Score: +24
(36/80/12)
Santa Clara County Grand Jury
• 2009-2010
Unsustainable Employee Costs
Published: May 26, 2010
33 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.
Note: Missing finding numbers detected: F18
Findings and Recommendations 27 findings
F1
The costs of total compensation for employees have grown substantially in the past decade and now threaten the cities’ fiscal stability.
Related Recommendations (1)
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. 19
F2
Salary and wage increases do not reflect changes in economic conditions; e.g. even with minimal inflation, yearly COLAs are granted with little bearing on the actual increase in cost of living or market conditions.
Related Recommendations (1)
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.
F3
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.
Related Recommendations (1)
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.
F4
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.
Related Recommendations (1)
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. B. Establish reasonable co-pays for doctors’ visits, prescription drugs, and in- patient and out-patient hospital care. C. Prohibit an employee from being covered by both city-provided medical benefits and as a dependent of another city employee. D. Reduce cash-in-lieu payments. E. Introduce a new lower premium, high-deductible medical plan. 20
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.
Related Recommendations (4)
R5
How many FTE were in the Police department in 2000/01.? _______ Now ________
R5a
Cities should: 1) Renegotiate and make provisions for increasing the employees’ contribution for current pension plans. 2) Renegotiate to stop paying the employees’ contribution amount to pension plans. 3) Renegotiate to implement a contribution amount for employees to OPEB; this contribution should provide for a reasonable split of costs between a city and the employee for retiree medical and dental benefits.
R5b
Cities should thoroughly investigate reverting to prior pension formulas that were less costly.
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 50 or 55 to 60 or 65. 3) Calculate pensions on the last three to five years of salary. 4) Replace current post-employment health care plans with health savings plans.
F6
Public sector employees are granted a generous number of holidays, personal days, vacation days and sick leave annually. Rules and limits on accrual vary by city and union, but vacation days and sick leave can be accumulated and converted to cash or calculated into the pension benefit within those limits. 21
Related Recommendations (3)
R6
How many FTE were in the Fire department in 2000/01? ________ Now ________
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.
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 cost.
F7
Cities traditionally determine their compensation packages by surveying the wages and benefits of other public sector employees in the same geographic area. There is major resistance to comparing themselves or mirroring trends with the private sector. This has allowed wages and benefits to become artificially high and out of sync with market trends.
Related Recommendations (3)
R7
What was your Total Revenue in fiscal year 2000/01 __________
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.
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.
F8
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. 22
Related Recommendations (3)
R8
What is your Total Budgeted Revenue for 2009/10? __________
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.
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.
F9
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 and work groups.
Related Recommendations (1)
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.
F10
The San Jose City Auditor identified 88 positions 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 $5 million annually.
Related Recommendations (1)
R10
San Jose should negotiate this suggested transfer with the San Jose Police Officers’ Association and set realistic timeframes to move these safety positions to civilian positions. 23
F11
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.
Related Recommendations (1)
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.
F12
Current contracts were negotiated in good faith by representatives of the cities and the bargaining units; they were approved by the city councils. Promises made to employees were made by elected officials, past and present. Responsibility for formulating and approving solutions to restore the cities’ financial stability resides squarely with our elected officials. The economic downturn has placed additional pressure on the situation.
Related Recommendations (5)
R12
What is the non-safety Retirement cost for 2009/10? ______________ What is the Police/Fire Retirement cost for 2009/10? ______________
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.
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.
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.
R12d
City councils and mayors should inform citizens of their plans for controlling unsustainable employee costs and remove politics from the equation. 24
F13
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 work for the city’s budget. The process has resulted in wage and benefit decisions that have been greater than the growth in basic revenue sources.
Related Recommendations (3)
R13
How much did the City pay for Health/Dental Benefits in 2000/01? _________
R13a
San Jose City Council should make binding arbitration open to the public.
R13b
San Jose City Council should prepare a ballot measure asking voters to repeal Section 1111 of the City Charter that addresses binding arbitration.
F14
What is the 2009/10 City cost for Health/Dental Benefits? _____________
Related Recommendations (1)
R14
What is the 2009/10 City cost for Health/Dental Benefits? _____________
F15
What was the average monthly premium the City paid for employee Health/Dental Care in 2000? Individual ____________ Family ___________
Related Recommendations (1)
R15
What was the average monthly premium the City paid for employee Health/Dental Care in 2000? Individual ____________ Family ___________
F16
What are the current average premiums for Health/Dental Care? Individual ___________ Family ___________
Related Recommendations (1)
R16
What are the current average premiums for Health/Dental Care? Individual ___________ Family ___________
F17
What was the median salary for non-safety employees without benefits in 2000? _________ With benefits _______ 18. 2009/2010 median salary without benefits __________ With benefits ____________
Related Recommendations (1)
R17
What was the median salary for non-safety employees without benefits in 2000? _________ With benefits _______
F19
What was the median salary for police employees without benefits in 2000/01? __________ With benefits __________
Related Recommendations (1)
R19
What was the median salary for police employees without benefits in 2000/01? __________ With benefits __________
F20
Current median salary without benefits __________ With benefits ____________
Related Recommendations (1)
R20
Current median salary without benefits __________ With benefits ____________
F21
What was the median salary for fire employees without benefits in 2000? _________ With benefits _______
Related Recommendations (1)
R21
What was the median salary for fire employees without benefits in 2000? _________ With benefits _______
F22
Current median salary without benefits __________ With benefits ____________ 28 Appendix C - continued City Information – continued
Related Recommendations (1)
R22
Current median salary without benefits __________ With benefits ____________ 28
F23
What is the average number of years for your non-safety employees? ________ What is the average number of years for police? _________ What is the average number of years for fire employees? __________
Related Recommendations (1)
R23
What is the average number of years for your non-safety employees? ________ What is the average number of years for police? _________ What is the average number of years for fire employees? __________
F24
How many vacation days, floating days, holidays, personnel leave days and sick days are employees entitled to annually?
Related Recommendations (1)
R24
How many vacation days, floating days, holidays, personnel leave days and sick days are employees entitled to annually?
F25
What are the vacation and sick leave accrual and buy out policies?
Related Recommendations (1)
R25
What are the vacation and sick leave accrual and buy out policies?
F26
Did you impose any furlough days this year? Y N If yes, which work groups? How many people are affected? How often?
Related Recommendations (1)
R26
Did you impose any furlough days this year? Y N If yes, which work groups? How many people are affected? How often?
F27
Prior to entering into each of your current agreements with organized labor, did your city Council, as part of regular business, encourage public comment in regard to the salaries or benefits being negotiated? Y N
Related Recommendations (1)
R27
Prior to entering into each of your current agreements with organized labor, did your city Council, as part of regular business, encourage public comment in regard to the salaries or benefits being negotiated? Y N
F28
Are the MOU’s resulting from contract negotiations typically on the consent calendar when coming to the City Council for approval? Y N 29 Appendix D Santa Clara County/Cities Managers’ Association Policy Statement on Retirement Benefits 30 Appendix D - continued 31 APPENDIX D - continued 32 This report was PASSED and ADOPTED with a concurrence of at least 12 grand jurors on this 13th day of May, 2010. Angie M. Cardoza Foreperson Judy B. Shaw Foreperson pro tem Mary Nassau Secretary 33
Related Recommendations (1)
R28
Are the MOU’s resulting from contract negotiations typically on the consent calendar when coming to the City Council for approval? Y N 29
Additional Recommendations 1
These recommendations are not explicitly linked to specific findings.
-
R182009/2010 median salary without benefits __________ With benefits ____________
Conclusions 40
-
CL1 Page 19The costs of total compensation for employees have grown substantially in the past decade and now threaten the cities’ fiscal stability.
-
CL2 Page 20Salary and wage increases do not reflect changes in economic conditions; e.g. even with minimal inflation, yearly COLAs are granted with little bearing on the actual increase in cost of living or market conditions.
-
CL3 Page 20Step 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.
-
CL4 Page 20Medical 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.
-
CL5 Page 21Pension 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.
-
CL6 Page 22Cities traditionally determine their compensation packages by surveying the wages and benefits of other public sector employees in the same geographic area. There is major resistance to comparing themselves or mirroring trends with the private sector. This has allowed wages and benefits to become artificially high and out of sync with market trends.
-
CL7 Page 23Cities 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 and work groups.
-
CL8 Page 23The San Jose City Auditor identified 88 positions 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 $5 million annually.
-
CL9 Page 24In 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.
-
CL10 Page 24Current contracts were negotiated in good faith by representatives of the cities and the bargaining units; they were approved by the city councils. Promises made to employees were made by elected officials, past and present. Responsibility for formulating and approving solutions to restore the cities’ financial stability resides squarely with our elected officials. The economic downturn has placed additional pressure on the situation.
-
CL11 Page 25Binding 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 work for the city’s budget. The process has resulted in wage and benefit decisions that have been greater than the growth in basic revenue sources.
-
CL12 Page 21Public sector employees are granted a generous number of holidays, personal days, vacation days and sick leave annually. Rules and limits on accrual vary by city and union, but vacation days and sick leave can be accumulated and converted to cash or calculated into the pension benefit within those limits. 21
-
CL13 Page 22All 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. 22
-
CL14 Page 28What is the population of your city based on the 2000 census? _________
-
CL15 Page 28What is the estimated current population? ___________
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CL16 Page 28How many total FTE’s (Full Time Equivalents) did your city have in 2000/01? _________
-
CL17 Page 28How many total FTE’s does your city have now (2009/10)? _________
-
CL18 Page 28How many FTE were in the Police department in 2000/01.? _______ Now ________
-
CL19 Page 28How many FTE were in the Fire department in 2000/01? ________ Now ________
-
CL20 Page 28What was your Total Revenue in fiscal year 2000/01 __________
-
CL21 Page 28What is your Total Budgeted Revenue for 2009/10? __________
-
CL22 Page 28What per cent of the General Fund were employee costs with benefits in 2000/01? ________
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CL23 Page 28What per cent are employee costs of the 2009/10 budget? ________ Employee costs include payroll, retirement benefits, health/dental benefits and other benefits.
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CL24 Page 28How much did the city contribute to non-safety Retirements benefits in 2000/01? ________ How much did the city contribute to Police/Fire in 2000/01? ________
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CL25 Page 28What is the non-safety Retirement cost for 2009/10? ______________ What is the Police/Fire Retirement cost for 2009/10? ______________
-
CL26 Page 28How much did the City pay for Health/Dental Benefits in 2000/01? _________
-
CL27 Page 28What is the 2009/10 City cost for Health/Dental Benefits? _____________
-
CL28 Page 28What was the average monthly premium the City paid for employee Health/Dental Care in 2000? Individual ____________ Family ___________
-
CL29 Page 28What are the current average premiums for Health/Dental Care? Individual ___________ Family ___________
-
CL30 Page 28What was the median salary for non-safety employees without benefits in 2000? _________ With benefits _______ 18. 2009/2010 median salary without benefits __________ With benefits ____________
-
CL31 Page 28What was the median salary for police employees without benefits in 2000/01? __________ With benefits __________
-
CL32 Page 28Current median salary without benefits __________ With benefits ____________
-
CL33 Page 28What was the median salary for fire employees without benefits in 2000? _________ With benefits _______
-
CL34 Page 28Current median salary without benefits __________ With benefits ____________ 28 Appendix C - continued City Information – continued
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CL35 Page 29What is the average number of years for your non-safety employees? ________ What is the average number of years for police? _________ What is the average number of years for fire employees? __________
-
CL36 Page 29How many vacation days, floating days, holidays, personnel leave days and sick days are employees entitled to annually?
-
CL37 Page 29What are the vacation and sick leave accrual and buy out policies?
-
CL38 Page 29Did you impose any furlough days this year? Y N If yes, which work groups? How many people are affected? How often?
-
CL39 Page 29Prior to entering into each of your current agreements with organized labor, did your city Council, as part of regular business, encourage public comment in regard to the salaries or benefits being negotiated? Y N
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CL40 Page 29Are the MOU’s resulting from contract negotiations typically on the consent calendar when coming to the City Council for approval? Y N 29 Appendix D Santa Clara County/Cities Managers’ Association Policy Statement on Retirement Benefits 30 Appendix D - continued 31 APPENDIX D - continued 32 This report was PASSED and ADOPTED with a concurrence of at least 12 grand jurors on this 13th day of May, 2010. Angie M. Cardoza Foreperson Judy B. Shaw Foreperson pro tem Mary Nassau Secretary 33
Agency Responses 12
Government agencies' official responses to this report's findings and recommendations. Click on a response to see the structured breakdown.
▶
City of Campbell
August 03, 2010
•
9 pages
• 20 responses
•
Score: -4
(+1, 10, -5)
View Details ▾
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
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City of Cupertino
August 31, 2010
•
16 pages
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No structured response data extracted yet.
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City of Gilroy
July 20, 2010
•
10 pages
• 11 responses
•
Score: 0
(+0, 2, 0)
View Details ▾
11 responses to findings and recommendations
R2
- Cities should not increase salaries and wages that are not supported by planned revenue increases. Cities should tie COLAincreases to clear indicators and retain the ability to adjust or withhold based on current economic data.
Response: Implemented
Score: 0
Wages are a mandatory subject of bargaining pursuant to collective bargaining laws. The recommendation has been implemented. Currently, wage increases are not being provided to employees given the current economic data. Further, the Cityhas requested employee groups with closed contracts to return to the bargaining table for purposes of achieving concessions. Employee groups with scheduled increases have been willing to return to the bargaining table and have given up future wage increases to assist the Cityinbalancing the budget and to avoidfurther employee layoffs and service reductions. Fin...
R3
- Cities should negotiate step progressions from the current three and ahalf years to seven years. Employees should not receive COLAincreases while in step progression.
Response: Unknown
Score: 0
Changes to the step system may be asubject offuture negotiations with each labor group as an item that isa mandatory subject of bargaining pursuant to the Meyers-Milias-Brown Act. Findine: 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 isminimal. City Response: Agree inpart and disagree inpart. Several years ago the GilroyCityCouncilset a priority of securing and implementing caps on health care costs and negotiated contribution caps with allemployee groups. The caps ...
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. S. Establish reasonable co-pays for doctors' visits, prescription drugs, and in-patient and out patient hospital care. C. Prohibit an employee from being covered by both city-prov...
Response: Implemented
Score: 0
- 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. S. Establish reasonable co-pays for doctors' visits, prescription drugs, and in-patient and out patient hospital care. C. Prohibit an employee from being covered by both city-provided medical benefits and asa dependent of another city employee. D. Reduce cash in-lieu payments. E...
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.
Response: Unknown
Score: 0
Vacation holiday, and personal leave time reduction may be asubject offuture bargaining with labor groups as a mandatory subject of bargaining under the Meyers Milias Brown Act. ForFY10and FY11the city and Gilroyfirefighters association have reached agreement to eliminate 24 hours of annual personal leave time. InGilroy,sick leave cannot be cashed out. The conversion of sick leave for up to one year of service time with the CalPERSpension plan isa benefit that has been negotiated with labor groups. While this may be afuture subject of negotiations, the benefit provides an incentive for employe...
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. Page6of 10
Response: Unknown
Score: 0
Changes to wage and benefit packages are a mandatory subject of bargaining under collective bargaining law. The Cityof Gilroyis willing to consider use of private sector employment data, if available, for purposes of comparing similarly situated job classifications.
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: Unknown
Score: 0
Gilroyhas implemented contracting with the private sector inseveral areas, including, but not limited to: landscaping, street sweeping, tree trimming, janitorial services, claims administration, legal services, and trash collection waste water treatment plant. Gilroy's contract for services provides a template to establish performance goals and timelines as well as measurable objectives. Gilroywillcontinue to explore cost-effective opportunities for privatization. Contracting out work currently performed by bargaining unit employees issubject to impact bargaining pursuant to collective bargain...
R8b
- Cities should create partnerships with other cities} special districts} and/or the County for services such aspayroll} human resources} animal controt police and fire. Cities should investigate sharing the cost of new information technology systems.
Response: Unknown
Score: 0
The Citypresently operates partnerships with other cities and special districts and continues to explore viable options that willfurther streamline appropriate to the City's service needs. Likecontracting out, shifting work to another entity when the work iscurrently performed by bargaining unit employees issubject to impact bargaining pursuant to collective bargaining laws. Page7 of 10
Further, insome situations, the actual decision to contract out may also be a mandatory subject of bargaining pursuant to case law (see Rialto PoliceBenefit Association v. Cityof Rialto). Findin~ 9- Cities can...
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.
Response: Unknown
Score: 0
The Gilroycouncil has become well versed in the labor contracts associated with each labor group. Further, detailed costing sheets are provided to the Councilby staff regarding items under discussion inan effort to ensure that the council ismaking well-informed decisions. The council and staff willcontinue to pursue this education and sharing of information for allfuture negotiations.
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.
Response: Unknown
Score: 0
Thisis underway in Gilroyand the recent agreement with the Gilroyfirefighters association isa good example. The Gilroyfirefighters came to the bargaining table with a closed contract and a new agreement has resulted in various salary and benefit concessions, cost sharing for retirement, and a new two-tier retirement plan for new hires. Inaddition, the GilroyAFSCME organization also came to the bargaining table with a closed contract giving upfuture negotiated increases and proving cost saving concessions. All employees in Gilroy,including the GilroyCityCouncil, provided concessions in the 10%r...
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.
Response: Unknown
Score: 0
Thishas occurred in Gilroywith the recent budget deficit, position reductions, and concession bargaining sessions that have taken place. Themayor met with each bargaining unit explaining the need to reduce expenditures and work as a team inensuring a balanced budget. The Gilroycouncil has clearly communicated the city's fiscal situation to the labor groups as aprecursor to negotiating concessions with each of the labor groups. Inaddition, the CityAdministrator and Finance Director have pro-actively met with labor groups to provide budget information. Thissharing of budget information willconti...
R12d
- City councils and mayors should inform citizens of their plans for controlling unsustainable employee costs and remove politics from the equation.
Response: Unknown
Score: 0
The Gilroycouncil has utilized the public meeting forum and the localpress to communicate to the citizens of Gilroytheir priority of reducing employee costs. As noted above, the Councilholds annual goal setting sessions and employee salary and benefits costs have been a topic of past meetings. The Gilroycouncil willcontinue to make this apriority and willcontinue to keep the public informed of their plans for controlling these and other costs. Additionally, the City would like to bring to your attention the following factual inaccuracies contained in the Grand Jury's report: • On page 13, tabl...
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City of Los Altos
July 30, 2010
•
9 pages
• 28 responses
•
Score: +11
(+14, 11, -3)
View Details ▾
28 responses to findings and recommendations
F1
The costs of total compensation for employees have grown substantially in the past decade and now threaten the cities' fiscal stability. Response 1: Respondent (CITY of Los Altos) agrees with the finding.
Response: Agree
Score: +1
The costs of total compensation for employees have grown substantially in the past decade and now threaten the cities' fiscal stability. Response 1: Respondent (CITY of Los Altos) agrees with the finding.
Recommendation 1:
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. Re...
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 1: The recommendation has been implemented. CITY historically and currently has abalanced budget, no structural defici...
Response: Implemented
Scheduled: FY2010-2011
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. Response 1: The recommendation has been implemented. CITY historically and currently has abalanced budget, no structural deficit and a strategic plan to control employee compensation to avoid budget instability.
Finding 2:
Sa...
F2
Salary and wage increases do not reflect changes in economic conditions; e.g. even with minimal inflation, yearly COLAs are granted with little bearing on the actual increase in cost of living or market conditions. Response 2: Respondent agrees with the finding. Respondent analyzes market conditions and budget constraints, and negotiates with employees on pay increases if these are warranted. In FY2010-2011, no pay increases were granted outside of contractual pay obligations.
Response: Agree
Score: +1
Salary and wage increases do not reflect changes in economic conditions; e.g. even with minimal inflation, yearly COLAs are granted with little bearing on the actual increase in cost of living or market conditions. Response 2: Respondent agrees with the finding. Respondent analyzes market conditions and budget constraints, and negotiates with employees on pay increases if these are warranted. In FY2010-2011, no pay increases were granted outside of contractual pay obligations.
Page 2
Recommendation 2:
Cities should not increase salaries and wages that are not supported by planned revenue in...
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 2: The recommendation has been implemented. CITY has assessed expenses and revenues, and offers salary increases commensurate with strategic budget planning and economic indicators.
Response: Implemented
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. Response 2: The recommendation has been implemented. CITY has assessed expenses and revenues, and offers salary increases commensurate with strategic budget planning and economic indicators.
Finding 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 no...
F3
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 3: Respondent agrees with the finding. CITY'S step increases are merit based and are not automatic. CITY does not use this pay practice.
Response: Agree
Score: +1
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 3: Respondent agrees with the finding. CITY'S step increases are merit based and are not automatic. CITY does not use this pay practice.
Recommendation 3:
Cities should negotiate step progressions from the current three and ahalf years to seven years. Employees should not receive COLA increases while in step progression. Response 3: The recommendation has been ...
R3
Cities should negotiate step progressions from the current three and ahalf years to seven years. Employees should not receive COLA increases while in step progression. Response 3: The recommendation has been implemented. CITY step increases are not automatic. The subject of pay increases are considered during the collective bargaining process. The feasibility of these combined recommendations will be considered in future negotiations.
Response: Implemented
Score: 0
Cities should negotiate step progressions from the current three and ahalf years to seven years. Employees should not receive COLA increases while in step progression. Response 3: The recommendation has been implemented. CITY step increases are not automatic. The subject of pay increases are considered during the collective bargaining process. The feasibility of these combined recommendations will be considered in future negotiations.
Finding 4:
Medical insurance costs for active employees are growing year after year at rates that exceed most cities' revenue growth, while the employee contri...
F4
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 4: Respondent agrees with the finding. CITY has aregulated cap on the employer's contribution to health benefits and employees pay the difference if costs increase beyond this cap.
Response: Agree
Score: +1
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 4: Respondent agrees with the finding. CITY has aregulated cap on the employer's contribution to health benefits and employees pay the difference if costs increase beyond this cap.
Recommendation 4:
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 ci...
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 4A: The recommendation has been implemented. CITY cost is aregulated employer contribution cap; employee pays any increase over the employer's cap. B. Establish reasonable ...
Response: Implemented
Score: 0
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 4A: The recommendation has been implemented. CITY cost is aregulated employer contribution cap; employee pays any increase over the employer's cap.
Page 3 B. Establish reasonable co-pays for doctors' visits, prescription drugs, and in-patient and out patient hospital car...
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 allcontribute to making retiree pension and health care costs the most problematic and unsustainable expenses the cities are facing. The city contribution to pension plans and OPEBs far exceeds the employees contribution. Response 5: Respondent 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 allcontribute to making retiree pension and health care costs the most problematic and unsustainable expenses the cities are facing. The city contribution to pension plans and OPEBs far exceeds the employees contribution. Response 5: Respondent agrees with the finding.
Recommendation 5a:
Cities should:
Page 4 1) Renegotiate and make provisions for increasing the employee's contribution for current pension plans. 2) Renegotiate to...
R5a
Cities should: 1) Renegotiate and make provisions for increasing the employee's contribution for current pension plans. 2) Renegotiate to stop paying the employees' contribution amount to pension plans. 3) Renegotiate to implement a contribution amount for employees to OPEB; this contribution should provide for areasonable split of costs between a city and the employee for retiree medical and dental benefits. Response Sa: The recommendation has been implemented. Recent negotiations resulted in i...
Response: Implemented
Score: 0
Cities should:
Page 4 1) Renegotiate and make provisions for increasing the employee's contribution for current pension plans. 2) Renegotiate to stop paying the employees' contribution amount to pension plans. 3) Renegotiate to implement a contribution amount for employees to OPEB; this contribution should provide for areasonable split of costs between a city and the employee for retiree medical and dental benefits. Response Sa: The recommendation has been implemented. Recent negotiations resulted in increases for employee's contribution to the current pension plan and reduction of the employ...
F6
Public sector employees are granted agenerous number of holidays, personal days, vacation days and sick leave annually. Rules and limits on accrual vary by city and union, but vacation days and sick leave can be accumulated and converted to cash or calculated into the pension benefit within those limits. Response 6: Respondent agrees with the finding.
Response: Agree
Score: +1
Public sector employees are granted agenerous number of holidays, personal days, vacation days and sick leave annually. Rules and limits on accrual vary by city and union, but vacation days and sick leave can be accumulated and converted to cash or calculated into the pension benefit within those limits. Response 6: Respondent agrees with the finding.
Recommendation 6a:
Cities should renegotiate with the bargaining units to: 1) Reduce vacation time.
Page 5 2) Reduce the number of holidays and/or personal days. 3) Cap sick leave and eliminate the practice of converting accumulated sick leave...
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. Response 6a: Recommendation has not been implemented, but willbe implemented in the future. CITY will consider the feasibility of this recommendation for future negotiations. All contracts are ...
Response: Will Not Implement
Score: -1
Cities should renegotiate with the bargaining units to: 1) Reduce vacation time.
Page 5 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. Response 6a: Recommendation has not been implemented, but willbe implemented in the future. CITY will consider the feasibility of this recommendation for future negotiations. All contracts are currently settled.
Recommendation 6b:
Cities should negotiate to substitute paid days off ...
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 cost. Response 6b: Recommendation will not be implemented because it isnot warranted. CITY has no furloughs. Public has not lost services.
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 cost. Response 6b: Recommendation will not be implemented because it isnot warranted. CITY has no furloughs. Public has not lost services.
Finding 7:
Cities traditionally determine their compensation packages by surveying the wages and benefits of other public...
F7
Cities traditionally determine their compensation packages by surveying the wages and benefits of other public sector employees in the same geographic area. There is major resistance to comparing themselves or mirroring trends with the private sector. This has allowed wages and benefits to become artificially high and out of sync with market trends. Response 7: Respondent agrees with the finding.
Response: Agree
Score: +1
Cities traditionally determine their compensation packages by surveying the wages and benefits of other public sector employees in the same geographic area. There is major resistance to comparing themselves or mirroring trends with the private sector. This has allowed wages and benefits to become artificially high and out of sync with market trends. Response 7: Respondent agrees with the finding.
Recommendation 7a:
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.
Recommendat...
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
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.
Recommendation 7b:
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. Responses to 7a and 7b: Recommendation has not yet been implemen...
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. Responses to 7a and 7b: Recommendation has not yet been implemented, but will be implemented in the future in preparation for future bargaining sessions...
Response: Will Implement
Score: +1
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. Responses to 7a and 7b: Recommendation has not yet been implemented, but will be implemented in the future in preparation for future bargaining sessions. All contracts are currently settled.
Finding 8:
All cities perform certain core functions to run...
F8
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 8: Respondent agrees with the finding.
Response: Agree
Score: +1
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.
Page 6 Response 8: Respondent agrees with the finding.
Recommendation 8a:
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 succ...
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 8a: Recommendation has been implemented. Respondent has fewer employees in the workforce in 2010 than in 2000. CITY'S on-going practice isto analyze and consolidate positions when the...
Response: Implemented
Score: 0
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 8a: Recommendation has been implemented. Respondent has fewer employees in the workforce in 2010 than in 2000. CITY'S on-going practice isto analyze and consolidate positions when they are vacant. CITY also analyzes the cost of labor from outsourcing and from shared services with ot...
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 8b: Recommendation has been implemented. Respondent has fewer employees in the workforce in 2010 than in 2000. CITY's on-going practice is to analyze and consolidate positions when they are vacant. CITY also analyzes the cost of labor from...
Response: Implemented
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 of new information technology systems. Response 8b: Recommendation has been implemented. Respondent has fewer employees in the workforce in 2010 than in 2000. CITY's on-going practice is to analyze and consolidate positions when they are vacant. CITY also analyzes the cost of labor from outsourcing and from shared services with other agencies, thereby reducing payroll costs.
Finding ...
F9
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 and work groups. Response 9: Respondent agrees with the finding.
Response: Agree
Score: +1
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 and work groups. Response 9: Respondent agrees with the finding.
Recommendation 9:
Cities should analyze the functions performed by alljob 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 9: Recommendation has been ...
R9
Cities should analyze the functions performed by alljob 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 9: Recommendation has been implemented. Respondent has fewer employees in the workforce in 2010 than in 2000 as a result of progressive management. CITY's on-going practice is to analyze and consolidate positions when the...
Response: Implemented
Score: 0
Cities should analyze the functions performed by alljob 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 9: Recommendation has been implemented. Respondent has fewer employees in the workforce in 2010 than in 2000 as a result of progressive management. CITY's on-going practice is to analyze and consolidate positions when they are vacant. CITY also analyzes the cost of labor from outsourcing and from shared services with ot...
F11
In many cities, the contract negotiation process is completed byplacing 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 11: Respondent agrees with the finding.
Response: Agree
Score: +1
In many cities, the contract negotiation process is completed byplacing 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 11: Respondent agrees with the finding.
Recommendation 11:
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 11: Recommendation ha...
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 11: Recommendation has not yet been implemented, but will be implemented in the future if so determined after further consideration by Council.
Response: Will Implement
Score: +1
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 11: Recommendation has not yet been implemented, but will be implemented in the future if so determined after further consideration by Council.
Finding 12:
Current contracts were negotiated in good faith by representatives of the cities and the bargaining units; they were approved by the city councils. Promises made to employees were made by electe...
F12
Current contracts were negotiated in good faith by representatives of the cities and the bargaining units; they were approved by the city councils. Promises made to employees were made by elected officials, past and present. Responsibility for formulating and approving solutions to restore the cities' financial stability resides squarely with our elected officials. The economic downturn has placed additional pressure on the situation. Response 12: Respond agrees with the finding.
Response: Agree
Score: +1
Current contracts were negotiated in good faith by representatives of the cities and the bargaining units; they were approved by the city councils. Promises made to employees were made by elected officials, past and present. Responsibility for formulating and approving solutions to restore the cities' financial stability resides squarely with our elected officials. The economic downturn has placed additional pressure on the situation. Response 12: Respond agrees with the finding.
Recommendation 12a:
City council members and mayors should become better informed about the fiscal realities of t...
R12a
City council members and mayors should become better informed about the fiscal realities of their cities, long-term costs and commitments, and be cognizant of potential issues in labor agreements. Response 12a: Recommendation has been implemented, hence the successful conclusion of bargaining inJune 2010 that resulted in a two-tier retirement system, three-year highest salary formula, and employees paying for more of the retirement benefit.
Response: Implemented
Score: 0
City council members and mayors should become better informed about the fiscal realities of their cities, long-term costs and commitments, and be cognizant of potential issues in labor agreements. Response 12a: Recommendation has been implemented, hence the successful conclusion of bargaining inJune 2010 that resulted in a two-tier retirement system, three-year highest salary formula, and employees paying for more of the retirement benefit.
Recommendation 12b:
City councils and mayors should direct city administrators to (re)negotiate collective bargaining agreements that reverse the escalat...
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. Response 12b: Recommendation has been implemented, hence the successful conclusion of bargaining inJune 2010 that resulted in a two-tier retirement system, three-year highest salary formula, and employees paying for more of the retirement benefit.
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. Response 12b: Recommendation has been implemented, hence the successful conclusion of bargaining inJune 2010 that resulted in a two-tier retirement system, three-year highest salary formula, and employees paying for more of the retirement benefit.
Page 8
Recommendation 12c:
City councils and mayors should meet with the bargaining units to clearly outline the cities' f...
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. Response 12c: Recommendation will not be implemented because it isnot warranted. Management representative both met and conferred with Council and subsequently was able to attain Council directives during negotiations.
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. Response 12c: Recommendation will not be implemented because it isnot warranted. Management representative both met and conferred with Council and subsequently was able to attain Council directives during negotiations.
Recommendation 12d:
City councils and mayors should inform citizens of their plans for controlling unsustainable employee costs and remove politics from the equation. Response 12d: Recommendation has been implement...
R12d
City councils and mayors should inform citizens of their plans for controlling unsustainable employee costs and remove politics from the equation. Response 12d: Recommendation has been implemented. This result has occurred during budget study sessions and Council meeting discussions.
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. Response 12d: Recommendation has been implemented. This result has occurred during budget study sessions and Council meeting discussions. Finding 13: Not Applicable
▶
City of Milpitas
August 27, 2010
•
8 pages
• 13 responses
•
Score: +1
(+1, 3, 0)
View Details ▾
13 responses to findings and recommendations
R4
- Citiesshould negotiate that employees assumesome of these increased costsfor their medical benefits. To contain medical costscities should consider the following: A. Split monthly premiums between the city andthe employee and increase the employee's share, if already cost splitting, and remove any employee caps. B. Establish reasonable co-paysfor doctors' visits, prescription drugs, and in-patient and out patient hospital care. e. Prohibit an employee from being covered by both city-provided m...
Response: Unknown
Score: 0
Agree. The City will consider in the future modifications to its medical benefit programs to either cap employer costs or directly apportion cost to employees. Alternatives may include implementation of cafeteria plan style medical benefit program; disallowance of double medical
Hon. Jamie Jacobs-May August 17,2010 Page 3 coverage; cost recovery of dependent medical, etc. Currently the Citypays no more than the Kaiser medical benefit rate. Milpitas is a member of the Public Employees Medical and Hospital CareAct (PEMHCA) pragram offered through CaIPERS. The purchasing power of this large grou...
F6
- Public sector employees are granted agenerous number of holidays, personal days,vacation days and sickleave annually. Rulesand limits on accrualvary bycity and union, but vacation daysand sickleave can be accumulated andconverted to cashor calculated into the pension benefit within those limits. City Response: Agree.
Response: Agree
Score: +1
Agree.
R6a
- Citiesshould renegotiate with the bargaining units to 1)reduce vacation time; 2} reduce the number of holidays and/or personal days;3}capsickleaveand eliminate the practice of converting accumulated sick leaveto cashor adding into their years of servicefor inclusion intheir retirement benefit.
Response: Unknown
Score: 0
Vacation, holiday, and personal leave time reduction are asubject offuture bargaining with labor groups as a mandatory subject of bargaining under the Meyers Milias Brown Act. To the extent there are significant potential budgetary savings, the City willconsider the feasibility of this recommendation during future negotiations.
R6b
- Citiesshould negotiate to substitute paid daysoff for unpaid daysinstead of imposing furloughs. Forexample, reduce paid holidays to major holidays only, consistent with private industry; and convert minor holidays to unpaid. Therefore, the public isnot impacted byfewer services causedby furloughs, and the city savesthe employee cost.
Response: Unknown
Score: 0
Changes to holidays and leave time benefits are a mandatory subject of bargaining under collective bargaining law. Currently, Milpitas observes 12major holidays; not greatly exceeding what isafforded in private industry. This recommendation could be explored by the city during future bargaining on the issue. Findin~ 7 - Citiestraditionally determine their compensation packagesby surveying the wages and benefits of other public sector employees in the samegeographic area. There ismajor resistance to comparing themselves or mirroring trends with the private sector. Thishasallowed wages and benef...
R7a
- Citiesshould research competitive hiring practices and alter the approach to determine fair wages and benefits for eachcity by using public andprivate sector data.
Response: Unknown
Score: 0
Changes to wage and benefit packages are a mandatory subject of bargaining under collective bargaining law. The City of Milpitas is willing to consider use of private sector employment data, if available, for purposes of comparing similarly-situated job classifications.
R7b
- Citiesshould renegotiate salariesandwagesusingvalid market comparisons and not only the current wage index. Citiesshould utilize more market-oriented compensation practices sothat salaries can adjust ascompetition for labor changes. Citiesshould reduce entry-level compensation for positions for which there are many qualified applicants.
Response: Unknown
Score: 0
Changes to wage and benefit packages are a mandatory subject of bargaining under collective bargaining law. The City agrees with this recommendation and this recommendation could be explored by the city during future bargaining on the issue. Findin~ 8- All cities perform certain core functions to run smoothly and provide servicesto their residents. To reduce employee costs and streamline operations, the cities are invarious stagesof contracting servicesto private industry or partnering with other cities, special districts, or the County to deliver services.
Hon. JamieJacobs-May August 17, 201...
R8a
- Cities should explore outsourcing some functions andservicesto private industry. Cities should discussthe prospect with cities that are successfully doing this to determine best practices and areasfor success. Cities should develop contracts with measurable objectives, performance goals,and timelines.
Response: Implemented
Score: 0
above. Findinl! 9 - Cities can gain operational efficiencies and effectiveness with lower employee costs by making sure they are staffed with the correct numbers of people inthe appropriate job classifications in all departments and work groups. City Response: Agree. Recommendation 9 - Citiesshould analyzethe functions performed by alljob classifications and make adjustments in the work force. Consolidate functions within the samegroup or asimilar group. Reassign appropriate work to lower paidjob classifications. Eliminate unnecessary functions. City Response: Milpitas has always worked to be ...
R8b
- Citiesshould create partnerships with other cities, special districts, and/or the County for services such aspayroll, human resources, animal control, police andfire. Citiesshould investigate sharing the cost of new information technology systems.
Response: Unknown
Score: 0
The City presently operates partnerships with other cities and special districts and continues to explore viable options that willcreate greater efficiencies appropriate to the City's service needs. Like contracting out, shifting work to another entity when the work is currently performed by bargaining unit employees issubject to meet and confer obligations. Currently, the City of Milpitas does contract out animal control and other areas described in response to
R9
- Citiesshould analyzethe functions performed by alljob classifications and make adjustments in the work force. Consolidate functions within the samegroup or asimilar group. Reassign appropriate work to lower paidjob classifications. Eliminate unnecessary functions.
Response: Unknown
Score: 0
Milpitas has always worked to be an efficient and effectively staffed organization. Changes to staffing receive careful review and consideration and are included in the budget process. As vacancies in staffing arise, careful consideration of the vacant position iscompleted before refilling the position and any changes to the job classification are pursued. Since 2007 the City has been under a hiring freeze and has replaced vacant positions only if deemed essential after full analysis of need. In June of 2009, the Cityimposed a lay-off which eliminated 21full time positions as a cost-saving mea...
R12a
- City council members and mayors should become better informed about the fiscal realities in their cities, long-term costs andcommitments, and becognizant of potential issuesin labor agreements.
Response: Implemented
Score: 0
Thisrecommendation has been implemented. The CityCouncilhas become well versed in the laborcontrocts associated with each laborgroup. With tightening budgets, need for such knowledge willbecome more acute and Councilwillbe provided additional data. TheCounciland staff willcontinue to pursue this education and sharing of information for allfuture negotiations.
R12b
- Citycouncils and mayors should direct city administrators to (re)negotiate collective bargaining agreements that reverse the escalation of employee coststhrough concessions,cost sharing, and a second tier for new employees.
Response: Implemented
Score: 0
This recommendation has been implemented. Staff willpropose necessary cost saving measures during upcoming MOU negotiations and as a component of the budget process for FYii.
R12c
- Citycouncils and mayors should meet with the bargaining units to clearly outline the cities' financial health and show how employee costs are impacting the budget.
Response: Unknown
Score: 0
The Milpitas City Council operates thraugh the executive management team to negotiate with its bargaining units. Recently, direct communications during a series of meetings conducted by the City Manager were successful in bringing about agreement to a 7% wage/cost decrease with all city employees which was essential to balancing the FYiO city budget. During these numerous meetings, several of which were town hall type meetings with all city employees, the City Manager with the assistance of the Finance Director made a clear, sobering presentation of the City's financial situation and how it is...
R12d
- City councils and mayors should inform citizens of their plansfor controlling unsustainable employee costs and remove politics from the equation.
Response: Unknown
Score: 0
The City Council has utilized the public meeting forum to communicate to the citizens of Milpitas their priority of reducing employee costs. The Council has commented about this during recent meetings surrounding the budget adoption and appointment of budget task forces. The Milpitas City Council will continue to make this apriority and will continue to keep the puplic informed of its plans for controlling these and other costs. Pleasefeel free to contact me or Milpitas City Manager Thomas Williams if you seekadditional information or have any questions regarding this response to the SCCCGJrep...
▶
City of Monte Sereno
August 05, 2010
•
11 pages
• 31 responses
•
Score: +2
(+4, 25, -2)
View Details ▾
31 responses to findings and recommendations
F1
The costs of total compensation for employees have grown substantially in the past decade and now threaten the cities' fiscal stability. The City ofMonte Sereno disagrees partially with the finding. • While the City of Monte Sereno agrees compensation has grown in the past decade, there are many factors impacting a city's economic situation; employee compensation isjust one of them. • The selected time frame reflects several economic anomalies which skew the portrayed rate of growth in total com...
Response: Disagree Partially
Score: 0
The costs of total compensation for employees have grown substantially in the past decade and now threaten the cities' fiscal stability. The City ofMonte Sereno disagrees partially with the finding. • While the City of Monte Sereno agrees compensation has grown in the past decade, there are many factors impacting a city's economic situation; employee compensation isjust one of them. • The selected time frame reflects several economic anomalies which skew the portrayed rate of growth in total compensation: • In FY 2000/01, Monte Sereno's wages were not competitive with neighboring cities or the...
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. The recommendation has been implemented. • Monte Sereno has achieved budget stability. • The City of Monte Sereno agrees that th...
Response: Implemented
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. The recommendation has been implemented. • Monte Sereno has achieved budget stability.
• The City of Monte Sereno agrees that the overall intent to control total compensation growth is essential, and it continues be a fundament...
F2
Salary and wage increases do not reflect changes in economic conditions; e.g. even with minimal inflation, yearly COLAs are granted with little bearing on the actual increase in cost ofliving or market conditions. The City of Monte Sereno disagrees partially with the finding. • Under the City of Monte Sereno's policy, COLA increases are tied to the United States Bureau of Labor and Statistics Average Consumer Price Index for All Urban Consumers (CPI-U) for the San Francisco-Oakland-San Jose regi...
Response: Disagree Partially
Score: 0
Salary and wage increases do not reflect changes in economic conditions; e.g. even with minimal inflation, yearly COLAs are granted with little bearing on the actual increase in cost ofliving or market conditions. The City of Monte Sereno disagrees partially with the finding. • Under the City of Monte Sereno's policy, COLA increases are tied to the United States Bureau of Labor and Statistics Average Consumer Price Index for All Urban Consumers (CPI-U) for the San Francisco-Oakland-San Jose region (for the months March to March). The CPI-U reflects the actual increase in the cost ofliving.
Re...
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 retains the ability to adjust or withhold based on current economic data. The recommendation has been implemented. • The City of Monte Sereno ties COLA increases to market CPI-U and retain the ability to adjust and withhold the COLA based on current economic data.
Response: Implemented
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 retains the ability to adjust or withhold based on current economic data. The recommendation has been implemented. • The City of Monte Sereno ties COLA increases to market CPI-U and retain the ability to adjust and withhold the COLA based on current economic data.
Finding 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 n...
F3
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. The City of Monte Sereno disagrees partially with the finding. • City of Monte Sereno step increases are contingent upon a satisfactory annual evaluation of an employee's performance, which includes achieving advanced knowledge and skills, to qualify for a higher step. Step...
Response: Disagree Partially
Score: 0
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. The City of Monte Sereno disagrees partially with the finding. • City of Monte Sereno step increases are contingent upon a satisfactory annual evaluation of an employee's performance, which includes achieving advanced knowledge and skills, to qualify for a higher step. Step increases are not automatic based solely upon completion of a specified period of time. In addition...
R3
Cities should negotiate step progressions from the current three and ahalf years to seven years. Employees should not receive COLA increases while in step progression. The recommendation requires further analysis. • The City will carefully review this recommendation in the next six months to determine the full scope of this suggestion, and the impacts this change would have on recruitment and retention. • This recommendation does not accurately reflect the current five year step progression for ...
Response: Requires Analysis
Score: 0
Cities should negotiate step progressions from the current three and ahalf years to seven years. Employees should not receive COLA increases while in step progression. The recommendation requires further analysis. • The City will carefully review this recommendation in the next six months to determine the full scope of this suggestion, and the impacts this change would have on recruitment and retention.
• This recommendation does not accurately reflect the current five year step progression for Monte Sereno.
Finding 4:
Medical Insurance costs for active employees are growing year after year...
F4
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. The City of Monte Sereno agrees with the finding.
Response: Disagree Partially
Score: 0
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. The City of Monte Sereno agrees with the finding.
Recommendation 4:
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. The recommendation has been ...
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. The recommendation has been implemented. • The City already requires that the increased costs for medical coverage are assumed by the employee. B. Establish reasonable co-pays for d...
Response: Implemented
Score: 0
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. The recommendation has been implemented. • The City already requires that the increased costs for medical coverage are assumed by the employee. B. Establish reasonable co-pays for doctors' visits, prescription drugs, and in-patient and out-patient hospital care. The recommendation...
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 expenses the cities are facing. The city contribution to pension plans and OPEBs far exceeds the employee contribution. The City of Monte Sereno partially disagrees with the rmding. • Because Monte Sereno's financial condition is stab...
Response: Disagree Partially
Score: 0
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 expenses the cities are facing. The city contribution to pension plans and OPEBs far exceeds the employee contribution. The City of Monte Sereno partially disagrees with the rmding. • Because Monte Sereno's financial condition is stable and the City continues to have a balanced budget, the retiree pension and health care costs are n...
R5b
Cities should thoroughly investigate reverting to prior pension formulas that were less costly. The recommendation will not be implemented because it is not warranted. • The City of Monte Sereno did not enhance its pension plan from the traditional 2% at 55 formula, therefore CalPERS pension contribution rates did not increase to the higher premium levels.
Response: Will Not Implement
Score: -1
Cities should thoroughly investigate reverting to prior pension formulas that were less costly. The recommendation will not be implemented because it is not warranted. • The City of Monte Sereno did not enhance its pension plan from the traditional 2% at 55 formula, therefore CalPERS pension contribution rates did not increase to the higher premium levels.
Recommendation 5c:
To provide ameaningful, 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 50 or 55 to 60 ...
R5c
To provide ameaningful, 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 50 or 55 to 60 or 65. 3) Calculate pensions on the last three to five years of salary. 4) Replace current post-employment health care plans with health savings plans. The recommendation has not yet been implemented, but will be implemented in the future, in part (Sel). • The recommendation is c...
Response: Will Implement
Score: +1
To provide ameaningful, 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 50 or 55 to 60 or 65. 3) Calculate pensions on the last three to five years of salary. 4) Replace current post-employment health care plans with health savings plans. The recommendation has not yet been implemented, but will be implemented in the future, in part (Sel). • The recommendation is currently being studied by City staff and will be implemented in the next two fiscal years. The recom...
F6
Public sector employees are granted a generous number of holidays, personal days, vacation days and sick leave annually. Rules and limits on accrual vary by city and union, but vacation days and sick leave can be accumulated and converted to cash or calculated into the pension benefit within those limits. The City ofMonte Sereno agrees with the finding.
Response: Disagree Partially
Score: 0
Public sector employees are granted a generous number of holidays, personal days, vacation days and sick leave annually. Rules and limits on accrual vary by city and union, but vacation days and sick leave can be accumulated and converted to cash or calculated into the pension benefit within those limits. The City ofMonte Sereno agrees with the finding.
Recommendation 6a:
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 ca...
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. The recommendation requires further analysis. • The recommended reductions in benefits would impact negotiated employment packages. • Staffwill assess these recommendations in relation to data ...
Response: Requires Analysis
Score: 0
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. The recommendation requires further analysis. • The recommended reductions in benefits would impact negotiated employment packages. • Staffwill assess these recommendations in relation to data collected from other cities and regional employers and the City's budgetary constraints in the next ...
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 cost. The recommendation will not be implemented because it is not warranted. • The City does not impose furloughs or have service impact issues associated with o...
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 cost.
The recommendation will not be implemented because it is not warranted. • The City does not impose furloughs or have service impact issues associated with office closures.
Finding 7:
Cities traditionally determine their compensation packages by surveyin...
F7
Cities traditionally determine their compensation packages by surveying the wages and benefits of other public sector employees in the same geographic area. There is major resistance to comparing themselves or mirroring trends with the private sector. This has allowed wages and benefits to become artificially high and out of sync with market trends. The City of Monte Sereno disagrees partially with the rmding. • While the City agrees it is prudent for wages and benefits to be aligned with reason...
Response: Disagree Partially
Score: 0
Cities traditionally determine their compensation packages by surveying the wages and benefits of other public sector employees in the same geographic area. There is major resistance to comparing themselves or mirroring trends with the private sector. This has allowed wages and benefits to become artificially high and out of sync with market trends. The City of Monte Sereno disagrees partially with the rmding. • While the City agrees it is prudent for wages and benefits to be aligned with reasonable market trends in both the private and public sectors with respect to salaries, benefits, and ot...
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. The recommendation requires further analysis. • Many public sector positions involve functions that are specific to government operations. • City staff will further review this recommendation in the next six months.
Response: Requires Analysis
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. The recommendation requires further analysis. • Many public sector positions involve functions that are specific to government operations. • City staff will further review this recommendation in the next six months.
Recommendation 7b:
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 ...
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. The recommendation requires further analysis. • The City must analyze the feasibility and the fiscal and operational impacts and advantages of employing market-oriented practices. • City staff will further assess this recommendation in the next six months.
Response: Requires Analysis
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. The recommendation requires further analysis. • The City must analyze the feasibility and the fiscal and operational impacts and advantages of employing market-oriented practices. • City staff will further assess this recommendation in the next six months.
Finding 8:
All cities perform certain core functions to run smoothly and provide services to their r...
F8
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. The City of Monte Sereno agrees with the finding.
Response: Disagree Partially
Score: 0
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. The City of Monte Sereno agrees with the finding.
Recommendation 8a:
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. C...
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. The recommendation has been implemented . • The City of Monte Sereno currently functions with minimal staff and contracts services for legal, public safety, development and engineering reviews...
Response: Implemented
Score: 0
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. The recommendation has been implemented . • The City of Monte Sereno currently functions with minimal staff and contracts services for legal, public safety, development and engineering reviews, landscaping and street maintenance, code enforcement as well as facility and infrastructure constr...
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. The recommendation has been implemented . • The City has established several joint partnerships with other cities and agencies, including law enforcement, fire protection, solid waste, recycling, and environmental services, public safety, animal co...
Response: Implemented
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 of new information technology systems. The recommendation has been implemented . • The City has established several joint partnerships with other cities and agencies, including law enforcement, fire protection, solid waste, recycling, and environmental services, public safety, animal control, emergency services, risk management, employee training and emergency responder radio interope...
F9
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 and work groups. The City of Monte Sereno agrees with the finding.
Response: Disagree Partially
Score: 0
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 and work groups. The City of Monte Sereno agrees with the finding.
Recommendation 9:
Cities should analyze the functions performed by alljob 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. The recommendation has been implem...
R9
Cities should analyze the functions performed by alljob 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. The recommendation has been implemented . • As a minimally staffed contract city, Monte Sereno continues to explore a wide variety of service approaches including the expanded use of technology, contracting for a variety of servic...
Response: Implemented
Score: 0
Cities should analyze the functions performed by alljob 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. The recommendation has been implemented . • As a minimally staffed contract city, Monte Sereno continues to explore a wide variety of service approaches including the expanded use of technology, contracting for a variety of services, and creating partnerships with other public agencies . • The City of Monte Sereno looks for oppo...
F10
The San Jose City Auditor identified 88 positions 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 $5 million annually. N/A, because it applies to the City of San Jose.
Response: Disagree Partially
Score: 0
The San Jose City Auditor identified 88 positions 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 $5 million annually. N/A, because it applies to the City of San Jose.
Recommendation 10:
San Jose should negotiate this suggested transfer with the San Jose Police Officers' Association and set realistic timeframes to move these safety positions to c...
R10
San Jose should negotiate this suggested transfer with the San Jose Police Officers' Association and set realistic timeframes to move these safety positions to civilian positions. N/A, because it applies to the City of San Jose.
Response: Implemented
Score: 0
San Jose should negotiate this suggested transfer with the San Jose Police Officers' Association and set realistic timeframes to move these safety positions to civilian positions. N/A, because it applies to the City of San Jose.
Finding 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. N/A, because Monte Sereno does not have bargaining units that require labor negotiations.
Reco...
F11
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. N/A, because Monte Sereno does not have bargaining units that require labor negotiations.
Response: Disagree Partially
Score: 0
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. N/A, because Monte Sereno does not have bargaining units that require labor negotiations.
Recommendation 11:
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...
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. N/A, because Monte Sereno does not have bargaining units that require labor negotiations.
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. N/A, because Monte Sereno does not have bargaining units that require labor negotiations.
Finding 12:
Current contracts were negotiated in good faith by representatives of the cities and the bargaining units; they were approved by the city councils. Promises made to employees were made by elected officials, past and present. Responsibility for formulating a...
F12
Current contracts were negotiated in good faith by representatives of the cities and the bargaining units; they were approved by the city councils. Promises made to employees were made by elected officials, past and present. Responsibility for formulating and approving solutions to restore the cities' financial stability resides squarely with our elected officials. The economic downturn has placed additional pressure on the situation. The City of Monte Sereno partially disagrees agrees with the ...
Response: Disagree Partially
Score: 0
Current contracts were negotiated in good faith by representatives of the cities and the bargaining units; they were approved by the city councils. Promises made to employees were made by elected officials, past and present. Responsibility for formulating and approving solutions to restore the cities' financial stability resides squarely with our elected officials. The economic downturn has placed additional pressure on the situation. The City of Monte Sereno partially disagrees agrees with the finding . • Monte Sereno does not have any bargaining units.
Recommendation 12a:
City Council memb...
R12a
City Council members and mayors should become better informed about the fiscal realities of their cities, long-term costs and commitments, and be cognizant of potential issues in labor agreements. The recommendation has been implemented. • Monte Sereno staff educates City Council candidates about City finances and operations beginning with the start of the election period, and continues this education with elected Council Members to keep them informed about the City's fiscal realities, long-term...
Response: Implemented
Score: 0
City Council members and mayors should become better informed about the fiscal realities of their cities, long-term costs and commitments, and be cognizant of potential issues in labor agreements.
The recommendation has been implemented. • Monte Sereno staff educates City Council candidates about City finances and operations beginning with the start of the election period, and continues this education with elected Council Members to keep them informed about the City's fiscal realities, long-term costs and commitments. • City Council Members annually review the five-year forecast to understand...
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. N/A, because Monte Sereno does not have bargaining units.
Response: Will Implement
Score: +1
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. N/A, because Monte Sereno does not have bargaining units.
Recommendation 12c:
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. N/A, because Monte Sereno does not have bargaining units.
Recommendation 12d:
City councils and mayors should inform citizens ...
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. N/A, because Monte Sereno does not have bargaining units.
Response: Will 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. N/A, because Monte Sereno does not have bargaining units.
Recommendation 12d:
City councils and mayors should inform citizens of their plans for controlling unsustainable employee costs and remove politics from the equation. The recommendation has not yet been implemented, but will be implemented in the future, • On an ongoing basis, the City Council and Mayor will inform citizens of issues regarding employee costs as the topic i...
R12d
City councils and mayors should inform citizens of their plans for controlling unsustainable employee costs and remove politics from the equation. The recommendation has not yet been implemented, but will be implemented in the future, • On an ongoing basis, the City Council and Mayor will inform citizens of issues regarding employee costs as the topic is relevant - as part ofthe Council's regular meetings with various community groups, in public Council Meetings, study sessions, and the Council'...
Response: Will Implement
Score: +1
City councils and mayors should inform citizens of their plans for controlling unsustainable employee costs and remove politics from the equation. The recommendation has not yet been implemented, but will be implemented in the future, • On an ongoing basis, the City Council and Mayor will inform citizens of issues regarding employee costs as the topic is relevant - as part ofthe Council's regular meetings with various community groups, in public Council Meetings, study sessions, and the Council's annual goal setting, and through written communications such as the City's newsletter.
Finding 13...
▶
City of Mountain View
August 20, 2010
•
12 pages
• 14 responses
•
Score: +7
(+7, 7, 0)
View Details ▾
14 responses to findings and recommendations
F1
The costs of total compensation for employees have grown substantially in the past decade and now threaten the cities' fiscal stability. The City agrees with this finding. The City of Mountain View agrees that the costs of total compensation have grown substantially and must be managed for cities to achieve or maintain fiscal sustainability. While the City has achieved a structurally balanced budget through a number of strate gies, including working with employee organizations to reduce cost gro...
Response: Agree
Score: +1
The costs of total compensation for employees have grown substantially in the past decade and now threaten the cities' fiscal stability. The City agrees with this finding. The City of Mountain View agrees that the costs of total compensation have grown substantially and must be managed for cities to achieve or maintain fiscal sustainability. While the City has achieved a structurally balanced budget through a number of strate gies, including working with employee organizations to reduce cost growth, cost containment efforts must continue in cooperation with employees. Challenges to control com...
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. The recommendation has been implemented. The City takes its responsibility for ensuring fiscal responsibility seriously, and the...
Response: Implemented
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. The recommendation has been implemented. The City takes its responsibility for ensuring fiscal responsibility seriously, and the City Council has been proactive in implementing measures that control employee costs. An example of...
F2
Salary and wage increases do not reflect changes in economic conditions; e.g., even with minimal inflation, yearly COLAs are granted with little bearing on the actual increase in cost of living or market conditions. The City disagrees partially with the finding. Cost-of-living adjustments are one of several factors to consider in adjusting salary and wages. The job market in Santa Clara County has been competitive and during the past 15years, the City had difficulty at times retaining employees ...
Response: Disagree Partially
Score: 0
Salary and wage increases do not reflect changes in economic conditions; e.g., even with minimal inflation, yearly COLAs are granted with little bearing on the actual increase in cost of living or market conditions. The City disagrees partially with the finding. Cost-of-living adjustments are one of several factors to consider in adjusting salary and wages. The job market in Santa Clara County has been competitive and during the past 15years, the City had difficulty at times retaining employees due to the cost of housing, competition from the private sector and low unemployment. There have bee...
F3
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. The City disagrees partially with this finding. The City of Mountain View respectfully disagrees that its salary plan and compensation policy is arbitrary and does not adequately represent an employee's value to the City. The salary plan provides for step increases based on...
Response: Disagree Partially
Score: 0
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. The City disagrees partially with this finding. The City of Mountain View respectfully disagrees that its salary plan and compensation policy is arbitrary and does not adequately represent an employee's value to the City. The salary plan provides for step increases based on increased experience and effective performance in a position. The City agrees that the combined cos...
R3
Cities should negotiate step progressions from the current 3-1/2 years to 7years. Employees should not receive COLA increases while in step progression. The recommendation requires further analysis. The City agrees that the combined impact of steps/merit increases can be substantial. The City also agrees that this should be the subject of further review and discussion with employee organizations. Changing the salary plan and compensation policies is a comprehensive undertaking that will require ...
Response: Requires Analysis
Score: 0
Cities should negotiate step progressions from the current 3-1/2 years to 7years. Employees should not receive COLA increases while in step progression. The recommendation requires further analysis. The City agrees that the combined impact of steps/merit increases can be substantial. The City also agrees that this should be the subject of further review and discussion with employee organizations. Changing the salary plan and compensation policies is a comprehensive undertaking that will require professional consultation and negotiations with employee organizations. The City is not prepared to ...
F4
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. The City agrees with this finding.
Response: Agree
Score: +1
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. The City agrees with this finding.
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. The City agrees with this 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. The City agrees with this finding. Recommendation 5.a Cities should: 1. Renegotiate and make provisions for increasing the employees' contribution for current pension plans. The recommendation has been implemented. E...
F6
Public-sector employees are granted a generous number of holidays, personal days, vacation days and sick leave annually. Rules and limits on accrual vary by city and union, but vacation days and sick leave can be accumulated and converted to cash or calculated into the pension benefit within those limits. The City agrees with this finding.
Response: Agree
Score: +1
Public-sector employees are granted a generous number of holidays, personal days, vacation days and sick leave annually. Rules and limits on accrual vary by city and union, but vacation days and sick leave can be accumulated and converted to cash or calculated into the pension benefit within those limits. The City agrees with this finding. Recommendation 6.a 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 elimi nate the practice of converting accumulated sick leave to cash or adding in...
F7
Cities traditionally determine their compensation packages by surveying the wages and benefits of other public-sector employees in the same geographic area. There is major resistance to comparing themselves or mirroring trends with the private sector. This has allowed wages and benefits to become artificially high and out of sync with market trends. The City disagrees partially with the finding. The City does use benchmark compari sons with other like agencies in the Bay Area. This is consistent...
Response: Disagree Partially
Score: 0
Cities traditionally determine their compensation packages by surveying the wages and benefits of other public-sector employees in the same geographic area. There is major resistance to comparing themselves or mirroring trends with the private sector. This has allowed wages and benefits to become artificially high and out of sync with market trends. The City disagrees partially with the finding. The City does use benchmark compari sons with other like agencies in the Bay Area. This is consistent with practices that compare like industries. Using private-sector comparisons can be problematic ba...
F9
Cities can gain operational efficiencies and effectiveness with lower employee costs by making sure they are staffed with the correct number of people in the appropriate job classification in all departments and work groups. The City agrees with this finding.
Response: Agree
Score: +1
Cities can gain operational efficiencies and effectiveness with lower employee costs by making sure they are staffed with the correct number of people in the appropriate job classification in all departments and work groups. -8-
The City agrees with this finding.
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. This recommendation has been implemented. The City routinely reviews its job classi fications and departments perform assessments to ensure efficiencies with its work force. For example, the Police Department consolidated functio...
Response: Implemented
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. This recommendation has been implemented. The City routinely reviews its job classi fications and departments perform assessments to ensure efficiencies with its work force. For example, the Police Department consolidated functions and eliminated a mid-level supervisor classification. There are a number of other examples, inclu...
F11
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. The City agrees with the finding.
Response: Agree
Score: +1
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. The City agrees with the finding.
F12
Current contracts were negotiated in good faith by representatives of the cities and the bargaining units; they were approved by the city councils. Promises made to employees were made by elected officials, past and present. Responsibility for formulating and approving solutions to restore the cities' financial stability resides squarely with our elected officials. The economic downturn has placed additional pressure on the situation. The City agrees with the finding.
Response: Agree
Score: +1
Current contracts were negotiated in good faith by representatives of the cities and the bargaining units; they were approved by the city councils. Promises made to employees were made by elected officials, past and present. Responsibility for formulating and approving solutions to restore the cities' financial stability resides squarely with our elected officials. The economic downturn has placed additional pressure on the situation. The City agrees with the finding. Recommendation 12.a City council members and mayors should become better informed about the fiscal realities in their cities, l...
R12
a 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. This recommendation has been implemented. The City Council has a long-standing practice of staying informed about the City's financial condition. The City Council has studied detailed information on the financial condition of the City via budget workshops, Study Sessions and public hearing reports an...
Response: Implemented
Score: 0
.d City councils and mayors should inform citizens of their plans for controlling unsus tainable employee costs and remove politics from the equation. The recommendation has been implemented in regard to public discussion of the impact of employee compensation costs and actions needed to contain those costs. MB/7/MGR 612-08-20-10A-E/\ -11-
▶
City of Palo Alto
August 27, 2010
•
17 pages
• 34 responses
•
Score: +6
(+6, 6, 0)
View Details ▾
34 responses to findings and recommendations
F1
The costs of total compensation for employees have grown substantially in the past decade and now threaten the cities' fiscal stability. RESPONSE: The City agrees with this finding. The City of Palo Alto's compensation costs, particularly in the area of pension and medical expense, have grown substantially in the past decade. Through its annual Long Range Financial Forecast (LRFF), the City identifies the "drivers" of future surpluses and deficits. In the most recent 10 year forecast, deficits w...
Response: Agree
Score: +1
The City agrees with this finding. The City of Palo Alto's compensation costs, particularly in the area of pension and medical expense, have grown substantially in the past decade. Through its annual Long Range Financial Forecast (LRFF), the City identifies the "drivers" of future surpluses and deficits. In the most recent 10 year forecast, deficits were projected from FY 2011 through FY 2020. They were driven primarily by falling revenues due to the recession~ significantly rising medical premium and retiree medical liability expenses~ and pension costs resulting from expensive plans and weak...
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 for the unions to choose to achieve that percentage goal. RESPONSE: The recommendation had already been implemented. During each budget process for the following fiscal year, the City determines the savings needed to balance its budget and to position itself for...
Response: Unknown
Scheduled: FY 2010
Score: 0
The recommendation had already been implemented. During each budget process for the following fiscal year, the City determines the savings needed to balance its budget and to position itself for future budget stability. Those savings have incorporated reductions to employee compensation. In the 2009-10 Budget, for example, the City: • froze pay for non-public safety employees for fiscal years 2010 and 2011. Police officers voluntarily deferred a contractual pay increase for FY 2010 until FY 2011 • eliminated management employee's Variable Management Compensation plan (a bonus based on work qua...
F2
Salary and wage increases do not reflect changes in economic conditions~ e.g. even with minimal inflation, yearly COLAs are granted with little bearing on the actual increase in cost of living or market conditions. RESPONSE: The City respectfully partially agrees and disagrees with the finding
Response: Disagree Partially
Score: 0
The City respectfully partially agrees and disagrees with the finding
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 City has not had a COLA in its contracts in many years and agrees that it should not increase salaries and wages that are not supported by planned revenue increases. Staff has received direction from Council to tie salary increases to revenue performance an...
Response: Unknown
Score: 0
The City has not had a COLA in its contracts in many years and agrees that it should not increase salaries and wages that are not supported by planned revenue increases. Staff has received direction from Council to tie salary increases to revenue performance and each fiscal year, the City determines what it can and cannot afford in its forthcoming budget. This financial view (derived from the LRFF) is incorporated in all labor negotiations. Recent minimal inflation impacts were a factor in freezing non-public safety employee pay along with the need to balance the budget. It is important to not...
F3
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: Agree
Score: +1
The City has not had a COLA in its contracts in many years and agrees with the tenor of the recommendation in that excessive pay increases should be eliminated. It respectfully disagrees, however, with a seven year step progression. The concept of steps is that an employee's skill level and value in the job increases as they are in the position, but that learning and value reach a plateau after a number of years. Palo Alto has a five step progression for SEIU, fire and police personnel. The step system allows the City to maintain equitable pay scales within its employee groups for comparable w...
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: The City has not had a COLA in its contracts in many years and agrees with the tenor of the recommendation in that excessive pay increases should be eliminated. It respectfully disagrees, however, with a seven year step progression. The concept of steps is that an employee's skill level and value in the job increases as...
Response: Unknown
Score: 0
The City has not had a COLA in its contracts in many years and agrees with the tenor of the recommendation in that excessive pay increases should be eliminated. It respectfully disagrees, however, with a seven year step progression. The concept of steps is that an employee's skill level and value in the job increases as they are in the position, but that learning and value reach a plateau after a number of years. Palo Alto has a five step progression for SEIU, fire and police personnel. The step system allows the City to maintain equitable pay scales within its employee groups for comparable w...
F4
Medical insurance costs for active employees are growing year after year at rates that exceed most cities' revenuegrowth,whilethe employeecontributiontomedicalcareisminimal. RESPONSE: The City agrees with this finding. The City views Findings 4 and 5 as the most seriousissuesit mustaddress inorderto achieve long-termfinancialstability. Bycalculatingthe present value of current retirement and retiree medical commitments the City can gauge the magnitude of its liabilities and the structural change...
Response: Disagree Partially
Score: 0
, Recommendation 4A. In implementing a medical cost sharing plan for management and SEIU, the City included current employees and those employees retiring after January 1, 2011 (This plan would not affect current retirees). As a part of the cost share program, the City will be contributing an amount equal to the employee portion of cost-share to the retiree medical trust. Through informal discussions, Public Safety employees are aware of the City's desire to negotiate a similar plan for their union agreements. Weare currently negotiating with the fire units and will begin negotiations with the...
R4
Cities shouldnegotiatewithemployeesto assume someofthese increasedcosts fortheirmedical benefits. Tocontainmedicalcostscitiesshouldconsiderthe following: A. Split monthly premiums between the city and the employee and increase the employee's share,if alreadycost splitting,andremoveanyemployeecaps. RESPONSE: The City agrees with employees sharing medical premium costs and has implemented this recommendation with some of its labor groups. In FY 2010, the City created and included in management and...
Response: Unknown
Scheduled: FY 2010
Score: 0
The City agrees with employees sharing medical premium costs and has implemented this recommendation with some of its labor groups. In FY 2010, the City created and included in management and general classified employee agreements a plan for sharing medical premium costs. The City could not reach agreement and had to impose the medical cost-share program with the general classified employee unit. This plan is to take effect in January 2011 unless a different cost sharingplan can be negotiated with Citybargaining groups prior to that date. The plan is for employees to share 50% of cost premium ...
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 5 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. RESPONSE: Agree. 6
Response: Disagree Partially
Score: 0
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 5
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. RESPONSE: Agree. 6
Recommendation 5a
Cities should: 1. Renegotiate and make provisions for increasing the employees' contribution for current pension plans. RESPONSE: As stated under Recommendation 1,the City h...
R5a
Cities should: 1. Renegotiate and make provisions for increasing the employees' contribution for current pension plans. RESPONSE: As stated under Recommendation 1,the City has implemented and negotiated a higher contribution from SEIU members to the employee's share of pension plan costs. The share of the 8% employee contribution has risen from 2% to 5.75%. This increase began in FY 2010. Managers currently pay 2%; Fire employees pay 9% (firefighters were recently given a 9% salary increase, how...
Response: Unknown
Score: 0
As stated under
R5b
Cities should thoroughly investigate reverting to prior pension formulas that were less costly.
Response: Unknown
Score: 0
Partially agree and disagree To provide a meaningful, long-term solution, the cities should negotiate agreements to: 7
1. Institute a two-tier system for pension and retiree health care for new hires. RESPONSE: The City has instituted a two-tier retirement system for non-safety employees hired after July 17, 2010. The retirement plan for these new employees is 2% at 60. For non safety employees hired before July 17,the retirement plan is 2.7% at 55. The City will negotiate in current and upcoming negotiations for a two-tier plan for new public safety personnel. This proposal will save the Cit...
R5c
RESPONSE: Partially agree and disagree To provide a meaningful, long-term solution, the cities should negotiate agreements to: 7 1. Institute a two-tier system for pension and retiree health care for new hires. RESPONSE: The City has instituted a two-tier retirement system for non-safety employees hired after July 17, 2010. The retirement plan for these new employees is 2% at 60. For non safety employees hired before July 17,the retirement plan is 2.7% at 55. The City will negotiate in current a...
Response: Unknown
Score: 0
The City has instituted a two-tier retirement system for non-safety employees hired after July 17, 2010. The retirement plan for these new employees is 2% at 60. For non safety employees hired before July 17,the retirement plan is 2.7% at 55. The City will negotiate in current and upcoming negotiations for a two-tier plan for new public safety personnel. This proposal will save the City money and promote equity among the different employee groups. The existing plan for public safety personnel is 3% at 50. 2. Increase the retirement age for 50 to 55 to 60 or 65. RESPONSE: For new non-safety emp...
F6
Public sector employees are granted a generous number of holidays, personal days, vacation days and sick leave annually. Rules and limits on accrual vary by city and union, but vacation days and sick leave can be accumulated and converted to cash or calculated into the pension benefit within those limits. RESPONSE: The City agrees with this finding. 8
Response: Agree
Score: +1
The City agrees with this finding. 8
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. RESPONSE: The City has implemented steps to contain fiscal impacts from non-productive days. In terms imposed on SEill in FY 2010, 2 floating holidays were eliminated. SEill has agreed to extend...
Response: Unknown
Scheduled: FY 2010
Score: 0
The City has implemented steps to contain fiscal impacts from non-productive days. In terms imposed on SEill in FY 2010, 2 floating holidays were eliminated. SEill has agreed to extend this reduction into FY 2011. Since 1983, Palo Alto has implemented caps on sick and vacation leave accruals. Also, it does not allow for sick leave to be cashed out or to be part of the years of service in pension calculations. Further limitations on the total number of days off will need to be part of the good faith negotiation process going forward.
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 cost. RESPONSE: Palo Alto has not used furloughs as part of its budget balancing solutions in the past five years. Instead, the City has changed the way it delive...
Response: Unknown
Score: 0
Palo Alto has not used furloughs as part of its budget balancing solutions in the past five years. Instead, the City has changed the way it delivers services by contracting out and reducing administrative support. Since 2009 the City has reduced 60.5 full-time equivalent fully benefited positions rather than using furloughs as a solution to reduce employee costs. If the City considers furloughs, it will negotiate for converting paid holidays to unpaid.
F7
Cities traditionally determine their compensation packages by surveying the wages and benefits of other public sector employees in the same geographic area. There is major resistance to comparing themselves or mirroring trends with the private sector. This has allowed wages and benefits to become artificially high and out of sync with market trends. RESPONSE: The City respectfully partially agrees and disagrees with the finding Within the City's labor agreements there are specific jurisdictions ...
Response: Disagree Partially
Score: 0
The City respectfully partially agrees and disagrees with the finding Within the City's labor agreements there are specific jurisdictions within the region to which both parties (City and union) have agreed to compare wages. These benchmarks are important in that they compare like positions in terms of skills and compensation. There are some City positions such as those in public safety that are not comparable to the private sector. Comparison with other employers, public or private, is used in unique circumstances or where specific job classification comparisons are not available such as in t...
R7a
Cities should research competitive hiring practices and alter the approach to determine fair wagesandbenefits for eachcityby usingpublicandprivatesectordata. RESPONSE: The City partially agrees. Palo Alto does a salary survey of specificjurisdiction before each labor negotiation to determine fair compensation and potential "market" adjustments. Ithasnotutilizedprivate sectorwagedatato dateandmayconsiderdoing sointhe future. Using such data would be helpful and would need to be discussedwithin th...
Response: Unknown
Score: 0
The City partially agrees. Palo Alto does a salary survey of specificjurisdiction before each labor negotiation to determine fair compensation and potential "market" adjustments. Ithasnotutilizedprivate sectorwagedatato dateandmayconsiderdoing sointhe future. Using such data would be helpful and would need to be discussedwithin the context of the bargaining process.
F8
All cities perform certain core functionsto run smoothlyand provide servicesto 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 Countyto deliver services. RESPONSE: The Cityagreeswiththis finding
Response: Unknown
Score: 0
The Cityagreeswiththis finding
R8a
Cities should explore outsourcing some functions and servicesto 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,andtimelines. RESPONSE: The City has already implemented contracting out services in many areas. The following functions have been contracted out to the private sector to savecosts: These include, 10 for examp...
Response: Implemented
Score: 0
The City has already implemented contracting out services in many areas. The following functions have been contracted out to the private sector to savecosts: These include, 10
for example: landscaping of parks and City facilities; tree trimming and line clearing; and street and sidewalk repair. In July 2010, Utility bill processing and janitorial services were contracted out. In the Fall of 2010, the City will likely contract out the maintenance of its golf course. The City does, however, want to maintain a high level of service to its customers so it considers each contracting out opportunit...
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: Over the years, the City has established partnerships with other cities for the provision of wastewater treatment and animal services. Palo Alto provides dispatching and fire services to Stanford University. It has a collaborative and cos...
Response: Unknown
Score: 0
Over the years, the City has established partnerships with other cities for the provision of wastewater treatment and animal services. Palo Alto provides dispatching and fire services to Stanford University. It has a collaborative and cost sharing relationship with the Palo Alto Unified School District for the maintenance of school athletic playing fields that both the schools and general community use for sporting activities. The City operates a Regional Water Quality Control Plant whose members include Mountain View, Los Altos, East Palo Alto, and Stanford University. It operates an animal s...
F9
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 and work groups. RESPONSE: Agree. For the past several years and always during economic downturns, the City has evaluated each vacant position to determine whether it is absolutely necessary and whether its functions can be redistributed to other employees or contracted out. Cross training ...
Response: Agree
Score: +1
Agree. For the past several years and always during economic downturns, the City has evaluated each vacant position to determine whether it is absolutely necessary and whether its functions can be redistributed to other employees or contracted out. Cross training is a top priority of City departments so that key functions are backed up during illness or vacation. 11
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: Agree. The City has been conducting a management classification study with the objective of reducing the large number ofjob classifications. By collapsing these classifications, additional flexibility for covering emplo...
Response: Unknown
Score: 0
The City has taken steps to increase employee's contributions (recent negotiation with SEIU raised contribution as cited above) and will continue to take such steps as financial conditions warrant. Progress toward this goal must be viewed in the context of the good faith negotiations process required by law. 3. Renegotiate to implement a contribution amount for employees to OPEB; this contribution should provide for a reasonable split of costs between a city and the employee for retiree medical and dental benefits. RESPONSE: Please see response to
F10
The San Jose City Auditor identified 88 positions 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 $5 million annually. RESPONSE: This finding pertains to the City of San Jose, but the City of Palo Alto does explore similar opportunities.
Response: Unknown
Score: 0
This finding pertains to the City of San Jose, but the City of Palo Alto does explore similar opportunities.
R10
San Jose should negotiate this suggested transfer with the San Jose Police Officers' Association and set realistic timeframes to move these safety positions to civilian positions. RESPONSE: This recommendation is specific to San Jose. The City, however, does explore opportunities in this area. 12
Response: Unknown
Score: 0
This recommendation is specific to San Jose. The City, however, does explore opportunities in this area. 12
F11
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. The City of Palo Alto agrees with this finding.
Response: Unknown
Score: 0
The City has held numerous information meetings with the public, Council and employees about the financial stresses it faces and the upcoming budget process. Solutions to solving budget deficits are proposed and discussed at these meetings. Embedded in the proposals are targets for labor cost reductions which are shared publicly. As an example, in FY 2010, a target of around $3 million in labor cost reductions was proposed to Council and the public to balance the budget. It is the City Manager's responsibility to then propose a strategy for obtaining those reductions in closed sessions with Co...
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 City has held numerous information meetings with the public, Council and employees about the financial stresses it faces and the upcoming budget process. Solutions to solving budget deficits are proposed and discussed at these meetings. Embedded i...
Response: Unknown
Scheduled: FY 2010
Score: 0
The City has held numerous information meetings with the public, Council and employees about the financial stresses it faces and the upcoming budget process. Solutions to solving budget deficits are proposed and discussed at these meetings. Embedded in the proposals are targets for labor cost reductions which are shared publicly. As an example, in FY 2010, a target of around $3 million in labor cost reductions was proposed to Council and the public to balance the budget. It is the City Manager's responsibility to then propose a strategy for obtaining those reductions in closed sessions with Co...
F12
Current contracts were negotiated in good faith by representatives of the cities and the bargaining units; they were approved by the city councils. Promises made to employees were made by elected officials, past and present. Responsibility for formulating and approving solutions to restore the cities' financial stability resides squarely with our elect~d officials. The economic downturn has placed additional pressure on the situation. RESPONSE: Agree
Response: Agree
Score: +1
Agree
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. RESPONSE: City has long since implemented. Palo Alto's Council Members are especially well-informed about the City's financial condition and important issues in labor agreements. Palo Alto has a Finance Committee comprised of 4 out of the 9 Council Members to discuss fiscal issues prior to items being ...
Response: Unknown
Score: 0
City has long since implemented. Palo Alto's Council Members are especially well-informed about the City's financial condition and important issues in labor agreements. Palo Alto has a Finance Committee comprised of 4 out of the 9 Council Members to discuss fiscal issues prior to items being presented to the full Council. Meetings and reports on budget issues occur throughout the year. This includes a presentation on the LRFF; quarterly, midyear, and year-end reports on the City's financial condition; preparatory information and staff plans for addressing budget issues prior to Finance Committ...
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. RESPONSE: This recommendation has been implemented and will continue to be followed to ensure a sustainable budget. As stated in Finding 5, the City imposed terms and conditions on SEIU that has contained costs and initiated a second retirement tier for new employees. This...
Response: Implemented
Score: 0
This recommendation has been implemented and will continue to be followed to ensure a sustainable budget. As stated in
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. RESPONSE: Implemented annually during budget process. Palo Alto has a Council-City Manager (CM) form of government whereby the Council directs the CM to implement its policy goals. During the past several years, the City's CM has held outreach meetings with employees and labor groups to explain the City's financial condition and the ...
Response: Unknown
Score: 0
Implemented annually during budget process. Palo Alto has a Council-City Manager (CM) form of government whereby the Council directs the CM to implement its policy goals. During the past several years, the City's CM has held outreach meetings with employees and labor groups to explain the City's financial condition and the rationale for proposed expense reductions. Power Point presentations replete with revenue and expense trend analyses are provided. The CM has met with union employees and the public to explain City finances prior to the budget process and negotiations.
R12d
City councils and mayors should inform citizens of their plans for controlling unsustainable employee costs and remove politics from the equation. RESPONSE: Implemented. All budget meetings are held in public sessions. The City Manager's proposed budget is reviewed by the Finance Committee (subset of full Council) in public and public comment is always solicited. During these meetings, Council Members can 14 discuss any proposal or mechanism for controlling costs including reductions in force an...
Response: Unknown
Scheduled: FY 2011
Score: 0
Implemented. All budget meetings are held in public sessions. The City Manager's proposed budget is reviewed by the Finance Committee (subset of full Council) in public and public comment is always solicited. During these meetings, Council Members can 14
discuss any proposal or mechanism for controlling costs including reductions in force and lowering labor costs through wage and benefit reductions. In addition, the City Manager and Director of Administrative Services (includes Finance), held a plethora of community meetings on the proposals to balance the FY 2011 budget.
F13
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 work for the city's budget. The process has resulted in wage and benefit decisions that have been greater that the growth in basic revenue sources. RESPONSE: The City agrees that binding arbitration limits the ability of city leaders to craft solutions that work for the city's budget. The City of P...
Response: Agree
Score: +1
The City agrees that binding arbitration limits the ability of city leaders to craft solutions that work for the city's budget. The City of Palo Alto is bound by a section in its Charter requiring binding arbitration for public safety negotiations that reach impasse. Also, it must follow all legal, regulatory and contractual requirements regarding labor negotiations. The Council, however, recently requested from staff further analysis on the history of binding arbitration in Palo Alto and the pros and cons of having this requirement. In the Fall of 2010, the Council will review binding arbitra...
R13a
San Jose City Council should make binding arbitration open to the public. RESPONSE: This recommendation is not applicable to the City of Palo Alto, however, please refer to the response under Finding 13.
Response: Unknown
Score: 0
This recommendation is not applicable to the City of Palo Alto, however, please refer to the response under
R13b
San Jose City Council should prepare a ballot measure asking voters to repeal Section 1111 of the City Charter that addresses binding arbitration. RESPONSE: This recommendation is not applicable to the City of Palo Alto. ATTACHMENT B The City of Palo Alto would like to correct or clarify information in the Grand Jury's Report of May 26,2010 as follows: For table 3, in the report, monthly health care premiums comparing 2001 to 2010 should be: Most Expensive Plan Employee Only Employee +1 Employee...
Response: Unknown
Scheduled: FY 2000
Score: 0
This recommendation is not applicable to the City of Palo Alto. 15
ATTACHMENT B The City of Palo Alto would like to correct or clarify information in the Grand Jury's Report of May 26,2010 as follows: For table 3, page 6 in the report, monthly health care premiums comparing 2001 to 2010 should be: Most Expensive Plan Employee Only Employee +1 Employee + Family 2001 PERS CARE $343.00 $686.00 $892.00 2010 Blue Shield Access $577.33 $1,154.66 $1,501.06 For table 5, page 9, the retirement formula should state "highest" year instead of "final" year. For table 7, page 13, the days off per year give...
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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...
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City of Saratoga
May 26, 2010
•
9 pages
View Details ▾
No structured response data extracted yet.
View the PDF for full details.
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Town of Los Altos Hills
September 01, 2010
•
17 pages
• 3 responses
View Details ▾
3 responses to findings and recommendations
R5
c.(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: Impleme...
Response: Unknown
Score: 0
c.(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...
F10
- 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 res...
Response: Unknown
Score: 0
Notapplicable to the Town of Los Altos Hills. 12
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 Finding #11 - 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...
F11
- 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...
Response: Unknown
Score: 0
Not applicable to the Town of LosAltos Hills. The Town does not maintain collective bargaining agreements. 13
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 th...
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Town of Los Gatos
August 27, 2010
•
8 pages
• 2 responses
•
Score: -2
(+0, 0, -2)
View Details ▾
2 responses to findings and recommendations
R2
Salary and wage incrDeiassaegsreedoWnhootllyreflect 2. Cities should not inWIARcmNrnieelplaoqalletuysNmiseYroieesetsnsttaBeBFleaduurtirethIsnerand wages that are not supported by planned AgreeoCtctcLfiicermmnhoreohrooveOeanpnanesepeIreLotndnnzakrcGgAasgiaeertoocetisePcsawto.nttdt,stuainsiaooaFtarscLhrmsttufeel.oiouwntidnuscri-nmailgdrnoeGegrDicuictarneiareogionsiemtsnhntaoaepossgassdo.mrleneihsceaawieninnsidftlhcacotoinosldinttti,tleioofnysblei;vLeaioanrslrgyeinG.ggoa.rtoosn -Will a2nacreboen0vi...
Response: Will Not Implement
Score: -1
Cities should not increase salaries and wages that are not supported by planned Salary and wage increases do not reflect 2. revenue increases. Cities should tie COLA increases to clear indicators and retain the changes in economic conditions; e.g. even with minimal inflation, yearly ability to adjust or withhold based on current economic data. COLAs are granted with little bearing on the actual increase in cost of living or market conditions. Will Not Be Disagree Wholly Implemented Not Yet But In Requires Further Agree Implemented or In Part Future Analysis Los Gatos - Will Los Gatos - Disagre...
R6
Publicsector employDeeissagarreeegWrahnotellyd oar In 6a CCRRCaieeittiipddeeuusssccicsseekhhvtoohlaeuuecalladdvnteiunroeamennngbetdoieAAgRRmWWtiIermimonnaeeeliitoaaitqqlplpNNim.lleaflluullyyeooetNNihiissentrrmttmooiiooeeassYYwlettssetisedeennBBiFuFtatttthbeeuueteyBBhsrrddsettuutthhhittateeeupnIIrnnrtrdeba/acoptrrigacaiepdienodrifnsaogcynosuanonlvfiefdtsraftotyinorsg:.unapcacuidmdualaytseidnsstiecakdleoafviemtpoosing LosGatos AgreegvPcadpaaoenaenarnnnyndrytvesusse,ribaooi6vrcylntluabykecsc.dFFbli...
Response: Will Not Implement
Score: -1
Cities should renegotiate with the bargaining units to: Public sector employees are granted a 6a generous number of holidays, personal Reduce vacation time. 1. Reduce the number of holidays and/or personal days. days, vacation days and sick leave 2. 3. Cap sick leave and eliminate the practice of converting accumulated sick leave to annually. Rules and limits on accrual cash or adding into their years of service for inclusion in their retirement benefit. vary by city and union, but vacation days and sick leave can be accumulated and converted to cash or calculated into the pension benefit with...
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San Jose
City