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A. RESOLUTION NO. 2015-259 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A MEMORANDUM OF UNDERSTANDING (“MOU”) BETWEEN THE CITY OF CHULA VISTA AND THE CHULA VISTA EMPLOYEES 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. 2015-260 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING EMPLOYER-PAID MEMBER CONTRIBUTIONS FOR EMPLOYEES IN CLASSIFICATIONS REPRESENTED BY CHULA VISTA EMPLOYEES ASSOCIATION/SEIU LOCAL 221
C. RESOLUTION NO. 2015-261 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 CHULA VISTA EMPLOYEES ASSOCIATION/SEIU LOCAL 221 AS A RESULT OF TERMINATION OF EMPLOYER-PAID MEMBER CONTRIBUTIONS FOR SAID EMPLOYEES
D. RESOLUTION NO. 2015-262 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. 2015-263 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING EMPLOYER-PAID MEMBER CONTRIBUTIONS FOR UNREPRESENTED CONFIDENTIAL EMPLOYEES WITH A REPRESENTED COUNTERPART
F. RESOLUTION NO. 2015-264 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING CESSATION OF PAYMENT, ON EMPLOYER SIDE, FOR OPTIONAL BENEFITS BY UNREPRESENTED CONFIDENTIAL EMPLOYEES WITH A REPRESENTED COUNTERPART AS A RESULT OF TERMINATION OF EMPLOYER PAID MEMBER CONTRIBUTIONS FOR SAID EMPLOYEES
G. RESOLUTION NO. 2015-265 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 EMPLOYEES ASSOCIATION/SEIU LOCAL 221, AND UNREPRESENTED CONFIDENTIAL EMPLOYEES WITH A REPRESENTED COUNTERPART (4/5 VOTE REQUIRED)
H. RESOLUTION NO. 2015-266 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 Employees Association, SEIU Local 221, expired June 30, 2015. During the past several months, negotiating teams representing CVEA 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 Confidential employees, 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 following City Council approval of 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 Employees Association, SEIU Local 221 ("CVEA/SEIU Local 221"), expired June 30, 2015. During the past several months, negotiating teams representing CVEA/SEIU Local 221 and the City have worked collaboratively toward the development a mutually beneficial MOU.
The City and CVEA/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, 2017), 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: November 10, 2015 to June 30, 2017
2. Salary Adjustments:
• 2% effective the beginning of the pay period following ratification by CVEA and approval by City Council of the MOU via resolution in open session.
• 2% in the first full pay period of July, 2016.
• 1% in the first full pay period of April, 2017.
3. Elimination of EPMC on October 28, 2016.
4. Incorporate reopener language regarding the Affordable Care Act (ACA).
The proposed salary and benefit enhancements were ratified by a majority of the CVEA/SEIU Local 221 membership on November 4, 2015.
Unrepresented 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 Confidential employee group.
Salary and benefit adjustments for these unrepresented employees with a represented counterpart (referenced in attachment 3 of the Amended Compensation Summary for Unrepresented Employees) are the following:
• Salary Adjustments for Unrepresented Confidential Employees:
- 2% effective November 13, 2015.
- 2% in the first full pay period of July, 2016.
- 1% in the first full pay period of April, 2017.
• Elimination of EPMC effective October 28, 2016, for those classifications referenced in Attachment 3 of the Amended Compensation Summary for Unrepresented Employees.
Termination of Employer Paid-Member Contributions
The City presently pays 8%, on the employee side, for retirement benefits for employees represented by CVEA/SEIU Local 221 as well as unrepresented Confidential Employees with a represented counterpart resulting in Employer Paid Member Contributions (“EPMC”) and employees represented by CVEA/SEIU Local 221 as well as unrepresented Confidential Employees with a represented counterpart presently pay, on the employer side, 8% for CalPERS optional benefits.
Pursuant to Government Code section 20691, effective October 28, 2016, the City will cease to pay 8%, on the employee side, for retirement benefits for employees represented by CVEA/SEIU Local 221 and employees in classifications referenced in Attachment 3 of the Amended Compensation Summary for Unrepresented Employees, resulting in 8% payment by the aforementioned employees, 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% 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 November 3, 2015.
Approval of Resolution H will approve the revised Compensation Schedule to reflect the salary adjustment for the Chula Vista Employees Association and unrepresented Confidential employees with a represented counterpart effective November 13, 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 Chula Vista Employees Association/SEIU LOCAL 221 (“CVEA/SEIU LOCAL 221”) and Unrepresented Confidential employees with a represented counterpart is approximately $0.4 million for all funds (General Fund and other funds).
General Fund Fiscal Impact -Staff has reviewed revenues in preparation for the fiscal year 2015-16 first quarter financial report and has taken into account (1) current revenue trends, (2) the County’s information regarding assessed property values (AV) for the City of Chula Vista, and (3) updated baseline projections based on fiscal year 2014-15 year-end actuals. In total, projected General Fund discretionary revenues are anticipated to have a net positive increase of $0.85 million. As reflected in the First Quarter Financial report, the increase is due to improved motor vehicle license fee, Transient Occupancy Tax, real property transfer tax, rental leases buildings revenues, and a net increase in property tax. These revenue increases are partially offset with a projected decrease in the Other Revenue category.
The table below summarizes the General Fund first quarter projections and approved and pending salary adjustment appropriations. Based on activity through the end of the first quarter, the General Fund is projected to end the fiscal year with a small increase in fund balance ($0.27 million).
The estimated General Fund implementation costs related to the CVEA/SEIU Local 221 and Unrepresented Confidential employees with a represented counterpart salary increases is approximately $0.3 million. At this time staff is requesting an appropriation of $0.3 million 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 recommended appropriations for the General Fund also include a transfer from the General Fund to the Local Law Enforcement Block Grant Fund. The Local Law Enforcement Block Grant Fund is not able to absorb the increased personnel costs as a result of this salary increase. This transfer is reflected in Non Departmental on the table above.
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 following funds will be made from the available fund balance of each fund - Environmental Services, CV Housing Authority, Central Garage, Development Services Fund, and Sewer Service Revenue (Wastewater).
The appropriation for the Federal Grants Fund will be offset by FY15 UASI-preplans grant revenue. As discussed previously, the appropriation for the Local Law Enforcement Block Grant Fund will be offset by a transfer from the General Fund.
ONGOING FISCAL IMPACT
EPMC will be eliminated as part of the agreement effective October 28, 2016 and therefore will have no savings generated in the current fiscal year. Savings as a result of the elimination of EPMC, as well as the annualized costs for the salary changes 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 agreements with MM/PROF/SEIU Local 221, WCE, and CVEA/SEIU Local 221. The City is projecting a net increase in discretionary revenues for fiscal year 2015-16 that will help mitigate the impact of the wage increases; however, a deficit is still projected for the forecast period (Fiscal Year 2016 to Fiscal Year 2020). 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 Employees Association, SEIU Local 221 (CVEA/SEIU Local 221), November 10, 2015 - June 30, 2017
(2) Amended Compensation Summary for Unrepresented Employees
(3) Revised Fiscal Year 2015-2016 Compensation Schedule
Staff Contact: Courtney Chase