APPROVAL OF SIDE LETTER AGREEMENTS AND RESOLUTIONS REDUCING - - PowerPoint PPT Presentation

APPROVAL OF SIDE LETTER AGREEMENTS AND RESOLUTIONS REDUCING EMPLOYEE COMPENSATION AND BENEFITS

June 25, 2020

BACKGROUND

On March 12, pursuant to Government Code Section 8558 (c) and Chapter 1 of Title 6 of the City of Costa Mesa Municipal Code, the City Manager and Director of Emergency Services issued an Emergency Declaration due to the unanticipated and deadly COVID-19 worldwide outbreak.

• Devastating impacts on public health and mortality
• Severe impact to the American economy
• Numerous General Fund sources declining

significantly including tax revenues (e.g. sales tax, hotel tax, and business license tax, etc.), fees, fines and charges.

BACKGROUND

• FY 2019-20 General Fund Estimated Scenario 2

Shortfall of $18.5M

• Adjusted by $3.0M due to anticipated receipt of

Federal, State and County emergency funds

• Resulted in a shift of $3.0M from the use of General

Fund Reserves

• FY 2020-21 General Fund Adopted Budget addresses

the budget shortfall in a multi-faceted approach:

• Citywide department budget cuts of $10.8M
• Use of General Fund Reserves of $10.2M
• Temporary staff furloughs totaling $3.0M

ANALYSIS

Unrepresented Employees (Executives and Confidential Management Unit)

• 104 hour furlough (5% reduction) or equivalent in FY

2020-21

• No vacation cash out in FY 2020-21
• Provision of 100 hours of Executive Leave (Base 40

hours plus 60 hours to be used after July 1, 2021)

• Temporary increase vacation cap by 20 hours
• Equity adjustment for Fire Chief retirement with Fire

Management analysis

ANALYSIS

Unrepresented Employees (Confidential Unit)

• 104 hour furlough (5%) in FY 2020-21
• Elimination of Tier 2 vacation accrual plan
• No vacation cash out in FY 2020-21
• “Me Too” Clause for salary and benefit increases

ANALYSIS

Costa Mesa Police Officers Association (CMPA)

• Four (4) year contract extension to June 30, 2024
• 104 hour furlough (5% reduction) in FY 2020-21
• Association reopener in FY 2021-22
• Association reopener in FY 2022-23 with minimum 1%

increase in base salary

• Association reopener in FY 2023-24 with minimum 2%

increase in base salary

• Retirement Health Savings Plan (RHS) – City

employer match of 1% beginning FY 2022-23

ANALYSIS

Costa Mesa Police Management Association (CMPMA)

• Two (2) year contract extension to June 30, 2024
• 104 hour furlough (5% reduction) in FY 2020-21
• 1% Employee contribution to RHS plan effective 1/1/21
• 1% City contribution to RHS plan effective 7/1/22
• Association reopener in FY 2023-24 with minimum 3%

increase in base salary

ANALYSIS

Costa Mesa Fire Management Association (CMFMA)

• Two (2) year contract extension to June 30, 2024
• 5% reduction equivalent to flexible benefit contribution

in FY 2020-21

• “Me Too” clause for salary/benefits adjustments in FY

2022-23 and FY 2023-24

• Adjust sick leave accrual to match CMFA

ANALYSIS

Costa Mesa Division Managers Association (CMDMA)

• 104 hour furlough (5% reduction) in FY 2020-21
• No vacation cash out in FY 2020-21
• Provision of 100 hours of Executive Leave 2020 (Base

40 hours plus 60 hours to be used after July 1, 2021

• Temporary increase vacation cap by 20 hours
• “Me Too” Clause for salary/benefits adjustments in FY

2022-23 and FY 2023-24

ANALYSIS

Costa Mesa City Employees Association (CMCEA)

• Two (2) year contract extension to June 30, 2022
• 104 hour furlough (5%) in FY 2020-21
• Elimination of Tier 2 vacation accrual plan
• No vacation cash out in FY 2020-21
• 2% salary increase in the last pay period in June 2022
• Elimination of Tier 2 salary ranges; Version 1 assumes implementation
• n June 30, 2022, while Version 2 assumes implementation FY 2020-21
• Increase flex benefit contribution by $100/month as of June 2022
• Safety Shoe cost increase to $225 annually
• Update of jury duty language – no cost
• Continued discussion and review of other non-monetary MOU items

identified by CMCEA

ANALYSIS

Costa Mesa City Manager

• 104 hour furlough (5% reduction) or equivalent in

FY 2020-21

• No vacation cash out in FY 2020-21
• Guarantee of 100 hours of Executive Leave (Base 40

hours plus 60 hours to be used after July 1, 2021)

• Temporary increase in vacation cap by 20 hours

ANALYSIS

Costa Mesa Firefighters Association (CMFA)

• The City of Costa Mesa has been in negotiations since

May 4, 2020, and has exchanged numerous proposals regarding a potential 5% furlough or monetary equivalent; however, an agreement has not yet been finalized for City Council consideration.

RECOMMENDATION

• Approve streamlined Transparency in Labor

Negotiations Fiscal Impact Analysis Report

• Approve City Council Resolutions for unrepresented

employees:

• Executive Employees
• Confidential Management Unit
• Confidential Employees

RECOMMENDATION

• Approve Side Letter Agreements for:
• Costa Mesa Police Officers Association
• Costa Mesa Police Management Association
• Costa Mesa Fire Management Association
• Costa Mesa Division Managers Association
• Costa Mesa City Employees Association
• Approve First Amendment to employment contract

between the City of Costa Mesa and the City Manager

RECOMMENDATION

• Direct the City Manager to continue negotiations

with the Costa Mesa Firefighters Association regarding a 5% furlough or equivalent and return to the City Council on July 21, 2020 with a final proposed agreement or a plan to achieve equivalent savings via department reductions, including potential workforce reductions