AGENDA ITEM
TO: HONORABLE MAYOR
AND MEMBERS OF THE CITY COUNCIL
FROM: CARLO TOMAINO
CITY MANAGER
BY: PATRICIA AHUMADA
HUMAN RESOURCES MANAGER
SUBJECT:
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RESOLUTIONS APPROVING MEMORANDA OF UNDERSTANDING WITH THE SIGNAL HILL POLICE OFFICERS ASSOCIATION AND THE SIGNAL HILL EMPLOYEES’ ASSOCIATION; ESTABLISHING SALARY AND BENEFITS FOR MANAGEMENT PERSONNEL; ADOPTING A CITY-WIDE PAY SCHEDULE; AMENDING SALARY RANGES FOR HOURLY, PART-TIME EMPLOYEES; AND AMENDING THE CLASSIFICATION AND COMPENSATION PLAN
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Summary:
The City’s labor negotiators and representatives from the Signal Hill Employees’ Association (SHEA), and the Police Officers Association (POA), completed labor negotiations and reached tentative agreements for successor Memoranda of Understanding (MOU) on May 8, 2024. Staff prepared resolutions approving the respective 2024-27 MOUs for City Council consideration.
The City Council will also consider approving and adopting a Management Resolution establishing salaries and benefits for the Department Heads and Management employees. These groups are unrepresented and, historically, salary increases and benefits for management personnel are tied to the SHEA MOU. Therefore, the Management Resolution aligns certain benefits and provisions included in the recently negotiated SHEA MOU.
City Council will also consider approving a resolution adopting a city-wide pay schedule as required by the California Public Employees’ Retirement System (CalPERS) reflecting the implementation of the 2024-27 POA MOU, the 2024-27 SHEA MOU, and the Management Resolution. The City Council will also consider approving a resolution amending salary ranges for hourly part-time employees for consistency with the new SHEA MOU. Lastly, the City Council will also consider approving and adopting new class specifications for the newly created positions of Assistant City Clerk and Police Corporal.
The Management Resolution and city-wide pay schedule must be approved and adopted by the City Council in advance of the adjustments taking place. Pursuant to City Council approval of the proposed class specifications, staff would proceed with the necessary action to recruit for the new positions.
Strategic Plan Goals:
Goal No. 1 Financial Stability: Ensure the City’s long-term financial stability and resilience.
Goal No. 5 High-Functioning Government: Strengthen internal communication, recruitment, retention, systems, and processes to increase the effectiveness and efficiency of City services.
recommendation
Recommendations:
Adopt the following resolutions, entitled:
1. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SIGNAL HILL, CALIFORNIA, APPROVING A MEMORANDUM OF UNDERSTANDING PURSUANT TO THE CALIFORNIA MEYERS-MILIAS-BROWN ACT BY AND BETWEEN THE CITY OF SIGNAL HILL AND THE SIGNAL HILL POLICE OFFICERS’ ASSOCIATION
2. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SIGNAL HILL, CALIFORNIA, APPROVING A MEMORANDUM OF UNDERSTANDING PURSUANT TO THE CALIFORNIA MEYERS-MILIAS-BROWN ACT BY AND BETWEEN THE CITY OF SIGNAL HILL AND THE SIGNAL HILL EMPLOYEES’ ASSOCIATION
3. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SIGNAL HILL, CALIFORNIA, AMENDING RESOLUTION NO. 2023-06-6747, APPROVING AND ADOPTING SALARIES AND BENEFITS FOR MANAGEMENT PERSONNEL
4. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SIGNAL HILL, CALIFORNIA, AMENDING RESOLUTION NO. 2023-06-6746, APPROVING AND ADOPTING A CITY-WIDE PAY SCHEDULE AS REQUIRED BY THE CALIFORNIA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM (CALPERS)
5. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SIGNAL HILL, CALIFORNIA, AMENDING SALARY RANGES FOR HOURLY, PART-TIME EMPLOYEES PREVIOUSLY ADOPTED BY RESOLUTION NO. 2023-12-6774 FOR CONSISTENCY WITH THE SIGNAL HILL EMPLOYEES’ ASSOCIATION MEMORANDUM OF UNDERSTANDING, AND REPEALING ALL PRIOR RESOLUTIONS
6. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SIGNAL HILL, CALIFORNIA, AMENDING THE CLASSIFICATION AND COMPENSATION PLAN TO INCLUDE THE ASSISTANT CITY CLERK, CODE ENFORCEMENT OFFICER, DEPUTY DIRECTOR OF PARKS, RECREATION, AND LIBRARY SERVICES, POLICE CORPORAL AND TITLE CHANGE FOR THE COMMUNITY SERVICES DIRECTOR
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Fiscal Impact:
The projected fiscal impact for all covered employees is approximately $4,634,508 for FY 2024-25 through FY 2026-27. Funding is shared between the General Fund and Water Fund accordingly and has been included in the proposed Fiscal Year 2024-2026 Operating Budget. Costs related to the third year of the MOUs will be included in the Fiscal Year 2026-2027 Operating Budget.
Background and Analysis:
Police Officers Association (POA) Memorandum of Understanding
On June 22, 2021, the City Council adopted a resolution approving the current POA MOU, which expires on June 30, 2024. Subsequent to the adoption of that MOU, the City signed a side letter in July 2021, which corrected the pay differential for the Special Assignment of Senior Police Field Training Officer. The City signed a second side letter in September 2021, correcting the effective dates for healthcare coverage to coincide with the dates of premium rate increases through the California Public Employees’ Retirement System (CalPERS). Lastly, the City Council approved a third side letter in October 2023, establishing the police lateral recruitment incentive program and restructured the existing longevity pay provision.
Representatives of the POA and City labor-management team began labor negotiations in February 2024. The City and the POA met and conferred over the terms of a new MOU and reached a tentative agreement on the successor MOU (Exhibit A to the resolution).
Successor Memorandum of Understanding
The successor MOU continues to ensure that the City can competitively recruit and retain highly qualified employees, provide stability to current and future members of the POA, and affirm the City’s commitment to fiscal responsibility to ensure the City’s long-term financial stability. For the City Council’s information, staff is providing a summary of the changes to the MOU:
Term
The term of the MOU is from July 1, 2024, through June 30, 2027. Any provisions related to compensation will become effective the first pay period that includes July 1, 2024
Salary Adjustments
In anticipation of negotiations, the City’s consultant conducted a salary survey of citywide classifications. The data demonstrated that the base salaries for most classifications had fallen below the market median. As a result, the proposed MOU adjusts the POA classifications by 5% to market median at the start of FY 2024-25. The MOU also includes additional Cost of Living (COLA) adjustments effective the first full pay period that includes July 1st of each fiscal year over the three-year term as follows:
Cafeteria Plan Contribution Coverage
To address rising health insurance costs, the proposed MOU includes increased cafeteria plan contributions by the City, in each year as follows:
• Effective January 1, 2025, if a qualifying employee’s medical, dental and/or vision premiums exceed $1,200, the employee would receive up to an additional $750 for a total of $1,950 per month, the maximum City contribution.
• Effective January 1, 2026, if a qualifying employee’s medical, dental and/or vision premiums exceed $1,200, the employee would receive up to an additional $800 for a total of $2,000 per month, the maximum City contribution.
• Effective January 1, 2027, if a qualifying employee’s medical, dental and/or vision premiums exceed $1,200, the employee would receive up to an additional $850 for a total of $2,050 per month, the maximum City contribution.
Police Corporal
Addition of Police Corporal as a classification and removal of Senior Police Officer from Section 3: Special Assignments. The base compensation for the Police Corporal classification shall be equal to 7.4% above the Police Officer classification.
Advanced Peace Officer Standards and Training (POST) Pay
Effective the first pay period that includes July 1, 2026, employees who possess an Advanced POST Certificate are eligible to receive POST pay of four percent (4%) of their current base pay.
Language Revisions
Language revisions have been made to the Sick Leave, Bereavement Leave and Overtime provisions for compliance and/or to clarify the application of existing policies.
The proposed MOU has been accepted by the POA and prepared pursuant to the Meyers-Milias-Brown Act.
Signal Hill Employees’ Association (SHEA) Memorandum of Understanding
On June 22, 2021, the City Council adopted a resolution approving the current MOU which expires on June 30, 2024. After the adoption of that MOU, the City signed a side letter in September 2021, correcting the effective dates for healthcare coverage to coincide with the dates of premium rate increases through California Public Employees’ Retirement System (CalPERS).
SHEA representatives and the City labor management team began labor negotiations in February 2024. The City and SHEA met and conferred over the terms of a new MOU and reached a tentative agreement on the successor MOU (Exhibit A to the resolution).
Successor Memorandum of Understanding
The successor MOU continues to ensure that the City can competitively recruit and retain highly qualified employees, provide stability to current and future members of the SHEA, and affirms the City’s commitment to fiscal responsibility to ensure the City’s long-term financial stability. For the City Council’s information, staff is providing a summary of the changes to the MOU:
Term
The term of the MOU is from July 1, 2024, through June 30, 2027. Any provisions related to compensation will become effective during the first pay period of Fiscal Year 2024-2025, and effective as of July 1, 2024.
Salary Adjustments
In anticipation of negotiations, the City’s consultant conducted a salary survey of citywide classifications. The data demonstrated that the base salaries for most classifications had fallen below the market median. As a result, the proposed MOU adjusts these classifications to the market median (adjustment chart in MOU). The MOU also includes additional Cost of Living (COLA) adjustments on the first full pay period that includes July 1st of each fiscal year over the three-year term.
Cafeteria Plan Contribution
To address rising health insurance costs, the proposed MOU includes increased cafeteria plan contributions by the City, as shown in the following chart.
• Effective January 1, 2025, if a qualifying employee’s medical, dental and/or vision premiums exceed $1,200, the employee would receive up to an additional $750 for a total of $1,950 per month, the maximum City contribution.
• Effective January 1, 2026, if a qualifying employee’s medical, dental and/or vision premiums exceed $1,200, the employee would receive up to an additional $800 for a total of $2,000 per month, the maximum City contribution.
Effective January 1, 2027, if a qualifying employee’s medical, dental and/or vision premiums exceed $1,200, the employee would receive up to an additional $850 for a total of $2,050 per month, the maximum City contribution.
Longevity Pay for Dispatcher/Jailer Position
Effective the first pay period that includes July 1, 2024, employees in the position of Dispatcher/Jailer who have completed full-time service with the City shall be eligible for Longevity Pay as follows:
Longevity One-Time Lump Sum Payment
Effective July 1, 2024, employees who have completed the milestone years of full-time service with the City of Signal Hill listed below, shall be eligible to receive a one-time lump sum payment on the first full pay period following the anniversary date as listed below.
This one-time lump sum payment will not be retroactive to milestones reached prior to the effective date of the new MOU. The longevity milestone one-time lump sum payment will be in lieu of monetary award outlined in the Employee Recognition Programs Policy.
Tuition Reimbursement Program (TRP)
The maximum TRP reimbursement will increase from $1,500 to $3,000 per calendar year.
Dispatcher/Jailer Training Pay
Training pay for Dispatcher/Jailers will increase from 2.5% to 5%. A maximum of two Dispatcher/Jailers, during any one pay period, shall be eligible to receive the 5% training pay differential above their base salary rate in recognition of providing formal training for probationary Dispatcher/Jailers.
Training Pay
Training Pay for employees who, as defined by their established job descriptions are not responsible to train new employees, will be eligible to receive a 5% training pay differential above their base salary rate in recognition of providing formal training to a new employee; this represents an increase of 2.5%.
Bilingual Pay
Bilingual Pay will increase from $80 per month for eligible employees to $100 per month. Additionally, the number of employees who may be eligible would increase from seven (7) to fourteen (14).
Standby Pay
First Call and Second Call Standby Pay has increased as follows:
An employee designated on “First Call” will be compensated $40.00 per weekday standby shift, $50.00 per weekend standby shift (Dispatcher/Jailers’ scheduled days off shall be considered their “weekend”) and $55.00 per holiday standby shift.
An employee designated on “Second Call” shall be compensated $35.00 per weekday standby shift, $45.00 per weekend standby shift and $50.00 per holiday standby shift.
Holidays
• Addition of June 19th (Juneteenth) as City observed holiday.
• Language was added to permit employees to take another day off in the same pay period if a City observed holiday falls on a Friday, that is the employee’s regularly scheduled day off.
Language Revisions
Language revisions have been made to the Sick Leave, Bereavement Leave and Overtime provisions for compliance and/or to clarify the application of existing policies.
The proposed MOU has been accepted by the SHEA and prepared pursuant to the Meyers-Milias-Brown Act.
Revisions to Management Salaries and Benefits
Following evaluation of the completed salary survey of citywide classifications, the data demonstrated that the base salaries for some management classifications had fallen below the market median. As a result, the proposed resolution adjusts the selected managers’ classifications to market median at the start of FY 2024-25. The proposed resolution also includes Cost of Living (COLA) adjustments for Department Heads and Managers on the first pay period that includes July 1st of each fiscal year over the three-year term. Additionally, Longevity Pay matching the POA benefit has been added for Police Lieutenant. Lastly, the proposed resolution also includes increased cafeteria plan contributions matching that provided for POA and SHEA employees.
Citywide Pay Schedules - Full-time and Part-time Employees
Salary Adjustments
The attached city-wide pay schedules for full-time and part-time employees incorporate the proposed salary adjustments within the 2024-27 POA and SHEA MOUs, along with the proposed changes to the management salaries. The schedules reflect both equity and cost of living adjustments to take effect the first pay period that includes July 1, 2024. This action complies with the Signal Hill Municipal Code and CalPERS regulations. Consistent with past city practice, only the pay for part-time positions (i.e. Accounting Specialist, Maintenance Worker, etc.) with an equivalent full-time position have been adjusted. Those part-time positions (Library Aide, Recreation Leader, etc.) without an equivalent full-time position remain unchanged. The effective date of the Management Resolution and city-wide pay schedules is the first pay period that includes July 1, 2024.
Compensation adjustments for department heads and managers must be documented in the Management Resolution governed by the Signal Hill Municipal Code. Furthermore, CalPERS requires that in order to determine the amount of compensation earnable pursuant to Government Code Sections 20630, 20636, and 20636.1, pay rates shall be limited to the amount listed on a pay schedule that has been duly approved and adopted by the employer’s governing body in accordance with the requirements of applicable public meeting laws.
Establishing New Class Specifications
During the City Council study session of May 14, 2024, staff presented the below personnel changes that require a change in class specifications. The proposed specifications for each of the new positions are attached for Council review and approval.
1. New class specification for Assistant City Clerk due to higher level duties and responsibilities that replace the existing filled position of Senior Deputy City Clerk.
2. New class specification for Deputy Director of Parks, Recreation and Library Services due to department operational needs.
3. New class specification for Police Corporal given that the position has the duties and responsibilities of the former special assignment of Senior Police Officer.
4. New class specification for Code Enforcement Officer (Part-Time) due to department operational needs.
5. Title Change for Parks, Recreation and Library Services Director (formerly Community Services Director).
Staff recommends the City Council approve the POA and SHEA MOUs, the Management Resolution, and the changes to the City’s classification and compensation plan. Upon City Council approval, staff would implement the changes effective the first pay period that includes July 1, 2024.
Reviewed for Fiscal Impact:
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Sharon del Rosario
Attachments:
A. Resolution Approving POA MOU
B. Resolution Approving SHEA MOU
C. Resolution Amending Management Salary Schedule
D. Resolution Amending City-wide Pay Schedule
E. Resolution Amending Part-Time Pay Schedule
F. Resolution Amending the Classification and Compensation Plan