pages: CityCouncil/2013-07-23.pdf, 19
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CityCouncil | 2013-07-23 | 19 | a trust fund is important because employees are going to want to know that money will go towards the benefit if they are asked to pay more for OPEB or receive reduced benefits; the trust fund is needed for transparency and credibility; the trust fund would be a starting place to ask employees what they would be willing to do. The Finance Director stated Council has indicated staff should return with different trust fund firms and work with Bartell and Associates, as they work on the revised OPEB actuarial, to provide estimates and potential savings for each proposed solutions; establishing the trust fund is a critical first step. Mayor Gilmore stated the plan should be developed with employees; some intense and long discussions with employees will be held throughout the process. The City Manager stated staff would present a report on the proposed trust fund in the early fall; Council direction seems to be to proceed with the trust fund regardless of solutions that may or may not manifest through negotiations; staff has already begun talking to different firms; discussed his experience with pension reform in Oakland; stated unlike Oakland, Alameda has always paid its existing liability and has not borrowed money; the problem is the actuarials and assumptions indicate that numbers are going to rise very quickly and soon; there is a window of opportunity; the City is trying to get ahead of the wave before it crashes; there is no one solution in his opinion; staff has offered a menu of potential solutions; tonight, the Council has indicated staff should put anything which impacts existing retirees at the bottom of the priority list and a trust fund should be started; the problem took more than 50 years to develop; the goal is to do something that will make a substantial impact on the liability; the amount cannot get to zero in one shot unless there are massive cuts and layoffs; relations with bargaining units are excellent; bargaining units have demonstrated an understanding of the City's financial situation and have contributed in leading edge ways; a substantial reduction cannot be made without both revenue and contribution changes; he believes the City can create a program that will be above and beyond neighboring cities; the bonds market will reward the City, which will be very important as the former Base is developed; the Council direction tonight allows staff to prioritize; asked Council to authorize him to begin formal discussions with the bargaining units; stated that he hopes to begin discussions this summer. Mayor Gilmore stated that she would like the Council to give the City Manager authorization to begin talking to bargaining units; the matter should be discussed cooperatively, rather than the City just presenting options; bargaining units might have suggestions that have not been raised. The City Manager requested the direction from Council be a motion. Councilmember Tam stated the agenda item is a recommendation to receive the report and provide direction; inquired whether the direction would be to provide the City Manager authority to begin discussions or reopen the MOUs. Regular Meeting Alameda City Council 18 July 23, 2013 | CityCouncil/2013-07-23.pdf |