MEETING DATE:
JUNE 10, 2025
SUBJECT:
Title
RESOLUTION NO. 2025-9443 - MEMORANDUMS OF UNDERSTANDING BETWEEN THE CITY OF SAN MARCOS AND THE SAN MARCOS CLASSIFIED MISCELLANEOUS EMPLOYEES’ ASSOCIATION, THE SAN MARCOS SUPERVISORS’ ASSOCIATION, AND THE SAN MARCOS PROFESSIONAL FIREFIGHTERS’ ASSOCIATION
Body
Recommendation
Recommendation
ADOPT a resolution approving Memorandums of Understanding (MOUs) with the San Marcos Classified Miscellaneous Employees’ Association (SMCMEA), the San Marcos Supervisors’ Association (SMSA), and the San Marcos Professional Firefighters’ Association (SMPFFA), for the period of July 1, 2025 through June 30, 2027 to replace the existing MOUs, which expire on June 30, 2025.
Body
Board or Commission Action
Not Applicable
Relevant Council Strategic Theme (If not applicable, please state not applicable below)
Good Governance
Executive Summary
The City of San Marcos strives to provide its workforce with fair and competitive compensation, the terms of which are included in employee association agreements. When these agreements are scheduled to expire, the City negotiates with each group to determine the appropriate levels and forms of compensation based on a variety of factors, including maintaining a competitive position in the labor market.
Representatives for the San Marcos Classified Miscellaneous Employees’ Association (SMCMEA), the San Marcos Supervisors’ Association (SMSA), and the San Marcos Professional Firefighters’ Association (SMPFFA) and management have respectively reached agreement regarding wages, hours and other terms and conditions of employment for the two-year period from July 1, 2025, through June 30, 2027.
Discussion
The major provisions of this agreement pertaining to all groups are as follows:
Compensation Structure: The City is implementing a revised salary schedule consisting of eight (8) steps, with 4.75% between each step. To transition to the new structure, the 4.75% increment will be applied starting from the current Step 1 and progress through to the new Step 8. Employees will be placed on the new step that corresponds to their current pay level to ensure no loss in compensation. Employees currently at Step 10 will move to the new Step 7, allowing eligibility for a step increase-based on a satisfactory performance evaluation-during the first year of the contract.
Salary Range Adjustment: Effective July 1, 2025, the compensation ranges will increase by 5.00% on each July 1 for the term of the contract.
Employee Benefit Allocation Program (EBAP): Effective January 1 during each year of the contract, the City will allocate $3,000 per employee for the Employee Benefit Allocation Program. Employees must be employed as of December 31 the prior year to qualify for EBAP funds.
The major provisions of this agreement pertaining to SMCMEA and SMSA are as follows:
Group Health Insurance Premium: The cost-sharing provisions in the current MOU will be temporarily suspended for the duration of the new agreement. During this period, employees will contribute 10% and the City will contribute 90% toward the group health insurance premium, across all coverage tiers. This one-time adjustment is intended to be temporary and will automatically expire on June 30, 2027, unless extended or modified by mutual written agreement.
Employer match to deferred compensation plans: The City offers an employer match to deferred compensation (457) plans that all employees are eligible to participate in. To be eligible, the employee must be making an employee payroll contribution to one of the plans. The City will provide a match contribution not to exceed 2.00% of the employee’s base salary within the tax year.
Vacation Accrual: The vacation accrual schedule has been updated to allow staff to reach higher accrual levels earlier in their tenures, while maintaining the existing maximum accrual rate. Previously, employees accrued 80 hours per year from 0 to 5 years of service, 120 hours from 6 to 10 years, 160 hours from 11 to 15 years, and 200 hours at 16 years and beyond. Under the revised structure, the 80-hour tier now applies to 0 to 2 years of service, 120 hours applies to 3 to 5 years, 160 hours applies to 6 to 10 years, and employees with 11 or more years of service now receive 200 hours annually. These changes create a front-loaded accrual structure that will enable the City to more successfully attract and retain qualified staff.
Longevity-Merit Stipend: The City has updated its longevity-merit stipend structure to include a new 5-year milestone. Employees will now receive 1.0% of their current step after 5 years of service. Existing stipend percentages remain unchanged: 1.5% at 10 years, 2.5% at 15 years, 3.0% at 20 years, 3.5% at 25 years, and 4.0% at 30 years.
Boot Allowance: The annual reimbursement for safety boots and related items has been increased from $175 to $275 to better support employees required to wear safety footwear for their roles.
Tool Allowance: The annual tool allowance stipend has been increased from $100 to $300 to better support employees in maintaining the tools necessary for their roles.
Certifications: The City has updated its certification stipend program by increasing the value of existing stipends and adding new eligible certifications, including ASE Master Technician (A & T series), Facilities Management Certification, Certified Code Enforcement Officer, Electrical Trainee or AA in Electronics, and CASP. Language has also been updated to reflect “Emergency Vehicle Technician” in place of “Fire Mechanic.”
The major provisions of this agreement pertaining to SMPFFA are as follows:
Vacation Accrual: The annual vacation accrual rates for Fire Association members have been increased by 24 hours at each tier. Accrual for employees with 1 to 5 years of service increased from 132 to 156 hours; 6 to 10 years increased from 188 to 212 hours; 11 to 15 years increased from 240 to 264 hours; 16 to 20 years increased from 264 to 288 hours; and 21 or more years increased from 288 to 312 hours.
Association Leave Bank: The City will match up to 2 hours per year per employee for Association members, contributing to the Association Leave Bank to support approved activities such as meetings and conferences.
Longevity-Merit Stipend: The City has updated the Fire Association’s longevity-merit stipend structure by increasing each tier by 1.0% and adding a new 5-year milestone. Employees will now receive 2.0% of new step 8 after 5 years of service. Existing tiers have been adjusted to 2.5% at 10 years, 3.5% at 15 years, 4.0% at 20 years, 4.5% at 25 years, and 5.0% at 30 years.
Sick Leave to Vacation Transfer: Employees with more than 300 hours of accrued sick leave will have the option to transfer a portion of that balance to their vacation bank. A minimum of 300 hours must remain in the sick leave bank after the transfer is made.
Life Insurance Increase: To align with other employee groups, the City will increase Life and Accidental Death and Dismemberment (AD&D) insurance coverage for this group from one time (1x) the employee’s annual salary to two times (2x) the employee’s annual salary.
Environmental Review
Not applicable
Fiscal Impact
The fiscal impact of the two-year agreements is $1,636,627 for the Classified Misc group, $678,141 for Supervisors, and $2,234,140 for SMPFA. These costs are included in the Fiscal Year 2025-2026 Budget.
Attachment(s)
Resolution - Memorandum of Understanding between the City of SM SMCMEA SMSA SMPFFA
Classified_MOU_07.01.25-06.30.27_FINAL
Supervisors_MOU_07.01.25-06.30.27_FINAL
Fire_MOU_07.01.25-06.30.27_FINAL
Prepared by: Stacy Armacost, HR/Risk Manager
Submitted by: Stacy Armacost, HR/Risk Manager
Reviewed by: Janelle Laughlin, Administrative Services Director
Approved by: Michelle Bender, City Manager