REPORT TO COUNCIL
SUBJECT
Title
Approve a Memorandum of Understanding Between the City of Sunnyvale and the Sunnyvale Managers’ Association; and Adopt a Resolution Amending the City's Salary Resolution and the Schedule of Pay to Increase Salaries for Pay Plan Category E (Employees Represented by the Sunnyvale Managers’ Association)
Report
BACKGROUND
A Tentative Agreement has been reached between the City of Sunnyvale (City) and the Sunnyvale Managers’ Association (SMA) on a successor Memorandum of Understanding (MOU). SMA represents full-time miscellaneous management employees. This report recommends approval of the MOU, which if approved by the City Council, will be in effect from July 1, 2023 through June 30, 2027.
The MOU between the City and SMA expired on June 30, 2023. Representatives for the City and SMA began the meet and confer process in March 2023 and met 12 times to reach an agreement. A Tentative Agreement was reached on June 28, 2023, and the City was notified on July 6, 2023 that the SMA membership ratified the Tentative Agreement.
EXISTING POLICY
Council Policy 7.3.1 Legislative Management - Goals and Policies, Goal 7.3D: Maintain a quality work force, consistent with state and federal laws, City Charter, and adopted policies in order to assure that City services are provided in an effective, efficient, and high-quality manner.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” with the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(4) in that is a fiscal activity that does not involve any commitment to any specific project which may result in a potential significant impact on the environment.
DISCUSSION
The significant provisions of the new SMA MOU are as follows:
Term
July 1, 2023 to June 30, 2027.
Salary
• Effective July 9, 2023: 6.5% across the board increase.
• Effective July 7, 2024: 4.0% across the board increase.
• Effective July 6, 2025: 4.0% across the board increase.
• Effective July 5, 2026: 3.5% across the board increase
The first salary increase is effective on July 9, 2023. Subsequent increases fall on the first full pay period of each fiscal year.
Control Point
Clarify that the salary control point is the salary range for the classification by using updated terminology.
Paid Time Off (PTO)
Employees who accrue 9.6 hours or more per pay period are eligible to cash out up to 200 hours of PTO per year, increased from 100 hours. Employees who accrue less than 9.6 hour per pay period are eligible to cash out up to 130 hours of PTO per year, as long as the employee maintains a balance of 120 hours. This change will be effective with the cash out in 2024.
Management Leave
Rename Administrative Leave to “Management Leave” and increase the allocation from 50 hours per year to 60 hours per year.
Personal Vehicle Use
Increase the automobile allowance from $310 per month to $410 per month for eligible classifications.
Call Back Pay
Up to five management classifications will be eligible to receive call-back pay if required to report to work for an urgent reason or emergency after already leaving work. The call-back will be $140 per day (Monday through Friday) or $200 per day (Saturday - Sunday). Note that “call back” is common for non-FLSA-exempt positions; the positions here have been reviewed and continue to meet the criteria for FLSA-exempt status, but this pay recognizes certain positions in the unit that have to return to the site more often to perform work after hours, in comparison to others in the group who can perform after-hours work remotely.
Alternative Work Schedules
Capture that telework arrangements are an option for Alternative Work Schedules.
General Language clean up
Remove historical date-specific language, provide gender-neutral language, correct typos and grammatical issues, capture change in pay day from Thursday to Friday, and clarify language.
FISCAL IMPACT
The recommended 2023/24 Budget includes assumptions in total compensation, but did not fully account for the impact of this successor MOU. The impact of the successor MOU for FY 2023/24 is estimated to be approximately $280,600. The one-year impact can be absorbed within the City’s proposed operating budget. The total twenty-year impact is approximately $10.1 million and will be included in the FY 2024/25 Budget. Employees represented by SMA are funded by all funds with salary and benefit costs. The largest impact is to the General Fund which funds approximately 53% of the total. The impact to the General Fund is $147,500 in year one and $5.3 million over twenty years. These impacts can be absorbed in the FY 2023/24 Budget and Resource Allocation Plan.
PUBLIC CONTACT
Public contact was made by posting the Council meeting agenda on the City's official-notice bulletin board at City Hall, at the Sunnyvale Public Library and in the Department of Public Safety Lobby. In addition, the agenda and this report are available at the NOVA Workforce Services reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.
ALTERNATIVES
1. Authorize the City Manager to Execute the Memorandum of Understanding between the City of Sunnyvale and the Sunnyvale Managers’ Association; and Adopt Resolution Amending the City's Salary Resolution and the Schedule of Pay to Increase Salaries for Pay Plan Category E (Employees Represented by the Sunnyvale Managers’ Association).
2. Do Not Authorize the City Manager to Execute the Memorandum of Understanding between the City of Sunnyvale and the Sunnyvale Managers’ Association, and do not adopt the related resolutions.
3. Provide other direction to staff.
STAFF RECOMMENDATION
Recommendation
Alternative 1: Authorize the City Manager to Execute the Memorandum of Understanding between the City of Sunnyvale and the Sunnyvale Managers’ Association; and Adopt Resolution Amending the City's Salary Resolution and the Schedule of Pay to Increase Salaries for Pay Plan Category E (Employees Represented by the Sunnyvale Managers’ Association).
Staff
Prepared by: Tina Murphy, Director, Human Resources
Reviewed by: Teri Silva, Assistant City Manager
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1. Memorandum of Understanding between the City of Sunnyvale and the Sunnyvale Managers’ Association, 2023-2027 - redlined version
2. Memorandum of Understanding between the City of Sunnyvale and the Sunnyvale Managers’ Association, 2023-2027 - final version
3. Resolution Amending the City's Salary Resolution and the Schedule of Pay to Increase Salaries for Pay Plan Category E (Employees Represented by the Sunnyvale Managers’ Association)