AgdaPkt 2018-11-05 Joint SA PFA - Laserfiche WebLink

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6.13. - Page 2 of 366 BACKGROUND The City Council has adopted a strategic initiative related to government operations, and one of the goals of that initiative is: Investing in staff leadership, skill development and other human resources strategies to attract, develop, support and retain a highly qualified, valued and diverse municipal workforce. To address this goal, City staff work closely and collaboratively with the City Council and employee groups to develop recommended salary and benefit changes. When considering such compensation packages for various employee groups, the City considers factors such as the cost of living, recruitment and retention goals, and compensation survey data from comparable Bay Area cities, as well as the current financial condition of the City, and any anticipated fiscal challenges. Earlier this year, at the direction of City Council, City staff met and conferred with the Police Supervisors' Association and Police Officers' Association, as their current agreements were set to expire on August 31, 2018, and the Redwood City Management Employees' Association and Chief Officers' Association, as their current agreements were set to expire on September 30, 2018. In light of the anticipated budgetary challenges associated with increased pension costs as well as other looming financial uncertainties, City staff recommend modest compensation increases to address the rising cost of living while continuing significant employee contributions to pension benefits and implementing structural reforms to the retiree health program in order to reduce future liabilities. ANALYSIS The City and representatives of the RCMEA, PSA, COA and POA met and conferred in good faith and have reached agreements on the terms and conditions of the respective MOUS governing employees of the City who are members of those Associations for the period of September 1, 2018 through August 29, 2021 (POA and PSA), and October 1, 2018 through September 30, 2021 (RCMEA and COA). During negotiations, representatives of the Associations agreed to address pension and retiree health care costs. Current members of each Association will continue contributing significant sums to pension costs (7.75%-19% of salary), and new members will be placed in a second tier for retiree health care that will reduce costs to the City. POA and PSA members also agreed to participate in further dialogue with the City to discuss the costs associated with health care provided to former City employees on industrial disability retirement ("IDR"). These agreements will allow the City to continue to provide essential services to residents and competitive compensation to City employees in the face of rising cost of living increases in the region, while also addressing the significant financial challenges posed to the City by rising pension and retiree health care costs. The City sincerely appreciates the willingness of those involved in the negotiations to agree to such terms, and to the City employees whose contributions will ensure the continued vitality of the City. Specifically, the agreements before the Council provide the following terms: DURATION OFAGREEMENTS City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org 21