Title
A. RESOLUTION NO. 2017-129 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A MEMORANDUM OF UNDERSTANDING (MOU) BETWEEN THE CITY OF CHULA VISTA AND THE WESTERN COUNCIL OF ENGINEERS (WCE), 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. 2017-130 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE REVISED FISCAL YEAR 2017-2018 COMPENSATION SCHEDULE EFFECTIVE JULY 7, 2017, AS REQUIRED BY CALIFORNIA CODE OF REGULATIONS, TITLE 2, SECTION 570.5, TO REFLECT SALARY ADJUSTMENTS FOR EMPLOYEES IN THE WESTERN COUNCIL OF ENGINEERS (“WCE”) BARGAINING UNIT
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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 Western Council of Engineers (“WCE”) expired June 30, 2017. During the past several months, negotiating teams representing WCE and the City have worked collaboratively toward the development a mutually beneficial MOU. An agreement was reached on the term of the MOU, wages, and other terms and conditions of employment and is being submitted for City Council consideration. Staff recommends approval of the MOU.
ENVIRONMENTAL REVIEW
Environmental Notice
Environmental Notice
The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
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Environmental Determination
The Director of Development Services 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 of the State CEQA Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is required.
BOARD/COMMISSION RECOMMENDATION
Not Applicable
DISCUSSION
The Memorandum of Understanding (MOU) between the City of Chula Vista and the Western Council of Engineers ("WCE") expired June 30, 2017. During the past several months, negotiating teams representing WCE and the City have worked collaboratively toward the development a mutually beneficial MOU.
The City and WCE 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 an agreement with regards to the MOU term (to expire June 30, 2020), wages, and other terms and conditions of employment, a copy of which is attached to this staff report. Below is a summary of the agreement reached:
1. Term and Effect: July 11, 2017 to June 30, 2020
2. Wages:
• 2% effective the first full pay period of July, 2017
• 2% effective the first full pay period of July, 2018
• 2% effective the first full pay period of July, 2019
• In consideration of reduced maximum taxable cash option of flexible benefits all employees in the bargaining unit will receive a $1,000 stipend effective the first full pay period of July, 2017.
3. Flexible Benefits - Cafeteria Plan Allotment:
• Reduce maximum taxable cash option to the following:
- $8,000 maximum for 2018
- $4,000 maximum for 2019
• Eliminate blended rate for those who retire by a specific date when all bargaining units agree, but no sooner than July 1, 2020
• Increase Cafeteria Plan Allotment for Employee Only and those employees who opt-out to $13,024.
4. Retirement: Employees in Tier 1 or 2 CalPERS pension program will contribute up to an additional 1% towards pension cost sharing, in up to 1% per year increments until equal cost sharing is reached. The actual percentage will be based on the City’s Actuary’s determination.
The tentative agreement was ratified by a majority of the WCE membership on July 7, 2017.
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 2017-2018 Compensation Schedule ("Compensation Schedule") was originally approved by the City Council at their meeting of June 20, 2017. Approval of Resolution B will approve the revised Compensation Schedule to reflect the salary adjustment for the Western Council of Engineers effective July 7, 2017, 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 2017-2018 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 proposed MOU changes for WCE represented employees would increase the City’s annual ongoing operating costs in fiscal year 2018 by an estimated net $81,163. Of this amount $50,657 is the estimated General Fund impact, $23,309 is the estimated Development Services Fund impact, and $7,196 is the estimated Sewer Fund impact. During the budget development process, staff included a projected 2% wage inflation which is reflected in the final fiscal year 2018 adopted budget. Therefore, there is no anticipated budget impact related to the fiscal year 2018 salary increases.
Other changes, including the additional PERS employee contribution and the one-time stipend were not included in the fiscal year 2018 budget. These changes net to approximately $9,700. Staff is not requesting an appropriation at this time and will return to Council with a budget adjustment during the fiscal year, should one be required.
ONGOING FISCAL IMPACT
The proposed salary changes for WCE represented employees would increase the City’s annual ongoing operating costs in fiscal year 2019 by an estimated $115,649, of which most is anticipated to be a General Fund Impact.
The fiscal impacts related to the proposed MOU changes scheduled for fiscal years 2019 and 2020 will be incorporated into the budgets for those fiscal years. The anticipated impacts as a result of these changes are noted in the table below:
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)
ATTACHMENTS
(1) Memorandum of Understanding (MOU) between the City of Chula Vista and the Western Council of Engineers (WCE), July 11, 2017 - June 30, 2020
(2) Revised Fiscal Year 2017-2018 Compensation Schedule
Staff Contact: Courtney Chase