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10B Action 2020 0928
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10B Action 2020 0928
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10/8/2020 3:55:15 PM
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9/23/2020 12:20:09 PM
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CM City Clerk-City Council
CM City Clerk-City Council - Document Type
Agenda
Document Date (6)
9/28/2020
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PERM
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Reso 2020-127 MOU with SLMO
(Approved)
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\City Clerk\City Council\Resolutions\2020
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File Number: 20-385 <br />Leandro Management Organization (SLMO), Police Chief, and Assistant City Manager have <br />agreed to forego a COLA salary increase in FY 2020-2021. The City Manager has also <br />volunteered to waive a salary increase in the current fiscal year, and an amendment to the City <br />Manager’s employment agreement will be brought forward at the next regular meeting, to comply <br />with CalPERS regulations on executive compensation. Concessions in labor costs from the entire <br />executive team and management group will greatly contribute to cost savings and help to avoid <br />layoffs or reductions in services to the community. <br />Analysis <br />The San Leandro Management Organization (SLMO) Memorandum of Understanding (MOU) <br />expired on June 30, 2020. SLMO represents 35 employees and is comprised of Department <br />directors and managers across all departments. During several meetings, the City and SLMO <br />discussed ways to achieve budget savings and negotiated a new contract to effectuate the <br />savings in the current fiscal year budget. A tentative agreement was reached for the period July 1, <br />2020 through December 31, 2021, in which employees will forego a cost of living salary <br />adjustment in FY 2020-2021. The City agreed to provide a non-pensionable contribution towards <br />employees’ deferred compensation 457 plan, match employee’s contributions up to 2% of base <br />salary, and an administrative leave bank of 40 hours per calendar year for each employee. <br />The Police Chief and Assistant City Manager also agreed to forego salary increases in their <br />respective employment agreements for the current fiscal year. The Police Chief’s employment <br />agreement expired on January 30, 2020 and a successor agreement is proposed for the period <br />January 31, 2020 through December 31, 2022. The updated agreement was originally delayed to <br />allow time for completion of the City’s negotiations with the Police Management Association. The <br />Assistant City Manager classification is currently a part of SLMO, but an individual employment <br />agreement is proposed for the period September 1, 2020 through December 31, 2022. Since the <br />Assistant City Manager manages the overall preparation of the annual budget, being <br />unrepresented by a bargaining unit ensures that the City Manager will receive neutral and <br />independent analyses and recommendations related to the budget and other finance issues. <br />The proposed agreements are recommended for approval. <br />Previous Actions <br />·On November 7, 2016, by Resolution No. 2016-148, the City Council approved the Police <br />Chief’s employment agreement effective October 18, 2016 through January 30, 2020. <br />·On February 16, 2016, by Resolution No. 2016-016, the City Council approved the prior <br />SLMO MOU for the period July 1, 2015 through June 30, 2020. <br />Fiscal Impacts <br />By foregoing a 3% cost-of-living salary increase, and the proposed changes to the SLMO MOU, <br />the net savings to the 2020-21 budget is $69,719. The remaining provisions in the proposed <br />agreements for the Police Chief is a savings of $13,576 and will not require any additional <br />funding in the adopted City budget. The total net savings for FY 2020-21 amount to $83,295. <br />Page 2 City of San Leandro Printed on 9/23/2020 <br />355
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