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SR 12-19-2023 5N City Council Report City Council Meeting: December 19, 2023 Agenda Item: 5.N 1 of 3 To: Mayor and City Council From: Oles Gordeev, Acting Director of Human Resources, Human Resources Department Subject: Adoption of a Resolution Accepting Tentative Agreement and Authorizing the City Manager to Negotiate and Execute Side Letter of Agreement with the Coalition of Santa Monica Employees (Coalition) Recommended Action Staff recommends that the City Council: 1. Adopt a finding of categorical exemption pursuant to Section 15324 (Class 24 Regulations of Working Conditions) of the California Environmental Quality Act (CEQA) Guidelines; 2. Adopt the proposed Resolution (Attachment A) accepting the tentative agreement and authorizing the City Manager to negotiate and execute a Side Letter of Agreement with the Coalition of Santa Monica Employee (Coalition). 5.N Packet Pg. 389 2 of 3 Summary In accordance with the Meyers-Milias-Brown Act (MMBA), the City and the Coalition of Santa Monica Employees (Coalition) have met and conferred and have reached a Tentative Agreement (TA) on the terms and conditions of medical benefits for miscellaneous employees. Discussion The overall policy of the City has been to maintain competitive benefits and working conditions in a high-cost geographic labor market to attract and retain a 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 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 Coalition represents all City employees, with the exception of Police and Fire. On June 23, 2020, the City and the Coalition entered into an Umbrella Agreement governing medical benefits. The terms of the Umbrella Agreement are set to expire on December 31, 2023. The substantive change to be effectuated to the Umbrella Agreement by this Amendment will shorten the time new hires are eligible for medical benefits, as follows: • The current rule in the Umbrella Agreement is that the effective date of medical benefits for employees hired by the City is the first day of the month following 30 calendar days of employment. Effective January 1, 2024, the new rule will be that the effective date of medical benefits for employees hired by the City is the first day of the month following an employee’s date of hire. The City met and conferred with the Coalition in accordance with the provisions of the MMBA, and the parties have reached a tentative agreement to amend the Umbrella Agreement with the proposed term. 5.N Packet Pg. 390 3 of 3 The terms of the proposed amendment to the Umbrella Agreement continue to keep the City in alignment with our 11 comparable peer cities while simultaneously preserving a level of benefits that will keep the City competitive in a tight labor market. Peer cities include Anaheim, Beverly Hills, Burbank, Culver City, El Segundo, Glendale, Inglewood, Pasadena, Redondo Beach, Santa Barbara and Torrance. The City of Los Angeles and County of Los Angeles may also be included as a comparable agency depending on the classifications being surveyed. Environmental Review The negotiated changes to medical insurance coverage are categorically exempt pursuant to Section 15324 (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 recommended action contained in the Amendment presented in this report does not result in an additional financial impact to the City. The annual cost of fringe benefits for each budgeted position is already included in the City’s adopted budget. Prepared By: Oles Gordeev, Acting Director of Human Resources Approved Forwarded to Council Attachments: A. 12.19.23 Coalition Roll-Over Resolution 5.N Packet Pg. 391 1 City Council Meeting: December 19, 2023 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 SIDE LETTER OF AGREEMENT WITH THE COALITION OF SANTA MONICA CITY EMPLOYEES WHEREAS, authorized representatives of the City administration and the Coalition of Santa Monica Employees, 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 December 19, 2023, the tentative agreement reached between authorized representatives of the City administration and the Coalition of Santa Monica Employees 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 WHEREAS, the purpose of the Side Letter of Agreement is to promote and provide harmonious relations, cooperation, and understanding between the City and the Coalition of Santa Monica Employees; 5.N.a Packet Pg. 392 Attachment: 12.19.23 Coalition Roll-Over Resolution [Revision 1] (6180 : Side Letter of Agreement with the Coalition of Santa Monica 2 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 Coalition of Santa Monica Employees and authorizes the City Manager to execute a Side Letter of Agreement with the Coalition of Santa Monica Employees 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.N.a Packet Pg. 393 Attachment: 12.19.23 Coalition Roll-Over Resolution [Revision 1] (6180 : Side Letter of Agreement with the Coalition of Santa Monica