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SR 06-27-2017 3O Ci ty Council Report City Council Meeting : June 27, 2017 Agenda Item: 3.O 1 of 5 To: Mayor and City Council From: Donna Peter, Director , Human Resources Department Subject: Resolution Authorizing the City Manager to Execute the Executive Pay Plan (EPP) and the Memorandum of Understanding Setting the Terms and Conditions of Medical In surance Coverage with the Administrative Team Associates (ATA), California Teamsters Local 911 (IBT), Management Team Association (MTA), Municipal Employees Association (MEA), Public Attorneys Union (PAU), Public Attorneys' Legal Support Staff Union (PALSS U), Supervisory Team Association (STA), United Transportation Union, Local 1785 (SMART), Executive Pay Plan Participants, and certain unrepresented classifications. Staff recommends that the City Council: 1. Adopt the attached Resolution authorizing the C ity Manager to execute a Memorandum of Understanding (MOU) between the City and the Coalition of Santa Monica City Employees (“the Coalition”) extending the terms and conditions of the contract with the City’s miscellaneous employee (non -safety) units and certain unrepresented employees, namely the Management Team Associat ion , Supervisory Team Associat ion , Administrative Team Associates, Municipal Employees Association, California Teamsters Local 911, Public Attorneys Union, Public Attorneys ’ Legal Support Staff Union, International Association of Sheet, Metal, Air , Rail, and Transportation Workers - Transportation Division Local 1785, Executive Pay Plan Participants and Confidential Unrepresented Employees for an additional one -year period. 2. Adopt the att ached resolution authorizing the City Manager to execute revisions to the Executive Pay Plan. 3. Approve the attached revised salary schedule effective as a result of the agreement reached for the classifications represented by EPP. Executive Summary Nego tiations for an amendment to the Memorandum of Understanding (MOU) between the City and the Coalition of Santa Monica City Employees (the “Coalition”) have resulted in a tentative agreement. The City and the Coalition have met and conferred in accordance with the Meyers -Millias Brown Act (MMBA), and have reached a tentative agreement on the terms and conditions of retirement benefits. The purpose of the Memorandum of Understanding is to promote and provide harmonious relations, cooperation, and understand ing between the City and the Coalition. The amendment to the Memorandum of Understanding will include the following change: the terms and 2 of 5 conditions of Contract No. 9495 (CCS) shall be extended to and effective until June 30, 2018. There is no anticipated budget impact due to t he proposed amendment to the Coalition MOU. In addition, a tentative agreement to revise the Executive Pay Plan (EPP) has been reached. The terms of the tentative agreements are summarized below. The total cost of the negotiated ch anges is approximately $56,242 for FY 2017 -18. The budget impact of these changes was included in the General Fund FY 2017 -1 8 through FY 2021 -22 Five -Year Financial Forecast . Background Under the Meyers -Milias -Brown Act in California, local public agencies negotiate with recognized labor organizations on wages, hours and working conditions. Agreements with ten of the City’s eleven bargaining units expire at the end of this month and under directi on from the City Council, staff has been in negotiations for new terms. In addition, on the subject of benefits, including pensions, t he Coalition of Santa Monica City Employees (the “Coalition”) represents miscellaneous employee (non -safety) bargaining units and certain unrepresented employees, namely the Management Team Associat ion , Supervisory Team Associat ion , Administrative Team Associates, Municipal Employees Association, California Teamsters Local 911, Public Attorneys Union, Public Attorneys ’ Lega l Support Staff Union, International Association of Sheet, Metal, Air , Rail, and Transportation Workers - Transportation Division Local 1785, Executive Pay Plan Participants and Confidential Unrepresented Employees. The Memorandum of Understanding betwee n the City and the Coalition of Santa Monica City Employees (the “Coalition”) establishes terms and conditions of medical insurance coverage and employee -paid California Public Employee’s Retirement Plan (CalPERS) for non -sworn miscellaneous employees. Th e City Council approved the resolution for the City Manager to execute the current MOU with the Coalition on October 25, 2011. The current MOU will also expire on June 30, 2017. The Executive Pay Plan (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. 3 of 5 Discussion The overall policy of the City of Santa Monica has been to maintain competitive wages, hours and working conditions in a high -cost geographic labor market in order to retain and attract a high quality workfo rce to serve our community across a wide range of specialized services. Since most, (though not all) City jobs are most comparable to those in other (competing) municipal organizations, the City has traditionally looked to full -service cities in our regio n of similar size and financial strength for labor market comparisons. We also look at internal equity, increases in the Consumer Price Index and other factors that might contribute to the setting of salaries, e.g. offsetting contributions to pension and medical benefits. Generally we find ourselves in first or second position among such cities and so for the past several years, the City has maintained employee buying power through modest annual cost of living adjustments. The Council is undertaking a Com pensation Review overseen by the City Council Audit Subcommittee that will provide a comprehensive analysis for future policy direction.” Negotiations are continuing with the City’s bargaining units and agreements are expected to be forthcoming early in t he new fiscal year. These two recommended actions are the first to come forward for public review and Council action . The substantive terms of the tentative agreements are summarized for each bargaining unit or group as follows: Coalition of Santa Moni ca City Employees (the “Coalition”) Term of the Agreement A one - year extension of the current agreement has been negotiated with the Coalition effective Ju ly 1 , 2017 to June 30, 2018. Significant Negotiated Changes The changes will result in an extension of the current MOU includes the term of one 4 of 5 year, from Ju ly 1 , 2017 through June 30, 2018. All references in the MOU to June 30, 2017, shall be deleted and replaced with June 30, 2018. All other terms and conditions of the MOU remain in full force and ef fect. EPP 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, 2018. Revisions 1. 1% cost of living adjustment effective July 2017 2. One additional non -cashable leave day effective July 2017 Financial Impacts and Budget Actions The overall direct and indirect costs of salary and benefit adjustments is incorporated into both the Five Year Forecast and the proposed FY 17 -19 Budgets. The assumptions built into those budgets are that the direct costs will be at or under 1.5% overall increase (the regional cost of living index rose 1.7% in 2016.) Given this assumption, t here is no anticipated budget impact due to the proposed amendment to the Coalition MOU which is within the forecasted parameters for benefit costs . The total cost of the proposed revisions to EPP is approximately $56,242 for FY 2017 -18 which is below the Forecast parameters - FY 2017 -18 appropriations for all funds will be included in the FY 2017 -18 Midyear Budget for Council approval. 5 of 5 Prepared By: Tatiana Morrison, Executive Administrative Assistant Approved Forwarded to Council Attachments: A. Coalition Roll -Over MOU B. Coalition Roll -over Reso 2017 (MY) C. EPP SALARY SCHEDULE 1% Council Mtg 20170627 D. EPP Reso 6.27.17 MEMORANDUM OF UNDERSTANDING (UMBRELLA AGREEMENT) SETTING THE TERMS AND CONDITIONS OF EMPLOYEE -PAID CALIFORNIA PUBLIC EMPLOYEES RETIREMENT PLAN (CALPERS) OPTIONAL BENEFITS FOR MISCELLANEOUS CITY EMPLOYEES BETWEEN THE CITY OF SANTA MONICA AND MANAGEMENT TEAM ASSOCIAT ION , SUPERVISORY TEAM ASSOCIAT ION, ADMINISTRATIVE TEAM ASSOCIATES , PUBLIC ATTORNEYS UNION , PUBLIC ATTORNEYS ’ LEGAL SUPPORT STAFF UNION, MUNICIPAL EMPLOYEES ASSOCIATION, INTERNATIONAL ASSOCIATION OF SHEET METAL, AIR, RAIL, AND TRANSP ORTATION WORKERS – TRANSPORTATION DIVISION (SMART -TD) LOCAL 17 85, CALIFORNIA TEAMSTERS LOCAL 911, EXECUTIVE PAY PLAN PARTICIPANTS , AND CONFIDENTIAL UNREPRESENTED EMPLOYEES PAY PLAN PARTICIPANTS This agreement amends the Memorandum of Understanding between the City of Santa Monica (the “City ”) and the Coalition of Santa Monica City Employees (comprised of the non -sworn miscellaneous employee bargaining units and certain unrepresented employees identified above, also collectively referred to as the “C oalition”), Cont ract No. 9495 (CCS), previously executed on December 1, 2011, to extend the terms and conditions of that Memorandum of Understanding for an additional one -year period . T he Memorandum of U nderstanding (MOU), Contract No. 9495 (CCS), is hereby amended as follow s : All references in the MOU to June 30, 2017, shall be deleted and replaced with June 30, 2018 . All other terms and conditions of the MOU remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed ___________________, 2017 . By: NON -SWORN MISCELLANEOUS EMPLOYEE BARGAINING UNITS: MANAGEMENT TEAM ASSOCIAT ION ______________________________ XX ADMINISTRATIVE TEAM ASSOCIATES ______________________________ XX SUPERVISORY TEAM ASSOCIAT ION ______________________________ XX PUBLIC ATTORNEYS UNION ______________________________ XX MUNICIPAL EMPLOYEES ASSOCIATION ______________________________ XX EXECUTIVE PAY PLAN ______________________________ XX PUBLIC ATTORNEYS’ LEGAL SUPPORT STAFF UNION ______________________________ XX CALIFORNIA TEAMSTERS, LOCAL 911 ______________________________ XX SMART -TD, LOCAL 1785 ______________________________ XX CONFIDENTIAL UNREPRESENTED EMPLOYEES PAY PLAN ______________________________ XX By: CITY OF SANTA MONICA ATTEST: ______________________________ DENISE ANDERSON -WARREN City Clerk APPROVED AS TO FORM: ______________________________ JOSEPH LAWRENCE Interim City Attorney CITY OF SANTA MONICA, a municipal corporation By: ______________________________ RICK COLE City Manager Executive Pay Plan (EPP) Salary Schedule for June 27, 2017 City Council Meeting Class Title Class Code BU Grade Step Hourly Rate Monthly Rate Annual Rate Bi-weekly Rate Asst City Manager 0745 EPP 825 1 119.24 20,669 248,028.00 9,539.54 2 125.13 21,689 260,268.00 10,010.31 3 132.49 22,965 275,580.00 10,599.23 4 139.85 24,241 290,892.00 11,188.15 5 147.21 25,517 306,204.00 11,777.08 Asst to the City Manager 0882 EPP 011 1 57.23 9,919 119,028.00 4,578.00 2 60.05 10,409 124,908.00 4,804.15 3 63.58 11,021 132,252.00 5,086.62 4 67.12 11,634 139,608.00 5,369.54 5 70.65 12,246 146,952.00 5,652.00 Chief Communications Officer 0658 EPP 027 1 66.44 11,517 138,204.00 5,315.54 2 69.73 12,086 145,032.00 5,578.15 3 73.83 12,797 153,564.00 5,906.31 4 77.93 13,508 162,096.00 6,234.46 5 82.03 14,219 170,628.00 6,562.62 Chief Information Officer 0964 EPP 090 1 88.65 15,366 184,392.00 7,092.00 2 93.03 16,125 193,500.00 7,442.31 3 98.50 17,073 204,876.00 7,879.85 4 103.97 18,022 216,264.00 8,317.85 5 109.44 18,970 227,640.00 8,755.38 City Attorney 0615 EPP 880 1 122.83 21,290 255,480.00 9,826.15 2 128.89 22,341 268,092.00 10,311.23 3 136.48 23,656 283,872.00 10,918.15 4 144.06 24,970 299,640.00 11,524.62 5 151.64 26,284 315,408.00 12,131.08 City Manager 0640 EPP 950 1 164.80 28,565 342,780.00 13,183.85 Executive Pay Plan (EPP) Salary Schedule for June 27, 2017 City Council Meeting Class Title Class Code BU Grade Step Hourly Rate Monthly Rate Annual Rate Bi-weekly Rate Communications/Publ Affairs Of 0743 EPP 027 1 66.44 11,517 138,204.00 5,315.54 2 69.73 12,086 145,032.00 5,578.15 3 73.83 12,797 153,564.00 5,906.31 4 77.93 13,508 162,096.00 6,234.46 5 82.03 14,219 170,628.00 6,562.62 Deputy City Manager 0746 EPP 055 1 80.64 13,977 167,724.00 6,450.92 2 84.62 14,667 176,004.00 6,769.38 3 89.60 15,530 186,360.00 7,167.69 4 94.57 16,392 196,704.00 7,565.54 5 99.55 17,255 207,060.00 7,963.85 Dir of Community/Cultural Svs 0664 EPP 340 1 95.53 16,559 198,708.00 7,642.62 2 100.25 17,377 208,524.00 8,020.15 3 106.15 18,399 220,788.00 8,491.85 4 112.04 19,421 233,052.00 8,963.54 5 117.94 20,443 245,316.00 9,435.23 Dir of Finance(Contr/Ci Treas)0650 EPP 090 1 88.65 15,366 184,392.00 7,092.00 2 93.03 16,125 193,500.00 7,442.31 3 98.50 17,073 204,876.00 7,879.85 4 103.97 18,022 216,264.00 8,317.85 5 109.44 18,970 227,640.00 8,755.38 Dir of Housing & Economic Dev 0634 EPP 083 1 85.68 14,851 178,212.00 6,854.31 2 89.91 15,585 187,020.00 7,193.08 3 95.20 16,502 198,024.00 7,616.31 4 100.49 17,418 209,016.00 8,039.08 5 105.78 18,335 220,020.00 8,462.31 Executive Pay Plan (EPP) Salary Schedule for June 27, 2017 City Council Meeting Class Title Class Code BU Grade Step Hourly Rate Monthly Rate Annual Rate Bi-weekly Rate Dir of Human Resources 0691 EPP 090 1 88.65 15,366 184,392.00 7,092.00 2 93.03 16,125 193,500.00 7,442.31 3 98.50 17,073 204,876.00 7,879.85 4 103.97 18,022 216,264.00 8,317.85 5 109.44 18,970 227,640.00 8,755.38 Dir of Library Svs/City Librn 0635 EPP 057 1 75.63 13,109 157,308.00 6,050.31 2 79.36 13,756 165,072.00 6,348.92 3 84.03 14,566 174,792.00 6,722.77 4 88.70 15,375 184,500.00 7,096.15 5 93.37 16,184 194,208.00 7,469.54 Dir of Planning &Community Dev 0660 EPP 340 1 95.53 16,559 198,708.00 7,642.62 2 100.25 17,377 208,524.00 8,020.15 3 106.15 18,399 220,788.00 8,491.85 4 112.04 19,421 233,052.00 8,963.54 5 117.94 20,443 245,316.00 9,435.23 Dir of Public Works 0625 EPP 790 1 108.16 18,747 224,964.00 8,652.46 2 113.50 19,673 236,076.00 9,079.85 3 120.18 20,831 249,972.00 9,614.31 4 126.85 21,988 263,856.00 10,148.31 5 133.53 23,145 277,740.00 10,682.31 Dir of Records & Election Svs 0620 EPP 058 1 77.00 13,346 160,152.00 6,159.69 2 80.80 14,005 168,060.00 6,463.85 3 85.55 14,829 177,948.00 6,844.15 4 90.31 15,653 187,836.00 7,224.46 5 95.06 16,477 197,724.00 7,604.77 Executive Pay Plan (EPP) Salary Schedule for June 27, 2017 City Council Meeting Class Title Class Code BU Grade Step Hourly Rate Monthly Rate Annual Rate Bi-weekly Rate Dir of Spec Proj Inform Svs 0665 EPP 090 1 88.65 15,366 184,392.00 7,092.00 2 93.03 16,125 193,500.00 7,442.31 3 98.50 17,073 204,876.00 7,879.85 4 103.97 18,022 216,264.00 8,317.85 5 109.44 18,970 227,640.00 8,755.38 Dir of Transit Services 0670 EPP 282 1 94.85 16,441 197,292.00 7,588.15 2 99.54 17,253 207,036.00 7,962.92 3 105.39 18,268 219,216.00 8,431.38 4 111.25 19,283 231,396.00 8,899.85 5 117.10 20,298 243,576.00 9,368.31 Fire Chief 0675 EPP 701 1 108.42 18,792 225,504.00 8,673.23 2 113.77 19,720 236,640.00 9,101.54 3 120.46 20,880 250,560.00 9,636.92 4 127.15 22,040 264,480.00 10,172.31 5 133.85 23,200 278,400.00 10,707.69 Police Chief 0690 EPP 855 1 122.33 21,204 254,448.00 9,786.46 2 128.37 22,251 267,012.00 10,269.69 3 135.92 23,560 282,720.00 10,873.85 4 143.48 24,869 298,428.00 11,478.00 5 151.03 26,178 314,136.00 12,082.15 Sr Advisor to the City Manager 0883 EPP 012 1 60.05 10,408 124,896.00 4,803.69 2 63.01 10,922 131,064.00 5,040.92 3 66.72 11,564 138,768.00 5,337.23 4 70.43 12,207 146,484.00 5,634.00 5 74.13 12,849 154,188.00 5,930.31 REFERENCE:    Resolution  No. 11048   (CCS)   &   MOU  No. 10485  (CCS)  &   Resolution  No. 11049   (CCS)  &   Agreement  No. 11050   (CCS)