REPORT TO COUNCIL
SUBJECT
Title
Approve the Memorandum of Understanding between the City of Sunnyvale and the Sunnyvale Managers Association (SMA) and Adopt 3 Resolutions: (1) Amending the Salary Resolution for SMA, Unrepresented Management Employees, and Department Directors; (2) For Paying and Reporting the Value of Employer Paid Member Contributions for CalPERS Retirement for SMA, Unrepresented Management Employees, and Department Directors; and (3) For Paying and Reporting the Value of Employer Paid Member Contributions for CalPERS Retirement for the Director of Public Safety
Report
BACKGROUND
The City Council met in Closed Session over the past several months and, in particular, on June 21, 2016 to discuss labor negotiations with the City's various bargaining units. As a result of those confidential discussions, staff presented a request to SMA to reopen negotiations and SMA agreed to reopen the existing MOU to consider term, wages and retirement based on new actuarial information presented by John Bartel on June 21, 2016.
The term of the current agreement with SMA is from July 1, 2015 until June 30, 2018 and includes the following provisions regarding Employer Paid Member Contributions (EPMC) and lump sum payments:
* July 1, 2015: EPMC reduced from 4% to 3%
* July 3, 2016: EPMC to be reduced from 3% to 2%
* July 2, 2017: EPMC to be reduced from 2% to 1%
* December 2015: 1% off-salary table lump sum payment
* November 2016: 1% off-salary table lump sum payment
* November 2017: 1% off-salary table lump sum payment
On August 26, 2014, the Council approved a reduction in the EPMC for CalPERS classic members for unrepresented employees (pay plan categories D and K) and department directors (pay plan category F) and providing a 1% off-salary table lump sum payment with the following schedule:
* August 31, 2014: EPMC reduced from 5% to 4% (for Director of Public Safety: reduced from 7% to 6%)
* July 5, 2015: EPMC reduced from 4% to 3% (for Director of Public...
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