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CC - Item 3C - Rosemead Employee Assocaition M.O.U AmendmentROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR AND CITY COUNCIL FROM: JEFF ALLRED, CITY MANAGER] A DATE: JUNE 23, 2009 SUBJECT: ROSEMEAD EMPLOYEE ASSOCIATION M.O.U. AMENDMENT SUMMARY The existing Memorandum of Understanding (MOU) between the City and the Rosemead Employee's Association (REA) is effective until June 30, 2010 and includes the ability to earn up to a 5% pay increase based upon an employee's annual evaluation. As the Council is aware, the City Manager's office has been in discussions with the REA Board to waive the right to merit increases for the 2009-10 Fiscal Year in an effort to save money and balance the budget. REA has agreed to waive any merit increases for all full and three-quarter time employees and waive any potential cost of living increases for part-time staff. Staff Recommendation Staff recommends that the City Council approve the MOU Amendment (Attached) between the City and the REA for the period of July 1, 2009 through June 30, 2010. ANALYSIS The existing MOU includes a provision for merit-based pay increases for three-quarter and full- time employees and cost of living increases for part-time staff. When developing the 2009-10 Budget it was projected that the potential increases would cost the City approximately $306,000. In an effort to balance the budget, staff approached the REA Board to determine if there was a willingness to forgo pay increases for the upcoming fiscal year. After discussions with their Board and a vote of their membership, it was unanimously agreed to amend the current agreement. PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. Submitted 'by: C 1 Matthew E. Hawkesworth Assistant City Manager Attachment : MOU Amendment ITEM NO. N_ APPROVED FOR CITY COUNCIL AGENDA: SIDE LETTER OF AGREEMENT JUNE 23, 2009 The parties agree to the following: • Amend Article 7: Compensation o No merit increases will be awarded for the period of July 1, 2009 through June 30, 2010. o No survey or adjustment to the hourly rate of part-time Team Members will be granted for the period of July 1, 2009 through June 30, 2010. ROSEMEAD EMPLOYEES ASSOCIATION CITY OF ROSEMEAD BY: JEAN S. SCOTT REA REPRESENTATIVE BY: JEFF ALLRED CITY MANAGER By KIM P. BORIS REA REPRESENTATIVE BY: RAY RODRIGUEZ REA REPRESENTATIVE BY: MARTIN A. JONES REA REPRESENTATIVE THE PARTIES HERETO HAVE CAUSED THIS MEMORANDUM OF UNDERSTANDING TO BE EXECUTED THIS DAY OF .2009 BY: IRMA A. GALINDO REA REPRESENTATIVE BY: CONCHITA T. ESCALONA REA REPRESENTATIVE