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SR 01-09-2018 3C City Council Report City Council Meeting: January 9, 2018 Agenda Item: 3.C 1 of 4 To: Mayor and City Council From: Donna Peter, Director, Human Resources Department Subject: Adoption of Resolution Authorizing the City Manager to execute Memorandum of Understanding with The International Association of Sheet, Metal, Air, Rail, and Transportation Workers - Transportation Division, Local 1785 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 the International Association of Sheet, Metal, Air, Rail, and Transportation Workers – Transportation Division, Local 1785 (SMART-TD). 2. Approve the attached revised salary schedule effective as a result of the agreement reached for the classifications represented by SMART-TD. Executive Summary The agreement with the International Association of Sheet Metal, Air, Rail and Transportation Workers – Transportation Division, Local 1785 (SMART-TD) expired on June 30, 2017. SMART-TD includes the Motor Coach Operator and Motor Coach Operator Trainee classifications. The City currently has 351 employees who are members of SMART-TD. With the 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 SMART-TD, have met and conferred in accordance with the Meyers-Millias Brown Act (MMBA). The terms of the tentative agreement are summarized below. Background The Meyers-Millias Brown Act requires that local public agencies negotiate with their respective bargaining units regarding wages, hours and working conditions. 2 of 4 Agreements with ten of the City’s eleven bargaining units expired at the end of June 2017 and, under direction from the City Council, staff 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 Officer’s 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). On October 24, 2017 Council approved agreements with Fire Executive Management Association (FEMA) and California Teamsters Local 911 (Attachment D). 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 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. 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 3 of 4 Council Audit Subcommittee that will provide a comprehensive analysis for future policy direction. The tentative agreement with SMART-TD is as described below:  The three-year agreement between the City of Santa Monica and SMART-TD is effective July 1, 2017 through June 30, 2020.  SMART-TD employees will receive at 1.7% increase effective the first pay period following City Council approval. Council policy precludes retroactive pay when contract negotiations extend beyond the expiration of a Memorandum of Understanding. In this case, the agreement includes a one-time catch-up lump sum payment that addresses the time lag between tentative agreement and final ratification.  The City will contribute to a 457 deferred compensation account in the amount of $50 per month effective January 1, 2018.  The second and third years of the agreement each include a 1.5% salary increase.  Employees will be eligible to receive Tuition Reimbursement up to $2750 per fiscal year effective January 1, 2018. Financial Impacts and Budget Actions The total cost of the negotiated changes contained in the agreement is approximately $455,000 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. An appropriation for the Big Blue Bus Fund will be included in the FY 2017-18 Midyear Budget for Council approval. 4 of 4 Prepared By: Donna Peter, Director Approved Forwarded to Council Attachments: A. June 27, 2017 Staff Report Authorizing Terms of Agreement for Executive Pay Plan B. July 11, 2017 Staff Report Authorizing Terms of Agreement with Police Officers Association C. August 8, 2017 Staff Report Authorizing Terms of Agreement with ATA, MEA, PAU, Local 1109 IAFF, STA, MTA, CUE D. October 24, 2017 Staff Report Authorizing Terms of Agreement with Fire Executive Management Association (FEMA) and California Teamsters Local 911 (IBT) E. SMART FY17-18 Salary Schedule F. Resolution Cl a s s T i t l e C l a s s C o d e B U G r a d e S t e p H o u r l y R a t e M o n t h l y R a t e A n n u a l R ate Bi-weekly Rate Mo t o r C o a c h O p e r ( L a t e r a l T r n ) 2 9 1 2 U T U 0 1 0 1 1 9 . 0 7 $ 3 , 3 0 5 . 4 7 3 9 , 6 6 5 . 6 0 1,525.60 2 2 0 . 5 4 $ 3 , 5 6 0 . 2 7 4 2 , 7 2 3 . 2 0 1 , 6 4 3 . 2 0 3 2 2 . 0 1 $ 3 , 8 1 5 . 0 7 4 5 , 7 8 0 . 8 0 1 , 7 6 0 . 8 0 4 2 4 . 9 4 $ 4 , 3 2 2 . 9 3 5 1 , 8 7 5 . 2 0 1 , 9 9 5 . 2 0 5 2 6 . 4 1 $ 4 , 5 7 7 . 7 3 5 4 , 9 3 2 . 8 0 2 , 1 1 2 . 8 0 6 2 9 . 3 4 $ 5 , 0 8 5 . 6 0 6 1 , 0 2 7 . 2 0 2 , 3 4 7 . 2 0 Mo t o r C o a c h O p e r a t o r 2 9 1 1 U T U 0 1 0 1 1 9 . 0 7 $ 3 , 3 0 5 . 4 7 3 9 , 6 6 5 . 6 0 1 , 5 2 5 . 6 0 2 2 0 . 5 4 $ 3 , 5 6 0 . 2 7 4 2 , 7 2 3 . 2 0 1 , 6 4 3 . 2 0 3 2 2 . 0 1 $ 3 , 8 1 5 . 0 7 4 5 , 7 8 0 . 8 0 1 , 7 6 0 . 8 0 4 2 4 . 9 4 $ 4 , 3 2 2 . 9 3 5 1 , 8 7 5 . 2 0 1 , 9 9 5 . 2 0 5 2 6 . 4 1 $ 4 , 5 7 7 . 7 3 5 4 , 9 3 2 . 8 0 2 , 1 1 2 . 8 0 6 2 9 . 3 4 $ 5 , 0 8 5 . 6 0 6 1 , 0 2 7 . 2 0 2 , 3 4 7 . 2 0 Mo t o r C o a c h O p e r a t o r T r a i n e e 3 9 6 1 U T U 0 0 5 1 1 6 . 1 4 $ 2 , 7 9 7 . 6 0 3 3 , 5 7 1 . 2 0 1 ,291.20 Sa l a r y   S c h e d u l e   f o r   J a n u a r y   9 ,   2 0 1 8   C i t y   C o u n c i l   M e e t i n g TH E   I N T E R N A T I O N A L   A S S O C I A T I O N   O F   S H E E T   M E T A L ,   A I R ,   R A I L   A N D TR A N S P O R T A T I O N   W O R K E R S   –   T R A N S P O R T A T I O N   D I V I S I O N ,   L O C A L   1 7 8 5 REFERENCE – RESOLUTION NO. 11094 (CCS)