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SR-603-002 (4) PE: Letter of Understanding.MEA.bancroft.pms Santa Monica, California Council Meeting: February 10, 2004 TO: Mayor and City Council FROM: City Staff SUBJECT: Resolution Authorizing the City Manager to Execute a Letter of Understanding With the Municipal Employees Association Regarding Administration of Section 4.01 (Holidays) of the Memorandum of Understanding between the City of Santa Monica and the Municipal Employees Association INTRODUCTION This report requests that Council adopt the attached resolution authorizing the City Manager to execute a Letter of Understanding with the Municipal Employees Association th regarding a change to the way the Lincoln?s Birthday holiday (February 12) is administered for MEA employees for 2004. BACKGROUND In the late 1990?s, in order to provide better customer service to the residents of Santa Monica, the City met and conferred with the City?s non-safety bargaining units about th exchanging the Lincoln?s Birthday holiday, which always falls on February 12, for a floating holiday. This change enabled City Hall and other City offices to remain open on Lincoln?s Birthday, with the employees scheduling their floating holiday on a day when the employee?s absence would not negatively impact City operations. (Unlike President?s Day, -1- which is an observed City holiday, Lincoln?s birthday is not widely observed and many customers expect to access City services on that day.) The Municipal Employees Association (MEA) was the only bargaining unit that did not agree to make this change because there were a number of MEA employees who were regularly assigned to work on holidays and receive holiday pay plus overtime pay for working on the holiday. Converting the Lincoln?s Birthday holiday to a floating holiday would result in those employees losing the overtime pay that they have always received each year. Even though an agreement was not reached with MEA, City Hall and other City facilities th have remained open to the public on February 12 each year. Since MEA continued to observe Lincoln?s Birthday as a paid holiday, the City had to either pay MEA employees th overtime and holiday pay to work on February 12 each year or reduce City staff by giving the majority of the MEA employees the day off with holiday pay. This resulted in staffing shortages, impaired customer services, and increased overtime expenditures for the City. In recognition of the need to provide good customer service and reduce City operating costs, MEA has agreed to change the way in which the Lincoln?s Birthday holiday is administered for MEA employees for 2004. Under the Letter of Understanding between the City and MEA, employees who are regularly assigned to work on holidays will continue to observe Lincoln?s Birthday as a holiday. These employees will not lose the overtime pay that they normally receive as a result of being assigned to work on that holiday. Those -2- MEA employees who are not regularly assigned to work on holidays will receive a floating holiday in lieu of the Lincoln?s Birthday holiday. The City will be able to adequately staff City facilities on February 12, 2004 without incurring additional overtime expenditures as a result of this change. BUDGET/FINANCIAL IMPACT There is no increase in City expenditures associated with the attached Letter of Understanding between the City and the Municipal Employees Association. RECOMMENDATION It is recommended that Council adopt the attached Resolution authorizing the City Manager to execute a Letter of Understanding Between the City of Santa Monica and the Municipal Employees Association regarding administration of Section 4.01 (Holidays) of the Memorandum of Understanding between the City of Santa Monica and the Municipal Employees Association. Prepared By: Karen Bancroft, Director of Human Resources (See adopted Resolution No. 9925 (CCS)). -3-