COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Graciela Reynoso, Chief Human Resources Officer
DATE: May 6, 2025
SUBJECT: Adoption of Resolutions to Approve and Ratify the Successor Memorandum of Understanding with Santa Maria Fire Fighter’s Union Local #2020; and Approving the City’s Comprehensive Schematic Pay Schedule
Description:
The City Council will consider adopting Resolutions approving the ratification and approval of the Successor Memorandum of Understanding with the Santa Maria Fire Fighter’s Union Local #2020, amending Resolution No. 2022-24a, approving a wage and benefits package, and approving the City’s Comprehensive Schematic pay Schedule for all full-time and part-time employees in accordance with CalPERS guidelines.
RECOMMENDATION:
1. Adopt a Resolution Approving and Ratifying the Successor Memorandum of Understanding (MOU) with the Santa Maria City Fire Fighter’s Union Local #2020; and
2. Adopt a Resolution approving the City’s Comprehensive Schematic Pay Schedule for all full-time and part-time employees in accordance with CalPERS guidelines.
BACKGROUND:
Over the last few months, City staff has met with Santa Maria City Fire Fighter’s Union Local #2020 to negotiate a reasonable successor Memorandum of Understanding (MOU).
Discussions focused on the State and local economic climate retention efforts, and strategies to attract and retain quality employees. Following these discussions, and in line with City Council direction, staff successfully negotiated a two-and-a-half-year tentative agreement for the Santa Maria City Fire Fighter’s Union Local #2020, which would take effect upon ratification by the City Council through midnight on June 25, 2027.
The updated Comprehensive Schematic Pay Schedule for all full-time and part -time employees in accordance with CalPERS guidelines reflects the salary increases in the successor MOU.
2 DISCUSSION:
The recommendation is to ratify and approve the Successor MOU (Attachment C) with the Santa Maria City Fire Fighter’s Union Local #2020. The negotiated package proposes a two-and-a-half-year term with a total 14 percent base salary increase; certain equity adjustments, and a one-time lump sum payment of $2,000 for unit members in the employ of the City, on the date of Council approval of the MOU, as well as an increase to health insurance, and other minimal adjustments.
A Comprehensive Schematic Pay Schedule (Pay Schedule) for the City of Santa Maria is created and presented in accordance with the California Public Employees’ Retirement System ( 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 Comprehensive Schematic Pay Schedule includes pay rate information for all full -time and part -time employees, enhancing the disclosure and transparency of public employee compensation. CalPERS requires that all pay rates be listed on a single-pay schedule as per CalPERS’ requirements.
Whenever there are changes to one or more pay rates, whether through the meet -and- confer process, employment contracts, new classifications, reclassifications, etc., CalPERS requires the City update the Pay 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 Pay Schedule (Attachment D) incorporates these changes and previously authorized positions. Upon adoption of the Resolution by the City Council, the Pay 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 the Santa Maria City Fire Fighter’s Union Local #2020 will result in a continuation of negotiations. In addition, a decision by the City Council not to approve the Comprehensive Schematic Pay Schedule would result in the City being out of compliance with CalPERS regulations.
Fiscal Considerations
The fiscal impact of the proposed two-and-a-half-year agreement for the Santa Maria City Fire Fighter’s Union Local #2020 is estimated at $2.507 million. Of that amount, $1.129 million was included in the approved Fiscal Year 2024 -26 budget. The increases are anticipated to result in additional expenditures but are necessary to retain and attract qualified personnel in key public safety roles.
3 Impact to the Community
The successful ratification of the successor MOU agreement will help ensure that the Santa Maria Fire Department remains competitive in terms of employee compensation.
This is critical to maintaining a well-staffed, qualified workforce, which in turn will continue to support the City’s public safety and community goals. Furthermore, these agreements contribute to the ongoing recruitment and retention efforts that are necessary in the current economic climate.
ATTACHMENT(S)
A. Resolution Approving and Ratifying Successor MOU Fire Local #2020 B. Resolution FT_PT_LS_Salary Schematic
C. Successor MOU Fire Local #2020
D. FT_PT_LS_ Salary Schematic