2008-11-06 6-B SubmittalOctober 13, 2DQ8
Debra Kurita, City Manager
City of Alameda
22b3 Santa Clara Street
Alameda, CA 945 1
RE: Statement of Guiding Principles Agreed By The Alameda City Employees
Association (ACEA) And The City Of Alameda On The Contracting Of The
Chuck Corica Golf Complex.
Dear Ms. Kurita:
The representatives ofthe City of Alameda and the Alameda City Employees Association
have met and agreed upon guiding principles which would be, necessary if the Ci , were
to elect to bring on an outside mana~nly and,retain maintenance responsibilities. R
1. The current maintenance employees of the golf complex shall be retained as
employees of the City Of Alameda in accordance to the terms of the existing
memorandum of understanding between the city and ACEA,
2. The maintenance employees shall be subject to the direction and control of the
private operator, and the city shall instruct the private operator in its handling of matters
of employee discipline.
3. ACEA agrees to work with the private operator to effectuate such terms and
conditions as will be conducive to efficient operation of the golf complex. Such terms
and conditions include, but are not limited to, scheduling, hours of work, and "rain da "
layoff provisions.
4. As maintenance employees leave employment with the city, the private operator
may replace them with its own employees who will not be subject to the terms of the
memorandum of understanding between the city and ACEA.
5. The city will offer to existing golf complex and park and recreation employees a
"Golden Handshake'" retirement incentive to those employees who may qualify, and as
Re; Agenda Item #5-B
~ ~-05.08
agreed to by the city and ACEA. If Park Maintenance employs accept the "Golden
Handshake " the Ci ma elect to fill the vacant slots created with Golf Maintenance
em to ees ursuant to a method to be a reed u on b the Ci and ACEA.
6. It is at all times understood, that it is not the intention of the city to subsidize the
operation of the golf complex through the general fund, and that at such time as
the reserve fund of the golf complex draws down to a level that this arrangement can no
longer be sustained, the city and ACEA shall meet to negotiate the terms of its cessation.
7. Should the City Council, in the future, decide to lease the entire operation of the
golf complex to a private operator, the City and ACEA agree to meet and confer on the
impact of such decision prior to its adoption and implementation
Alan Elnick
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From: Debra Kurita
To: Weisiger, Sara
Date: 11J6/2008 2:15 PM
Subject: Agenda Item 6B - ACEA Updated Proposal
»> "Elnick, Alan" <aelnick@oe3,or~> 11J6JZQ6812:29 PM »>
Deborah Kurita, City Manager
City of Alameda
2263 Santa Clara Street
Alameda, CA 94561
Dea r M s. Kurita,
Thank for your response to my recent a-mail, ACEA appreciates your position with regard to the current financial
difficulties with the Galf Course. while we remain skeptical that the private operator proposals will achieve the saving
they have claimed, we understand that some action to reduce costs at the GOIf Complex is warranted. However, I do
not believe that you fully recognize the potential cost savings in the ACEA proposal. Then proposal the ACEA
submitted to the City several weeks ago was very general. I am providing you more detail in this correspondence so
that you can more precisely calculate the potential savings provided by the ACEA proposal.
City will keep the hybrid operations contract in place for no longer than one year from January 1, 2009.
Subject to City Council approval on December 2, 2005 a Golden Handshake will be offered to ACEA affected
classifications with a window period of a maximum of 1S0 days approximately 6 months beginning December 3,
ZOOS and ending an May 31, 2009.
The City will notice one lay-off effective January 5, 2009
If after the first 90 days of the Golden Handshake window, at least three additional ACEA employees have not
elected to retire under the Golden Handshake, the City will send lay-vff notices to the remaining number in order for
the City to achieve at least four vacancies during the Golden Handshake window. Bumping rights will be as
established in the ACEA MQU.
No later than 60 days prior to December 31, 2009, the City will notice all remaining ACEA members working at the
Golf Complex that they will be subject to lay-off as of December 31, 2009. The lay-off provision of the ACEA MGU will
prevail with regard tv bumping rights.
The City will offer single party health insurance reimbursement at the 2009 Kaiser premium rate far a maximum of 12
months to those who retire under the Golden Handshake. Each month into the Golden Handshake window, this
reimbursement is cut by one month. Those retiring in December 2008 will receive 12 months and those retiring in
subsequent months will receive one less month of reimbursement for each month into the Golden Handshake
window.
Thus if an employee chooses tv take the Golden Handshake at the end of the six month window, the employee would
only be eligible for the single party health insurance reimbursement for six months, Nv additional health insurance
reimbursements will be offered after the Golden Handshake window has closed.
The average cost to the City of a Golf Maintenance worker is approximately $75,000 to $50,000 with benefits. The
additional cost of the extension of health benefit reimbursement is about $7,OD0 per year per employee. we
anticipate that as many as six employees within the job classification would voluntarily separate from the City with
these enticements. If this were to happen in the beginning of the year, the Golf operation could reduce costs by up to
approximately $30D,DD0. However, even if the incentives in the ACEA offer are ineffective, we estimate the lay-offs
included in the proposal as a back stop would save up to $ZOD,000. These savings would be in addition to the savings
achieved from the management cost reductions set forth in the private operator proposals. In addition, the ACEA
believes that its hybrid proposal would provide a smoother transition from public to private maintenance and a better
experience for the golf playing public, I hope that you would be willing to reconsider the benefits of this proposal to
the City in your recommendation to the City Council.
You rs Tru ly,
Alan Elnick
Re; Agenda Item #6-g
~ ~ -05-08
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From: Debra Kurita
To: Weisiger, Lara
Date: 11 J6Jz008 2:13 PM
Subject: Fwd: Re: Golf Course Recommendation to Council for November 6, 2Q08
Attachments; Interim Golf Operator report.pdf
» > Debra Kurita 11 J4J2Qa8 5:58 PM » >
Mr. Elnick,
Thank you for your clarification of the position of the ACEA regarding its application to the Civil Service Board. However, I am
informed by the City Attorney that any decision of the Civil Service Board regarding the dividing of the classification of the "golf and
parks maintenance worker" into two separate titles of "parks maintenance worker" and "golf maintenance worker" would only apply
prospectively and would not impact the "bumping" rights of existing employees. According to the City Attorney, any retroactive
applicatian would require an amendment to the layoff pravisions of the ACEA MOU. In order to provide yaur clarification for the
public record, I have forwarded yaur correspondence to the City Clerk.
Your correspondence also states the concern that the ACEA proposal fora "hybrid" golf course management arrangement has been
dismissed by City management. Let me assure you that we have taken the ACEA proposal very seriously and have outlined the
details of that proposal in the attached report to the Council. However, we have a professional and fiduciary duty to the City
Council to recommend the action mast likely to assure the continuation of existing services and amenities to the community, even if
another proposal may offer other non-economic benefits. As you acknowledged in your proposal vn behalf of the ACEA, the "hybrid"
arrangement is likely to result in the eventual depletion of the Chuck Corica Golf Complex operating reserve. I cannot recommend a
proposal that will not likely preserve the City's ability to operate our golf facility aver the long term, we appreciate ACEA's efforts
and we regret that we cannot support your proposal.
Debra Kurita
City Manager
»> "Elnick, Alan" <aelnick@ae3.arq> 1QJ31JZQ08 3:13 PM »>
Dear Ms. Kurita:
I have had the opportunity to review the correspondence to council for the November 6 meeting. I would like to offer a correction
to the letter before its final submission to the council.
On page 4, the second full paragraph on that page, suggests that ACEA believes that it would be" appropriate to establish a
separate employment classification for Golf Maintenance Worker distinct from that of Parks Maintenance Wor~Cer. As a result, ACEA
has petitioned the Civil Service Board for a finding that the classifications are in fact separate and distinct."
ACEA never made any such recommendation. What we explained to the City's representatives is that:
1. Some of the employees at the Golf Course were hired as Galf Maintenance Workers under distinct tests and
eligibility lists.
2. Some of the employees in Parks were hired as Parks Maintenance Workers under a distinct test and eligibility list
3. Some employees were hired as Golf and Parks Maintenance Workers under yet another farm of recruitment.
4. That being the case, ACEA was placed in the unfortunate position of having to advocate for any person
adversely affected by displacement, given that there was no information to us of any intent, over the years, to either
combine or separate the classes.
5. To relieve us from such liability, we requested that the City and its Civil Service Board review the history of the
Classifications} and determine in its interest haw it would like to manage the problem and so advise us.
6. ACEA takes na position as to haw that should be done, only to make clear to us and all affected employees, haw the
City intends to effectuate the seniority pravisions of bath the MOU and the Civil Service Rules concerning any necessary
reduction in force, and any subsequent "bumping right" of any employee.
i=inaNy, ion Page 6 of the Recommendation to the Council, the recommendation does not provide far acceptance of the proposed
Hybrid arrangement as proposed by ACEA, but rather, proposes that the council select an Interim Operator to provide
management, operations, and maintenance of the golf complex. We are concerned that our proposal is now somehow being
dismissed, and that the direction being asked of council thwarts the proposal we have submitted.
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We hope that you can provide us same clarification an these matters.
Respectfully,
Alan Elnicic, Business Representative
ACEA/operating Engineers Local 3#