City Council Meeting: November 13, 2007

Agenda Item: 1-H

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 Management 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 Management Team Associates (MTA).

Executive Summary

The current Memorandum of Understanding (MOU) with the Management Team Associates (MTA) expired on June 30, 2007. Per the terms and conditions of that MOU, negotiations with MTA for a successor MOU commenced and resulted in a new agreement that has been ratified by the membership of MTA. The total cost of this MOU is $233,819 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 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; add two (2) non-cashable MOU (personal leave) days; provides for acting pay if the employee “acts” as a department head for a minimum of fourteen (14) calendar days; and makes some minor non‑economic changes.

Budget/Financial Impact

The total cost of the new contract terms for FY2007-2008 is $233,819. This amount includes the 3.1% cost of living increase ($207,302) and the cost of one (1) cashable MOU day ($26,517). The budget impact of the cost of living increase is included in each department's FY2007-08 adopted budget. The cost of the additional MOU day for General Fund employees is included in the Non-Departmental budget and increases in other funds budgets will be absorbed at this time and re-evaluated at year-end for additional funding, if needed.

Prepared by:

Karen Bancroft, Director of Human Resources

Attachment: Resolution

Approved:	Forwarded to Council:
Karen Bancroft Director, Human Resources	P. Lamont Ewell City Manager