Score: +3
(3/16/0)
Santa Clara County Grand Jury
• 2009-2010
• Agency Response
Response to:
City of Santa Clara
S . an - ta..C.la.ra Mayor Patricia M. Mahan ifijr Council Members
Published: August 17, 2010
13 pages
⚠️ 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 and Recommendations 1 findings
F5
Page 6
Pension formula changes instituted in the past decade, stock market losses,the aging "baby boomer" work force, and the growing unfunded pension and OPEB liability all contribute to making retiree pension and health care costs the most problematic and unsustainable expense the cities are facing. The city contribution to pension plans and OPEBs far exceeds the employee contribution. City Response 5: The City agrees with the finding.
Related Recommendations (2)
R5b
Page 6
Cities should thoroughly investigate reverting to prior pension formulas that were less costly.
R5c
Page 7
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. 2) Increase the retirement age from 50or 55to 60 or 65. 3) Calculate pensions on the last three to fiveyears ofsalary.
Agency Responses 1
Government agencies' official responses to this report's findings and recommendations. Click on a response to see the structured breakdown.
▶
City of Santa Clara
August 17, 2010
•
13 pages
• 19 responses
•
Score: +3
(+3, 16, 0)
View Details ▾
19 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: Implemented
Scheduled: fiscal year 2010-2011
Score: 0
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. City Response 1: The recommendation has been implemented, and will continue to be implemented in the future as the City conducts employee negotiations. During the 2010-2011 budget process, the City determined savings needed to ...
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: Implemented
Scheduled: fiscal year 2010-2011
Score: 0
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. City Response 2: The recommendation has been implemented in past MOU negotiations, and it will be proposed for implementation in the future when the City negotiates with employee bargaining groups. The City also analyzes sources of revenue and projected economic growth. The City of Santa Clara negotiates wages including salary increases with all of the bargaining group...
R3
Cities should negotiate step progressions from the current three and a half years to seven years. Employees should not receive COLA increases while in step progression.
Response: Implemented
Scheduled: fiscal year 2010-2011
Score: 0
Cities should negotiate step progressions from the current three and a half years to seven years. Employees should not receive COLA increases while in step progression. City Response 3: The City agrees that revising step progressions should be considered. In the City of Santa Clara, classified employees receive step increases in the first 4 years of their employment. Additional longevity steps (steps six and seven) are allowed at the 10th and 15th years respectively. Since the procedures for granting step increases for classified employees are defined in the City of Santa Clara Personnel & Sal...
R4
Cities should negotiate that employees assume some ofthese 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, ifalready cost splitting, and remove any employee caps.
Response: Implemented
Scheduled: fiscal year 2010-2011
Score: 0
Cities should negotiate that employees assume some ofthese 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, ifalready cost splitting, and remove any employee caps. City Response 4A: The recommendation has been implemented. The City of Santa Clara has implemented a cost sharing approach to health premiums. The City places a cap on health premiums that the City as the employer picks up. Any amount over that premium is paid for by the employee. T...
F5
Pension formula changes instituted in the past decade, stock market losses,the aging "baby boomer" work force, and the growing unfunded pension and OPEB liability all contribute to making retiree pension and health care costs the most problematic and unsustainable expense the cities are facing. The city contribution to pension plans and OPEBs far exceeds the employee contribution. City Response 5: The City agrees with the finding.
Response: Agree
Score: +1
Pension formula changes instituted in the past decade, stock market losses,the aging "baby boomer" work force, and the growing unfunded pension and OPEB liability all contribute to making retiree pension and health care costs the most problematic and unsustainable expense the cities are facing. The city contribution to pension plans and OPEBs far exceeds the employee contribution. City Response 5: The City agrees with the finding. Recommendation Sa: Cities should: 1) Renegotiate and make provisions for increasing the employee's contribution for current pension plans. 2) Renegotiate to stop pay...
R5b
Cities should thoroughly investigate reverting to prior pension formulas that were less costly.
Response: Implemented
Scheduled: fiscal year 2010-2011
Score: 0
Cities should thoroughly investigate reverting to prior pension formulas that were less costly. City Response 5b: The recommendation has not yet been implemented, but may be implemented in the future. The City of Santa Clara's City Manager has been given City Council approval to discuss with Bargaining Units the possibility of implementing atwo-tier pension plan for new City employees with CaIPERS. Page 5
Recommendation 5c:
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. ...
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. 2) Increase the retirement age from 50or 55to 60 or 65. 3) Calculate pensions on the last three to fiveyears ofsalary.
Response: Implemented
Scheduled: fiscal year 2010-2011
Score: 0
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. 2) Increase the retirement age from 50or 55to 60 or 65. 3) Calculate pensions on the last three to fiveyears ofsalary. City Response 5c: The recommendation has not yet been implemented, but may be implemented in the future. The City of Santa Clara's City Manager has been given City Council approval to discuss with Bargaining Units the possibility of implementing a two-tier pension plan for new employees with CaIPERS. These dis...
R6a
Cities should renegotiate with the bargaining units to 1)reduce vacation time; 2) reduce the number ofholidays and/or personal days; 3) cap sick leave and eliminate the practice of converting accumulated sick leave to cash or adding into their years ofservice for inclusion in their retirement benefit.
Response: Implemented
Scheduled: fiscal year 2010-2011
Score: 0
Cities should renegotiate with the bargaining units to 1)reduce vacation time; 2) reduce the number ofholidays and/or personal days; 3) cap sick leave and eliminate the practice of converting accumulated sick leave to cash or adding into their years ofservice for inclusion in their retirement benefit. City Response 6a (1) & (2): The recommendation has been implemented in part. The City applies a cap to the number of hours an employee can accrue for vacation time. The City applies this cap to encourage employees to take the vacation time off. The City will consider whether to propose reductions...
R6b
Cities should negotiate to substitute paid days offfor unpaid days instead ofimposing furloughs. For example, reduce paid holidays to major holidays only, consistent with private industry; and convert minor holidays to unpaid. Therefore, the public isnot impacted by fewer services caused by furloughs, and the city saves the employee cost.
Response: Will Implement
Scheduled: fiscal year 2010-2011
Score: +1
Cities should negotiate to substitute paid days offfor unpaid days instead ofimposing furloughs. For example, reduce paid holidays to major holidays only, consistent with private industry; and convert minor holidays to unpaid. Therefore, the public isnot impacted by fewer services caused by furloughs, and the city saves the employee cost. City Response 6b: The recommendation has not yet been implemented, but will be considered in future employee negotiations. Page 7
The City will consider including the concept of substituting paid holidays off for unpaid days as part of the next MOU negotiati...
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.
Response: Will Implement
Scheduled: fiscal year 2010-2011
Score: +1
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. City Response 7a: The recommendation has not yet been implemented, except for the City's Electric Utility, but will be implemented in the future in preparation for future bargaining sessions. For the City's Electric Utility, the City benchmarks with the private electric utility that services Santa Clara County as well as with other municipally-owned utilities. When comparable positions are identified, the City can consider using ...
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: Implemented
Scheduled: fiscal year 2010-2011
Score: 0
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. City Response 7b: The recommendation has not yet been implemented, but will be evaluated for implementation in the future in preparation for future bargaining sessions. Salaries and wages, and benchmark comparisons, are included in the meet and confer ...
R8a
Cities should explore outsourcing some functions and services to private industry. Cities should discuss the prospect with citiesthat are successfully doing this to determine best practices and areas for success. Cities should develop contracts with measurable objectives, performance goals, and timelines.
Response: Implemented
Scheduled: fiscal year 2010-2011
Score: 0
Cities should explore outsourcing some functions and services to private industry. Cities should discuss the prospect with citiesthat are successfully doing this to determine best practices and areas for success. Cities should develop contracts with measurable objectives, performance goals, and timelines. City Response 8a: The recommendation has been implemented for some functions and services. The City of Santa Clara currently has a successful practice of outsourcing and/or forming partnerships with other cities for shared services. Examples: Most of the Information Technology Department func...
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 ofnew information technology systems.
Response: Implemented
Scheduled: fiscal year 2010-2011
Score: 0
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 ofnew information technology systems. City Response 8b: The recommendation has been implemented for some services. The City of Santa Clara participates in several joint agency programs. Examples include: Silicon Valley Animal Control Agency (SVACA), ajoint powers authority with Santa Clara, Campbell and Monte Sereno. The City's Electric Utility is an active member ofjoint powers agen...
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: Implemented
Scheduled: fiscal year 2010-2011
Score: 0
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. City Response 9: The recommendation has been implemented and continues to be implemented by the City. On a regular basis, prior to the budget process the City conducts, analysis of functions performed in departments with the goal of increased efficiency and cost savings. As an example, Public Safety Communication Dispatch and T...
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: Implemented
Score: 0
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. City Response 11: The recommendation has been partially implemented. Prior to beginning employee negotiations, the City Council approves Employer Negotiation Principles at a regularly scheduled City Council meeting. These Principles define the way negotiations will be handled including a tone Page 10
of respect at the negotiating table. The Principles also r...
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 ofpotential issues in labor agreements.
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 ofpotential issues in labor agreements. City Response 12a: The recommendation has been implemented. The Santa Clara City Council places a high priority on fiscal responsibility. Numerous reports, study sessions and Council meeting discussions focus on the budget, Five Year Financial Plan, City infrastructure needs, mid-year revenue reports, monthly financial status reports, and outstanding bonds and investment reports. In addition, Council ...
R12b
City councils and mayors should direct city administrators to renegotiate collective bargaining agreements that reverse the escalation of employee costs through concessions, cost sharing and a second tier for new employees.
Response: Implemented
Score: 0
City councils and mayors should direct city administrators to renegotiate collective bargaining agreements that reverse the escalation of employee costs through concessions, cost sharing and a second tier for new employees. City Response 12b: This recommendation has been implemented. The City Council has given authority to the City Manager to ask employees to meet for discussion of the City's financial crisis situation and employee compensation costs. In June 2010, this request was made to all ten bargaining groups. Meetings were held in July and additional meetings are scheduled for August. B...
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 budget.
Response: Implemented
Score: 0
City councils and mayors should meet with the bargaining units to clearly outline the cities' financial health and show how employee costs are impacting budget. City Response 12c: This recommendation is implemented through the City Manager, with the City Council support. The City Manager and Director of Finance met with all ten bargaining groups in June 2010, and provided a detailed analysis of the City's budget including employee cost impacts on the budget.
Recommendation 12d:
City councils and mayors should inform citizens of their plans for controlling unsustainable employee costs and rem...
R12d
City councils and mayors should inform citizens of their plans for controlling unsustainable employee costs and remove politics from the equation.
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. City Response 12d: Recommendation has been implemented and will continue to be implemented. During several budget study sessions in May and June 2010, residents were informed abut the budget challenges. At those meetings, residents were informed that the City would request employees to meet regarding the financial challenges. In addition to residents and business representatives who attended the televised Council Budget Study Session and Public Hear...