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August 20, 2024
ITEM TITLE
Employee Compensation, Bargaining Agreement and Budget Amendments: Approve a Memorandum of Understanding with the Association of Chula Vista Employees , Compensation Summary for Unrepresented Employees, Revised Compensation Schedule, and Budget Amendments Report Number: 24-0231
Location: No specific geographic location
Department: Human Resources
G.C. § 84308: No
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.
Recommended Action
Adopt resolutions: A) approving a Memorandum of Understanding (“MOU”) between the City of Chula Vista and the Association of Chula Vista Employees ( “ACE”) related to compensation and other terms and conditions of employment; B) approving the amended Compensation Summary for Unrepresen ted Employees; C) approving the revised fiscal year 2024-25 Compensation Schedule effective August 23, 2024, as required by California Code of Regulations, Title 2, Section 570.5; and D) amending the fiscal year 2024- 25 budget to appropriate funds, accordingly. (4/5 Vote Required)
SUMMARY
The Memorandum of Understanding (“MOU”) between the City of Chula Vista and the Association of Chula Vista Employees (“ACE”) expired on June 30, 2024. Over a three-month period, representatives from ACE and the City have worked collaboratively toward the development of a mutually beneficial MOU. An agreement was reached on a successor MOU to include the term of the MOU, salary and equity adjustments, and various provisions of the MO U. Salary adjustments for positions represented by ACE, as well as their hourly counterparts, necessitate amendments to the City’s Compensation Schedule. Staff also recommends that these salary and benefit adjustments be extended to unrepresented Confidential employees.
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ENVIRONMENTAL REVIEW
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/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
ACE Memorandum of Understanding
The MOU between the City of Chula Vista and ACE expired on June 30, 2024. Over the last three months, representatives from ACE and the City have worked collaboratively toward the development of a mutually beneficial MOU.
The City and ACE have met and conferred in good faith, as required by the Meyers -Milias-Brown Act (Govt.
Code Section 3500 et. seq.; “MMBA”) and reached agreement on the terms of a successor MOU, including the term of the MOU (to expire June 30, 2027), salary and equity adjustments, increased professional enrichment funds, increased tool allowance for mechanics, amend ed Certification Pay, eliminat ion of member dues deduction fee s, and language clean -up to various provisions of the MOU. Below is a summary of the significant points of the agreement reached:
1. Term and Effect: August 20, 2024 to June 30, 2027
2. Salary and Equity Adjustments
a. Equity adjustments to the median plus a 2% salary increase, or 5% (whichever is higher) in the first full pay period following City Council approval via resolution in open session b. 5% salary increase the first full pay period of July 2025 c. 5% salary increase the first full pay period of July 2026
3. Professional Enrichment
Increase fund to $100,000 per fiscal year
4. Tool Allowance
Increase to $1,070 per fiscal year for mechanics
5. Certification Pay
Effective the first full pay period July 2025, $20 per certification per pay period; maximum of four (4) job-related certifications
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6. Member Dues Deduction Fee
Eliminate member dues deduction fee of $0.10 per pay period The ACE membership is scheduled to ratify their vote on a successor MOU to include the proposed salary and benefits on August 20, 2024.
Adoption of Resolution A approves the MOU between the City of Chula Vista and ACE, related to compensation and other terms and conditions of employment and authorizes the City Manager to execute the aforementioned MOU and any additional documents which may be n ecessary or required to implement said MOU.
Compensation Summary for Unrepresented 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 compensat ion and benefit summary for unrepresented employees the same or similar benefit provided to represented employees. The affected unrepresented employees are in the Confidential employee group.
Salary and benefit adjustments for these unrepresented employees are the following:
1. Salary and Equity Adjustments
a. Equity adjustments to the median plus a 2% salary increase from the July 14, 2023 salary (less any increase already provided effective July 12, 2024) or 5% (whichever is higher) in the first full pay period following City Council approval via resolution in open session b. 5% salary increase the first full pay period of July 2025 c. 5% salary increase the first full pay period of July 2026 Adoption of Resolution B will approve the revised Compensation Summary for Unrepresented Employees to reflect this change.
Compensation Schedule Requirement
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 amo unt 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 2024-25 Compensation Schedule (“Compensation Schedule”) was approved by the City Council at their meeting of July 16, 2024.
Adoption of Resolution C approves the revised Compensation Schedule effective August 23, 2024, which reflects the salary adjustments for positions represented by ACE, their unclassified hourly counterparts and the salary adjustments for unrepresented Confidential employees.
Budget Amendments
Approval of Resolution D amends the fiscal year 2024-25 adopted budget, appropriating funds for the related contract and compensation summary amendments.
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DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the real property holdings of the City Council members do not create a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.).
Staff is not independently aware and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
The current-year fiscal impact of this action is estimated to total $3,000,746 across all funds, as reflected in the table below:
Fund Personnel
General Fund $ 1,953,876
Measure A Fund
Transportation Grants-Gas Tax
Advanced Life Support
Federal Grants
Environmental Services
Housing Authority
Central Garage Fund
Development Services
Transport Enterprise
Sewer Service Revenue
130,416
14,467
7,271
4,380
177,028
33,445
58,364
258,863
5,306
357,330
Total Fiscal Impact $ 3,000,746
A portion of these costs were included within the fiscal year 2024 -25 adopted budget. Additional costs of $704,462 in the General Fund will be offset by increased Property Tax Revenues. Increased costs of $25,931 in the Measure A Fund, $144,238 in the Environmental Services Fund, $95,996 in the Development Services Fund, $173,304 in the Sewer fund and $35,762 across various remaining funds are anticipated to either be absorbed by salary savings or offset with additional revenues. Any necessary budgetary adjustments will be incorporated in the fiscal year quarterly financial reports.
Approval of this action amends the fiscal year 2024-25 budget, increasing appropriations in the Personnel Services expenditure category in various General Fund departments by $704,462, offset by an increase in estimated Property Tax Revenues. Staff is requesting proposed budgetary adjustments reflected in the table below:
Fund Personnel Revenue Net Impact
General Fund $ 704,462 $ 704,462 $ -
Total Budget Adjustments $ 704,462 $ 704,462 $ -
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ONGOING FISCAL IMPACT
The ongoing fiscal impact to the General Fund is estimated to total $3,289,163 in fiscal year 2025 -26 and $4,684,309 in fiscal year 2026-27. Ongoing personnel costs will be incorporated into subsequent fiscal year budgets. The fiscal impact in all funds is reflected in the table below:
Fund FY 2025-26 FY 2026-27
General Fund $ 3,289,163 $ 4,684,309
Measure A Fund
Transportation Grants-Gas Tax
Advanced Life Support
Federal Grants
Environmental Services
Housing Authority
Central Garage Fund
Development Services
Transport Enterprise
Sewer Service Revenue
240,525
22,483
12,187
8,545
217,999
56,649
108,009
433,129
8,203
557,270
353,714
30,726
17,244
12,826
260,238
80,514
159,052
617,436
11,179
767,925
Total Fiscal Impact $ 4,954,162 $ 6,995,163
ATTACHMENTS
1. Memorandum of Understanding (MOU) between the City of Chula Vista and the Association of Chula Vista Employees (“ACE”), August 20, 2024 – June 30, 2027
2. Compensation Summary for Unrepresented Employees
3. Revised Fiscal Year 2024-2025 Compensation Schedule effective August 23, 2024 Staff Contact: Tanya Tomlinson, Director of Human Resources/Risk Management