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Regular City Council Minutes — 3/31/03 DRAFT Minutes - Page 14 Understanding set forth as follows: If the City finds that its budget situation for 2004 presents a deficit unless city costs are reduced, the contract may be reopened for renegotiation of 2004 wage adjustment/layoff implementation only, to constitute this reduction in costs. This renegotiation may be done at the written request of either party." and further directed staff to prepare the necessary documents for execution by the Mayor, the City Manager and the representative for the International Union of Operating Engineers. Human Resources Director Eldona Bacon reviewed the history of contract negotiations to -date; and the agreement of representatives of the 49er's group to the Letter of Understanding and Limited 2004 Renegotiation Clause. Councilmember Kough asked Ms. Bacon to explain the Provision; and Councilmember Schroeder asked for further clarification of the intent of the cause. City Attorney Anderson had reviewed the draft wording of the clause as originally requested by Councilmember Kough, and provided an interpretation for Councilmembers. Councilmember Klausing spoke in favor of the cause, given the uncertain times and the need for the Council to be prudent in not getting locked into atwenty -four (24) month contract; and expressed his appreciation to staff and union representatives in cooperatively working through the issue to the advantage of City taxpayers. Councilmember Schroeder continued to express concern regarding the apparent "open- ended" cause and whether it provided protection to the City or Union. Mayor Kysylyczyn sought whether anyone from the union was in attendance; with no one responding.