SR 01-09-2018 3C
City Council Report
City Council Meeting: January 9, 2018
Agenda Item: 3.C
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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.
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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
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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.
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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
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REFERENCE –
RESOLUTION NO.
11094 (CCS)