MOUTRIE
City Attorney
FOR THE PUBLIC ATTORNEYS UNION
_________________________
Karen Duryea
_________________________
Adam Radinsky
_________________________
Yibin Shen
Public Attorneys Union (PAU) Side
Letter Agreement 2016 -2017,
Contract No. xx CCS