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SR 08-23-2022 5P City Council Report City Council Meeting: August 23, 2022 Agenda Item: 5.P 1 of 3 To: Mayor and City Council From: Lori Gentles, Chief People Officer, Human Resources Department Subject: Adoption of a Resolution accepting the tentative agreement and authorizing the City Manager to negotiate and execute a 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 proposed Resolution (Attachment A) accepting the tentative agreement and authorizing the City Manager to negotiate and execute a Memorandum of Understanding with the International Association of Sheet Metal, Air, Rail and Transportation Workers, Transportation Division, Local 1785(SMART-TD); 2. Adopt the salary schedule (Attachment B); and 3. Authorize budget changes as outlined in the Financial Impacts & Budget Actions section of this report. Summary In accordance with the Meyers-Milias-Brown Act (MMBA), negotiations between the City and the International Association of Sheet Metal, Air, Rail and Transportation Workers, Transportation Division, Local 1785 (SMART-TD), have resulted in a Tentative Agreement (TA) regarding a successor Memorandum of Understanding (MOU). SMART-TD has finalized the ratification voting process, approving the terms of the TA. City staff recommends that the Council approve the ratified TA to establish the successor agreement between the City and SMART-TD. 5.P Packet Pg. 172 2 of 3 Discussion The MOU between the City and each bargaining unit establishes wages, hours, and other terms and conditions of employment. Under the Meyers-Milias-Brown Act (MMBA) in California, local public agencies negotiate with exclusively recognized employee organizations on wages, hours, and working conditions. The City currently is still in negotiations with one of these employee organizations (often referred to as bargaining groups or unions) whose contract with the City expired on June 30, 2022. The overall policy of the City has been to maintain competitive benefits and working conditions in a high-cost geographic labor market in order to retain and attract a high- quality workforce 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 region of similar size and financial strength for labor market comparisons. The terms of this tentative agreement bring the City closer in alignment with our comparable peer transit agencies while simultaneously preserving a level of benefits that will keep the City of Santa Monica competitive in a tight labor market. Peer agencies include Long Beach Transit, Los Angeles County Metro, Culver City, Gardena and Torrance. The substantive changes for the TA with SMART-TD are outlined below: • Term of Agreement: July 1, 2022, through June 30, 2025. • Closest Pay Period following Council adoption (August 28, 2022) = 7% salary increase plus a one-time signing bonus of $2,500 • July 1, 2023 = 3% salary increase • July 1, 2024 = 3% salary increase. • Add Cesar Chavez and Juneteenth as paid holidays. • Increase to annual lump sum Uniform Voucher from $400 to $580 • Compensation study to be conducted by January 1, 2025 5.P Packet Pg. 173 3 of 3 Financial Impacts and Budget Actions The total cost of the negotiated changes contained in the tentative agreement presented in this report is approximately $2,812,000 for FY 2022-23 in the Big Blue Bus (BBB) Fund. If the changes are approved, funding for the FY 2022-23 changes will be appropriated in non-Departmental accounts in the BBB Fund. The funds will be transferred to the corresponding accounts in the Department of Transportation budget along with the FY 2021-22 Year-end Budget changes being presented to Council on October 25, 2022. Prepared By: Sarah Rebensdorf, Senior Human Resources Analyst Approved Forwarded to Council Attachments: A. SMART-TD TA RESO 8.23.22 B. SMT FY22-23 Salary Schedule COLA 7% 5.P Packet Pg. 174 1 City Council Meeting: August 23, 2022 Santa Monica, California RESOLUTION NUMBER _________ (CCS) (City Council Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA ACCEPTING THE TENTATIVE AGREEMENT AND AUTHORIZING THE CITY MANAGER TO EXECUTE A MEMORANDUM OF UNDERSTANDING WITH THE INTERNATIONAL ASSOCIATION OF SHEET METAL, AIR, RAIL, AND TRANSPORTATION WORKERS – TRANSPORTATION DIVISION, LOCAL 1785 WHEREAS, authorized representatives of the City administration and the International Association of Sheet Metal, Air, Rail, and Transportation Workers – Transportation Division, Local 1785 (“SMART-TD”) have met and conferred in accordance with the Meyers-Millias Brown Act (“MMBA”), codified at Government Code Section 3500 et seq., and have reached agreement on wages, hours, and other terms and conditions of employment; and WHEREAS, in accordance with Government Code Section 3505.1, on August 23, 2022, the tentative agreement reached between authorized representatives of the City administration and SMART-TD was presented to the City Council of the City of Santa Monica for consideration; and WHEREAS, Government Code Section 3505.1 requires preparation of a written Memorandum of Understanding between the City and the employee organization if a tentative agreement is reached and adopted by the City Council; and 5.P.a Packet Pg. 175 Attachment: SMART-TD TA RESO 8.23.22 [Revision 1] (5301 : SMART-TD MOU 2022) 2 WHEREAS, the purpose of each Memorandum of Understanding is to promote and provide harmonious relations, cooperation, and understanding between the City and Teamsters. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS: SECTION 1. The City Council of the City of Santa Monica hereby accepts and approves the tentative agreement that has been reached between authorized representatives of the City administration and the International Association of Sheet Metal, Air, Rail, and Transportation Workers – Transportation Division, Local 1785 (“SMART-TD”) and authorizes the City Manager to execute a Memorandum of Understanding with SMART-TD (FY2022-2025), in accordance with this agreement. SECTION 2. The City Clerk shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect. APPROVED AS TO FORM: _________________________ DOUGLAS SLOAN City Attorney 5.P.a Packet Pg. 176 Attachment: SMART-TD TA RESO 8.23.22 [Revision 1] (5301 : SMART-TD MOU 2022) Intl' Assoc of Sheet Metal, Air, Rail and Transp Workers (SMART-TD) Salary Schedule for August 23, 2022 City Council Meeting Class Code BU Grade Step Hourly Rate Monthly Rate Annual Rate Bi weekly Rate 010 1 22.66 3,927.73 47,132.80 1,812.80 010 2 24.28 4,208.53 50,502.40 1,942.40 010 3 25.90 4,489.33 53,872.00 2,072.00 010 4 27.51 4,768.40 57,220.80 2,200.80 010 5 29.13 5,049.20 60,590.40 2,330.40 010 6 32.37 5,610.80 67,329.60 2,589.60 010 1 22.66 3,927.73 47,132.80 1,812.80 010 2 24.28 4,208.53 50,502.40 1,942.40 010 3 25.90 4,489.33 53,872.00 2,072.00 010 4 27.51 4,768.40 57,220.80 2,200.80 010 5 29.13 5,049.20 60,590.40 2,330.40 010 6 32.37 5,610.80 67,329.60 2,589.60 Class Title MOTOR COACH OPER (LATERAL TRN) 0011 SMT MOTOR COACH OPERATOR 0010 SMT 5.P.b Packet Pg. 177 Attachment: SMT FY22-23 Salary Schedule COLA 7% (5301 : SMART-TD MOU 2022)