SR 10-24-2017 3I
City Council Report
City Council Meeting: October 24, 2017
Agenda Item: 3.I
1 of 5
To: Mayor and City Council
From: Donna Peter, Director, Human Resources Department
Subject: Resolution Authorizing the City Manager to execute Memoranda of
Understanding with Fire Executive Management Association (FEMA) and
California Teamsters Local 911
Recommended Action
Staff recommends that the City Council:
1. Adopt the attached Resolution authorizing the City Manager to execute a
Memorandum of Understanding (MOU) between the City of Santa Monica and
Fire Executive Management Association (FEMA) and California Teamsters Local
911.
2. Approve the attached revised salary schedule effective as a result of the
agreement reached for the classifications represented by Fire Executive
Management Association (FEMA) and California Teamsters Local 911.
Executive Summary
Agreements with Fire Executive Management Association and California Teamsters
Local 911 expired on June 30, the end of the fiscal year. With direction from City
Council to continue Santa Monica’s commitment to competitive compensation for the
City’s workforce while keeping costs within the City’s Five Year financial forecast, the
City and the two groups have met and conferred in accordance with the Meyers-Millias
Brown Act (MMBA). The terms of the tentative agreements are summarized below. In
general, they seek to contain the cost of net annual salary increases within the most
recent annual rise in the cost of living of 1.7%; to minimize increases in pension
obligations; and seek trade-offs that equitably share the rising costs of pension and
medical benefits between the City and employees. The purpose of a Memorandum of
Understanding is to promote and provide harmonious relations, cooperation, and
understanding between the City and the various bargaining units. The total cost of the
negotiated changes is approximately $613,338 for FY 2017-18. The budget impact of
2 of 5
these changes was included in the General Fund FY 2017-18 through FY 2021-22 Five-
Year Financial Forecast.
Background
The Meyers-Milias Brown Act requires that local public agencies negotiate with their
respective bargaining units regarding wages, hours and working conditions. Agreements
with ten of the City’s eleven bargaining units expired at the end of June and, under
direction from the City Council, staff has negotiated for new terms.
On June 27, 2017, Council approved agreements with the Executive Pay Plan (EPP)
and set the terms and conditions for medical insurance for most City employees
(Attachment A). On July 11, 2017, Council approved the terms for the agreements with
the Police Officers Association (POA) (Attachment B). On August 8, 2017, Council
approved agreements with Administrative Team Associates (ATA), Municipal Employees
Association (MEA), the Public Attorneys Union (PAU), the Santa Monica Firefighters
Local 1109 IAFF, Supervisory Team Association (STA), the Management Team
Associates (MTA) and the Confidential Unrepresented Employees (CUE) pay plan
whose contracts expired June 30, 2017 (Attachment C).
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 dedicated, high-quality workforce to serve our
community across a wide range of specialized services. Since most, though not
all, City jobs are comparable to those in other municipalities, the City has
traditionally looked to full-service cities in our region of similar size and financial
strength for labor market comparisons. Market competitiveness in recruitment, the
increase in the Consumer Price Index, internal equity, and offsetting contributions
to pension and medical benefits may also be factors that contribute to the setting
of compensation during the negotiations process.
3 of 5
Generally, the City finds itself in first or second position among comparable cities.
As a result, the City has maintained competitiveness through modest cost of living
adjustments. The Council is undertaking a compensation review overseen by the
City Council Audit Subcommittee that will provide a comprehensive analysis for
future policy direction.
Tentative agreements with two of the three remaining bargaining units are as
described below. Negotiations with one group still remains.
The substantive terms of the tentative agreements are summarized for each
bargaining unit below. Various groups have negotiated for increased vacation
cash-out provisions and all have non-substantive language revisions.
Fire Executive Management Association
The substantive terms of the tentative agreements are summarized as follows:
The three-year agreement between the City of Santa Monica and FEMA is
effective July 1, 2017, through June 30, 2020.
There is no across the board salary increase during the first year of the
agreement but it does include an equity adjustment for the Deputy Chief
classification which will assist in maintaining appropriate differentials between
promotional ranks, and encourage internal promotional opportunities. The
agreement also includes an increase to the Educational Incentive program, which
will support succession planning.
The second and third years of the agreement each include a 2.5% salary
increase and an additional 1% each year in contributions toward retirement
benefits. By the third year of the agreement, FEMA members will be paying a
total of 15% towards retirement benefits and an additional 3% (11% total)
toward their medical premiums. This will assist in continuing to offset the rising
payroll costs of the City.
4 of 5
The City will contribute $90 per month to a 457 deferred compensation account,
effective August 1, 2017. Again, this is a benefit that does not add to the City’s
pension liabilities with CalPERS.
California Teamsters Local 911
The substantive terms of the tentative agreements are summarized as follows:
The three-year agreement between the City of Santa Monica and the IBT is
effective July 1, 2017 through June 30, 2020.
IBT employees will receive a 1.7% salary increase effective July 23, 2017, a
1.5% salary increase effective January 1, 2019, and a 1.5% salary increase
effective January 1, 2020. The City will contribute to a 457 deferred
compensation account in the amount of $33 per month effective July 1, 2018
and $33 per month effective July 1, 2019, for a total match of $66 per month.
This is in addition to an existing $50 per month matching program and has no
impact on the unfunded pension liability but increases the opportunity for staff to
contribute to their retirement savings.
Financial Impacts and Budget Actions
The total cost of the negotiated changes contained in the new agreements is
approximately $613,338 for FY 2017-18. The budget impact of these changes was
included in the FY 2017-18 through FY 2021-22 Five-Year Financial Forecast. The FY
2017-18 Adopted Budget includes General Fund appropriations in the Non-
Departmental section. Funds will be transferred to the relevant accounts in the General
Fund and appropriations for all other 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. June 27, 2017 Staff Report Authorizing Terms of Agreement with Executive Pay
Plan (Weblink)
B. July 11, 2017 Staff Report Authorizing Terms of Agreement with Police Officers
Association (Weblink)
C. August 8, 2017 Staff Report Authorizing Terms of Agreement with ATA, MEA,
PAU, Local 1109 IAFF, STA, MTA, CUE
D. Resolution
E. IBT FY17-18 Salary Schedule
F. FEMA FY17-18 Salary Schedule
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REFERENCE:
RESOLUTION NO. 11085
(CCS)
AND MEMORANDUM OF
UNDERSTANDING (MOU) NO.
10490 (CCS) A COPY OF THIS
STAFF REPORT IS ALSO IN 603‐
016