FOR THE COUNCIL MEETING OF FEBRUARY 20, 2024
COUNCIL AGENDA REPORT
TO: City Council
FROM: Interim City Manager Alex Posada
BY: Interim Chief Human Resources Officer Dawn Jackson
SUBJECT: Approve and Ratify the Tentative Agreement and Successor Memorandum of Understanding with the Service Employees
International Union Local 620; Adoption of a Resolution Approving the CalPERS Comprehensive Schematic Pay Schedule
Description:
The City Council will consider approving the ratification and approval of the Tentative Agreement and Successor Memorandum of Understanding with the Service Employees International Union Local 620 and consider adopting a Resolution approving the Comprehensive Schematic Pay Schedule for all full -time and part -time employees in accordance with CalPERS guidelines.
RECOMMENDATION:
1) Approve and ratify the Tentative Agreement and Successor Memorandum of Understanding with the Service Employees International Union Local 620; and 2) Adopt a Resolution approving the Comprehensive Schematic Pay Schedule for all full-time and part-time employees in accordance with CalPERS guidelines.
BACKGROUND:
City staff has met with Service Employees International Union Local 620 ( SEIU) to negotiate a reasonable successor Memorandum of Understanding (MOU). The State and local economic climate, retention, and lateral attraction efforts were discussed in addition to the rise in inflation and the effects on the City as a whole. Having met and conferred in good faith, pursuant to City Council direction, staff successfully negotiated a two -year tentative agreement with SEIU upon ratification by City Council from January 1, 2024 , through December 31, 2025.
The updated Comprehensive Schematic Pay Schedule (“Schedule”) for all full-time and part-time employees in accordance with CalPERS guidelines reflects the M OU and Resolution of salary increases.
DISCUSSION:
A recommendation to ratify and approve the tentative agreement (Attachment A) and the successor MOU (Attachment B) with SEIU. The attached negotiated package calls for a 2 two-year term with a total ten percent base salary increase for all members; an increase to health insurance; and other minimal changes.
A Schedule for the City of Santa Maria is created and presented in accordance with CalPERS regulations intended to ensure consistency when reporting compensation for City employees. The Public Employees ’ Retirement Law (PERL) Government Code Section 20636(b)(1) requires pay amounts to be paid pursuant to publicly available pay schedules. The Schedule includes pay rate information for all full -time and part -time employees. The Schedule enhances the disclosure and transparency of public employee compensation by requiring that the pay rates be listed on a single -pay schedule as per CalPERS’ requirements.
CalPERS requires whenever there are changes to one or more pay rates, whether through the meet-and-confer process, employment contracts, new classifications, reclassifications, etc., the City is required to update the Schedule and present it to the City Council for review and approval. Any updates will include an effective date and date of any revisions and are to be retained by the City and available for public inspection for not less than five years. The Schedule (Attachment C) incorporates these changes and previously authorized positions. Upon adoption of the Resolution by the City Council, the Schedule will be posted on the City of Santa Maria’s website.
Alternative(s)
A decision by the City Council not to approve the ratification of the successor MOU for SEIU will result in a continuation of negotiations for a successor MOU. In addition, the decision by the City Council not to approve the Schedule would result in being out of compliance with CalPERS.
Fiscal Considerations
The attached successor MOU (Attachment B) and wage and benefits package calls for a net increase to total compensation of approximately $4,090,500 over two years for SEIU members.
Impact to the Community
Overall, City services will continue to be provided by City employees with no decrease in the level of service to the public. Instead, it is expected that there will be a positive impact and increase to current service levels to the public achieved by attraction a nd retention of talent management; increased employee job satisfaction; and increased performance to serve the community. The requested schedule change will enhance service to the community and maintain compliance with CalPERS.
ATTACHMENTS
A – Tentative Agreement SEIU 2.9.24
B – Successor MOU SEIU 2024-26
C – FT_PT_LS_ Salary Schematic