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SR-062408-1Mc7® ~;tYOf City Council Report Santa Monica City Council Meeting: June 24, 2008 Agenda Item: t ~' M To: Mayor and Gity Council From: Karen Bancroft, Director of Human Resources Subject: Resolution Authorizing. the City Manager to Execute a Memorandum of Understanding with the Supervisory 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 Supervisory Team Associates. Execu#ive Summary The current Memorandum of Understanding (MOU) with the Supervisory. Team Associates (STA) expires on June 30, 2008. Per the terms and conditions of that MOU, negotiations with STA for a successor MOU commenced and resulted in a new agreement that has been ratified by the membership of STA. The total cost of this MOU is $440,876 for fiscal year 2008-2009 and is included in the adopted budget. Discussion This agreement is a two-year contract from July 1, 2008 through June 30, 2010. The agreement provides a 4.0% cost of living adjustment for FY2008-2009 and a cost of living adjustment for FY2009-2010 based on the Consumer Price Index (CPI) for the Los Angeles-Riverside-Orange County area, with a minimum of 2% and a maximum of 4%; adds two MOU (personal leave) days that must be used each fiscal year or be forfeited and one MOU (personal leave) day that can be cashed out if not used by the end of the fiscal year; makes some minor economic changes that will be absorbed by the affected departments; and some non-economic changes. 1 Financial Impacts & Budget Actions The total cost of the new contract terms for FY2008-2009 is $440,876. This amount includes the 4.0% cost of living increase ($353,031), the cost of one cashable MOU day ($29,281) and two non-cashable MOU days ($58,564) Provision was made in the FY2008-2009 budget to accommodate the results of negotiations with bargaining units and no appropriation is necessary. Prepared by: Karen Bancroft, Director of Human Resources Approved: Forwarded to Council: Karin Bancroft l./ v mont EN Director, Human Resources ity Manager 2 Reference Resolution No. 10315 (CCS).