Contra Costa County Grand Jury Report No. 0902 Economic Catastrophe Looms: Contra Costa County Continues to be

Conclusions 2

• CL1 Page 5
  The Grand Jury is extremely concerned by the County's approach to the current labor negotiations. The Grand Jury views favorably the efforts of the Interim Director of Human Resources: to better train the negotiations team, to utilize one individual as a fact checker for both sides, and to implement negotiations ground rules. These are positive first steps and should be made a permanent component of future negotiations. Conversely, prior Grand Juries have repeatedly expressed disappointment at the County's overall lack of planning and preparation, as well as the BOS's stated willingness to directly involve themselves in the negotiations. This disjointed approach is the same business-as-usual strategy that has resulted in the current level of unsustainable wages and benefits and the County's well-publicized OPEB problems. The County is currently confronting an economic tsunami: the meltdown of the securities markets, the highest foreclosure rates since the Depression, the attendant decline in property taxes, the recognition of the need to fund OPEB liabilities, and the State Budget crisis. These factors make it impossible to continue to provide the existing levels of salaries and benefits to current and retired employees without ongoing cuts in County public services. Real cuts in salaries and benefits have to be made now. This is a harsh reality. The County can no longer delay action on these issues. It needs to address them now and to do so in a carefully planned manner with supporting strategies and tactics. The Grand Jury believes that, at a minimum, the BOS must put politics-as-usual aside and bargain with its unions in a tough, well planned, and strategic manner. Specific steps for this approach are described in this report's recommendations. The Grand Jury realizes that the implementation of these recommendations represents a distinct departure from past negotiations. It well may result in resistance from represented unions. However these are not ordinary times and the County's economic future cannot be guided by its past compliant negotiations approach. Strong leadership is needed from the BOS. This requires courage and a willingness to confront harsh realities. Anything less will result in an economic catastrophe and will be to the long-term detriment of the entire County, its citizens, programs, and employees.
• CL2 Page 6
  RECOMMENDATIONS: 1.The County develop and use clear cut strategies prior to launching any future negotiation process. 2.Current and future County negotiating teams must have the full commitment of the BOS without intervention during negotiations. 3.At least 6 months in advance of contract negotiations, the County has a duty to initiate pre-negotiations training and obtain an updated Total Compensation Study. 4.Within 6 months the BOS shall direct the County Administrator to develop a plan for assuming the lead role in future negotiations. This must begin with filling of the now vacant leadership positions in the Human Resources Department. 5.Within 6 months the Human Resources Department must build and maintain files and data bases that are essential and appropriate to conduct successful negotiations. 6.Future labor settlements must include best practices such as eliminating barriers to reaching agreement on work simplification and regaining management prerogatives. 7.It is an absolute necessity that the BOS address the financial impact that reduced County revenues will have on salaries and benefits, ignore political expediency, and impose prudent financial discipline on any proposed labor settlements. To accomplish this, the BOS shall appoint a Financial Oversight Committee within 6 months to include, but not limited to, the County Treasurer-Tax Collector and the Auditor- Controller. 8.By the next fiscal year, the County shall adopt a two year budget that incorporates appropriate fiscal, contingency and debt (including unfunded benefits obligations) funding polices. REQUIRED RESPONSES: Findings: Contra Costa County Board of Supervisors: 1 through 22 REQUIRED RESPONSES: Recommendations: Contra Costa County Board of Supervisors: 1 through 8

No Responses Found 1

Government entities assigned to respond to this report. No response documents have been linked in our database.