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07-07-2020 - AGENDA ITEM 16 CONSIDERATION OF A SIDE LETTER OF AGREEMENT BETWEEN THE CITY OF WEST COVINA AND THE WEST COVINA DEPARTMENT HEADSAGENDA ITEM NO. 16 AGENDA STAFF REPORT City of West Covina I Office of the City Manager DATE: July 7, 2020 TO: Mayor and City Council FROM: David Carmany City Manager SUBJECT: CONSIDERATION OF A SIDE LETTER OF AGREEMENT BETWEEN THE CITY OF WEST COVINA AND THE WEST COVINA DEPARTMENT HEADS RECOMMENDATION: It is recommended that the City Council adopt the following Resolution: RESOLUTION NO.2020-83 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA ADOPTING THE SIDE LETTER OF AGREEMENT BETWEEN THE CITY AND THE WEST COVINA DEPARTMENT HEADS BACKGROUND: The West Covina Department Heads Memorandum of Understanding expired on June 30, 2018 and have reached a side letter of agreement. DISCUSSION: The City and the West Covina Department Heads have memorialized a side letter of agreement. The terms and conditions agreed upon address personnel -related cost -saving measures immediately needed as a result of the City's dire financial condition, as declared on May 19, 2020. Such cost -savings measures include the suspension and reduction of certain employment benefits through the end of December 2020. Prepared by: Helen Tran, HR/Risk Management Director Fiscal Impact FISCAL IMPACT: Anticipated savings is approximately 10% of the department heads' benefits reduction suspended for a period of 6 months (through December 31, 2020). Attachments Attachment No. 1- Resolution No. 2020-83 (WCDH) https://destinyhosted.com/print_ag_memo.cfm?seq=876&rev_num=0&mode=6demal&reloaded=true&id=93782 1/2 11/24/2020 Print Staff Report CITY Achieve Fiscal Sustainability and Financial Stability COUNCIL GOALS & OBJECTIVES: https://destinyhosted.com/print_ag_memo.Gfm?seq=876&rev_num=0&mode=6demal&reloaded=true&id=93782 2/2 Attachment No. 1 RESOLUTION NO.2020-83 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA ADOPTING THE SIDE LETTER OF AGREEMENT BETWEEN THE CITY AND THE WEST COVINA DEPARTMENT HEADS WHEREAS, the City of West Covina, hereinafter referred to as the "City," and the West Covina Department Heads, have met and conferred in accordance with the Meyers-Milias-Brown Act and Government Labor Code §3500; and WHEREAS, the City and the West Covina Department Heads have memorialized the agreement in a written side letter of agreement. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WEST COVINA HEREBY RESOLVES AS FOLLOWS: SECTION 1. The Side Letter of Agreement between the City and the West Covina Department Heads to be provided at the regular meeting of the City Council on July 7, 2020 is hereby approved. SECTION 2. The City Manager is authorized to sign the Side Letter of Agreement. APPROVED AND ADOPTED by the City Council of the City of West Covina at its regular meeting on this 7th day of July, 2020. Tony Wu Mayor APPROVED AS FORM ATTEST Thomas P. Duarte Lisa Sherrick City Attorney Assistant City Clerk Attachment No. 1 I, LISA SHERRICK, ASSISTANT CITY CLERK of the City of West Covina, California, do hereby certify that the foregoing Resolution No. 2020-83 was duly adopted by the City Council of the City of West Covina, California, at a regular meeting thereof held on the 7 day of July, 2020, by the following vote of the City Council: AYES: NOES: ABSENT: ABSTAIN: Lisa Sherrick Assistant City Clerk