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City of San Leandro <br />Meeting Date: September 28, 2020 <br />Staff Report <br />Agenda Section:File Number:20-385 ACTION ITEMS <br />Agenda Number:10.B. <br />TO:City Council <br />FROM:Jeff Kay <br />City Manager <br />BY:Jeff Kay <br />City Manager <br />FINANCE REVIEW:Susan Hsieh <br />Finance Director <br />TITLE:Staff Report for a City of San Leandro City Council Resolution Approving the San <br />Leandro Management Organization (SLMO) Memorandum of Understanding and <br />Authorizing the City Manager to Execute Employment Agreements for Police <br />Chief and Assistant City Manager with no Salary Increases in the Current Fiscal <br />Year 2020-2021. <br />SUMMARY AND RECOMMENDATIONS <br />Staff recommends that the City Council approve a resolution ratifying the Memorandum of <br />Understanding (MOU) between the City of San Leandro and the San Leandro Management <br />Organization (SLMO) and authorizing the City Manager to execute employment agreements for <br />the Police Chief and Assistant City Manager. In acknowledgement of the financial challenges the <br />City faces due to the COVID-19 pandemic, the entire executive team and management group has <br />agreed to forego a salary increase in Fiscal Year 2020-21. <br />BACKGROUND <br />The COVID-19 pandemic has resulted in significant impacts to revenue sources that will affect the <br />City’s budget. Activities in San Leandro continue to be restricted due the State and County’s <br />public health orders to shelter-in-place (“SIP”). While the SIP is gradually lifting, it is still unknown <br />when businesses will be allowed to fully reopen and when revenue-generating activities will return <br />back to normal levels. <br />To mitigate the anticipated financial shortfalls caused by this crisis, the City has already <br />implemented a number of cost saving measures, including the reduction of expenditures, <br />implementation of a soft hiring freeze of non-essential positions, elimination of non-essential <br />travel, and deferral of General Fund contributions to Capital Improvement Projects. <br />Employees would typically receive an annual cost-of-living (COLA) adjustment, which has <br />averaged 3% over the last 5 years. In recognition of the City’s critical financial condition, the San <br />Page 1 City of San Leandro Printed on 9/23/2020 <br />354