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HomeMy WebLinkAbout01-Budget Reveiw t. , .. JU~o\ 15 '92 15:42 LCC-q1b/444-8671 P.l "lllr ~I ]11. 'I'. ... California CitJes Work. Together League of California Cities Sacramento, CA June IS, 1992 FROM: RE: All City Manaiers Please Deliver Immediately to Person Named in Top Right Comer Don Benninghoven, Executive Director TO: Budget Crisis First, let me thank all of you collectively and individually for your efforts these last days in providing an extraordinary leadership role. You have been extremely effective in: 1) evaluating the impacts; 2) involving elected officials, police chiefs, fire chiefs, association and union representatives; 3) coordinating press conferences and editorial board meetings; and 4) assisting with continuous marches on the Capitol go meet face-to-face with legislators. The impact has been tremendous. For example, this mornina some 23 concurrent press conferences are being held. In addition, the police chiefs and fire chiefs associations have conducted their own press conferences and have also desipted participants in each of the 19 city manager regions, and the impact is being strongly felt by legislators. Let me summarize the situation from my perspective. There was agreement among the State Legislators, from both parties, and the Governor's office that there would be no agreements, tentative or otherwise, on resolving the $10+ billion deficit prior to the June primary. This was articulated through face-to-face meetings of a Leque delegation of officials and mayors with the Governor and legislative leaders just three weeks ago. The same message was delivered to schools, counties, state employees, etc. The first indication of any state legislative action was by the workinS committees, appointed by the budget committee meeting last week. As a result of these committee meetings, a list was produced with a variety of options under the titles of "Reductions," "Reforms," and ''Revenues.'' The two principal revenues involving cities continues to be VLF and/or AB 8 Property Tax Allocation with a target of approximately $1 billion. Redistribution of sales tax does not seem to be viable because it cannot be reallocated without an "impairment of contract," under the Bradley-Burns Sales Tax Act. The Bradley-Bums Sales Tax Act could be repealed and a sales tax reenacted as a state tax, but that does not seem to be politically likely. The deadline for enactment continues to be July 1 or sooner. Such action by that date is legally required in order to prevent an overpayment of $1+ billion to K-12. CON.IAINCI AIGIBTAATlON O..ICE BOX 7005, "AFA YOTTE. CA 94549 (5101 :i!83.2~13 HEADQUARTERS 1400 K STREET, SACRAMENTO, CA 958'4 (9151 444.5790 SOUTHeRN CALIFORNIA OFFICI 802 EAST HUNTINGTON OR.. SUITE C MONROVIA, CA 9'0'6 (8'8\305.'3'. Oo/l~/~~ lulJulu~ . JUN l5 '92 l5:43 LCC--'5/444-867l Page 2 The League's role will continue throughout this process to vehemently argue 'liAinu taking YLE. pr~rtv tA~r mdiltribution of sales tax or tCdevel~ment funds. No agreement of any kind has been reached, and we will keep you informed daily of developments as we proceed through this next week-plus period. The League ~ favor one reduction method over another. Please include, to the extent that you can, police, fire, community groups, chambers, etc., in your contact with legislators and the mediL It is imperative that cities stay together in this advoc:ac:y effort, even though there is a wide variance in how the proposals effect individual cities. To date, there has been excellent cooperation and very little finger- pointing. What's at stake is the continued vitality of California's cities, not just in terms of today's revenues and expenditures, but in the long-term ability to respond to community concerns of crime, housing and transportation-not to mention those most in need, the sick or the homeless. Having each city rely solely on its local revenue base (which is really what is being proposed) is just not acceptable in a state as diverse as California. Attachments: Loss of City Revenues 1981-92 Local Government Working Group Recommendations L:\leg\m.a \CIDlJI'fax.615 UUI ~~I J~ ~U'~U' ~~ . JUN l5 '92 l5: 44 LCC~c;"'~/444-867l F' ~ .~ [NOTEI Please use this batormatlon to combat., lU'JUIDents that the state has bailed out cities with the AD 8 Property Tax Formula, and clUel have not allilted the ltate with It I budget problems.] LOSS OF CITY REVENUE AS A RESULT OF STATE BUDGET ACl'IONS 1981-1991 CONTINUING LOH..~E~ 1981.1991 Liquor l.jrellle Feos (SB 102, Chapter 101, 1981) Highway Carriers Uniform Bualncee Tax (SB 102, Chapter 101, 1981) Flnon";ol Aiel to LoeaI AgeAcleI (SB 102, Chapter 101, 1981) Buaincee Illyealory Property Tax Rolief Reduction (AB 223, Chapter 323, 1983) Bllliness Il1VOlltory Property Tax Relief Repeal (SB 'l94, Chapter 447, 1984) CigarOlle tax Iblft to state (SB 899, Chapter 467, 1990) DriDking Water Rogulation Foos (SB 1806, Chapter 462, 1990) BooldDg FeOl ud Property Tax CharjOl (SB 2557, Chapter 466, 1990) No/LrYw Cities Property Tax Cut (SI 2557, Chaptor 466, 1990) Trial Court F'1uldlq: SO% FiDei .\ Forfeitares (AB 1297, Chapter 90, 1991) Trial Court PuncIiDg: ROlllovcd 12/31/92 S\Ill8et and Diverts AD Growth in 1'_ to 30 Counties (AB 1297, Chapter 90, 19!11) ($ Trial Court FundilIg: ShIft of 47% Cigarette Tax to State (SB 2l, Chaptor 331, 1991) ($ Supple_tal Sub\'eatioas for Redevclopmcat (AB 222, Chapter 118, 1991) ($ Total f'...tlnul.. Anlluall.Rll_u Total or CD_Blatt_ 'nil'" t 9111-1991 ONE.TIME LO!l.IIRlllQ1lt.1991 Cut in VLP for 81-82 (SB 102, Chapter 101, 1981) Cut in VLP for 82-83 (SB 1326, Chapter 3r!, 1982) Cut in VLP for 83-84 (SB 223, Chapter 323, 1983) Cut in Supplemoatal SuiMlntiolll (AB 160, Chapter 449, 1990) Total lilo.e."'lIH! '.ftII... I01t.I991 o Amouats haye been adjuated to reflect 91 dollars. '* CIIlI made permanent in 1991. H: \pub\il\po1rcsoerch \bdgt3x CnntlnullllD' Ann_. r ...... Cum.......... TotaJ. 0($ 18.0 llliIIioa) 0($ 6,5 mWion) 0($ 49.2 mi1Iioa) 0($ 0($ 0($ *($ *($ *($ ($ :($ 16O.5mi1Iion) (S 57.6millioa) 0($ 439.0million) .($ 382.3million) .($ 422.4mWioa) 0($ 11.6 million) :($ 7.4mWion) ($ 194.0 million) 0($ 14.3million) ($ 77.0 millioa) ($ 37.7llli11ioa) ($ 22.0million) ($ 35.0 million) 50.5 million) 6tS millioa) 5.9 millioa) 3.7 mlllioa) 99.0 million) 7.3 mll1Ion) 77.0 millioa) 37.7 millioa) 22.0 millioa) 35.0 miIIioa) (5 473.3 mlllloa\ ($ 1.9 b1l11oa\ ($ 145.0 million) ($ 220.0 million) ($ 278.0 millioa) III ($ 31.5 million) ($ 'll.., mUlloa\ Ilb/l~/~Z lll;~(;a ~'H --- JUN l5 '92 l5:44 LCC-9], '\44-867l r._ \1EMBER5 (alilDrma lLt\llSlaturt CCNSlonoTANTS ~!'T~ M. ~lt.I~ ~AV'OA, )(\n' \:OM..ITTn IIC"r.,....Av SHAftON J.lNNINGS IItOOM 208$1 STATE ~TOL. PO.GI aAZ41i1 SAc:ftAMINTO M.....OOO'I :~&, A48..768 ~ Jlr:~ S AV,,"L..A 't:;"'"p 6tnate lCommitttt on JLocaL ~obtrnmtnt -:\o<A"'L~;; M C-'LC~PC'" .....\LLIAM Ii CA....vi:-. ':;:;:L. GRi~'" ~~ANI( follL:" ~L'iN11!\ll<C~g ";E"WTON l!:I Rl,JSI!!-l.. ",oK! "~O!llPlON MARIAN BERGESON CHAIRMAN June 15, 1992 Hon. Alfred E. Alquist, chair Sena~8 Budqet and Fiscal Review committee Sta~B Capitol, Room 5100 Sacramento, CA 95814 Hon.' John Vasconcellos, Chair Assembly Ways and Means committee, State capitol, Room 6026 ' Sacramento, CA 95814 Dear Gentlemen: Last week the BUdget Conference committee extended your earlier charge to the Local Government Budqet Workinq Group. You directed us to specificallY describe more than $1 billion in cuts in local government fundinq to help meet the state General Fund shortfall. we otter a list of options to you only to fulfill your di- reotion. None of us reoommend. it. NOhe of u. endor.e. it. Nevertheles., the attached description may help you tram. the issues. Th. first page inQludes options to re4uoe state sup- port of local governments by more than $1 billion. To bal- ance that severe reduQtion, it is important to note and act on reform options listed on the second paqe. Listed on the third page are ways to repleoe revenues. It is cur desire that the Budq.t Conference committee, the legislative leadership, and Governor Wilson keep this balance in mind as you approach the unenviable decisions before you. We also need to point cut that several of the items in the lists will require the detailed attention of policy experts in health, welfare, labor relations, and justice programs. There are a number of alternatives for change. in worker com- pensation which ouqht to go to these experts. we urge you~to consult with them. , JUN l5 '92 l5:45 LCC.........S/444-8S7l ~ P.5 REDUCE REPEAL THE AB 8 BAILOUT The current value of the AS 8 bailout is: Cities Counties Special Districts TOTAL S80SM 1,145M 720M S2,670M TRANS~O S9HOOLS: Repeal the AB a state bailout to cities. counties. and specia .tr~cts. Shift up to $2.7B of the former bailout money to schools without encountering the propOSition 98 t.stsl up to Sl.7B in 1992-93. This option requires either school slippage legislation or S200M in new state Gen- eral Fund tax revenues. f~S~TION ~I Place the remaining bailout money into a new "traDsitioD un." Allow ocal official. to annually allocate the transition fund to Cities. countie., and special districts to minimize the local effects of losing the bailout money; at least Sl billion in 1992-93. The transition fund could cushion the fiscal effects on cities coping with the closure of military bas.s (e.g., Marina and Seaside). The transition fund phases-out over a relatively short period (e.g.. three years). assuming schools could absorb the money with a corresponding benefit to the State General Fund. ALTERNATIVES Alternatively (Or in addition), redistribute the AB e bailout funds to offset other budget actions: . ENTERPRISE SPECIAL DISTRICTS: Shift en~erpriBe special districtB' property taxes ~o Bchools: up to $347M (subject to recalculation by the Department of finance). Another approach would protect the nonenterpri.e special districts that have few other revenue sources and shift the enter- prise special diB~rict.' property taxeB to the nonenterprise district.. . REDEVELOPMENT AGENC!ES: Re.erve an additional portion of red.velop~ mant's tax increment for Bchools and/or other agencies: S3S0M. . NO AND LOW PROPERTY TAX CITIES: Shift the no~ and low-property tax cities' property tax to schools and/or other agencies: 540M. . WILLIAMSON ACT, Repeal or Buspend the subvention to counties: S14M. VEHICLE LICENSE FEES The current diStribution of the non-Realignment VLF is: Count i.. Cities TOTAL Sl,29SM ---"AM $~ . TRANSFER: Shift some of the citie.' VLF to counties; up to $S94M. . REIMBURSE: Clarify that the current VLF payments already constitute reimbursement for the homeowners' property tax exemptions: $165M .aving.. . REPEALs Retain the portion of the VLF that comes from trailer coaches in the State General Fund, $15M saving.. ~ JUri 15 "92 15:46 L(:(:-'31~,-,-444-:3671 1'.1::1 REFORM "A" LIST - LESS COH':rROVERSIAl. A1 Suspend or rep.a1 daea reoorting requirements fOr indigent h.alth ment~l health, and alconoi and drug programs. COUN:rIES. ' A2 - aequ.re local qov'ts to pay the full cost of state crime lab.. STA~ A3 - Establish actuarial responsibility (either appoint actuary or use PERS rate) for reducing PERS employer rates to the 1992-93 actuarial assumption lev.ls. STATE, COUNTIES, CITIES, DISTRICTS ** "B" LIST - CON'1'ROVERSlAI. 81 - Repeal the trial court block grant. Allow counties to retain reoently enacted revenue to offset the loss of block grants. STATZ .__ 82 - Allow general law counties to contract oue any county function. COUN:rIES ... 83 - Llmit county fiscal responsibility under Welfare and Institutions Code 517000 tor general assistance and indigent health care. CO~IBS. a, - Repeal or moditr leilensen Act hearing requirement.. COUN:rIZI . as - Modify Proposit.on 99 and Realignment MOE requirements. COURfIEI * a6 - Modify the Proposition 111 MOE requirements. CO~IEI, CI~IES .7 - Require arresting agencies to share in the cost of operating county iails. COUNTU:S 18 - Prosp.~tiv.ly repeal the 2\-at-55 retirement option fQr lo~al qovernment miscellaneous employees. COUNT%ES, C%~%BS, DIS:rRIcrS *. a9 - Delay implementation dates for newly mandated programs (SB 19S, AS 939, Correction Treatment Ceneers) COUNtIES, C%~IES 810- AllQW local government to implement 2-tier PERS program for new employee.. COUNTIES, CI~IES .- IU- Authorize "contribution" plans (rather than "benefit" plans) a. PEas second tier. COUNTIES, CI~IES, DISTRICTS .. B12- Amend extended leave provisions for puclic safety Officer. w/job related injuries to remove "windfall" income from tax sheltered stAtus of benefits. COUNTIBS, CI~IES, DIS:rR%C~S ** B13- Re~~ire that all annexations and incorpQrations are revenue neutral (services. revenues). COUNtIES B14- Clean-up SB 2557 to reflect Maddy letter. COUNTIES **. 115- Revise housing elements every 7 years, not 5. COUNtIBS, CI~IBS. 816- Share fines between cities and counties ba.ed on Penal Cod. 51463 split for summary probation. CI~IES B17- Repeal Penal Code 51463.28 to eliminate the ability of 31 counties to keep growth in fines when bail schedules are in~re..ed. CI~IE. ._- 818- Require courts to collect and remit to counties the booking fee fOr all convicts. CITIES -.* a19- Require courts to allow cities to collect fines and forfeitures. CI~IBS B20- Protect lo~al governments from liability when lawsuits challenge development approvals. CI~IES, COUNtIEI 821- RestOre cieie.' land use regulation over alcoholic beveraqe.. CI:IBS B22- Suspend survey req. reI unreinforced masonry bldqs. COUNTIES, CI~IBS 823- Amend laws on port districts and cities' costs. CI~IES 824- Limit the amount of land a jurisdiction can redevelop. CO~IES B2S- Allow the StAte, counties, and schools to sign off on expansion or future redevelopment projects. STA~, COUNTIBS, DIS:rRIC~S B26- Limit CRAs to their historic purposes (housing & infra.) - I~A:Z, COUNtIES, DISTRIerS B27- Defer AS 2448 (landfill closures) for 3 yrs. COUNTIES, CI~IEI B28- Enact workers' comp reform for local qovernment employees. CO~IES, CITIES, DIS~ICTS B29- Restrict disab~11ty retirement benefits to di.acled person unable to perform any employment; inorease truly di'Abled benefit from 50\ to 60\, S~~E, CO~IES, CITIES, DIS~RICTS 830- Give counties more flexib1lity to consolidate departments. CO~IES 831- Ensure that all counties and cities have used local general tax authority. COUNTIES, C%~IEI 132- Allow LAFCOs to initiate consolidation proceedings. "C" LIS~ - NORZ COH'.rKowastAL C1 - Exempt public agency self-insured health plans from provisions of Knox-Keene requirements. COUNT:n:S . . d b 1 C2 - Prevent state d.partm.nt nudqat cuts from be.ng backf.11e y ocal fe. impositions. COUNTI~S (loss to STATE) C3 - Su.pend housing element requirements for 5 yrs,. COUNTIES, CI~I.' C, - Eliminate requirement that LG's hold liability .n.uranCe for landfill operators. CI~IIS, CO~IES (potential loss to STATE) . C5 - Repeal requirement that cities enforce worker's comp in.uran~. reg. ~n ~onnection w/is8uance of business licen.... CITIES (loss to STATE) .. C6 - Eliminate workers' como presumptions to industrial di~ability. , retirements in PERS, Use std. requiring signif.cant Job causat.on w~th total and permanent disability. COUNTIES, CITIES .* C7 - Repeal Fish and Game fees (AS-3158). OI~IEI (loss to STATE) . 08 - Limit lo~al government employees to civil service status or collect.ve bargaining, cut not both. COUNTIES, CITIES, DISTRIC~S -. C9 - Limit school employees eo tenure or oollective bargaining, but not both. DIaTRIC~S ** KEY, BOLD = O..crib.. agencies that benefit from reform * .. CONStlL~ DAI.~H AND WELFAJU!: WOIUtIHG GROUP .* . Consult labor relations experts *.* = consult Trial Court experts JUll ~::.. :'.::. ....,-......,-. ....-- -'-- -....,..., -- - SJU,E5 Am) USZ ~A% 51 - Impose po.....o~ use tax on pu~chas.s Dr d~ 4n.. con~~ac~o~s to offs.t t~ loss from Ae~osoac.. ($30M local ga n [80\ cit1.s/ 20\ counties)1 S144M 5GF, 2/3 vote statute). S2 - Majo~1ty vo~e for local transactions and use taxes [ACA 1] - (S8DOM @ 1/4 cent rate for 1993-94, AMEND). 53 - State-impo..d increa.e of the local sales and us. tax rate beyond 1.25\ (1/4 cent = S744M, STATUTE). S4 - Local-option increase of local sale. and use tax rate beyond 1.25\ (1/4 cent = $744M, STATUTE). PROPERn' TA% P1 - Reasses. corporate property in single tran.action chang.s of owne~ship. ($10M~, MAJ VOTE STATUTE). P2 - Reas.es. corporate property when cumulatively 50\ or more share. change hands (S8 82) - ($18 - S28 in 1993-94, MAJ VOTE STATUTE) P3 - Ext.nd the definition of pre-1978 debt to include pre-.xisting p.nsion. 77 jurisdictions have plans that would qualifr ($ , MAJ VOTE STATUTE). P4 - L~it the maximum base year transfer to prine pal re.idence. for parent/child tranafers ($ , AMINO) PS - Limit the maximum base year transfer for senior citizen to the median home price in the state ($ ,STATUTE). P6 - Impose possessory u'. tax on-non-defen.e use of federal proper~y. ($ ,2/3 VOTE STATUTE). p7 - EniaE split roll for property tax ~&tes (1\ . $8.2B, AMEND). pa - Increase the inflation factor for property tax assessments from 2\ to CPI (1\ . $167M, AMEND). VEHICLE LICENSE FEES vl - End exemption for vehicles owned by local qovernment (COUNTIES = $10M to S20M, CITIES. up to SSM [LOSS], DISTRICTS. up to $15M {LOSS), 2/3 VOTE STATUTI) V2 _ Extend VLF 2.2\ .urcha~ge beyond July 30, 1992. ($65M, STATUTE) V3 - Revi.. ~r depreciation schedule (uP to $300M, STATUTI) INCOD !!!U Xl - Repeal the BanK In Lieu Tax (LOSS to sor = $65 M, Gain to locals . $150M to $200M. Gain increases if more jurisdictions enac~ b~sine.s license taxes, MAJORITY VOTE STATUTE). 12 Local option income tax surcharge (1\ . $170M, STATUTE). EZeIIE !rA%ZI 11 - Extend local-option ci9a~ett. tax authority to counties and/or cities ($O.OS/pack . 890M, STATUTE) 12 _ Ex~end local-option alcoholic beverag8 tax authori~y ~o LG'.. (1 cen~ . S8M, STATUTE) E3 _ Enact "tipple~ tax" on drinks sold by re.taurants & bars ($ , STATUTE) 14 - Impos. local ga. tax at distributor level for general fund purpo.e. ($ , MAY ALREADY HAVE AUTHORITY). - LOCAL JUlVZHUBS L1 - Extend countie.' franchise fe.. (SI 19B9, Vuich) - ($ , STATUTB). L2 _ Allow eountie. to levy property transfer taxes (may have Propo.ition 62 problem) ($ , STATUTE). L3 - Allow bus. !!Cense tax on insurance agent. & corporations ($ , AMEND) L4 _ Allow coun~ywide parcel ~ax authority ($ , STATUTI). -- L5 - Repeal telephone co. exemption from locar-Yranchise fees ($ ,AMEND) L6 _ Allow County Service Areas (CSAI) to charge f..s for services {AS 1505, Farr] - ($ ,STATUTE). L7 _ Authori&e ~nties to charge actual co.t. for .ervice. of proce.. in civil suits made by sheriffs or mar.hals ($7.SM, STATUTI). La _ Raise civil filing fee. in municipal and superior courts ($30M to $40M, S'1'ATtn'E) . L9 _ AllOW local governments with solid waste facilities to charge "hoet" f..s to offset negative impacts ($ , STATUTI). L10- Re.tore local bond poolings for revenue generation ($_, STATUTE). IlBDEVELO.MUT AHJ) DBVBLOPMBII'.r Rl _ Require CRAs to reimburse cities and counties for .ervices provided. R2 - L~it t~ increment to actual annual deb~ oblig&~ion. R3 - Allow counti.. to impoee countywide developer fees. R4 _ Shift CRAs' unreserved funds to S~.te General Fund ($1.1B, AMEND). P'LEXIBILI!rY FXl _ Allow local GO bonds with majori~y voter approval [ACA 6] - (AMEND). FX2 _ Allow coun~ies ~o ~evy u~~lity user and busin.e. licen.e tax.. countywide (STATUTE). rZ3 - Reduce statutory ba~rier. to voluntary ~ax sha~ing (STATUTE). FX4 _ Mak. it more difficult fo~ prote.ts to trigger elec~ions for fi~e supre..ion ......ments (STATUTE). TIIDA!!!S T1 _ aills ~hat enact new sales and use tax exemptions - SB 177 (snack'), SB 267 (periodicals); AB 2276 (library purchases of periodical.), AB 2396 (f~el sales to common carriers); AS 3724 (sales by non-profit.). LOSS TO CITIES AND COUNTIES. $49.5M, LOSS TO RE~IGNMlNT = $19.5M, LOSS TO STATE GENERAL FUND . $202 M. T2 _ Bills that require additional notice for local revenue incre...' (ACA 39, SB 1977). UYI BOU) . De.crib.. item. on ".hort U.lt" AMEND = r.quire. a con.t1tutional amendment STATUTE . requires le9illation "" ~ .""',......' MINUTES VOLUNTARY TIME OFF (VTO) & CITY HALL CLOSURE DURING CHRISTMAS APRIL 21, 1992 ATTENDEES: Barbara Dillon, Director of Personnel; Marion Vassilakos, Assistant City Librarian; Annie Ramos, Director of Parks, Recreation & Community Services; Ernie Wilson, Affirmative Action Officer; and, Kevin Barnes, Public Services, representing the city. Chris Gonzales, President; Wayne Wiltshire, Vice President; Brian Hagman, Business Representative; Charles Temple, representing AFSCME Local #l~~. _Allen Simpson, Secretary Treasurer, representing San Bernardino Fire Fighters' Local 891; Sue Tarvin, Labor Relations Representative; and, John Tucker, representing San Bernardino Public Employees' Association (SBPEA). Rachel Krasney, City clerk, representing San Bernardino City Management Association (SBCMA). The meeting began at 2:02 p.m. Introductions were made by all present. Barbara Dillon reviewed the agenda for this meet and confer on Voluntary Time Off (VTO) and city Hall Closure During Christmas Week. She reviewed information sent to each bargaining unit: o Memo dated 4/1/92 to bargaining units; and, o Lett~r dated 2/25/92 from City Administrator, which included an attached copy of San Diego County's VTO program for review. Barbara Dillon also referred to a survey dated 3/4/92 sent to all employees asking for suggestions on budget cuts and VTO. Afterwards, the meeting woul4 be opened for comments and discussion. A copy of the back page of the City's VTO survey was handed out for everyone's information. Parameters being considered for the VTO program included: a "cap" (e.g., up to 40 hours/employee per year); a minimum of one-hour increments; and, Department Head discretion. Items for discussion were the minutes of the 1/21/92 Council Meeting re: City Hall Closure During Christmas Week, with proposed dates being December 28, 29 and 30, 1992. Barbara Dillon noted that the motion to close city Hall was specific to employees within City Hall building. Barbara Dillon would send copy of minutes to all bargaining units. VOLUNTARY TI:MB OFP (VTO) - COMMENTS PROM BARGAI:NI:NG UNI:TS AFSCME The Union asked the question if employee is not willing to do participate in program, would they be disciplined. Discussion ,.,...~.... "-' '-,"" VOLUNTARY TIME OFF (VTO) & CITY HALL CLOSURE DURING CHRISTMAS April 21, 1992 Page 2 ensued on the fact that this program would be implemented on a voluntary basis, and that employees would not be disciplined if they chose not to participate. SBPEA The Union had no problem with VTO as long as this was on a voluntary basis. Discussion ensued on San Diego County program. The Union asked if there would be any impact on medical contributions, benefits, etc. Discussion ensued on cash incentive to gain more participation for more significant budget savings. Discussion ensued on Police and Fire being involved in the program. The Union felt there would be minimum participation level unless more incentives were given. An example was given by John Tucker, who suggested that employees be allowed to "bank" hours and take the time off at a later date. FIRE LOCAL 891 The Union referred to San Diego County's information, noting its Fire union was not mentioned because this is not feasible to Fire Safety employees. Other cities' furlough programs generally exempted fire employees; some employees within department probably could participate. SBCMA Rachel Krasney was not prepared to give input at this time. She said one comment from Steve Griffin, SBCMA President, is that both programs should be implemented across-the-board. CITY HALL CLOSURE - COMMENTS PROM BARGAINING UNITS AFSCME The Union felt this issue should be brought up during upcoming contract negotiations. Brian Hagman asked if Council action was to close City Hall or to implement the program. Barbara Dillon referred to copy of the minutes and indicated she was directed to meet and confer on this issue. The Union was not in favor of City Hall closure, but would do a trade for no layoffs. Discussion ensued on the budget, and that the City Administrator has updated bargaining units on the budget situation in the past, and has kept employees informed through employee forums. . ;''''~ .--.. I. - ~ VOWNTARY TIME OFF (VTO) & CITY HALL CLOSURE DURING CHRISTMAS April 21, 1992 Page 3 SBPEA The Union felt this was a meet and confer item. Discussion ensued on mandating employee to use vacation or holiday time during closure. The Union would like to discuss with members. What about new employees or employees who have exhausted' their leave? FIRE LOCAL 891 The Union said there was a possibility of some sections of Fire Department closing. SBCHA Rachel Krasney was not prepared to give input at this time. Discussion ensued on the issue of the City budget, employees could rescind their voluntary time off. said employees could not rescind VTO, because this voluntarily. and whether Barbara Dillon would be done CITY TEAM'S COMMENTS Barbara Dillon proposed to keep bargaining units informed on both issues related to their concerns. Ernie Wilson commented on the VTO program from San Diego County being strictly voluntary. In light of a commitment from employees, this is still a voluntary program. AFSCME asked if these two issues had any bearing on 4/10 and 9/80 program. Barbara Dillon said she will have to meet and confer separately on these two issues. Barbara Dillon suggested scheduling another meeting in approximately two weeks, at which time she would address as many of the unions' concerns as possible. 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