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SR 09-13-2011 3I~~+ ~;tYof City Council Report Santa Mouica~ City Council Meeting: September 13, 2011 Agenda Item: 31 To: Mayor and City Council From: Donna C. Peter, Director of Human Resources Subject: Resolution Authorizing the City Manager to Execute a Memorandum of Understanding with the Municipal Employees Association Recommended Action Staff recommends that the City 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, 2011. Per the terms and conditions of that MOU, negotiations with MEA for a successor MOU commenced and resulted in a new two-year agreement that has been ratified by the membership of MEA. The total cost of of the negotiated changes contained in this MOU is $1,533,812 for Fiscal Year 2011- 2012 and is $2,561,339 for Fiscal Year 2012-2013. Funds are included in the Adopted FY2011-2013 Budget. Discussion This MOU with MEA is a two-year agreement from July 1, 2011 through June 30, 2013. The agreement provides a 2.0% cost of living salary adjustment for FY2011-2012 and a 3.0% cost of living salary adjustment for FY2012-2013. In addition to some other minor economic and non-economic changes, the agreement includes adjustments to salary continuation for Workers' Compensation leave, reducing payments from 100% for the first sixty days to 100% for the first thirty days and 75% for the next thirty days. Although difficult to quantify, it is anticipated this will have a positive impact on reducing costs in this area. Negotiations with MEA also resulted in changes to bereavement leave to provide uniformity in the language of the provision among the various bargaining group agreements. 1 Financial Impacts & Budget Actions The total cost of the negotiated changes contained in the new agreement is $1,533,812 for FY 2011-2012 and $2,561,339 for FY 2012-2013. No additional appropriations for the biennial FY 2011-2013 budget is necessary. Prepared by: Donna C. Peter, Director of Human Resources Approved: Donna C. Peter Director of Human Resources Forwarded to Council: Rod Gould City Manager Attachments: A. Resolution 2 Reference Resolution No. 10606 (CCS).