sr-092281-6gTD:JFH:MO:cb
T0: Mayor and City Council
FROM: City Staff
SUBJECT: Extension of an Existing Memorandum of Understanding
between the City and Transportation Department Employees'
Representative Organizations Under Paragraph 13(c) of the
Urban Mass Transportation Act of 1964, as Amended
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SEP 2 2 1981
Introduction
As a condition of receiving federal assistance for the purchase of new buses,
the City must make fair and equitable arrangements to protect Transportation
Department employees against any worsening of their positions within the De-
partment resulting from the use of the federal funds. To satisfy this require-
ment, this report requests that the City Council authorize the City Manager
to seek an extension of the terms and conditions of a previous Demorandum of
Understanding, adopted by the Council on September 13, 1977, to cover eleven
buses to be purchased under a federal grant.
Background
On July 14, 1981, the City Council authorized the City Manager to submit an
application to the federal Urban Mass Transportation Administration (UMTA)
for $2,635,000 to purchase eleven fully equipped diesel transit buses. Six
buses are to be used as additions to the fleet and five buses as replacements.
This application has been sent to UMTA for its review and approval.
Section 13(c) of the Urban Mass Transportation Act specifies that as a con-
dition of any financial assistance, fair and equitable arrangements be made
as determined by the Secretary of Labor, to protect employees against a
worsening of their position within the Department as a result of federal
funding. Included in this protection are all rights, privileges and benefits
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Santa Monica, California, September 9, 1981
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SEP 2 2 ygg~
To: Mayor and City Council -2- September 9, 1981
(including pension rights and benefits) of employees covered under existing
memoranda of understanding. In addition, the agreement specifies certain levels
of compensation for up to six years for employees who are displaced as a result
of the project.
Six of the eleven buses will be added to the fleet to accommodate the increased
patronage of the Department's Big Blue Buses. The other five will be used to
replace existing equipment purchased in 1967. Because of the nature of the pro-
ject, it is expected that no layoffs., dismissals or demotions will occur as a
result of this federal financial assistance.
Originally, the City Council adopted this Memorandum of Understanding for a pre-
vious bus acquisition grant at its September 13, 1977 meeting. The terms and
conditions were later extended to other bus acquisition grants by separate Council
actions, the most recent Council action taking place on September 24, 1980. Accord-
ing to the Department of Labor, with the concurrence of the affected employee
organizations, this same agreement can be extended to cover the present project.
A copy of the original 1977 agreement is attached.
Alternatives
1. The City Council could direct staff to negotiate a new memorandum. It
is unlikely, however, that the employee organizations, and the Depart-
ment of Labor, which has final approval, would agree to less protection
than that provided previously. The City would then be ineligible to
receive a total of $2,635,000 in federal assistance.
2. The City Council could authorize the City Manager to seek an agreement
from the affected employee groups to extend the Memorandum of Under-
standing, adopted September 13, 1977, to cover the pending grant. This
would make the City eligible to receive the federal funds.
Recommendation
City staff recommends that the City Council authorize the City Manager to seek
agreement from affected employee groups to extend the Memorandum of Understanding,
adopted September 13, 1977, to cover the pending grant for a total of eleven buses.
Prepared by: Jack Hutchison
Mario Oropeza