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December 17, 2024
ITEM TITLE
Employee Compensation, Bargaining Agreement and Budget Amendments: Approve a Memorandum of Understanding with WCE; Salary Adjustments for Certain Unclassified Positions; Compensation Schedules; and Budget Amendments
Report Number: 24-0311
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 Western Council of Engineers (“WCE”) related to compensation and other terms and conditions of employment; B) amending the Compensation Schedule to reflect salary adjustments for certain unclassified, hourly positions impacted by the State’s minimum wage law; (C) approving the revised Fiscal Year 2024-25 Compensation Schedule effective December 17, 2024, as required by California Code of Regulations, Title 2, Section 570.5; (D) approving the revised Fiscal year 2024-25 Compensation Schedule effective January 10, 2025, as required by California Code of Regulations, Title 2, Section 570.5 and (E) 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 Western Council of Engineers (“WCE”) is set to expire on December 31, 2024. Over the last two months, representatives from WCE 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 MOU. Salary adjustments for positions represented by WCE necessitate amendments to the City’s Compensation Schedule.
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Staff is also recommending approval of the revised Fiscal Year 2024 -25 Compensation Schedule effective December 27, 2024, to reflect salary adjustments for positions represented by WCE and certain unclassified, hourly positions impacted by the State’s minimum wage law; and January 10, 2025, to reflect previously negotiated salary adjustments for certain employees represented by Non-Safety International Association of Fire Fighters, Local 2180 (Non-Safety IAFF) and their hourly counterparts. Finally, staff is recommending amending the fiscal year 2024-25 budget to appropriate funds, accordingly.
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
WCE Memorandum of Understanding
The MOU between the City of Chula Vista and Western Council of Engineers (WCE) is set to expire on December 31, 2024. Over the last two months, representatives from WCE and the City have worked collaboratively toward the development of a mutually beneficial MOU.
The City and WCE 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 December 31, 2027), salary and equity adjustments, elimination of member dues deduction fees, 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: December 17, 2024 to December 31, 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. One-time, special adjustments for certain classifications to address curre nt recruitment and retention issues
c. 5% salary increase the first full pay period of January 2026 d. 5% salary increase the first full pay period of January 2027
3. Member Dues Deduction Fee
Eliminate member dues deduction fee of $0.10 per pay period The WCE membership ratified their vote on a successor MOU to include the proposed salary and benefits on December 10, 2024.
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Adoption of Resolution A approves the MOU between the City of Chula Vista and WCE (Attachment 1), 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 necessary or required to implement said MOU.
State Minimum Wage Law
On August 1, 2024, the State of California’s Dir ector of Finance certified that the minimum wage for all California employers would increase to $16.50 per hour, effective January 1, 2025 . To ensure compliance with the State's minimum wage law, staff is proposing the following salary steps for the following impacted classifications effective December 27, 2024:
Hourly Rate
Position Title Job
Code Bargaining Group Step A Step B Step C Step D Step E Fire Prevention Aide 5533 Unclassified, Hourly 16.50 17.33 18.19 19.10 20.06 Intern - Graduate 0269 Unclassified, Hourly 18.15 19.05 20.01 21.01 22.06 Intern - Undergraduate 0267 Unclassified, Hourly 16.50 17.33 18.19 19.10 20.06 Library Aide 7181 Unclassified, Hourly 16.50 17.33 18.19 19.10 20.06 Police Support Services Aide 5207 Unclassified, Hourly 16.50 17.33 18.19 19.10 20.06 Recreation Aide 7605 Unclassified, Hourly 16.50 17.33 18.19 19.10 20.06 Recreation Leader 7603 Unclassified, Hourly 18.98 19.92 20.92 21.97 23.06 Recreation Specialist 7601 Unclassified, Hourly 22.77 23.91 25.10 26.36 27.68 Reserve Officer 5081 Unclassified, Hourly 16.50 17.33 18.19 -- -- Seasonal Assistant 231 Unclassified, Hourly 16.50 17.33 18.19 19.10 20.06 Tiny Tot Aide 7503 Unclassified, Hourly 18.98 19.92 20.92 21.97 23.06 Tiny Tot Specialist 7505 Unclassified, Hourly 22.77 23.91 25.10 26.36 27.68 Traffic Control Assistant 5155 Unclassified, Hourly 16.50 17.33 18.19 19.10 20.06 Traffic Officer 5293 Unclassified, Hourly 16.50 17.33 18.19 19.10 20.06
Adoption of Resolution B amends the Compensation Schedule to reflect salary adjustments for the above unclassified, hourly positions impacted by the State’s minimum wage law.
Compensation Schedule Requirement
California Code of Regulations, Title 2, Section 570.5 requires that, for pur poses 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, including approval by the City’s governing body in accordance with the requirements of applicable public meeting laws. The revised Fiscal Year 2024-25 Compensation Schedule ("Compensation Schedule") was last approved by the City Council at their meeting on December 3, 2024.
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Adoption of Resolution C approves the revised Fiscal Year 202 4-25 Compensation Schedule effective December 27, 2024, reflecting the salary adjustments for positions represented by the Western Council of Engineers and the adjusted salaries for the Fire Prevention Aide, Intern (Graduate), Intern (Undergraduate), Library Aide , Police S upport Services Aide , Recreation Aide , Recreation Leader , Recreation Specialist , Reserve Officer, Seasonal Assistant, Tiny Tot Aide, Tiny Tot Specialist, Traffic Control Assistant and Traffic Officer position titles.
Adoption of Resolution D approves the revised Fiscal Year 2024-25 Compensation Schedule effective January 10, 202 5, reflecting previously negotiated salary adjustments for certain positions represented by Non- Safety, International Association of Fire Fighters, Local 2180 and their hourly counterparts.
The Compensation Schedules reflecting these revisions are Attachments 2-3 to this staff report.
Budget Amendments
Approval of Resolution E amends the fiscal year 2024-25 adopted budget, appropriating funds for the related contract amendments.
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 $335,151 across all funds, as reflected in the table below:
Fund Personnel
Services
General Fund $210,473
Development Services Fund 107,009
Sewer Service Revenue Fund 17,668
Total Fiscal Impact $335,151
A portion of these costs were included within the fiscal year 2024 -25 adopted budget . Additional costs of $96,175 in the General Fund will be offset by increased Property Tax and Property Tax in lieu of Vehicle License Fees (VLF) revenues. Increased costs of $54,039 in the Development Services Fund and $6,935 in the Sewer Services Fund are anticipated to be absorbed by salary savings. 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 $ 96,175, offset by an increase in P a g e | 5
estimated Property Tax and Property Tax in lieu of VLF re venues. Staff is requesting proposed budgetary adjustments reflected in the table below:
Fund Personnel
Services
Revenues Net Impact
General Fund $96,175 $96,175 $ -
Total Budget Adjustments $96,175 $96,175 $ -
ONGOING FISCAL IMPACT
The ongoing fiscal impact to the General Fund is estimated to total $847,564 in fiscal year 2025 -26 and $1,235,557 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 $538,094 $788,650
Development Services Fund 263,069 377,126
Sewer Service Revenue Fund 46,400 69,781
Total Fiscal Impact $847,564 $1,235,557
ATTACHMENTS
1. Memorandum of Understanding between the City of Chula Vista and Western Council of Engineers for the Period of December 17, 2024 to December 31, 2027
2. Revised Fiscal Year 2024-25 Compensation Schedule Effective December 27, 2024
3. Revised Fiscal Year 2024-25 Compensation Schedule Effective January 10, 2025
Staff Contact: Tanya Tomlinson, Director of Human Resources/Risk Management