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SR 07-25-2023 5C City Council Report City Council Meeting: July 25, 2023 Agenda Item: 5.C 1 of 4 To: Mayor and City Council From: Lori Gentles, Chief People Officer, Human Resources Department Subject: Adoption of Resolution Accepting Confidential Unrepresented Employees Pay Plan 2022 Recommended Action Staff recommends that the City Council: 1. Adopt the proposed Resolution (Attachment A) accepting the Confidential Unrepresented Employees (CUE) Pay Plan; 2. Adopt a finding of Categorical Exemption pursuant to Section 15324 of the California Environmental Quality Act (CEQA) Guidelines Summary The Confidential Unrepresented Employees Pay Plan (“CUE”) covers employees who, in the course of their job duties, have regular access to confidential information relating to the City’s administration of employer-employee relations. The CUE Pay Plan recognizes the contributions of these unrepresented employees while promoting and providing harmonious relations, cooperation, and understanding between the City and the CUE participants. Discussion The Confidential Unrepresented Employees Pay Plan includes job classifications in the Finance and Human Resources Departments; employees who are participants of the CUE Pay Plan are confidential employees who, in the course of their job duties, have regular access to confidential information relating to the City’s administration of employer-employee relations. As such, these job classifications are not represented by any recognized bargaining unit in the City, but whose benefits of employment as 5.C Packet Pg. 987 2 of 4 set forth in the Pay Plan have historically been tied to the Memoranda of Understanding of various recognized bargaining units. In May 2021, employees who are participants of the CUE Pay Plan submitted a formal petition for recognition in accordance with the City’s local employer-employee relations rules, set forth in Santa Monica Municipal Code Chapter 2.05. The Employee Relations Officer (i.e., the City Manager) determined pursuant to the policy and standards set forth in Municipal Code section 2.04.090 that the proposed unit was not an appropriate unit and denied the petition. The matter was appealed, and a mediation was held before the State Mediation and Conciliation Service. As a result of mediation and subsequent communications, the City and participants of CUE have reached an agreement on a revised CUE Pay Plan, which now independently sets forth those employees’ benefits of employment, and no longer ties such terms to the Memoranda of Understanding of other bargaining units at the City. 5.C Packet Pg. 988 3 of 4 The substantive changes are outlined below: • Term of Pay Plan: July 1, 2022, through June 30, 2025 • July 1, 2022 = 4.5% salary increase plus a one-time signing bonus of $2,000, effective July 1, 2022, or the first pay period following Council approval of the MOU, whichever is later. • July 1, 2023 = 3% salary increase • July 1, 2024 = 2% salary increase • Allow for annual changes to the employee contributions for the 401(a) plan. • Tuition Reimbursement increase from $2,500 per fiscal year to $2,750 per fiscal year. • Add Cesar Chavez and Juneteenth as paid holidays • Add Confidential Premium of $165 per month for rank-and-file employees • Add City Paid State Disability Insurance • Restore Sick Leave Cash Out Environmental Review The changes to staff wages are categorically exempt pursuant to Section 15324 (Class 24 Regulations of Working Conditions) of the California Environmental Quality Act (CEQA) Guidelines. Class 24 consists of actions taken by regulatory agencies to regulate employee wages, hours of work, or working conditions where there will be no demonstrable physical changes outside the place of work. Financial Impacts and Budget Actions The estimated cost of the changes contained in the CUE Pay Plan presented in this report is approximately $240,000, which includes approximately $200,000 in ongoing costs and $40,000 in one-time costs. These costs are included in the FY 2023-25 Biennial Budget, adopted by Council on June 27, 2023. 5.C Packet Pg. 989 4 of 4 Prepared By: Sarah Rebensdorf, Senior Human Resources Analyst Approved Forwarded to Council Attachments: A. CUE RESO 7.25.23 FINAL 5.C Packet Pg. 990 ATTACHMENT A 1 City Council Meeting: July 25, 2023 Santa Monica, California RESOLUTION NUMBER _________ (CCS) (City Council Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AUTHORIZING THE CITY MANAGER TO REVISE THE CONFIDENTIAL UNREPRESENTED EMPLOYEES PAY PLAN WHEREAS, on or about May 20, 2021, employees who are participants of the Confidential Unrepresented Employees (“CUE”) Pay Plan submitted a petition for recognition in accordance with Santa Monica Municipal Code section 2.05.030; and WHEREAS, in accordance with Santa Monica Municipal Code section 2.05.090, the Employee Relations Officer determined that the proposed unit was not an appropriate unit; and WHEREAS, in accordance with Santa Monica Municipal Code section 2.05.120, employees who are participants of the CUE Pay Plan appealed the Employee Relations’ Officer’s determination and a mediation was held by the State Mediation and Conciliation Service; and WHEREAS, as a result of mediation and subsequent communications, representatives of the City and employees who are participants of the CUE Pay Plan reached an agreement on a revised CUE Pay Plan, which was presented to the City Council of the City of Santa Monica on July 25, 2023, for consideration; and 5.C.a Packet Pg. 991 Attachment: CUE RESO 7.25.23 FINAL [Revision 2] (5859 : CUE Pay Plan 2022) ATTACHMENT A 2 WHEREAS, the purpose of the Pay Plan is to promote and provide harmonious relations, cooperation, and understanding between the City and participants of the CUE Pay Plan. 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 approves and authorizes the City Manager to execute a revised Confidential Unrepresented Employees Pay Plan (FY2022-2025). 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.C.a Packet Pg. 992 Attachment: CUE RESO 7.25.23 FINAL [Revision 2] (5859 : CUE Pay Plan 2022)