City Council
Report
City Council Meeting: February 24, 2026
Agenda Item: 4.E
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To: Mayor and City Council
From: Dana Brown, Human Resources Director, Human Resources Department Subject: Approval of Memorandum of Understanding (Umbrella Agreement) with the Coalition of Santa Monica City Employees for CalPERS Benefits Recommended Action
Staff recommends that 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 agreement and authorizing the City Manager to negotiate and execute a Memorandum of Understanding (Umbrella Agreement) between the City and the Coalition of Santa Monica City Employees (the “Coalition") adopting the terms and conditions of the contract for California Public Employees’ Retirement System (CalPERS) benefits with the City's miscellaneous employee (non-safety) units and certain unrepresented employees, namely AFSCME Local 4819 (Management Team Association), Supervisory Team Associates, Administrative Team Associates, Municipal Employees Association, California Teamsters Local 986, Public Attorneys Union, Public Attorneys' Legal Support Staff Union, International Association of Sheet, Metal, Air, Rail, and Transportation Workers - Transportation Division Local 1785, Executive Pay Plan Participants, Confidential Unrepresented Employees Pay Plan participants, and certain unrepresented employees.
Summary
In accordance with the Meyers-Milias-Brown Act (“MMBA”), the City and the Coalition of Santa Monica City Employees (“Coalition”) have met and conferred and have reached a Tentative Agreement (“TA”) on the terms and conditions of retirement benefits for miscellaneous non-sworn employees.
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Negotiations with the Coalition representatives were largely informal and resulted in an expedited TA regarding retirement benefits to amend the Memorandum of Understanding (“MOU”) (Umbrella Agreement) between the City and the Coalition. The Coalition finalized the ratification voting process, approving the terms of the TA. City staff recommend the City Council approve the ratified TA and authorize the City Manager to execute a new MOU (Umbrella Agreement) between the City and the Coalition pertaining to retirement benefits.
Discussion
The Coalition represents all non-sworn City employees, for both Medical and Retirement benefits. The terms of the current MOU covering retirement benefits expired on December 31, 2025. The separate MOU covering medical benefits is not set to expire until December 31, 2027.
The City met and conferred with the Coalition in accordance with the provisions of the MMBA, and the parties have reached a TA covering retirement benefits for a 10-year period.
The TA maintains the status quo, providing for the following:
•Term of Agreement: January 1, 2026, through December 31, 2035 • Membership tiers included in the contract between the City of Santa Monica and the California Public Employees’ Retirement System (CalPERS) remain as follows:
• Tier 1 Employees: 2.7% @ 55 formula for local miscellaneous members • Tier 2 Employees: 2.0% @ 55 formula for local miscellaneous members • Tier 3 PEPRA: 2.0% @ 62 formula for local miscellaneous members (Employees hired on or after January 1, 2013, who are “New Members” as defined in the Public Employees’ Pension Reform Act of 2013) • Other Safety Tier 1: ½ @ 55 formula for non-sworn safety members • Other Safety Tier 2 PEPRA: 2% @ 57 formula for non-sworn safety members
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• Survivor and death benefits
Environmental Review
The MOU is not a “project” subject to CEQA. The adoption of the MOU is administrative in nature and establishes the terms and conditions between the City and the Coalition.
Pursuant to CEQA Section 21065, the project does not meet the definition of a “project” subject to CEQA as it will not “cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment”. Additionally, per Section 15378(b) of the CEQA Guidelines, a “project” does not include organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment. Therefore, the adoption of the MOU is not subject to CEQA.
Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of the recommended action. Staff will return to Council if specific budget actions are required in the future. The annual cost of fringe benefits for each budgeted position is already included in the City’s adopted budget.
Prepared By: Sarah Rebensdorf, Human Resources Manager
Approved Forwarded to Council
Attachments:
A. Attachment A - Coalition RESO (Retirement) 022426