City Council
Report
City Council Meeting: June 24, 2025
Agenda Item: 4.G
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To: Mayor and City Council
From: Dana Brown, Human Resources Director, Human Resources Department Subject: Adoption of a Resolution Accepting the Tentative Agreements and Authorizing the City Manager to Execute Memoranda of Understanding with The International Association of Sheet Metal, Air, Rail and Transportation Workers - Transportation Division, Local 1785 (SMART-TD) Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of categorical exemption pursuant to Section 15324 (Class 24 Regulations of Working Conditions) of the California Environmental Quality Act (CEQA) Guidelines;
2. Adopt the proposed Resolution (Attachment A) accepting the Tentative Agreements (TA) and authorizing the City Manager to execute Memoranda of Understanding (MOU) with The International Association of Sheet Metal, Air, Rail and Transportation Workers - Transportation Division, Local 1785 (SMART-TD);
3. Adopt the salary schedule (Attachment B); and
4. Authorize budget changes as outlined in the Financial Impacts & Budget Actions section of this report.
Summary
In February 2025, the City Council instructed the City’s labor negotiators to engage in labor negotiations with its recognized employee bargaining units in accordance with the Meyers-Milias-Brown Act (MMBA), as each unit’s current Memorandum of Understanding (MOU) is set to expire on June 30, 2025. Negotiations were conducted in good faith over the past several months between designated City representatives and representatives of each of the bargaining units. Negotiations between the City and SMART-TD have resulted in a tentative agreement (TA) regarding a successor MOU.
SMART-TD has finalized the ratification voting process approving the terms of their TA. 2 of 4
City staff recommend that the Council approve the ratified TA to enter into a successor MOU between the City and SMART-TD.
Discussion
Under the Meyers-Milias-Brown Act (MMBA) in California, local public agencies negotiate with exclusively recognized employee organizations on wages, hours, and working conditions. The City currently has approved TAs with three bargaining units, and is still in negotiations with six other employee organizations (often referred to as bargaining groups or unions) whose contracts with the City expire on June 30, 2025.
These TAs reflect a collaborative effort to balance fair compensation for employees with the City’s fiscal responsibility and long-term sustainability.
The main substantive terms in this TA reached with SMART-TD are outlined below:
The International Association of Sheet Metal, Air, Rail and Transportation Workers - Transportation Division, Local 1785 (SMART-TD) SMART-TD represents 285 non-exempt Motor Coach Operator staff within the Department of Transportation.
To address recruitment for and retention in this classification, the TA includes an agreement for an equity adjustment in year one and year two of the contract. • Term of Agreement: July 1, 2025, through June 30, 2030 • Cost of Living Adjustments: 2% effective July 1, 2025, and July 1, 2026; 3% effective July 1, 2027; 4% effective July 1, 2028, and July 1, 2029 • 4% equity adjustment effective July 1, 2025
• 1% equity adjustment effective July 1, 2026
• Equity Study effective July 1, 2029
• One-time bonus of $1,500 effective July 1, 2025
• Uniform Allowance increase to $680 per year
• Deferred Compensation increase bi-weekly contribution to $37.50 effective July 1, 2026
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• Addition of one non-cashable floating holiday
• Accident Report Time pay increase to $18 per report
Environmental Review
The changes to staff wages are categorically exempt pursuant to Section 15324 (Class 24 Regulations of Working Conditions) of the California Environmental Quality Act (CEQA) Guidelines. Class 24 consists of actions taken by regulatory agencies to regulate employee wages, hours of work, or working conditions where there will be no demonstrable physical changes outside the place of work.
Financial Impacts and Budget Actions
The total cost of the negotiated changes contained in the tentative agreements presented in this report is approximately $2.4 million for FY 2025-26. The full impact of these changes will be incorporated in the FY 2025-26 through FY 2029-30 Five-Year Financial Forecast for the Big Blue Bus Fund. It is projected that the Fund has sufficient funding to cover this impact and remain solvent.
If the changes are approved, staff will appropriate the FY 2025-26 changes in NonDepartmental for the Big Blue Bus Fund. The funds will be transferred to the department accounts along with the FY 2025-26 Midyear Budget.
Fund # Fund Name FY 2025-26
Total
60 Big Blue Bus Fund $ 2,365,330
Total all funds $ 2,365,330
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Prepared By: Doris Mejia, Senior Human Resources Analyst Approved Forwarded to Council
Attachments:
A. Resolution_SMARTTD
B. FY25-26 SMART-TD Salary Schedule