pages: CityCouncil/2012-10-30.pdf, 4
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CityCouncil | 2012-10-30 | 4 | pension obligation bond, to which the Controller responded in the negative; stated the 1079 and 1082 plans are another pay-as-you-go plans included in the General Fund as part of the budget each year; the amount is going down over time because the average age of the pensioners is rising and people pass away. In response to Councilmember deHaan's inquiry about the City's obligation, the Controller responded the City is currently paying approximately $2 million a year. Councilmember deHaan inquired if the City's obligation was around $5 million in 2005 and has dropped, to which the Controller responded in the affirmative; stated the average age of the participants is 85 years old. Councilmember deHaan stated every year in our budget the shortfalls are around $3 to $6 million; one-time windfall money has been used; sometimes staffing adjustments have been made, fire stations have been closed, programs have been eliminated; the City is not going to see a big recovery; that he is concerned services keep deteriorating; health benefits increase a good 14% every year; employees have not had raises. Councilmember Tam stated not increasing public safety salaries since 2007 was really a reduction in salary because the last contract included contributing more into pension; employees are paying the employer's share; that she supports the findings to create a sustainable solution through negotiating with employee bargaining units. In response to the Assistant City Manager's comments regarding different options, Mayor Gilmore and Vice Mayor Bonta stated all the options should be placed on the table to allow comparison of the full pro formas and financial analysis. Councilmember Johnson inquired if the OPEB solutions were directed at both current and future employees, to which the Assistant City Manager responded the Task Force did not discuss whether changes should apply to new or current employees. Mayor Gilmore stated that she wanted to remind members of the public that the problem is long-term; tonight is the first step in reaching a solution that everyone wants; there is a lot of work to be done researching possible solutions and figuring out how some of the vehicles would work; numbers have to be crunched and then there has to be discussion with employee groups; there is no quick fix; every journey starts with a single step; the Council is determined to get the problem under control. (12-514) Recommendation to Receive Input from the Community and Provide Direction to Guide the City's Future Labor Negotiations with Public Safety Bargaining Groups. The Human Resources Director gave a brief presentation. The City Manager stated staff intends to move the process as quickly as possible and try to complete negotiations in the month of November 2012; one of the most important reasons to not be out of contract with public safety is that the 11% PERS contribution Special Meeting Alameda City Council 4 October 30, 2012 | CityCouncil/2012-10-30.pdf |