pages: CityCouncil/2013-07-23.pdf, 16
This data as json
body | date | page | text | path |
---|---|---|---|---|
CityCouncil | 2013-07-23 | 16 | Councilmember Chen stated the agenda item is to direct staff; staff would come back with a solution; the OPEB Task Force presented a recommendation last October; commended staff for starting a dialog with public safety employees, which is long overdue; noted retired employees in their 60's, 70's and 80's would have difficulty obtaining affordable insurance elsewhere if the City does a buyout plan or cap; when working with labor unions, staff should keep in mind that senior citizens may be at the greatest risk because of their inability to find affordable healthcare somewhere else. The Finance Director stated tough decisions have to be made; almost all the ideas, other than the trust, impact the City, retirees or current employees; staff would like the Council to provide feedback if there are options that should not be pursued in negotiations with employee groups. Mayor Gilmore noted there are very strict legal restrictions for people who are already retired; retirees' benefits cannot change. Councilmember Tam stated the City has been sued and adjudicated in the courts with the Police Officers Association. The Finance Director stated several options relate to future employees; case law related to OPEB says employees vest the day employment starts; the City could review options, such as capping which do not decrease benefits, but change the structure; staff is presenting potential options; staff wants to know if there are any options the Council does not want staff to pursue going into employee negotiations; several different approaches will have to be used to reduce the liability; the City will not be able to reduce the liability in just one way. Mayor Gilmore stated changing retired employees' benefit would be a long, drawn-out process with a lot of potential pitfalls; that she would put the idea at the bottom of the options; she hopes other, easier things can be implemented as there is a huge potential the City would be sued again and lose; changing retired employees' benefits is probably the one she would direct staff not to pursue. The Finance Director stated staff would consult with attorneys on any recommendations; noted a couple of OPEB lawsuits are pending; stated Alameda will not be on the cutting edge; staff is looking at what other cities have done. Councilmember Daysog stated nine ideas have been provided; encouraged members of the public to provide the City with additional suggestions; stated providing estimates for the nine items would be helpful; there is an annual unfunded liability of $4.5 million; a chart should be presented showing how much closer each of the nine items brings the City towards closing the $4.5 million annual amount; the analysis would allow him to prioritize; estimates are not easy and require assumptions, which is why the City has hired Bartel and Associates. The Finance Director stated Bartel and Associates could complete some valuations to Regular Meeting Alameda City Council 15 July 23, 2013 | CityCouncil/2013-07-23.pdf |