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SR-071508-1ACity Council Meeting: July 15, 2008 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 Municipal Employees Association Recommended Action This report requests that Council adopt the attached Resolution authorizing the City Manager to execute a Memorandum of Understanding (MOU) with the Municipal Employees Association. Executive Summary The current Memorandum of Understanding (MOU) with the Municipal Employees Association (MEA) expired on June 30, 2008. 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 total cost of this MOU is $2,652,570 for fiscal year 2008-2009 and is provided for in the adopted budget. Discussion This agreement is a three-year contract from July 1, 2008 through June 30, 2011. The agreement provides a 4.0% cost of living adjustment for FY2008-2009 and cost of living adjustments for FY2009-2010 and FY2010-2011 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%; increases the City deferred compensation match from $35.00 per month to $40.00 per month for FY2009-2010 and to $50.00 per month for FY2010- 2011; adds one (1) additional non-cashable personal (MOU) leave day for FY2010-2011 that must be used each fiscal year or be forfeited; makes some minor economic 1 changes that will be absorbed by the affected departments; and some non-economic changes: Financial Impacts & Budget Actions The total cost of the new contract terms for FY2008-2009 is $2,652,570. This amount includes the 4.0% cost of living increase and the increase in the City deferred compensation. match. 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 2 Approved:. Forwarded to Council Reference Resolution No. 10323 (CCS).