Santa Clara County Grand Jury
• 2009-2010
• Agency Response
Response to:
Town of Los Altos Hills
Los Altos Hills File'd
⚠️ Translation Notice: This content has been automatically translated. The original English text is the official version. Translation may contain errors.
⚠️ Este contenido ha sido traducido automáticamente. El texto original en inglés es la versión oficial. La traducción puede contener errores.
Findings 2 findings
F10
Page 14
- The City of San Jose Auditor identified 88positions currently being performed by public safety employees that can be performed by civilian employees at lower costs. The safety employees could be moved to positions that require their expertise and training. The auditor estimated this could be accomplished in less than 90 days and save approximately $5million annually. Response: Notapplicable to the Town of Los Altos Hills. From: Carl Cahill, Town of LosAltos Hills City Manager Re: Requested response to the 2009-2010 Santa Clara County Civil Grand Jury Final Report: Cities MustRein InUnsustainable Employee Costs
F11
Page 15
- In many cities,the contract negotiation processiscompleted byplacing the negotiated collective bargaining agreements on the consent calendarfor approval, which is acted on quickly at the start ofcouncilmeetings byasingle motion andvote ofthe council. Response: Not applicable to the Town of LosAltos Hills. The Town does not maintain collective bargaining agreements. From: Carl Cahill, Town of LosAltos Hills City Manager Re: Requested response to the 2009-2010 Santa Clara County Civil Grand Jury Final Report: Cities MustRein InUnsustainable Employee Costs Findine #12 - Currentcontracts were negotiated ingoodfaith byrepresentatives ofthe citiesand the bargaining units; they were approved by the city councils. Promisesmade toemployees were made by elected officials,past and present. Responsibilityfor formulating and approving solutions to restore the cities'financial stability resides squarely with our elected officials. The economic downturn has placed additional pressure onthesituation. Response: Not applicable to the Town of LosAltos Hills. The Town does not maintain collective bargaining agreements and therefore does not have contractual obligations that automatically increase employee costs. From: Carl Cahill, Town of Los Altos Hills City Manager Re: Requested response to the 2009-2010 Santa Clara County Civil Grand Jury Final Report: Cities MustRein InUnsustainable Employee Costs Findine #13 - Binding arbitration is not open to the public and results in an adversarial process between the city and employee groups. Binding arbitration limits the ability of city leaders to craft solutions that workfor the city's budget. Theprocess has resulted in wage and benefit decisions that have beengreater than thegrowth inbasicrevenuesources. Response: Notapplicable to the Town of LosAltos Hills. 15
Recommendations 1
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R5Page 1c.(1), the Town does not have the authority to control retirement age. California Public Employees' Retirement Law Section 21060 (a) states: "A member shall be retired for service upon his or her written application to the board if he or she has attained age 50 and is credited with five years of state service." Similar to Social Security, early retirement results in a lower pension benefit. Recommendation # 5.c.(3) - Calculate pensions on the last three to five years of salary. Response: Implemented. The Town's contract with CalPERS currently calculates pension based on the last three years of salary. There is no option known to management that uses the average compensation of the final five years for the purpose of calculating CalPERS pension benefits. Recommendation # 5.c.( 4) - Replace current post-employment health care plans with health savings plans. Response: No Implementation Anticipated. The Town's modification of the post employment health care plan (also referred to as "retiree medical") in October 2007 controls retiree medical to the greatest extent possible. Date: To: From: Re: August 26,2010 The Honorable Jamie Jacobs-May, Presiding Judge Carl Cahill, Town of Los Altos Hills City Manager Requested response to the 2009-2010 Santa Clara County Civil Grand Jury Final Report: Cities Must Rein In Unsustainable Employee Costs
Agency Responses 1
Government agencies' official responses to this report's findings and recommendations. Click on a response to see the structured breakdown.