DATE: December 15, 2015
TO: Mayor and City Council
FROM: Director of Human Resources
SUBJECT
Title
Resolution Approving a Memorandum of Understanding between the City of Hayward and the Hayward Police Management Unit
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RECOMMENDATION
Recommendation
That the City Council adopts the attached Resolution approving the Memorandum of Understanding (MOU) between the City of Hayward and the City of Hayward Police Management Unit ("HPMU")
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BACKGROUND
Employee salaries and benefits comprise approximately eighty percent (80%) of the City's expenses. Over the last five years, the City of Hayward has worked hard to close a growing structural General Fund gap each fiscal year. Significant changes to employee salary and benefit packages are a key element in closing this gap. For FY 2016, the City Council was able to balance the General Fund with minimal use of the General Fund Reserves. This was accomplished through difficult decisions made by City Council and increased sharing of compensation costs by most of the City's bargaining units. Unfortunately, it is projected that the structural gap in the General Fund will continue in FY 2017; and absent additional cost reduction efforts (or significant increases in revenues), it will continue to grow in future years.
Despite many financial challenges, the City remains committed to providing fair and competitive benefits packages in a manner that is both fiscally responsible and addresses the structural gap. This task is extremely challenging because any reasonable solution to achieve long-term financial stability must include an increase in employee contributions toward the growing cost of benefits
DISCUSSION
The City entered into negotiations with HPMU in May 2015. Consistent with its approach with other City bargaining units, the discussions were structured to provide appropriate salary adjustments for employees, maintain employee...
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