pages: CityCouncil/2011-07-19.pdf, 6
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CityCouncil | 2011-07-19 | 6 | The Human Resources Director responded most public agencies public safety pay some portion of the employee's contribution; a 9% employee contribution is required by State law; however, employers can pay a portion of the employee contribution; many have and continue to do so; years ago, the City opted to have employees pay the 9% employee contribution; under the revised MOU, public safety would still pay the 9% and would pick up 2% of the City's contribution. Mayor Gilmore stated the City would be breaking new ground in a good way. In response to Councilmember deHaan's inquiry, the Human Resources Director stated the estimated $459,000 savings [for future retiree healthcare] would not be immediate. Councilmember deHaan inquired what would be the savings in the first year, to which the Human Resources Director responded $3,600 in 2011 and $20,200 for 2012. Vice Mayor Bonta inquired whether the Fire MOU has similar savings, to which the Human Resources Director responded in the affirmative. Vice Mayor Bonta inquired whether the combined savings would be approximately $1 million per year, to which the Human Resources Director responded in the affirmative. Vice Mayor Bonta inquired whether the City would be cutting its future public safety healthcare liability in half, to which the Human Resources Director responded almost half by elimination of the City paying spousal coverage. Councilmember Johnson stated the proposed change would be a very significant structural change; Other Post Employment Benefits (OPEB) have been in place since the early 1990's; this is the first time a significant change would be made. Mayor Gilmore inquired whether Police Officers have not received a raise in the last six years. The Human Resources Director responded Police Officers would not receive a raise for six years [going back and] through the term of the MOU. Councilmember deHaan stated savings would be gradual. The Human Resources Director stated savings would be realized fairly soon because current public safety employees would be reducing the amount of the current entitled benefit. Mayor Gilmore stated the negotiating process was not easy for either side; a lot of people think that the City has the power to impose its will on bargaining units, which is not true; once negotiations start, a contract is confidential; going forward, there will be a thirty-day comment period before negotiations start; at a certain point, all proposals are Regular Meeting Alameda City Council 6 July 19, 2011 | CityCouncil/2011-07-19.pdf |