HomeMy WebLinkAbout101-Staff report & resolution.pdfPage 1 of 4
SARATOGA CITY COUNCIL
MEETING DATE: June 2, 2010 AGENDA ITEM:
DEPARTMENT: City Manager’s Office CITY MANAGER: Dave Anderson
PREPARED BY: Dave Anderson DIRECTOR:
City Manager
SUBJECT: Side Letter of Agreement between the Saratoga Management Organization and the
City of Saratoga
RECOMMENDED ACTION(S):
Adopt the resolution approving the Side Letter of Agreement between the Saratoga Management
Organization (SMO) and the City of Saratoga suspending members’ car allowance for fiscal year
2010-2011.
REPORT SUMMARY:
At its August 1, 2007 meeting, the City Council approved a new Memorandum of Understanding
(MOU) between the City and SMO.
Recently, in response to financial constraints faced by the City, SMO members voluntarily
agreed to suspend receipt of their car allowance for fiscal year 2010-2011. The attached Side
Letter of Agreement between SMO and the City memorializes the one-year car allowance
suspension.
FISCAL IMPACTS:
Suspension of SMO members’ car allowance for fiscal year 2010-2011 will reduce budget
expenditures by $24,000.
CONSEQUENCES OF NOT FOLLOWING THE RECOMMENDED ACTIONS:
The City would incur a charge to the General Fund in the amount of $24,000 for fiscal year 2010-
11 and would need to identify alternative reductions in order to achieve a balanced budget.
ALTERNATIVE ACTION(S):
Choose not to accept the Side Letter of Agreement.
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FOLLOW UP ACTION(S):
Staff will execute the Side Letter of Agreement and implement its elements.
ADVERTISING, NOTICING AND PUBLIC CONTACT:
Pursuant to Government Code 54954.2, this item was properly posted as a City Council agenda
item and was included in the packet made available on the City’s web site in advance of the
meeting. A copy of the agenda packet is also made available at the Saratoga Branch Library each
Monday in advance of the Council meeting.
ATTACHMENTS:
Resolution to adopt the Side Letter of Agreement between the City and SMO
Side Letter of Agreement between the City and SMO
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RESOLUTION NO._______
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SARATOGA
APPROVING A SIDE LETTER OF AGREEMENT
BETWEEN THE SARATOGA MANAGEMENT ORGANIZATION (SMO)
AND THE CITY OF SARATOGA (CITY)
WHEREAS, representatives of the City and SMO have reached an understanding
regarding changes in salaries, benefits and other matters for the period beginning July 1, 2007,
through September 30, 2011, for employees represented by SMO; and
WHEREAS, the members of SMO have ratified the MOU and the City Council approved
the MOU on August 1, 2007; and
WHEREAS, the City of Saratoga is experiencing financial constraints such that it has
proposed numerous expenditure reductions for fiscal year 2010-2011, which have been endorsed
by the City Council; and
WHEREAS, in recognition of the financial constraints faced by the City, the members of
SMO have voluntarily agreed to forego receipt of their car allowance, pursuant to Section VII. C.
Car Allowance of the MOU, for fiscal year 2010-2011; and
WHEREAS, the representatives of the City and SMO have agreed to enter into a Side
Letter of Agreement to the SMO MOU providing for a temporary elimination of SMO members’
car allowance for fiscal year 2010-2011;
WHEREAS, the temporary elimination of SMO members’ car allowance will commence
with the first pay period of fiscal year 2010-2011 (June 26 to July 9, 2010) and will terminate
with the last pay period of fiscal year 2010-2011 (June 25, 2011 to July 8, 2011).
NOW, THEREFORE, BE IT RESOLVED, that the terms and conditions of the Side
Letter of Agreement, Dated the 2nd day of June, 2010, are hereby approved.
The above and foregoing resolution was passed and adopted at a regular meeting of the Saratoga
City Council held on the 2nd day of June 2010 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
______________________________
Kathleen King, Mayor
ATTEST:
_____________________________
Ann Sullivan, City Clerk
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SIDE L ETTER OF AGREEMENT
Between The
Saratoga Management Organization and the City of Saratoga
TEMPORARY ELIMINATION OF CAR ALLOWANCE
This Side Letter of Agreement is executed by and between the City Council of the City of
Saratoga (“City”) and the Saratoga Management Organization (“SMO”).
As a result of financial constraints that are anticipated by the City of Saratoga for fiscal year 2010
– 2011 (July 1, 2010 to June 30, 2011) and notwithstanding Article VII (C) of the Memorandum
of Understanding dated August 1, 2007 between the City and SMO (hereinafter referred to as
“MOU”), the City and SMO agree that the members of SMO will temporarily forego receipt of
their monthly $400.00 car allowance from the first pay period of fiscal year 2010-2011 (June 26,
2010 to July 9, 2010) through the final pay period of fiscal year 2010-2011 (June 25, 2011 to July
8, 2011).
Signed this day, June 2, 2010
City of Saratoga
___________________________________
Kathleen King, Mayor
Saratoga Management Organization
___________________________________
John Cherbone, SMO President