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SR-091107-1Gc7_~ ~;,ya, City Council Report Santa Monica City Council Meeting: September 11, 2007 Agenda Item: To: Mayor and City Council From: Karen Bancroft, Director of Human Resources Subject: Resolution Authorizing the City Manager to Execute a Memorandum of Understanding with the Administrative Team Associates Recommended Action This report requests that Council adopt the attached Resolution authorizing the City Manager to execute a Memorandum of Understanding (MOU) with the Administrative Team Associates. Executive Summary The current Memorandum of Understanding (MOU) with the Administrative Team Associates (ATA) expired on June 30, 2007. Per the terms and conditions of that MOU, negotiations with ATA for a successor MOU commenced and resulted in a new agreement that has been ratified by the membership of ATA. The total cost of this MOU is $855,278 for fiscal year 2007-2008 and is included in the adopted budget. Discussion This agreement is a two-year contract from July 1, 2007 through June 30, 2009. The agreement provides a 3.1 % cost of living adjustment for FY2007-2008 and a cost of living adjustment for FY2008-2009 based on the Consumer Price Index (CPI) for the 1 Los Angeles-Riverside-Orange County area, with a minimum of 2% and a maximum of 4%; adds one MOU (personal leave) day that can be cashed out if not used by the end of the fiscal year; and makes some minor non-economic changes. Budget/Financial Impact The total cost of the new contract terms for FY2007-2008 is $855,278. This amount includes the 3.1% cost of living increase ($776,915) and the cost of one (1) cashable MOU day ($78,363). Provision was made in the FY2007-2008 budget to accommodate the results of negotiations with bargaining units and no appropriation is necessary. Prepared by: Karen Bancroft, Director of Human Resources roved: Forwarded to Council: 2 Reference Resolution No. 10243 (CCS)