title
CC - (1) Adoption of a Resolution Approving a Three (3) Year Memorandum of Understanding with the Culver City Employees Association for the Period of July 1, 2017 through June 30, 2020; (2) Adoption of a Resolution Approving a Three (3) Year Memorandum of Understanding with the Culver City Management Group for the Period of July 1, 2017 through June 30, 2020; (3) Adoption of a Resolution Approving an Amended Memorandum of Understanding with the Culver City Police Management Group for the Period of July 1, 2015 through December 31, 2020; (4) Adoption of a Resolution Approving Side Letter Agreement with the Culver City Fire Management Group; (5) Adoption of a Resolution Approving an Amended Executive Compensation Plan; (6) Approval of an Amendment to the Existing Executive Employment Agreement for City Attorney Carol Schwab Effective November 27, 2017; (7) Approval of an Amendment to the Existing Executive Employment Agreement for City Manager John Nachbar Effective November 27, 2017; and (8) Adoption of a Resolution Approving a Revised Salary Schedule for City Employees Effective July 1, 2017.
body
Meeting Date: November 27, 2017
Contact Person/Dept: Serena Wright/Administrative Services; Jeff Muir/Finance
Phone Number: 310-253-5640/310-253-5865
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [] Attachments: [X]
Commission Action Required: Yes [] No [X] Date:
Public Notification: (E-Mail) Agenda and Meetings - City Council (11/22/17); Culver City Employees Association (11/22/17); Culver City Management Group (11/22/17); Culver City Police Management Group (11/22/17); Culver City Fire Management Group (11/22/17).
Department Approval: Serena Wright (11/21/17), Jeff Muir (11/17/17)
____________________________________________________________________________
RECOMMENDATION
Staff recommends the City Council:
1. Adopt a Resolution Approving a Three (3) Year Memorandum of Understanding with the Culver City Employees Association (“CCEA”) for the Period of July 1, 2017 through June 30, 2020; and
2. Adopt a Resolution Approving a Three (3) Year Memorandum of Understanding with the Culver City Management Group (“CCMG”) for the Period of July 1, 2017 through June 30, 2020; and
3. Adopt a Resolution Approving an Amended Memorandum of Understanding with the Culver City Police Management Group (“CCPMG”) for the Period of July 1, 2015 through December 31, 2020; and
4. Adopt a Resolution Approving Side Letter Agreement with the Culver City Fire Management Group (“CCFMG”); and
5. Adopt a Resolution Approving an Amended Executive Compensation Plan; and
6. Approve an Amendment to the Existing Executive Employment Agreement for City Attorney Carol Schwab Effective November 27, 2017; and
7. Approve an Amendment to the Existing Executive Employment Agreement for City Manager John Nachbar Effective November 27, 2017; and
8. Adopt a Resolution Approving a Revised Salary Schedule for City Employees Effective July 1, 2017.
BACKGROUND
The Memorandum of Understanding (“MOU”) with both CCEA and CCMG expired on June 30, 2017. Negotiations between the City and CCEA, as well as the City and CCMG, have concluded and tentative agreements for successor MOUs have been reached. The Executive Compensation Plan has been updated to reflect some of the changes negotiated in the CCMG MOU. The contracts for the City Attorney and City Manager are also being amended to change the basis of their benefits to be based on the Executive Compensation Plan rather than the CCMG MOU.
In addition, minor updates and language clarifications are being incorporated into the CCPMG and CCFMG MOUs.
DISCUSSION
The various agreements being presented to the City Council for consideration and approval include the following essential changes:
CCEA
• Provide 2.5% cost-of-living adjustments on July 1, 2017, July 1, 2018 and July 1, 2019.
• Require employees to pay up to 3.5% of Employer CalPERS rate costs above 25%.
• Increase Sick Leave accrual.
• Increase Tool Allowance.
• Add new certification pays.
• Increase longevity pay in recognition of City service Provide an education incentive for those with a Bachelor’s Degree or a Master’s Degree.
• Increase the City’s deferred compensation contribution Increase tuition reimbursement.
• Extend Night Shift Differential to Bus Operators and Transit Operations Supervisors
• Update various other working conditions or procedural changes with de minimis or no fiscal impact.
CCMG
• 2.5% cost-of-living adjustments on July 1, 2017, July 1, 2018 and July 1, 2019.
• Require employees to pay up to 3.5% of Employer CalPERS rate costs above 25%.
• Increase Sick Leave accrual.
• Provide Cell Phone Allowance to all CCMG members.
• Add certification pay for those registered with the State of California as a Civil Engineer.
• Increase longevity pay in recognition of City service Increase Administrative Leave.
• Provide Translator Pay for those that fluently speak Arabic, Farsi or Spanish.
• Increase Education Incentive for those with a Bachelor’s Degree, specific certification or a Master’s Degree.
• Update various other working conditions or procedural changes with de minimis or no fiscal impact.
CCPMG
The amended MOU that is being presented to the City Council for consideration and approval includes only language updates for improved administration. There are no changes to pay or benefits.
CCFMG
The side letter agreement that is being presented to the City Council for consideration and approval includes only language updates based on a change in how the State of California issues certificates for Chief Officer and Fire Marshal. There are no changes to pay or benefits.
Executive Compensation Plan
• Provide 2.5% cost-of-living adjustments of 2.5% on July 1, 2017, July 1, 2018 and July 1, 2019.
• Require employees to pay up to 3.5% of Employer CalPERS rate costs above 25%.
• Increase Sick Leave accrual.
• Increase longevity pay in recognition of City service Increase Administrative Leave.
• Increase Education Incentive for those with a Master’s Degree or higher.
• Provide Short-Term and Long-Term Disability insurance and increase term life insurance benefit.
• Update various other working conditions or procedural changes with de minimis or no fiscal impact.
City Manager and City Attorney Employment Contracts
The existing employment contracts for the City Manager and City Attorney include a provision that grants the benefits provided to the CCMG group. This clause is outdated. The provision is being updated in both agreements to refer to the Executive Compensation Plan.
Revised Salary Schedule
The Revised Salary Schedule effective July 1, 2017 will reflect the salary increases approved in the CCEA and CCMG MOUs and the Executive Compensation Plan.
FISCAL ANALYSIS
CCEA
The estimated additional on-going cost of this agreement (versus status quo) over the three years will be approximately $2.9 million. The General Fund share of this will be approximately 55%. There are savings that will occur when the miscellaneous employer retirement contribution rate rises above 25%. Each percentage picked up by the employees will result in approximately $280,000 in annual savings to the City. It is estimated employees will be picking up 1.45% in the final year of this agreement, and the full 3.5% by Fiscal Year 2022-23.
CCMG
The estimated additional on-going cost of this agreement (versus status quo) over the three years will be approximately $0.8 million. There are savings that will occur when the miscellaneous employer retirement contribution rate rises above 25%. Each percentage picked up by the employees will result in approximately $85,000 in annual savings to the City. It is estimated employees will be picking up 1.45% in the final year of this agreement, and the full 3.5% by Fiscal Year 2022-23.
Executive Compensation Plan
The estimated additional on-going cost of this agreement (versus status quo) over the three years will be approximately $0.2 million. There are savings that will occur when the miscellaneous employer retirement contribution rate rises above 25%. Each percentage picked up by the employees will result in approximately $24,000 in annual savings to the City. It is estimated employees will be picking up 1.45% in the final year of this agreement, and the full 3.5% by Fiscal Year 2022-23.
CCPMG and CCFMG
There is no fiscal impact for the amendments to the CCPMG and CCFMG MOUs.
City Attorney and City Manager Employment Agreements
The only additional cost of changing the reference from the CCMG MOU to the Executive Compensation Plan will be the cost of the Short-Term and Long-Term Disability Insurance and the increased term life insurance benefit, which is approximately $4,500 annually.
ATTACHMENTS
1. Proposed Resolution Approving a Three (3) Year Memorandum of Understanding with CCEA for the Period of July 1, 2017 through June 30, 2020.
2. Proposed Resolution Approving a Three (3) Year Memorandum of Understanding with CCMG for the Period of July 1, 2017 through June 30, 2020.
3. Proposed Resolution Approving an Amended Memorandum of Understanding with the CCPMG for the Period of July 1, 2015 through December 31, 2020.
4. Proposed Resolution Approving Side Letter Agreement with the CCFMG for the Period of January 1, 2015 through December 31, 2019.
5. Proposed Resolution Approving an Amended Executive Compensation Plan; and
6. Amendment to the Existing Executive Employment Agreement for City Attorney Carol Schwab Effective November 27, 2017.
7. Amendment to the Existing Executive Employment Agreement for City Manager John Nachbar Effective November 27, 2017.
8. Proposed Resolution Approving a Revised Salary Schedule for City Employees Effective July 1, 2017.
MOTION
That the City Council:
1. Adopt a Resolution Approving a Three (3) Year Memorandum of Understanding with CCEA for the Period of July 1, 2017 through June 30, 2020; and
2. Adopt a Resolution Approving a Three (3) Year Memorandum of Understanding with CCMG for the Period of July 1, 2017 through June 30, 2020; and
3. Adopt a Resolution Approving an Amended Memorandum of Understanding with the CCPMG for the Period of July 1, 2015 through December 31, 2020; and
4. Adopt a Resolution Approving a Side Letter Agreement with the CCFMG for the Period of January 1, 2015 through December 31, 2019; and
5. Adopt a Resolution Approving an Amended Executive Compensation Plan; and
6. Approve an Amendment to the Existing Executive Employment Agreement for City Attorney Carol Schwab Effective November 27, 2017; and
7. Approve an Amendment to the Existing Executive Employment Agreement for City Manager John Nachbar Effective November 27, 2017; and
8. Adopt a Resolution Approving a Revised Salary Schedule for City Employees Effective July 1, 2017.