AgdaPkt 2011-08-22 - Laserfiche WebLink

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6.1.C. - Page 1 RE PO RT To the Honorable Mayor and City Council From the City Manager August 22, 2011 SUBJECT New Memorandum of Understanding between the City of Redwood City and the Chief Officers Association (COA). RECOMMENDATION Approve, by motion, the MOU between the City of Redwood City and the COA and authorize the City Manager to execute the MOU. BACKGROUND In the spring of 2011 the Fire Battalion Chief's expressed an interest to formally establish a new bargaining unit, separate from the Redwood City Management Employees Association (RCMEA). Following a formal review process and agreement from RCMEA, the Chief Officers Association was established effective May 9, 2011. The City has met and conferred with the COA and reached an agreement to establish a new MOU for the period May 9, 2011 through September 30, 2013. The negotiation process with the COA was similar to the approach taken with all the City's bargaining units. As a result of the declining economy and increasing labor costs, the City has made a number of difficult budget decisions over the past several years, including staffing reductions and programmatic cuts. All employees agreed to a salary freeze that resulted in significant savings to the general fund. This effort provided temporary relief from the fiscal challenge facing the City. In July of 2010 a multi-year approach was formulated to put the City on a sustainable financial foundation, including a goal of $5.6 million in labor concessions. The labor groups were advised that structural changes were needed to the City's benefit programs for long-term fiscal stability. Each bargaining unit was provided a 3-year target to achieve their savings figure. The target for each group was calculated by determining each bargaining unit's total percentage of the City's payroll and applying that same percentage to the $5.6 million labor concession figure. The COA, with the other units, reached agreement with the City that achieves the established goal.