HomeMy WebLinkAboutGilroy Management Association - Side Letter Agreement - June 2, 2009
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CITY OF GILROY
AND
GILROY MANAGEMENT ASSOCIATION
JUNE 2, 2009
SIDE LETTER AGREEMENT
Over the last two months, the City has been meeting with the Gilroy Management Association on
budget reductions. The City of Gilroy and the Gilroy Management Association (GMA) have agreed to the
following:
1. Furlough
Twenty-four (24) days (192 hours) of furloughs in Fiscal Year 2009-2010.
Twenty-four (24) days (192 hours) of furloughs in Fiscal Year 2010-2011.
This is a total of 48 days over a two year period. City offices to be closed the 1st
and 3rd Friday of every month to achieve a salary and salary related benefits
savings of 9.23% for both Fiscal Year 2009-2010 and Fiscal Year 2010-2011.
Alternate furlough days may be approved in the same month at the discretion of
the department head in order to achieve operational efficiencies. It is understood
that the furlough days as described above will be implemented in such a manner
so as to not impact the FLSA exempt status of the exempt GMA classifications.
Further, it is understood by the City of Gilroy and GMA that detailed procedures
will be developed for the implementation of the work furlough. The parties will
work together to develop the procedures and communicate information to
employees.
2. Wage Freeze
No negotiated wage increase for the period of July 1, 2009 - June 30, 2010.
3. Merit Salary Increases
Reinstate Merit Increases for the period of March 2009-June 2009. Eliminate
Merit Increases for Fiscal Year 2009-2010 (July 1, 2009 - June 30, 2010).
4. Tuition Reimbursement
Eliminate Tuition Reimbursement (reimbursement of up to $1,000 per employee)
for Fiscal Year 2009-2010 (July 1, 2009 - June 30, 2010).
Page 1 of 2
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5. MOU Establishment
The parties agree to enter in to good faith negotiations to execute a minimum one-year status
quo Memorandum of Understanding (MOU) by September 30, 2009 that sets forth the current
compensation and benefits of GMA. GMA will not be requesting any new salary or benefits. The
September 30, 2009 date for the execution of the MOU can be extended if mutually agreed upon
by both parties if negotiations are progressing.
For Gilrov ManaR:ement Association (GMA):
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Kurt svardal, GMA President
Ed B~ GM~ident
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Marilyn Roaf, GMA Treasurer
Resources Director
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Charles Sakai, Labor Negotiations Counsel
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RESOLUTION NO. 2009-22
RESOLUTION APPROVING A SIDE LETTER CONCESSION AGREEMENT
BETWEEN THE CITY OF GILROY AND THE GILROY MANAGEMENT
ASSOCIATION (GMA)
The City Council of the City of Gilroy hereby resolves as follows:
WHEREAS, the City is experiencing revenue losses for a sustained period of multiple
years, therefore, revenues are not keeping pace with expenditures; and
WHEREAS, the local, state, and national economy is seeing unprecedented economic
losses, substantially declining property values, and declining sales tax revenue as consumers
curtail spending. As a result, the City has experienced significant revenue losses and expects
these losses to continue for multiple years; and
WHEREAS, the City has made over $8.0 million in cuts through spending reductions, a
hiring freeze, and layoffs; and
WHEREAS, the City requested to meet and confer with all bargaining units, including
Gilroy Management Association, in an effort to find solutions to the City's financial situation;
and
WHEREAS, Gilroy Management Association agreed to meet and confer and discuss
possible cost saving measures; and
WHEREAS, Gilroy Management Association concluded their discussions with the City;
and
WHEREAS, a Side Letter of Agreement outlining cost saving measures for Gilroy
Management Association was ratified by the Gilroy Management Association membership; and
WHEREAS, Gilroy Management Association has made a contribution of approximately
$343,000 through concessions from the 23 Gilroy Management Association members; and
WHEREAS, details of the Side Letter Agreement between the City and Gilroy
Management Association are included in Exhibit A to this resolution.
NOW, THEREFORE, BE IT RESOLVED that the City Council ofthe City of Gilroy
approves the Side Letter of Agreement and agrees that the City Administrator has the authority
to implement the Side Letter of Agreement and to create administrative procedures for the
implementation of the agreed upon unpaid furloughs.
PASSED AND ADOPTED this 8th day of June, 2009 by the following vote:
RESOLUTION NO. 2009-22
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AYES: COUNCILMEMBERS:
PINHEIRO
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
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ARELLANO, BRACCO, DILLON and
GARTMAN, TUCKER, WOODWARD
NONE
APPROVED:
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RESOLUTION NO. 2009-22
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I, SHA WNA FREELS, City Clerk of the City of Gilroy, do hereby certify that the
attached Resolution No. 2009-22 is an original resolution, or true and correct copy of a city
resolution, duly adopted by the Council of the City of Gilroy at a regular meeting of said Council
held on the 8th day of June, 2009, at which meeting a quorum was present.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of
the City of Gilroy this 11 th day of June, 2009.
Sha a Freels, CMC
City Clerk of the City of Gilroy
(Seal)