December 18, 2010

New Employee Contracts on Agenda for City Council on Dec. 20

Employee contracts are on the agenda for the San Leandro City Council's last meeting of the year on December 20, 2010. The two-year contracts with the San Leandro City Employees Association and the San Leandro Management Organization would reduce the number of furlough days from 12 to six, an increase of 2.3% or $490,000 from this year's contracts (SLCEA; SLMO).

The two-year contract with the San Leandro Police Officer's Association approved in September 2010 also has six furlough days and an estimated savings of $332,700 over the two-year contract. If the proposed contracts are approved, the City Council will have to wait for two years to take on pension reform or do much about employee expenses, which constitute the majority of the City's budget.

In all other respects, the proposed employee contracts are the same as the existing contracts, including the City paying 100% of the employee and employer contributions for employee pensions. With the $852,000 increase in the City's CalPERS contribution next year and $166,350 annual savings from the police contract, the City's expenses will increase by $1.18 million next year. The quarter cent sales tax passed in November (Measure Z) won't take effect until April 2011, so these additional expenses could eat up nearly 40% of the estimated $3 million in revenue generated by Measure Z next year. Measure Z is estimated to generate up to $4 million of revenue annually, but it will only be collected for nine months in 2011.

At the November 16, 2010, meeting of the Finance Committee, Finance Director Tracy Vesely informed the committee that despite the passage of Measure Z, reductions were still possible.

Although the existing employee contracts weren't approved until February this year, City employees and the City Council appear to be pushing for approval of the contracts before Mayor-elect Stephen Cassidy and Councilmember-elect Pauline Cutter take office. If the contracts are approved, it would be the first time that the employee contracts have been approved prior to their expiration in at least 10 years. Previous contracts were approved retroactively in April 2002, February 2005, May 2006, and most recently, January 2009.

A reception will be held for outgoing Councilmember Bill Stephens and Mayor Tony Santos at 6pm at City Hall at 835 E. 14th Street. The City Council meeting starts at 7pm and will conclude with the installation of newly elected Mayor Cassidy, Councilmember Cutter, and re-elected Councilmembers Diana Souza and Michael Gregory.

Posted by Mike Katz-Lacabe at December 18, 2010 11:21 PM | TrackBack
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