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A. RESOLUTION NO. 2015-227 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF CHULA VISTA AND THE CHULA VISTA MID- MANAGERS/PROFESSIONAL ASSOCIATION/SEIU LOCAL 221, RELATED TO COMPENSATION AND OTHER TERMS AND CONDITIONS OF EMPLOYMENT; AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE AFOREMENTIONED MOU AND ANY ADDITIONAL DOCUMENTS WHICH MAY BE NECESSARY OR REQUIRED TO IMPLEMENT SAID MOU
B. RESOLUTION NO. 2015-228 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING EMPLOYER-PAID MEMBER CONTRIBUTIONS FOR EMPLOYEES IN CLASSIFICATIONS REPRESENTED BY MID-MANAGERS/ PROFESSIONAL ASSOCIATION/SEIU LOCAL 221
C. RESOLUTION NO. 2015-229 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING CESSATION OF PAYMENT, ON EMPLOYER SIDE, FOR OPTIONAL BENEFITS BY EMPLOYEES IN CLASSIFICATIONS REPRESENTED BY MID-MANAGERS/PROFESSIONAL ASSOCIATION/SEIU LOCAL 221 AS A RESULT OF TERMINATION OF EMPLOYER-PAID MEMBER CONTRIBUTIONS FOR SAID EMPLOYEES
D. RESOLUTION NO. 2015-230 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE AMENDED COMPENSATION SUMMARY FOR UNREPRESENTED EMPLOYEES INCLUDING AUTHORIZATION FOR THE MAYOR TO EXECUTE ANY NECESSARY CONTRACT AMENDMENTS TO IMPLEMENT SAID AMENDED COMPENSATION SUMMARY
E. RESOLUTION NO. 2015-231 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING EMPLOYER-PAID MEMBER CONTRIBUTIONS FOR UNREPRESENTED MID-MANAGERS, PROFESSIONALS, AND CONFIDENTIAL EMPLOYEES WITHOUT A REPRESENTED COUNTERPART
F. RESOLUTION NO. 2015-232 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING CESSATION OF PAYMENT, ON EMPLOYER SIDE, FOR OPTIONAL BENEFITS BY UNREPRESENTED MID-MANAGERS, PROFESSIONALS, AND CONFIDENTIAL EMPLOYEES WITHOUT A REPRESENTED COUNTERPART AS A RESULT OF TERMINATION OF EMPLOYER-PAID MEMBER CONTRIBUTIONS FOR SAID EMPLOYEES
G. RESOLUTION NO. 2015-233 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE FISCAL YEAR 2015-2016 BUDGET TO ACCOUNT FOR THE PROPOSED SALARY INCREASE FOR THE CHULA VISTA MID-MANAGERS/PROFESSIONAL ASSOCIATION, SEIU LOCAL 221, AND UNREPRESENTED MID-MANAGERS, PROFESSIONALS, AND CONFIDENTIAL EMPLOYEES WITHOUT A REPRESENTED COUNTERPART (4/5 VOTE REQUIRED)
H. RESOLUTION NO. 2015-234 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE REVISED FISCAL YEAR 2015-2016 COMPENSATION SCHEDULE AS REQUIRED BY CALIFORNIA CODE OF REGULATIONS, TITLE 2, SECTION 570.5
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RECOMMENDED ACTION
Recommended Action
Council adopt the resolutions.
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SUMMARY
The Memorandum of Understanding (MOU) between the City of Chula Vista and the Chula Vista the Chula Vista Mid-Managers/Professional Association, SEIU Local 221, expired June 30, 2015. During the past several months, negotiating teams representing MM/PROF and the City have worked collaboratively toward the development a mutually beneficial MOU. Agreement was reached on the term of the MOU, salary adjustments, the elimination of Employer Paid Member Contributions (EPMC), and Affordable Care Act (ACA) reopener language. Staff also recommends that these salary and benefit adjustments be extended to unrepresented Mid-Managers and Professionals, including elimination of EPMC.
Additionally, staff is recommending an appropriation to the Fiscal Year 2015-2016 budget to address salary changes effective the beginning of the pay period in which the City Council approves the MOU, and approval of the revised Compensation Schedule to reflect the salary adjustments.
ENVIRONMENTAL REVIEW
The Development Services Director has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378(b)(2) of the State CEQA Guidelines because it is a personnel related action; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary.
BOARD/COMMISSION RECOMMENDATION
NA
DISCUSSION
The Memorandum of Understanding (MOU) between the City of Chula Vista and the Chula Vista the Chula Vista Mid-Managers/Professional Association, SEIU Local 221 (MM/PROF/SEIU Local 221), expired June 30, 2015. During the past several months, negotiating teams representing MM/PROF/SEIU Local 221 and the City have worked collaboratively toward the development a mutually beneficial MOU.
The City and MM/PROF/SEIU Local 221 bargaining unit have met and conferred in good faith, as required by the Meyers-Milias-Brown Act (Govt. Code Section 3500 et. seq.; “MMBA”) and reached the agreement with regards to the MOU term (to expire June 30, 2018), salary adjustments, elimination of EPMC after one year of the agreement and Affordable Care Act (ACA) reopener language. Below is a summary of the agreement reached:
1. Term and Effect: October 6, 2015 to June 30, 2018
2. Salary Adjustments:
• 2% or salary adjustment to the Second Quartile (50%) based on the January 2015 salary survey, whichever is greater, effective the pay period beginning October 2, 2015.
• 2% in the first full pay period of July, 2016.
• 2% in the first full pay period of July, 2017.
3. Elimination of EPMC the pay period beginning September 30, 2016.
4. Incorporate reopener language regarding the Affordable Care Act (ACA).
The proposed salary and benefit enhancements were ratified by a majority of the MM/PROF/SEIU Local 221 membership on September 30, 2015.
Unrepresented Mid-Managers, Professionals and Confidential Employees
The City workforce consists of both represented and unrepresented employees. It has long been a practice of the City (with few exceptions) to update the compensation and benefit summary for unrepresented employees (the same or similar benefit provided to represented employees) after the ratification of the respective represented bargaining units’ MOU. The affected unrepresented employees are in the following employee groups: Confidential, Confidential Mid-Managers, Confidential Professional, Unclassified Mid-Managers, and Unclassified Professional.
Salary and benefit adjustments for these unrepresented employees are the following:
• Salary Adjustments for Unrepresented Mid-Managers, Professionals and Confidential Employees without a represented counterpart:
- 2% or salary adjustment to the Second Quartile (50%) based on the 2015 salary survey.
- 2% in the first full pay period of July, 2016.
• Elimination of EPMC effective the pay period beginning October 2, 2015, for those classifications referenced in Attachment 2 of the Amended Compensation Summary for Unrepresented Employees.
Termination of Employer Paid-Member Contributions
The City presently pays 8% (and 9% for public safety), on the employee side, for retirement benefits for (represented and unrepresented) Mid-Managers, Professionals, and Confidential Employees resulting in Employer Paid Member Contributions (“EPMC”) and (represented and unrepresented) Mid-Managers, Professionals, and Confidential Employees presently pay, on the employer side, 8% (9% for public safety) for CalPERS optional benefits.
Pursuant to Government Code section 20691, effective October 2, 2015, the City will cease to pay 8% (9% for public safety), on the employee side, for retirement benefits for classifications referenced in Attachment 2 of the Amended Compensation Summary for Unrepresented Employees, resulting in 8% (9% for public safety) payment by the aforementioned unrepresented classifications, on the employee side, for employee contributions for retirement benefits (which they had not been required to pay) and said action will result the elimination of EPMC. Correspondingly, the requirement that those employees pay, on the employer side, 8% (9% for public safety) for optional benefits will simultaneously be terminated.
Furthermore, effective September 30, 2016, the City will cease to pay 8% (9% for public safety), on the employee side, for retirement benefits for Mid-Managers and Professionals and Unrepresented Mid-Managers and Professionals with a represented counterpart, resulting in 8% (9% for public safety) payment by the Mid-Managers and Professionals and Unrepresented Mid-Managers and Professionals with a represented counterpart, on the employee side, for employee contributions for retirement benefits (which they had not been required to pay) and said action will result in the cessation of EPMC. Correspondingly, the requirement that those employees pay, on the employer side, 8% (9% for public safety) for optional benefits will simultaneously be terminated.
Compensation Schedule
California Code of Regulations, Title 2, Section 570.5 requires that, for purposes of determining a retiring employee's pension allowance, the pay rate be limited to the amount listed on a pay schedule that meets certain requirements and be approved by the governing body in accordance with the requirements of the applicable public meeting laws. The Fiscal Year 2015-2016 Compensation Schedule ("Compensation Schedule") was originally approved by the City Council at their meeting of June 16, 2015 and most recently revised and adopted by the City Council on September 15, 2015.
Approval of Resolution F will approve the revised Compensation Schedule to reflect the salary adjustment for the Chula Vista Mid-Managers/Professional Association, unrepresented Mid-Managers and Professionals, and Confidential employees without a represented counterpart effective October 2, 2015, in compliance with California Code of Regulations, Title 2, Section 570.5.
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently, the 500-foot rule found in California Code of Regulations section 18704.2(a)(1), is not applicable to this decision. Staff is not independently aware, and has not been informed by any Council name] member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter.
LINK TO STRATEGIC GOALS
The City’s Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. These changes support City Initiative 1.2.3 Retain and attract quality employees under the Operational Excellence goal. Employee compensation is instrumental to recruiting and retaining quality employees. Furthermore, approval of the revised Fiscal Year 2015-2016 Compensation Schedule and its posting on the City's internet website also supports the goal of Operational Excellence as it enhances disclosure and transparency of employee compensation and, as a result, fosters public trust through an open and ethical government.
CURRENT YEAR FISCAL IMPACT
The fiscal year 2015-16 implementation costs related to salary increases for MM/PROF/SEIU Local 221, unrepresented Mid-Managers and Professionals, and Confidential employees without a represented counterpart is approximately $380,000 for all funds. The elimination of EPMC for unrepresented Mid-Managers, Professionals, and Confidential employees without a represented counterpart will result in a budgetary savings of approximately $52,000 for all funds.
General Fund Fiscal Impact - Since the adoption of the budget, the City received information from the County regarding assessed property values (AV) for the City of Chula Vista. The adopted budget reflected 4% growth in AV; however, based on the County’s most recent report the City should experience 5.6% growth in AV. This increase equates to approximately $0.7 million in additional motor vehicle license fee and property tax revenues. Staff recommends allocating a portion of these funds to address the salary increases for MM/PROF/SEIU Local 221, unrepresented Mid-Managers and Professionals, and Confidential employees without a represented counterpart.
The estimated General Fund implementation costs related to salary increases is approximately $284,000. This cost will be partially offset by budgetary savings due to the elimination of EPMC for unrepresented Mid-Managers, Professionals, and Confidential employees without a represented counterpart, which is estimated at $39,000. At this time staff is requesting an appropriation of $245,000 to the General Fund for the recommended salary increases which will be offset by unanticipated revenues.
The tables below outline the appropriation amounts by department and fund.
Summary of General Fund Appropriations
The above requested General Fund appropriations results in a no net fiscal impact to the General Fund due to unanticipated revenues.
Other Funds - Staff is also requesting appropriations to address the salary increases for positions budgeted outside of the General Fund. The table below reflects the recommended appropriations by fund.
Summary of Other Fund Appropriations
Appropriations for the above funds will be made from the available fund balance of each fund. In addition to the above funds, the Advanced Life Support Program Fund, Federal Grants Fund, and Police Grants Fund will have a net impact of $2,208, $1,642, and $21,557 respectively. However, no budget amendments for these funds are being requested at this time, as there are sufficient savings projected in these funds to absorb these costs.
ONGOING FISCAL IMPACT
The annualized costs for the salary changes and the elimination of EPMC will be incorporated into the fiscal year 2016-17 baseline budget and will be brought to Council for approval as part of the normal budget process.
The Five Year Financial Forecast for the General Fund that was presented to the City Council in May 2015 indicated a deficit during the forecast period. Since then, the City has reached an agreement with MM/PROF/SEIU Local 221. The City received positive information regarding assessed values that will help mitigate the impact of the wage increases; however, a deficit is still projected for the forecast period. The Five Year Financial Forecast for the General Fund will be updated once fiscal year 2014-15 has been closed, updated revenue information is received, and negotiations with the bargaining groups have concluded. The updated Five Year Financial Forecast will be provided to City Council later this year.
ATTACHMENTS
(1) Memorandum of Understanding (MOU) between the City of Chula Vista and the Chula Vista Mid-Managers/Professional Association, SEIU 221 Local 221 (MM/PROF/SEIU Local 221), October 6, 2015 - June 30, 2018
(2) Amended Compensation Summary for Unrepresented Employees
(3) Revised Fiscal Year 2015-2016 Compensation Schedule
Staff Contact: Courtney Barrett