20 responses to findings and recommendations
R1
All of the cities in the County need to implement measures that will control employee costs. As a starting point, each city should determine the percentage of savings required from the total compensation package to reach budget stability, and provide choices of wages and benefits in collective bargaining sessions for the unions to choose to achieve that percentage goal. Response: The recommendation reauires further analvsis. The City agrees that all cities need to implement measures that will co...
Response: Unknown
Score: 0
The recommendation reauires further analvsis. The City agrees that all cities need to implement measures that will control employee costs, but the recommendation is overly simplistic and formulistic. While employee compensation is a significant portion of the City's budget, any budget balancing strategy needs to look at all expenses as well as all revenue options. In addition, total compensation is made up of many components and the high cost of health care, for example, is a national issue not limited to public sector employers. Campbell's level of total compensation is generally below averag...
R2
Cities should not increase salaries and wages that are not supported by planned revenue increases. Cities should tie COLA increases to clear indicators and retain the ability to adjust or withhold based on current economic data. Response: The recommendation has been implemented. Campbell gives wage increases consistent with multi-year budget projections. Findina 3: Step increases are arbitrary and do not adequately represent an employee's added value to a city. Combined with COLAs, new employees...
Response: Implemented
Score: 0
The recommendation has been implemented. Campbell gives wage increases consistent with multi-year budget projections. Findina 3: Step increases are arbitrary and do not adequately represent an employee's added value to a city. Combined with COLAs, new employees' wages increase quickly and are not necessarily reflective of improved knowledge and skills. Response: The Citv of Campbell aqrees with the findinq. CITY OF CAMPBELL RESPONSES TO GRAND JURY 2010 PAGE 1OF8
R3
Cities should negotiate step progressions from the current three and a half years to seven years. Employees should not receive COLA increase while in step progression. Response: The recommendation requires further analvsis. As part of future negotiations, the City will discuss the issue of step increases, including their relationships to COLA's, with employee groups. Findina 4: Medical insurance costs for active employees are growing year after year at rates that exceed most cities' revenue grow...
Response: Unknown
Score: 0
The recommendation requires further analvsis. As part of future negotiations, the City will discuss the issue of step increases, including their relationships to COLA's, with employee groups. Findina 4: Medical insurance costs for active employees are growing year after year at rates that exceed most cities' revenue growth, while the employee contribution to medical care is minimal. Response: The City of Campbell aarees with the findina.
R4
Cities should negotiate that employees assume some of these increased costs for their medical benefits. To contain medical costs cities should consider the following: A. Split monthly premiums between the city and the employee and increase the employee's share, if already cost splitting, and remove any employee caps. Response: The recommendation requires further analvsis. The City agrees conceptually that employer paid medical expenses need to be contained; the method in which to accomplish that...
Response: Unknown
Score: 0
The recommendation requires further analvsis. The City agrees conceptually that employer paid medical expenses need to be contained; the method in which to accomplish that objective will be evaluated further prior to the City's next negotiations process with the City's employee associations. During future negotiations, the City will negotiate in good faith to control health care costs. It should be noted, however, the excessive increases in health care costs is a national issue not limited to public-sector employers. B. Establish reasonable co-pays for doctors' visits, prescription drugs, and ...
F5
Pension formula changes instituted in the past decade, stock market losses, the aging baby boomer work force, and the growing unfunded pension and OPES liability all contribute to making retiree pension and health care costs the most problematic and unsustainable expense that cities are facing. The city contribution to pension plans and OPESs far exceeds the employee contribution. Response: The Citv of Campbell aqrees with the findinQ.
Response: Unknown
Score: 0
The Citv of Campbell aqrees with the findinQ.
R5a
Cities should: 1) Renegotiate and make provisions for increasing the employees' contribution for current pension plans. Response: The recommendation has not vet been implemented, but will be implemented in the future. As part of future negotiations, the issue of the employer share of pension costs will be discussed. 2) Renegotiate to stop paying the employees' contribution amount to pension plans. Response: The recommendation has been implemented. The City of Campbell does not pay any of the emp...
Response: Will Implement
Score: +1
The recommendation has not vet been implemented, but will be implemented in the future. As part of future negotiations, the issue of the employer share of pension costs will be discussed. 2) Renegotiate to stop paying the employees' contribution amount to pension plans. Response: The recommendation has been implemented. The City of Campbell does not pay any of the employees' contribution to pension plans. 3) Renegotiate to implement a contribution amount for employees to OPES; this contribution should provide for a reasonable split of costs between a city and the employee for retiree medical a...
R5b
Cities should thoroughly investigate reverting to prior pension formulas that were less costly. Response: The recommendation has been implemented. The City of Campbell has thoroughly investigated reduced pension formula options, has received actuarial valuations on them from CalPERS and has actively negotiated with its employee groups on the issue.
Response: Implemented
Score: 0
The recommendation has been implemented. The City of Campbell has thoroughly investigated reduced pension formula options, has received actuarial valuations on them from CalPERS and has actively negotiated with its employee groups on the issue.
R5c
To provide a meaningful long-term solution, the cities should negotiate agreements to: 1) Institute a two-tier system for pension and retiree health care for new hires. Response: The City of Campbell has successfully negotiated a two-tier pension system with the Campbell Police Officers Association and negotiations with the City's Miscellaneous groups are currently underway. 2) Increase the retirement age from 50 or 55 to 60 or 65. Response: The recommendation requires further analvsis. The City...
Response: Will Not Implement
Score: -1
The City of Campbell has successfully negotiated a two-tier pension system with the Campbell Police Officers Association and negotiations with the City's Miscellaneous groups are currently underway. 2) Increase the retirement age from 50 or 55 to 60 or 65. Response: The recommendation requires further analvsis. The City of Campbell has negotiated a lower-cost two-tier retirement plan for Police Officers whose formula is 2%@ 50, which was in place prior to the current 3% @ 50 formula. The City is in the process of negotiating with Miscellaneous employees for a plan that would increase the retir...
R6a
Cities should renegotiate with the bargaining units to 1) reduce vacation time; 2) reduce the number of holidays and/or personal days; 3) cap sick leave and eliminate the practice of converting accumulated sick leave to cash or adding into their years of service for inclusion in their retirement benefit. ReSDonse: The recommendation requires further analvsis. As with all items provided for in the City's Memorandum of Understanding with employee associations, the City will review the various leav...
Response: Will Not Implement
Score: -1
Cities should renegotiate with the bargaining units to 1) reduce vacation time; 2) reduce the number of holidays and/or personal days; 3) cap sick leave and eliminate the practice of converting accumulated sick leave to cash or adding into their years of service for inclusion in their retirement benefit. CITY OF CAMPBELL RESPONSES TO GRAND JURY 2010 PAGE 4 OF 8
ReSDonse: The recommendation requires further analvsis. As with all items provided for in the City's Memorandum of Understanding with employee associations, the City will review the various leave policies and negotiate in good faith ch...
R6b
Cities should negotiate to substitute paid days off for unpaid days instead of imposing furloughs. For example, reduce paid holidays to major holidays only, consistent with private industry; and convert minor holidays to unpaid. Therefore, the public is not impacted by fewer services caused by furloughs, and the city saves the employee costs. ReSDonse: The recommendation will not be implemented because it is not warranted or is not reasonable. Only two of the seven furlough days imposed in Campb...
Response: Will Not Implement
Score: -1
Cities should negotiate to substitute paid days off for unpaid days instead of imposing furloughs. For example, reduce paid holidays to major holidays only, consistent with private industry; and convert minor holidays to unpaid. Therefore, the public is not impacted by fewer services caused by furloughs, and the city saves the employee costs. ReSDonse: The recommendation will not be implemented because it is not warranted or is not reasonable. Only two of the seven furlough days imposed in Campbell will result in additional closure days of City Hall. The City believes it is appropriate for the...
R7a
Cities should research competitive hiring practices and alter the approach to determine fair wages and benefits for each city by using public and private sector data. ReSDonse: The recommendation requires further analvsis. For those classifications that have comparable counterparts in the private sector, total compensation data analysis would be a useful tool. The City will raise this issue with labor groups in future negotiations.
Response: Implemented
Score: 0
Cities should research competitive hiring practices and alter the approach to determine fair wages and benefits for each city by using public and private sector data. ReSDonse: The recommendation requires further analvsis. For those classifications that have comparable counterparts in the private sector, total compensation data analysis would be a useful tool. The City will raise this issue with labor groups in future negotiations. CITY OF CAMPBELL RESPONSES TO GRAND JURY 2010 PAGE 5 OF 8
Recommendation 7b:
Cities should renegotiate salaries and wages using valid market comparisons and not o...
R7b
Cities should renegotiate salaries and wages using valid market comparisons and not only the current wage index. Cities should utilize more market-oriented compensation practices so that salaries can adjust as competition for labor changes. Cities should reduce entry-level compensation for positions for which there are many qualified applicants. Response: The recommendation has been implemented. The City uses market comparisons as the primary factor in negotiating wage agreements. Due to limited...
Response: Implemented
Score: 0
The recommendation has been implemented. The City uses market comparisons as the primary factor in negotiating wage agreements. Due to limited resources, many classifications in the City are below the comparable market average. Findina 8: All cities perform certain core functions to run smoothly and provide services to their residents. To reduce employee costs and streamline operations, the cities are in various stages of contracting services to private industry or partnering with other cities, special districts or the County to deliver services. Response: The City of Campbell aarees with the ...
R8a
Cities should explore outsourcing some functions and services to private industry. Cities should discuss the prospect with cities that are successfully doing this to determine best practices and areas for success. Cities should develop contracts with measurable objectives, performance goals, and timelines. Response: This recommendation has been implemented and the City will continue to explore opportunities to outsource where there are financial and operation advantages. The City currently outso...
Response: Implemented
Score: 0
This recommendation has been implemented and the City will continue to explore opportunities to outsource where there are financial and operation advantages. The City currently outsources several services to private contractors, such as: • Janitorial Services • Street Sweeping • Specialized Legal and Engineering Services • Major Road Repairs • Theatre Management
R8b
Cities should create partnerships with other cities, special districts and/or the County for services, such as payroll, human resources, animal control, police and fire. Cities should investigate sharing the cost of new information technology systems. Response: This recommendation has been implemented and the City will continue to explore opportunities to partner with other agencies where there are financial and operation advantages. The City currently partners with other jurisdictions on the fo...
Response: Implemented
Score: 0
This recommendation has been implemented and the City will continue to explore opportunities to partner with other agencies where there are financial and operation advantages. The City currently partners with other jurisdictions on the following services: • Fire Service • Solid Waste • Animal Control • Information Technology CITY OFCAMPBELL RESPONSES TOGRAND JURY2010 PAGE60F8
Findina 9: Cities can gain operational efficiencies and effectiveness with lower employee costs by making sure they are staffed with the correct numbers of people in the appropriate job classification in all departments ...
R9
Cities should analyze the functions performed by all job classifications and make adjustments in the work force. Consolidate functions within the same group or a similar group. Reassign appropriate work to lower paid job classifications. Eliminate unnecessary functions. Response: This recommendation has been implemented. Over the past seven years, the City has reduced staffing by approximately 15%. Departments have been reorganized, sworn officer positions have been replaced by lower cost civili...
Response: Implemented
Score: 0
This recommendation has been implemented. Over the past seven years, the City has reduced staffing by approximately 15%. Departments have been reorganized, sworn officer positions have been replaced by lower cost civilians, and processes are constantly being evaluated to achieve greater efficiency. Findina 10: N/A Findina 11: In many cities, the contract negotiation process is completed by placing the negotiated collective bargaining agreements on the consent calendar for approval, which is acted on quickly at the start of council meetings by a single motion and vote of the council. Response: ...
R11
Cities should consider holding well-publicized public hearings about the cities' goals of negotiations before negotiations begin, and again at the end of negotiations to report to citizens clearly what changes have been made in contracts. Response: The recommendation will not be implemented because it is not warranted or is not reasonable. The City of Campbell, along with all cities, holds publicly noticed meetings all year long. Meeting agendas and minutes are posted on the web and meetings are...
Response: Will Not Implement
Score: -1
The recommendation will not be implemented because it is not warranted or is not reasonable. The City of Campbell, along with all cities, holds publicly noticed meetings all year long. Meeting agendas and minutes are posted on the web and meetings are now webcast. The specifics of any contract negotiated are posted on our website in advance of any final Council action. The public had ample opportunities to weigh in on issues of concern at any given meeting. One of the many public discussions of a city's budget is a particularly good time for residents to express any general concerns about labo...
R12a
City council members and mayors should become better informed about the fiscal realities in their cities, long-term costs and commitments, and be cognizant of potential issues in labor agreements. Res/Jonse: The recommendation has been implemented. The Council has numerous meetings devoted to the budget and cost implications of labor negotiations.
Response: Implemented
Score: 0
City council members and mayors should become better informed about the fiscal realities in their cities, long-term costs and commitments, and be cognizant of potential issues in labor agreements. Res/Jonse: The recommendation has been implemented. The Council has numerous meetings devoted to the budget and cost implications of labor negotiations.
Recommendation 12b:
City councils and mayors should direct city administrators to (re)negotiate collective bargaining agreements that reverse the escalation of employee costs through concessions, cost sharing, and a second tier for new employees. R...
R12b
City councils and mayors should direct city administrators to (re)negotiate collective bargaining agreements that reverse the escalation of employee costs through concessions, cost sharing, and a second tier for new employees. Res/Jonse: The recommendation has been implemented. In FY 10, all labor groups "gave back" agreed-to and binding wage increases. In FY 11, all groups accepted a furlough, reducing wages. In addition, a second tier retirement formula has been agreed to by the Police Officer...
Response: Implemented
Score: 0
City councils and mayors should direct city administrators to (re)negotiate collective bargaining agreements that reverse the escalation of employee costs through concessions, cost sharing, and a second tier for new employees. Res/Jonse: The recommendation has been implemented. In FY 10, all labor groups "gave back" agreed-to and binding wage increases. In FY 11, all groups accepted a furlough, reducing wages. In addition, a second tier retirement formula has been agreed to by the Police Officers Association and the Campbell Municipal Employees Association.
Recommendation 12c:
City councils ...
R12c
City councils and mayors should meet with the bargaining units to clearly outline the cities' financial health and show how employee costs are impacting the budget. Res/Jonse: The recommendation will not be implemented because it is not warranted or is not reasonable. The City Council is the policy-setting body and appoints the City Manager to administer the operations of the City and manage all personnel matters. It is not appropriate for Council to meet directly with bargaining units.
Response: Will Not Implement
Score: -1
City councils and mayors should meet with the bargaining units to clearly outline the cities' financial health and show how employee costs are impacting the budget. Res/Jonse: The recommendation will not be implemented because it is not warranted or is not reasonable. The City Council is the policy-setting body and appoints the City Manager to administer the operations of the City and manage all personnel matters. It is not appropriate for Council to meet directly with bargaining units.
Recommendation 12d:
City councils and mayors should inform citizens of their plans for controlling unsusta...
R12d
City councils and mayors should inform citizens of their plans for controlling unsustainable employee costs and remove politics from the equation. Res/Jonse: The recommendation has been implemented. The City of Campbell has done extensive outreach over the past three years to discuss fiscal issues with the community, to get input and to share recommended budget correction strategies, including efforts to reduce labor costs.
Response: Implemented
Score: 0
City councils and mayors should inform citizens of their plans for controlling unsustainable employee costs and remove politics from the equation. Res/Jonse: The recommendation has been implemented. The City of Campbell has done extensive outreach over the past three years to discuss fiscal issues with the community, to get input and to share recommended budget correction strategies, including efforts to reduce labor costs.
Finding 13:
N/A CITY OF CAMPBELL RESPONSES TO GRAND JURY 2010 PAGE 8 OF 8
