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SR-603-002 (9)~~~r . . ~ ~;,Yo, City Council Report Santa Monica~ City Councii Meeting: October 10, 2006 Agenda Item: ~~ To: Mayor and City Councii From: Karen Bancroft, Director of Human Resources Subject: Resolution Authorizing the City Manager to Execute a Memorandum of Understanding with the Municipal Employees Association Recommended Action It is recommended that Council adopt the attached Resolution authorizing the City Manager to execute the new Memorandum of Understanding with the Municipal Employees Association. Executive Summary The current Memorandum of Understanding ~(MOU) with the Municipal Employees Association (MEA) expired on June 30, 2006. MEA represents approximately 850 employees who hold clerical, technicaf, paraprofessional, skilled trades and blue color positions. Per the terms and conditions of that MOU, negotiations with MEA for a successor MOU commenced and resulted in a new agreement that has been ratified by the membership of MEA. The new MOU provides for an annual cost of living adjustment and adjust other economic factors. The total cost of this MOU is $2,261,500 in fiscal year 2006-2007 and is included in the adopted budget. 1 Discussion This agreement is a two-year contract from July 1, 2006 through June 30, 2008. The agreement provides for a cost of living increase of 4.0% for FY2006-2007; provides for a cost of living increase for FY2007-2008 based on the Consumer Price Index (CPI) for Urban Wage Earners and Clerical Workers in the Los Angeles-Riverside-Orange County area, with a 2.0% minimum and a 4.0°!o maximum; increases the "pay for training" bonus, which has not been adjusted since 1996, that an employee receives for training a new employee in the same job classification from $0.70/hour to $1.50/hour , with the pay-for-training work assignment not to exceed two (2) work weeks; increases the shift differentials, which have not been adjusted since 1992, from $0.75/hour to $1.00/hour for "swing" shift and from $1.00/hour to $1.25/hour for "graveyard" shift; increases the scuba pay bonus, which has not been adjusted since 1993, that is paid to Pier and Harbor Services Officers for this work assignment from $75.00/month to $125.00/month; provides an additional sixteen (16) hours of non-cashable personal leave time; and makes minor non-economic changes. Budqet/Financial Impact The total cost of the new contract terms for FY2006-2007 is $2,261,500. Provision was made in the FY2006-2007 budget to accommodate the results of negotiations with bargaining units and no appropriation is necessary. Prepared by: Karen Bancroft, Director of Human Resources 2 roved: Ka~n Bancro Director of Hu to Council: ee o e eso u ~ o n o. .