Agenda

Back to Calendar Return

Agenda Item 21.

City Council Meeting

Meeting Date:	06/20/2023
FROM:	Bill Gallardo

Subject:

APPROVAL OF THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF BREA AND THE BREA MANAGEMENT ASSOCIATION AND APPROVING CHANGES TO THE EXECUTIVE COMPENSATION PLAN

RECOMMENDATION

Adopt the resolution approving the Memorandum of Understanding (MOU) with the Brea Management Association (BMA) and approving changes to the Executive Compensation Plan salaries and benefits policy.

BACKGROUND/DISCUSSION

Over the last several months, the City’s negotiation team has been meeting with various employee associations to try and reach an agreement on terms and conditions of employment for new labor contracts (Memorandums of Understanding or MOUs). Considerable progress has been made, and the MOU with the Brea Management Association is ready for City Council consideration.

The agreement that was reached with BMA calls for a three-year term, including market salary adjustments for those positions that have fallen behind the labor market and will be effective July 8, 2023. Additionally, it includes salary increases of three percent (3%) in the second and third years, effective July 6, 2024, and July 5, 2025.

In the attached Executive Compensation Plan, a market salary adjustment for each position falling behind the labor market will be effective July 8, 2023, and a three percent (3%) cost of living adjustment for each position and salary range adjustment will become effective July 6, 2024. The market and cost of living adjustments for the Executives are consistent with the agreement reached with BMA.

In addition, the resolution also includes reestablishing and revising the title for the existing Assistant City Manager classification to reflect a more modern title of Assistant City Manager / Director and adding holiday leave on July 1 of each fiscal year, which equates to one (1) additional hour for each of the twelve (12) City designated holidays. The market, cost of living adjustments and additional holiday leave are consistent with the same benefits available to all labor groups. Other benefits will remain unchanged for this group.

FISCAL IMPACT/SUMMARY

The City has been working to reestablish its median market pay for employees. As we’ve seen a steady stream of staff departures, we continue looking at ways to attract and retain quality employees. These contract adjustments are needed for the City to stay competitive in the labor market if Brea is going to attract and maintain quality employees, especially those in vital positions. The City’s bargaining team has been meeting in good faith with the BMA resulting in a tentative agreement with this employee association. These actions also approve Executive Compensation Plan salaries and benefit policy changes. The estimated net General Fund impact of entering into the agreement with this association and approving the changes to the Executive Compensation Plan has been included in the proposed operating budget.

RESPECTFULLY SUBMITTED:

William Gallardo, City Manager
Prepared by: Candice Fisher, Acting Human Resources Manager
Concurrence: Kristin Griffith, Administrative Services Director

Attachments
Resolution - BMA MOU
Exhibit A
Resolution - Executive