1998-10-20 AttachmentATTACHMENT A
Certified Copy of Reporters Transcript of Proceedings: Consideration of Arbitrators
Award
Regular City Council Meeting of October 20, 1998
City of Alameda
1
2
3
4
5
6
7
u
- of Ari Award pursuant to
9 Charter Section 17-17 and adoption of resolution
making findings, approving certain wage and benefit
10 Increases for fire department employees represented by
IAFF Local 689, calling election and submitting measures
11 to voters to approve special tax to raise revenue to pay
additional wage and benefits increases to such
12 employees, and adoption of resolution stating Council's
intention to submit measure to the electors at June 4,
13 1999 rel i to raise revenues to fund ongoing
arbitration costs and retireee costs.
14
IN AND FOR THE CITY OF ALAMEDA
PUBLIC HEARING PROCEEDINGS
BEFORE THE CITY COUNCIL
TUESDAY, OCTOBER 20, 19*8
AGENDA ITEM 5-C:
15
16
17
18
19
20
21
22
23
24
25
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
CFRTIF,ED COPY
REPORTER'S TRANSCRIPT OF PROCEEDINGS
BY JILLANNE STEPHENSON, CSR 8563
CLARK REPORTING
2161 SHATTUCK AVENUE, SUITE 201
BERKELEY, CA 94704
(510) 486-0700
CLARK REPORTING (510) 486'0700 3
MAYOR APPEZZATO: We'll move to item s'c'
CITY CLERK: 5-C is a consideration of
Aribtrator's Award pursuant to Charter Section 17'17
and adoption of resolution making findings, approving
certain wage and benefit increases for fire department
employees, represented by IAFF Local 689, calling
elect/nn and submitting measures to voters to approve
special tax to raise revenue to pay additional wage and
benefits increases to such employees, and adoption of
resolution stating council's intention to submit
measure to the electors at June 8, 1999 special
election to raise revenues to fund ongoing arbitration
costs and retiree cnxtx'
MAYOR APPEZZATO: This evening first we'll
have a brief report from the city manager, and then
David Lee of the firefighters has asked for fifteen
minutes for the lawyer to give a presentation. / will
grant that fifteen minutes, and then we'll get into the
speakers.
So, city manayen
CITY MANAGER FLINT: Thank you, Mr. Mayor.
22 You have before you tonight a very Lengthy staff report
23 and two draft resolutions as identified by city clerk.
24 As you know, the Charter provides for interest
25 arbitration with the Firefighters Union Local 689 if
ALAMEDA CITY COUNCIL MEETING 10'20-98
1
2
CITY cnuwc/Lmcwxcxn:
3
4
5
6
7
8
9
10
11
12
13
14
15 City Attorney: Carol Korade
16 City Manager: James Flint
17
18
19
20
21
22
23
24
25
TinyTran
CLARK REPORTING (510) 486-0700 2
APPEARANCE S:
RALPH APPEZZATO, Mayor
AL ucwIn, Vice-Mayor
ROBERT WONDER
BARBARA KERR
KARIN LUCAS
TONY DAYSOG
ALAMEDA CITY COUNCIL MEETING 10-20-98
CLARK REPORTING (510) 486-0700 4
1 the City and the Union are unable to reach agreement on
2 the terms of a new Memorandum of un«orxmnuinu'
3 The City and the Union began negotiating in
4 November 1994 in an attempt to reach agreement for an
5 MOU beginning January 1st, 1995. They continued
6 negotiating until September 1995 when the Union
7 declared inpasse' We were not able to resolve the
8 issues through mediation, and the Union then requested
9 interest arbitration pursuant to the Charter.
10 The Charter limits the arbitrations to
11 proposals relating to financial benefits. Certain
10 proposals which are listed as Exhibit H to the staff
13 report did not relate to financial benefits and were
14 not part of the interest arbitration.
15 The arbitration itself included 27
16 propnxalo' The City and the Union received the
17 Aribtrator's Award in min'July' The Charter prohibits
18 the City from paying any wages, benefits or
19 employee-related expenses which are included in an
20 Aribtrator's Award which have not been approved by a
21 resolution of the City Council until additional
22 revenues are approved by the people through a special
23 tax.
24 The process under Section 17-17 involves two
25 steps. First the Council must decide what wages and
ALAMEDA CITY COUNCIL MEETING 10'20'*8
Page 1
CLARK REPORTING (510) 486 -0700 5
1 benefits to approve, and must do so by renulutivn'
2 The second step in the process is for the
3 "^uncil to cull an election to submit a special tax to
4 e voters to generate the revenues to pay any wages
d benefits which the Council does not approve by
6 reovlution'
7 The first proposed resolution would combine
8 steps one and two' The Council would approve the
9 compensation included in the last offer made to the
10 Union in August 1997' The Council would also call a
11 special election for the purposes of voting a special
12 tax to provide the revenues to pay the additional
13 benefits. If the tax were passed by two-thirds of the
14 voters, the additional compensation would be paid.
15 A corollary or second resolution is a
16 proposal which would provide a second tax to the
17 voters. It would provide a dedicated source of
18 revenues to pay the cost of the Aribtrator's Award, as
19 well as the additional benefits which must be paid to
20 the retirees of 1079 on an ongoing basis and extend
21 beyond the current period of 1e95 to 1997'
22 With that, wr' Mayor, z think that we have
23 more than a hundred pages worth of documentation;
24 probably enough to put you to sleep several tire, over
25 the weekend as you read this packet' We have Zinda
ALAMEDA CITY COUNCIL MEETING 10-20'98
CLARK REPORTING (510) 48*'0700 7
1 me introduce myself, first of all' My name is Alan
2 Davis. I'm a long time attorney for txe Firefighters'
3 Association, have been for many, many years. And I
4 speak here tonight '' I appear before you to speak to
5 you tonight to ask, first of all' that the City Council
6 proceed to implement the A,ihtratvr'o Award in its
7 entirety, and ask you to do that for the reasons I'll
8 explain in a few momrntu'
9 But z also ask you to consider that if
10 you're not prepared to implement the arbitration award
11 in its entirety because of its clear fairness, that you
12 at least put off the idea of any type of vote, any type
13 of tax, until such time as there is a very careful
14 consideration on the part of this cmmmunitv, a careful
`s study session of that matter, as well as the
16 opportunity for us to make a presentation to you
17 concerning not only the merits of an election, the need
18 for an election, but also the legality of an election,
19 as I think you know and as I think you've just
20 exp,evxcu'
a/-
We've just received this packet and this
a off recommendation -- that many of you probably have
2 ,e" poring over this weekend -- on Friday. I just
24 received ,it Friday and had been asking for it for a
25 quite a period of time as to what the recommendation
ALAMEDA CITY COUNCIL MEETING 10'20'98
CLARK REPORTING (510) 486'0700 6
1 James, the finance director, Liz oinyolev, our Human
2 Resources director, our negotiator -- where is our
3 chief negotiator Austris, thank you. And we have
4 also Tim McNeil, our Fire Chief here' to answer
5 questions you may have regarding any of the information
6 contained within this packet.
7 With that, my presentation cnncluueo'
8 MAYOR APPEZZATO: Thank you m,' Davis, you
9 have two speaker slips here. I only have one other
10 speaker. Would you prefer I get that.vthrr speaker ''
11 have him speak for three minutes and have you go for
12 fifteen? You're welcome to have fifteen minutes, but I
13 have one other speaker that's not a firefighter. Or
14 would you prefer to take the first fifteen minutes?
15 MR. DAVIS: I don't really co,c' It's up to
16 you as well as to the speaker how you want to proceed.
'17 I don't have any particular preference.
18 AUDIENCE MEMBER: You're there now, go ahead
19 and eo'
20 MAYOR APPEZZATO: And you have two slips;
21 you only needed one. So I presume you made a piutakc'
22 There are two here from ''
zs xm' DAVIS: Well, I signed one and someone
24 else probably signed anomer'
25 wr' Mayor, Members of the City Council, let
ALAMEDA CITY COUNCIL MEETING 10'20'98
CLARK REPORTING (510) 486-0700
1 would be. No criticism of your city manager. I've
2 been hearing some very fine things about him and I want
3 to compliment his efforts to work with firefighters and
4 other labor nreaniznuvnu'
5 But it is a gentle criticism, I think, of
6 the idea of a matte, of this magnitude that has been
7 evolving since 1994, as you point out, not to have the
8 opportunity to make a full presentation on the whole
9 idea of a tax, the whole idea of an election.
10 And if I can for a few moments, I'd like to
11 review with you -- and as well as the community that I
12 understand is watching -- something about the
13 background as to how the whole idea of an election came
14 about at all' As z think most of you know, in 1980
15 there was an adoption of the citizen-sponspored
16 initiative measure that provided for binding
17 u,uitratinn' There was a counter measure that Council
18 sponsored that same year that's now referred to as
19 Charter Section 17'17 that also passed. And then two
20 years later, 1982' there was a modification of that
21 measure. And I won't go into all of the details of
22 that at this point.
23 And in all the years that followed, there
24 never was an arbitration proceeding that involved the
25 /irefinxtcru' Firefighters have, as z think many of
ALAMEDA CITY COUNCIL MEETING 10'20'98
8
TinyTran
Page 2
CLARK REPORTING (510) 486'0700 9
1 you know, a very good relationship, or a decent
2 relationship, with the city staff and the City Council
3 during those vearx, and agreements were reached for the
4 most part on a regular basis and a timely basis.
5 But then in 1992 there was another measure
6 that was submitted to the voters that suggested that
7 the arbitration measure be consistent with, oh, some
8 17, 18 cities that we have in northern and central
9 California that have binding arbitration for public
10 safety employees, and it has worked very well for all
11 of those empivveen' Whatever the reason, the citizens
12 in 1992 decided not to adopt that measure. But still
13 for years there was no arbitration of any kind that
14 followed.
15 But then ultimately there was. And as I
16 think many of you know and the citizens know, the
17 firefighters have been without a contract now for a
18 long period of time' And they began the arbitration
19 process in 199*' They asked for hearings, as you know.
20 The City '' not the city manager, but the city staff
21 walked out of the arbitration proceedings with the
22 arbitrator, even though they conceded that many of
23 those issues were arbitrable, as they've written in the
24 staff memorandum were arbitrable. They actually left
25 the arbitration hearing, which forced the firefighters
ALAMEDA CITY COUNCIL MEETING 10-20 -98
CLARK REPORTING c510> 486-0700 11
1 they provided numerous exhibits that addressed the
2 whole subject of the financial condition of the citv'
3 And to state the matter very shortly and
4 simply, the finding was that with respect to the award
5 -- the issue that the City of Alameda really did have
6 the finances available as offered by the City and its
7 representatives to provide for an award that issued:
8 The firefighters didn't win everything, as I'm sure you
9 xnvw' The firefighters only won some of the issues,
10 and didn't win everything they were asking for with
11 respect to the costs of the prnpvoal' Not at all'
12 And as I'll get into -- if I had tire, I
13 would get into also the representations that were made
14 by staff as to the costs of what the arbitrator has
15 issued is, in foct, much less than what they're saying
16 to you now. I don't want to spend a lot of time on
17 that, but we have the evidence that I have not been
18 able to get to you, since we just learned about it, to
19 show that in fact by hundreds of thousands of dollars,
20 their own testimony showed that the firefighters'
21 offers were, in fact, much less than what they now say
22 the cost of the arbitrators would ue'
23 But what I want to bring to your attention
24 are comments' some that were made by arbitrator
25 specifically that relate to the issue of what is called
ALAMEDA CITY COUNCIL MEETING 10'20'98
TioyTzao
CLARK REPORTING (510) 486'0700 10
1 to go to court to obtain a court order to require the
2 City to proceed to arbitration, not only on the
3 disputed items that they indicated were disputed, but
4 on all of the itano' So they did mat'
5 Nearly a year went by before the parties
6 began to go back into arbitration, and did mo' And
7 then ultimately the arbitration proceedings went for
8 many, many months, as I'm sure you're aware, numerous
9 sessions, at great expense to the firefighters and I'm
10 sure the City also. And then finally after submission
11 of briefs, the arbitrator issued an award in July of
12 this year.
13 Now, let me suggest to you that among the
14 issues that were raised during the arbitration
15 proceedings was the subject of the financial condition
16 of the City of Alameda, what we in this field call the
17 ability to pav' But it was really the financial
18 condition of the City, because it's a required criteria
19 that arbitrators look at the financial condition when
20 they're issuing an award for any group of employees
21 where, in fact, the award is to be final and bindiny'
22 So this arbitrator looked at mat' But the
23 arbitrator not only looked at that, the parties argued
24 that issue viyv,vuxlv' They presented their own
25 financial consultants; they provided sworn testimony;
ALAMEDA CITY COUNCIL MEETING 10'20'e8
CLARK REPORTING (510) 486'0700 12
1 the financial condition of the city' And if I can read
2 from a portion of that Aribtrator's Award, I'd like to
3 address a subject matter that the arbitrator himself
4 reviewed, uccause the subject was specifically
5 discussed by the arbitrator in his award. And I hope
6 you had a chance to read it; I don't know that the
7 citizens xnve'
8 But let me refer you to first Page 16 of the
9 Aribtrator's Award where he says:
10 "Moreover; while the arbitrator
11 fully understands and appreciates
12 the need to maintain sufficient
13 reserves, and while he would never
14 presume to suggest that 25 percent
15 of operating expenditures is
16 excessive or otherwise
17 unreasonable, he is not convinced
18 that the City must or should
19 stubbornly adhere to this, quote,
20 'long standing policy', end quote,
21 to the detriment of one of its
22 most important group of employees
23 performing a critically important
24 City function. It is of no moment
25 that the City has never used
ALAMEDA CITY COUNCIL MEETING 10'20'98
Page 3
CLARK REPORTING (510) 486-0700
1 general fund reserves to pay for
2 wage and benefit increases which
3. have been agreed upon following
4 the adoption of the budget. Such
5 historical practices are not
6 sacrosanct. "
7 And then he goes on on Page 18 to say:
8 "Nor is the arbitrator convinced
9 that given the limited scope of
0 the issue, Proposition 4 and the
1 reasonable cost of providing the
2 service statute are applicable to
3 1995. As a matter of fact, from
14 the totality of the record
5 evidence on this issue, the
16 arbitrator seriously doubts that
17 such matters were truly of any
18 concern to the City during 1995.
19 In any event, all of the above not
?0 withstanding, for the City to have
!I granted some kind of salary and/or
?2 benefit increases for 1995 would
nothave required the raising of
24 revenue. Something was done for
25 the police by the way of, quote,
ALAMEDA CITY COUNCIL MEETING 10-20-98
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
2;
24
25
CLARK REPORTING (510) 486-0700
officers by way of retention pay,
and for fire and police management
by way of a return to the 1991
differential. The City should,
likewise, have done something for
this bargaining unit. The record
discloses six undeniable facts
that are compelling here. First,
this bargaining unit has not had a
raise in over four years. Second,
the last salary increase was just
one point nine percent."
One point nine percent.
"Third, the firefighters' salaries
compared to the police
significantly out of line.
Fourth, the City provided salary
increases regardless of names used
to police and fire and police
management in 1995. Fifth,
regardless of whose comparability
data the arbitrator considers, the
conclusion is the same; i.e., the
city's firefighters are generally
underpaid. Six, salaries only
ALAMEDA CITY COUNCIL MEETING 10-20-98
13 CLARK REPORTING (510) 486-0700 14
1 'retention pay' unquote.
2 Something, therefore, could have
3 been done for the firefighters'
4 Union. In sum, the arbitrator
5 finds and concludes that the City
6 had, at least to some extent, the
7 ability to pay for salary and/or
8 benefit increases for 1995. While
9 Bachecki's testimony"--
10 That's the financial consultant who we used:
11 "While Bachecki's testimony and
12 report are not accepted in full
13 for some of the reasons advanced
14 by the City, such evidence does
15 help in finding that the City has
16 not fully met its burden with
17 respect to the ability to pay."
18 And then he goes on, and this is on Page 44:
19 "The arbitrator is mindful of the
20 city's unenviable financial
21 condition in 1995. That was
22 briefly discussed in the Ability
23 to Pay portion of this decision.
24 However, the City did find its way
25 clear to do something for police
ALAMEDA CITY COUNCIL MEETING 10-20-98
15
1
2
3
4
5
6
7
CLARK REPORTING (510) 486-0700
data show that in all
classifications the city's
firefighters are paid
significantly less than their
counterparts in comparable
jurisdictions. "
Now, I've just highlighted from sections,
16
TinyTran
8 certain sections of the Aribtrator's Award I know is in
9 your packet that I'm sure the community members have
10 not had an opportunity to generally -- to see, although
11 it is a public document.
12 To underline the point again, that really
13 when an arbitrator makes those types of considerations
14 that there is no need, and in our view no statutory
15 requirement at all, that the Council move ahead with
16 the whole idea of a tax-related election. And I think
17 that 17-17 of the Charter is self instructive, even
18 beyond what the arbitrator is saying, and that in fact
19 there are no financial burdens on the City.
20 But 17-17 does not say, as has been
21 suggested, that there has to be an election when an
22 award comes down for the firefighters. No, it does
23 not. It says that no additional financial burdens may
24 be imposed on the taxpayers. And here you have
25 evidence before the arbitrator that city staff
ALAMEDA CITY COUNCIL MEETING 10-20-98
Page 4
CLARK REPORTING (510) 486'0700 17
1 themselves presented ample resources to provide for the
2 costs of the Aribtrator's Award that were very, very
3 carefully analyzeu' And that Charter language which
4 was, in fact, adopted by the voters and was written by
5 a former City attorney here, in fact, has different
6 kinds of meanings, depending on who's reading it'
7 And we found it curious, indeed, that rather
8 than rely on interpretation of that language that was
9 provided either by the City attorney in 1982 or by any
10 City-sponsored ballot argument, that that instead went
11 to language that was contained in the opposing
12 arguments to that measure that suggested that because
13 of the nature of that language that it would
14 necessarily mean that there would be a vote of elector
15 and necessarily mean that there would be a two-thirds
16 requirement.
17 well' it would be something new in my
18 experience, I suggest, for people who are opposing a
19 particular measure to, in fact, control the proper
20 interpretation of language that's written by someone
21 oise' That's not proper interpretation procedures that
22 are applied by courts of law; that's not the way it's
23 done.
24 But what it really does point out, that that
25 language, 17'17 that begins, "No additional financial
ALAMEDA CITY COUNCIL MEETING 10'20'98
CLARK REPORTING (510} 4e6'0700 19
1 right to do, of having not a 5 percent general fund
2 unrestricted reserve, but a 25 percent unrestricted
3 resrme' And that's a decision you've made for, I'm
4 sure, a variety of reasons for various kinds of
5 projects that you have in mind that you want to
6 implement' And no one argues with mat' No one argues
7 with the benefit of those kinds of p,vjcntu'
8 But what is being suggested here is that, in
9 fact, there is an additional financial burden that's
10 being imposed upon the taxpayers, and that's not
11 accurate -- I'm sorry.
12 MAYOR APPEZZATO: Go ahead and continue,
13 w,' Davis. Since there is no one else from the
14 firefighters to speak at this time, please continue,
15 unless the Council has an objection.
16 wx' DAVIS: z won't take much of your time.
17 MAYOR APPEZZATO: '' you are free to
18 ,ontinue' I'd like to hear whatever you have to say.
19 mn' DAVIS: Thank you very much.
20 As I was saying, that in fact where you do
21 have those types of unrestricted reserves, in fact, it
22 is not the kind of financial burden that requires any
23 type of vote at all' Certainly there's an impact.
24 It's not the kind of impact that has been suggested to
25 you in the staff report -- and I respectfully disagree
ALAMEDA CITY COUNCIL MEETING 10'20'98
TinyTran
CLARK REPORTING (510) 486'0700 18
1 burdens may be imposed on the taxpayers" is, in fact,
2 very omminuouo' Because here you in fact have, we
3 strongly believe, no additional finance burdens to be
4 imposed upon the tovpayerx' The monies are available.
5 It's really a question of priorities as to what you
6 want to spend it nn'
7 The arbitrator commented, as you know, that,
8 in fact, you have reserves for your general fund that
9 are unrestricted, in the area of 25 pe,cent' That's a
10 policy issue, and you can decide upon that if you want
11 to have the 25 percent unrestricted general fund
12 rcoervr' But as I think many of you know, and I think
13 many people who practice in this field and I think many
14 citizens know, that generally the reserve requirement
15 for the general fund is in the area of 5 percent, not
16 absolutely 5 percent, but in the area of 5 percent.
17 That's what Standard & Poors looks at;
18 that's what Moody's looks at when they're, in fact,
19 measuring what the quality of bonds should be, whether
20 they're Double A or Triple A. You'll see those types
21 of commentary that I think your city staff would also
22 recognize and acknowledge, that the 5 percent criteria
23 is what's looked at.
24 You've adopted a policy, which you have the
25 right to do, that we don't argue that you have the
ALAMEDA CITY COUNCIL MEETING 10'20'98
CLARK REPORTING (510) 486'0700 20
1 with the staff report on that, as I indicated; the
2 evidence is quite the contrary. It's a number quite
3 lower than that. But I haven't had an opportunity to
4 write you on that, to show you where that evidence is
5 from your own sworn testimony in the transcript
6 because, as I oay, we just saw this on Friday.
7 So I want to end, really, where we beuan'
8 And that is to urge you first to adopt the arbitration
9 award. I think it's fair, it's reasonable and in fact
10 provides for cmmp,nmioeo,.nvt one party won on all the
11 issues; in fact, it was a compromise on.elpoot
12 everything.
13 But in addition to that, if, in fact, you're
14 considering the idea of on election at all' consider
15 also what that really means and what the impact of that
16 is on this community, the cost of this community of an
17 election that, in fact, you're, in fact, having before
18 the voters an election which would require a two-thirds
19 vote to approve a labor controct? I mean, that's
20 unheard of.
21 Your staff really has recognized that, that
22 there's no precedent in California, and I suggest no
23 precedent nationwide, for any kind of an election for
24 the approval of a Labor contract where, in fact, the
25 funds are available to do mat'
ALAMEDA CITY COUNCIL MEETING 10'20'98
Page 5
CLARK REPORTING (510) 486'0700 21
1 But that is a staff recommendation, and if
2 your inclination is in that direction, I'd be sad to
s '-,r that, but I know how things work and how things
4 -k politically. I've been around a while, as I'm
z. -e you can tell' But what I would urge you to do is
6 put that v+f' Put the idea of an election off until
7 such time as we have an opportunity to give you our own
8 written presentation as to why that's not a correct
9 approach.
10 Because coupled with that, of course, is a
11 secondary issue that I've only talked about just a
12 little bit, and that is that you would adopt a proposal
13 that was made '' off the record, I might say. The
14 sworn evidence in our arbitration proceeding said that
15 it was an off-the-record proposal by City Manager
16 Flint. It was submitted in August of 1997. And it is
17 true that, in fact, that was submitted to the Union
18 membership and rejected.
19 . But you're calling for the implementation of
au the proposal, which costs money. And where is the idea
21 that, in fact, there is enough implementation of a
22 proposal of the city manager, but there isn't enough
23 money for, in fact, the implementation of the
24 Aribtrator's Award? You didn't budget for city manager
25 flint's proposal; that wasn't part of the budget. it
ALAMEDA CITY COUNCIL MEETING 10-20 -98
CLARK REPORTING (510) 486-0700 23
� .
Again, I appeal to you to adopt the
2 Aribtrator's Award. .But second, if you don't feel free
3 to do that tonight, put off a decision on the election
4 as well as the recommendations that are contained in
5 it' But if you must move ahead to act with respect to
6 city manager Flint's proposal, pl=ane make it effective
7 tvniext' Thank you very much.
8 MAYOR APPEZZATO: wr' Davis, you indicate
9 you want us to put this nff' Why didn't you approach
10 the City attorney prior to this evening and try to see
11 if it was legal or appropriate to take it off the
12 agenda? We're doing this because we're required under
13 law'
14 wx' DAVIS: Well, as a matter of fact I have
15 the letters in which I've written not to your city
16 attorney oere, but your hired city attorney, a woman by
17 the name of Silver. I wrote her several letters asking
18 for the implementation of the award and asking for the
19 staff recvmmenuation' As late as last ''
Zu MAYOR APPEZZATO: That's not my question.
Z! j said you want us to put this off' Why haven't you
2� le a petition to put it nffv
22. MR. DAVIS: I did -- well' not to put it
Z4 off; I asked for the staff recommendation, and, in
25 fact, z was told ''
ALAMEDA CITY COUNCIL MEETING 10-20-98
=' TinyTran
CLARK REPORTING (510) 48*'0700 22
1 is, indeed, contained in the reserves, but so is it
2 contained in the reserves the amount of money to
3 provide for the arbitration in full' So we would ask
4 that be put off.
5 And certainly if I don't even prevail on
6 that -- which I hope I do -- that you could put that
7 off so we can make a presentation. / want to appeal to
8 you that this idea of putting off the implementation of
9 the monies that are due first to a December date for
10 1995 and 1996' and then implementation of the increases
11 and the retro activity to February of 199* for the year
12 1997' that simply isn't fai,' You really do have the
13 money to implement it now, and z think you're
14 recognizing that by your pronnoai' And there shouldn't
15 be any delay at all for any reason.
16 I'm not asking you adopt that part of the
17 recommendation, but there simply isn't any
18 justification for it' Please bear in mind as
19 Arbitrator na,somimn (phonetic) pointed out, these are
20 people who have been without increases for a long
21 period of time; their families have mortgages; and they
22 have very series financial commitments and have not
23 been receiving any increases. It really isn't just to
24 them to put off the implementation of any type of
25 increase for any period at ull'
ALAMEDA CITY COUNCIL MEETING 10'20'98
CLARK REPORTING (510) 486'0700 24
1 MAYOR APPEZZATO: Earlier in your discussion
2 you indicated you would like us not to take action
3 tonis»t' Have you officially requested of the city
4 attorney, city manager not to take action tvnioxo
5 mx' DAVIS: No, Mayor, I have nnt'
6 MAYOR APPEZZATO: But you're asking us to do
7 that. I was wondering why you haven't done mot'
8 MR. DAVIS: That's what I'm trying to
9 explain, if z may, and that is, my contact, the
10 attorney I'm supposed to be dealing with, is an
11 attorney down in San Leandro, and I have letters that .I
�
12 have written to her repeatedly asking for, A, the
13 implementation of the arbitration awaru' And then woen
14 rumors surfaced last week -- we didn't even know you
15 were going to be taking action tonight until last week
16 when those rumors surfaced.
17 I called; I left messages; and then wrote
18 letters, faxed letters to herasking for the staff's
19 recommendation, which z did not see. And I was told by
20 the San Leandro attorney that, in fact, the
21 recommendations would be presented to my client'
22 Ultimately, they were presented to my client late
23 Thursday night; then they were faxed to me on Frivav'
24 That's really not enough time'
25 MAYOR APPEZZATO: City attvrnev'
ALAMEDA CITY COUNCIL MEETING 10'20'98
Page 6
CLARK REPORTING (510) 486-0700 25
1 MS. KORADE: Mr. Mayor, members of the City
2 Council, my understanding, which can be confirmed by
3 the human resources director, is that the City Council
4 offered an opportunity and requested an extension of
5 time of tonight's date. They were refused bythe
6 Firefighters Union, and that is why we're doing this
7 tonight, is because their refusal to grant. And
8 Council requested extension.
9 If they would like to break and caucus and
10 come back and reconsider that request, perhaps you can
11 consider that. But they have been requested, and they
12 refused that --
13 MR. DAVIS: That's not actually not true.
14 That's a different matter
15 MAYOR APPEZZATO: I'll give you a chance in
16 a second. Please.
17 Also, aren't we required, unless there's an
18 agreed upon extension between both sides, to hear this
19 tonight before the 22nd of October?
20 MS. KORADE: That's correct.
21 MR. DAVIS: Well, if I can respond to that,
22 in fact, that is not correct. Your Charter does not
23 say anything about when the action is to be taken.
24 What your city attorney is now referring to is, in
25 fact, there's a provision in the law that were your
ALAMEDA CITY COUNCIL MEETING 10-20-98
TinyTran
CLARK REPORTING (510) 486-0700 26
1 private counsel to challenge the arbitration award,
2 that they had a deadline to go to court with respect to
3 that, which is on Wednesday.
4 They didn't want to ask for a continuance
5 with respect to this hearing. They wanted a
6 continuance in order to challenge in court the
7 Aribtrator's Award. That's what they wanted. And the
8 firefighters aren't willing to agree to an extension of
9 time to challenge the award in court.
10 In fact, their recommendations to you
11 tonight are not to challenge it in court, and there
12 isn't any need to act upon it. That's what was asked
13 of us. Nothing else. Tonight's meeting with respect
14 to the recommendations were never brought up. That was
15 not part of the recommendation. And what I said was
16 accurate: We did not receive the staff recommendation
17 and the approach we've heard until Thursday night, and
18 for me, Friday morning.
19 MAYOR APPEZZATO: I know of no action by
20 this City Council to challenge the arbitration award in
21 court.
22 MR. DAVIS: I have letters that indicate
23 that, in fact, that's precisely what was being --
24 MAYOR APPEZZATO: I'm not a lawyer; I don't
25 think we can challenge the arbitration award.
ALAMEDA CITY COUNCIL MEETING 10-20-98
CLARK REPORTING (510) 486-0700 27
1 MS. KORADE: No. Mr. Mayor, members of the 1
2 Council, if we could just get right to the bottom line,
3 it is the recommendation of myself and outside counsel
4 that you must act by October 22nd, absent an agreement
5 by the Firefighters Union to extend that time. If they
6 will agree to an extension of time to implement the
7 Aribtrator's Award without any prejudice in any future
8 litigation, then I believe that you can consider his
9 extension.
10 Absence a waiver of any claim of prejudice
11 or any position in the lawsuit that has, you know, in
12 fact, resulted in the City's detriment, then feel free
13 to consider it. But I do not recommend you do anything
14 until the Union agrees to such a waiver.
15 MR. DAVIS: Mayor, You heard the word:
16 "Lawsuit." There's nothing in your Charter that has
17 any time limits at all. They were talking about a
18 lawsuit and a continuation of the statute of
19 limitations that does apply to them to seek to vacate
20 the Aribtrator's Award.
21 So you believe differently, and I understand
22 that. But, in fact, their approach to us was exactly
23 what you've heard. They wanted a waiver in the time to
24 file a lawsuit to challenge the arbitration award --
25 MS. KORADE: No, no --
ALAMEDA CITY COUNCIL MEETING 10-20-98
CLARK REPORTING (510) 486-0700 28
MAYOR APPEZZATO: I have not even heard what
2 you're talking about. City attorney?
3 MS. KORADE: No, no. Mr. Mayor, maybe --
4 I'll say it again. What happened is we received a
5 letter on October 6th from Mr. Davis saying if we
6 didn't implement the award they were going to go to
7 court and seek sanctions. All I'm saying is that the
8 firefighters must, in my legal opinion, give an
9 extension of time. They're requesting that you delay
10 this.
11 All I'm saying is you only can consider that
12 if they agree your delay will be without prejudice and
13 will not be raised by the Union in any subsequent
14 action that they would bring -- not we would bring
15 to challenge either the Charter section, or the
16 implementation, or any legal aspect on this proceeding.
17 MAYOR APPEZZATO: Let me just clarify. I'm
18 just trying to clarify your statement that you wanted
19 to put this off until you were able to fully review
20 this packet since you just got it Thursday. It was my
21 understanding that you all were offered the opportunity,
22 to delay, and beyond -- to allow more time for this.
23 And it was you all who decided you didn't want to. So
24 the city attorney has indicated that we must act
25 tonight unless you all fully agree without prejudice to -
ALAMEDA CITY COUNCIL MEETING 10-20-98
Page 7
CLARK REPORTING (510) 486-0700 29
1 extend.
2 wn' DAVIS: Mayor: I'd like to respond, and
3 'dant to make it very clear —
* MAYOR APPEZZATO: This is not a court, by
5 ! way, oxuvr But go uheum'
6 MR. DAVIS: I do want to acknowledge that,
7 and I know that. I'm a former public official myself.
8 I know that very weu'
9 But I want to make very clear to you in the
m letters that I wrote I asked them to proceed to
11 implement the award and please advise us as to what
12 they were going to uo' We never put a deadline on it,
13 and in fact our deadline is not for three years. We
14 don't have to file a petition to confirm the award for
15 some three years. I never put any deadline on it.
16 But Iher* is a deadline, but it's not my
17 deadline. The deadline is the 22nd of October for the
18 City to file a motion to vacate or set aside the award.
19 It's their deadline, not mine, Mr. Mayor. I want to
20 make that crystal clear, that it's not my deadline,
21 it's thrirx'
22 MAYOR APPEZZATO: wr' Davis, I've never even
23 been briefed/ unless someone in this Council has been
24 briefed, about filing a suit to vacate the arbitration
25 award. I'm under the assumption we can't do that. I
ALAMEDA CITY COUNCIL MEETING 10'20'98
CLARK REPORTING (510) 48*0700 31
1 to court; there's been no discussion about going to
2 court. Then what's the problem? If, in fact, we have
3 additional time —
^ MAYOR APPEZZATO: mr' Davis, please don't
5 put words in my vmuth' z said that I don't know of any
6 action of this Council to go to court' oxwv Now,
7 Karin? Tmnyv
8 COUNCILMEMBER LUCAS: Yes, Mr. Mayor, I
9 suggest we follow the advice of our nttv,mrv' And, of
10 course, this is an adversary hearing here; I think we
11 have to rely on our attorney and her uu,ice' So z
12 suggest we cut the discussion off at this point.
13 MAYOR APPEZZATO: rnny'
14 COUNCILMEMBER DAYSOG: Thank you, Mr. Mayor.
15 My feelings on the subject is that the issue of
16 timelines and deadlines is -- quite frankly is moot.
17 It's moot because there's just so much money that we
18 have to oivc' There's just so much percentage that we
19 can go to. And from what z understand that the
20 firefighters and the Union want, they want something a
2'
t more than what we can afford. And I think that's
2; e crux .of the matter, is whether or not we can afford
24 You're saying that we can. I mean, z
25 certainly would have more comments on that subject. So
ALAMEDA CITY COUNCIL MEETING 10-20-98
TinyTran
CLARK REPORTING (510) 486'0700 30
1 don't know where you're coming from'
2 MR. DAVIS: I've been told that that's what
3 they were cono/uerins' z have it in writing that their
4 outside counsel said to us that, in fa,t, they were
5 considering vacating the awa,u'
6 MAYOR APPEZZATO: We're obligated by the
7 Charter to grant the arbitration award, the vote of the
8 people. I don't understand -- I've never even heard,
9 unless counsel can correct me ''
10 mn' KORADE: m,' Mayor, there is no -- there
11 is no time limit set forth in the Charter upon which
12 you have to make a uecioion' We did use the one
13 hundred days which would -- because we have one hundred
14 days in order to go back and request, you know, a
15 modification or rrconoideratinn' We only used that
16 date, and that was expressed just as a date for our
17 best estimate as to when we needed to act.
18 All I'm saying to you is that I would only
19 recommend that you grant his request for more time if
20 he says that granting it won't harm any future action
21 or lead to any prejudice to the City. And I haven't
22 heard m,' Davis agreeing to that.
23 mn' DAVIS: Well, can I follow upn Harm
24 what future action? The Mayor has just now indicated
25 -- if I may -- that, in fact, they do not intend to go
ALAMEDA CITY COUNCIL MEETING 10'20'98
CLARK REPORTING (510) 486'0700 32
1 / don't understand deadlines or timelines are the
2 ixxmc' And if -- that being the case for me, at least,
3 I think we should move forward. It's been dealt with
4 and butchered for long enough.
5 MAYOR APPEZZATO: oaruaro,
6 COUNCILMEMBER KERR: Before I say anything,
7 I know the city manager has set up spare space in the
8 conference room next to the elevatvr' Could you,
9 perhaps, let the people that are standing know where
10 that is, or have a member of your staff tell them?
11 There is a television set in there, and you can sit in
12 reasonable comfort and watch these proceedings live on
13 television, if you so choose; it's up to you. But I
14 just want to make sure that you don't have to stand,
15 that you're welcome to sit and be comfortable and watch
16 us live.
17 MAYOR APPEZZATO: Does anybody else have any
18 questions or comments for Mr. Davis?
19 COUNCILMEMBER KERR: Before we finish, I
20 would comment, I would have severe problems with
21 working out any kind of a new agreement within ''
zz tomorrow, which is the 21st' I mean, I know these
23 agreements that have come before us sometimes need a
24 lot of reworking and a lot of proof reading, not only
25 by staff, but also by covncil' And so I don't think
ALAMEDA CITY COUNCIL MEETING 10'20'98
Page 8
CLARK REPORTING (510) 486-0700 33
1 this is the time to start writing new legal documents,
2 because 1 do believe there is a deadline.
3 And I also have some pretty strong feelings
4 in protecting our general fund reserves too, because
5 they're a finite source, and sooner or later they would
6 run out if we kept diving into them. That's pretty
7 much what I have to say.
8 MAYOR APPEZZATO: Thank you. Al?
9 VICE-MAYOR DEWITT: You know, I feel that
10 the firefighters and the City have been at this for a
11 long time, 1980 or what-have-you. So I feel that the
12 problems or the questions that are presented to us this
13 evening are not really brand new.
14 But with all of that, negotiations that we
15 have done in the past, 1 really think it would be in
16 the best interest of the City and the Union not to
17 follow the procedure that we have laid out for us here,
18 which is to present a certain amount of the award that
19 the arbitrator did, and then take the other to the
20 voters, to the public:
21 1 believe that it would be in the best
22 interest of the firefighters to continue negotiations
23 of this, and perhaps part of the funds that we -- while
24 the award that we have made was our last and best offer
25 of 1997, and the financial situation of the City may
ALAMEDA CITY COUNCIL MEETING 10-20-98
CLARK REPORTING (510) 486-0700
1 to delay this decision we have before us?
2 MR. DAVIS: Well, I've indicated that
3 asking that. And I think the only open question
4 this business of the hundred days, which isn't a
5 statute we're asking to be implemented.
6 VICE-MAYOR DEWITT: Okay. Our attorney
7 asked that you do something, in writing, I guess.
8 it's hard for you to answer questions on your feet
9 all your firefighters behind you and you're trying
35
we are
was
has
So
with
to
10 talk to for all of them, but with regards to what the
11 City Council -- 1 mean the City attorney has stated,
12 are you willing to do something in writing with that
13 regard?
14 MR. DAVIS: Well, you're right, Vice-Mayor;
15 I do speak on my feet a lot, as well as sitting down a
16 lot. But with respect to that specific request, if we
17 were asked to waive the hundred day period, that would
18 -- that's really a provision that the City has to sue,
19 not us, then I would need to consult with my clients
20 again; you're right about that. I'd have to ask them
21 what their feelings on that would be.
22 . VICE-MAYOR DEWITT: Okay. I would presume
23 that we have this item before us, and I probably can't
24 get three more votes or two more votes to go with it.
25 And without some type of -- without getting something
ALAMEDA CITY COUNCIL MEETING 10-20-98
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
TinyTran
CLARK REPORTING (510) 486-0700 34
improve, especially if Measure B passes and a few other
things, so there may be a possibility that additional
funds might be available for a little bit better raise
than what you have, a little bit closer to the
arbitrator.
So what I'm trying to say is that I'm not
opposed to having this thing postponed and let the
negotiators look at it, work it out, and we see whether
packages -- these contracts are done over periods of
two, three, four years, and the funds might be
available in the future. But these kind of things can
be negotiated.
So rather than taking it to the voters and
what have you, which I don't really see it's in the
best interest of the firefighters or the City, really,
I think that we should go ahead and try to negotiate
it.
So I guess what I'm saying here is I'm not
opposed to some type of a delay here if the
firefighters were agreeable and see the wisdom to that.
And, of course, I would presume that I would need the
permission of the Council to award a delay if the Union
was in that -- was willing to do that.
So perhaps in the form of a question: Does
the Union wish to provide some kind of a written okay
ALAMEDA CITY COUNCIL MEETING 10-20-98
CLARK REPORTING (510) 486-0700
1 -- with what the -- in regards to what our Council has
2 said.
3 MR. DAVIS: I would need to have further
4 discussions with them with respect to the request that
5 the hundred day statutory period be waived. I would
6 have to talk to them again. I can't just do that on my
7 own. I hope you all understand that.
8 MAYOR APPEZZATO: Karin.
9 BOARDMEMBER LUCAS: If we can ask the city
110 attorney on this issue, unless we get an answer tonight
11 and a commitment to the waiver, we really lose some of
12 our rights; is that right?
13 MS. KORADE: That would be my opinion. What
14 you're being asked is to delay a vote tonight without
15 any representation about whether or not that will harm
16 you or not.
17 MAYOR APPEZZATO: 1 can't do that.
18 COUNCILEMBER LUCAS: I can't do that either.
19 BOARDMEMBER DAYSOG: Mr. Mayor, I have just
20 one comment.
21 MAYOR APPEZZATO: Tony?
22 BOARDMEMBER DAYSOG: Thank you, very much.
23 I think the comments made by Vice-Mayor Al Dewitt are
24 honorable and should be weighed heavily. I think every
25 effort that we can make to come to some common ground
ALAMEDA CITY COUNCIL MEETING 10-20-98
36
Page 9
CLARK REPORTING (510) 4e6'0700 37
1 on this matter that has been -- that all of Alameda has
2 been facing even before I was on Council, I think it's
s '—,vrtont'
� But I think it's been so long that we've
5 ,n dealing with this, and, you know, while you
6 provided your context, I think there is certainly some
7 context that we have to provide with members of the
8 public. It's not an easy thing, as you or your
9 arbitrator seem to suggest, of just simply dipping into
10 the 25% reserve. I think it comes out to be something
11 like eight mil/ion dollars, six million dollars reserve
12 that the City of Alameda hax' Might be higher.
13 It's not an easy thing, because, quite
14 frankly, it's been the habits of our government, and
15 our government reflects the will of the people. And
16 that's the way it's going to be done. and I'm not
17 prepared to dip into those reserves to pay for past
18 wages. And I think the events of the last three years,
19 or two years, or even one year affirm that decision to
!o maintain our p,actic" of not dipping into the reserves.
!v Base conversion alone for one year costs
2 eight million dollars to provide the services that we
5 cm' We do try to get the funds to do the services when
x4 we can from the federal ovvernnent' And we did that,
5 had some firefighters out there. And also, you know,
ALAMEDA CITY COUNCIL MEETING 10'20'*8
CLARK REPORTING (510) 486-0700 39
1 it was reaffirmed indirectly by the failure of Measure
2 D, which tried to do away with Measure B.
3 So the rules of the game and how we
4 negotiate are set, and I think they reflect a wise and
5 prudent approach that the residents of Alameda have
6 with respect to dealing with government. And the
7 reserves that you seem see treat very lightly are a
8 reflection of that prudent approach.
9 I mean, I'm very sorry that a lot of the
10 firefighters have to go through the financial problems
11 they've had to go through. I really am' But, you
12 know, we have to look into the other situations as
13 well. I mean, we've not this two percent utility tax.
14 I'm sure the Mayor's going to get on that. And, you
15 know, what happens if we negotiate and then that
16 doesn't pass?
17 There's a lot of things that -- there's a
18 lot of balls that we have to juggle all at once, not
19 just balls that are thrown in our hands from years ago,
!u but also things that are on our table right nvw'
So I think we're making the right decision
2' moving forward.
MAYOR APPEZZATO: All / was trying to do was
m trying to clarify your request to put this off, and
5 apparently I didn't get far with that'
ALAMEDA CITY COUNCIL MEETING 10'20'98
c' ,
TinyTran
CLARK REPORTING (510) 4e6'0700 38
1 with all the future changes going on at the base, I
2 think we have to have a uuoo,vn'
3 But more importantly, I think, with Alameda
4 being what it is, I mean, you compare us to 17 other
5 cities, but how many of those 17 cities only have five,
6 six or seven or eight ingresses and egresses in a time
7 of emeroency, How many of those other uit/eo, three
8 quarters of a land area -- or, maybe -- I don't know;
9 maybe less than three quarters of the land area is
10 fi(leu, How many of those other city's face a two
11 percent utility tax that's coming up?
12 I think, quite frankly, the events that are
13 coming up now this month alone or next month alone only
14 affirm the wise judgment of previous councils in
-15 ,maintaining the reserve that we have, and that we
16 should not dip into it.
17 z think the Measure B that you alluded to in
18 1*80 basically set the rules of the game. And we tried
19 to meet you as far as we can offering the percentages
20 that we uiu' But Measure B of 1*80 being what it is,
21 to get the ultimate percentages that you want, that
22 difference is going to require turning to the voters,
23 and that's just the way it ix'
24 Measure u, again, was then reaffirmed by
25 Measure D in 1982, and Measure D -- and again, in 1992
ALAMEDA CITY COUNCIL MEETING 10'20'98
1
2
3
4
5
6
7
CLARK REPORTING (510) 4e6'0700
MR. DAVIS: Yes, you did, I just —
MAYOR APPEZZATO: Thank you'
MR. DAVIS: -- I just can't —
MAYOR APPEZZATO: Thank you very much.
MR. DAVIS: I can't leave the podium and
40
VICE-MAYOR DEWITT: mr' Mayor, perhaps that
8 is the problem. mr' Davis can't leave the podium.
9 Maybe if we had a five-minute recess he could come back
10 and give us some definite word as to what the
11 firefighters feel about thot' If they don't want to
12 delay it, then you can kind of see what's going to
13 happen here already.
14 So maybe a five-minute recess would allow
15 you to come back and tell us something.
16 MAYOR APPEZZATO: Karin?
17 COUNCILMEMBER LUCAS: Before we do that, can
18 I ask the city attorney another question?
19 MAYOR APPEZZATO: ou,n'
20 cnowcILmsmosn LUCAS: And that is, we all
21 favor negotiations. If things can be worked out, it
22 would be to everybody's advantage. I'd like to ask the
23 city attorney, can the negotiations occur after our
24 vote tonight, and can the decision to put the matter on
25 the ballot if we follow the staff recommendations be
ALAMEDA CITY COUNCIL MEETING 10'20'98
Page 10
CLARK REPORTING (510) 486-0700 41
1 revoked?
2 MS. KORADE: Yes. And not only that, the
3 action tonight calls an election for June 8, 1999.
4 There is a subsequent Council action that would be
5 required in order to implement this decision tonight
6 which would be to identify the special tax and actually
7 identify the ballot measure question.
8 So this vote tonight is not the only vote
9 that Council will need to make in order to place this
10 on the ballot. It will come back to you, and it has to
11 before the 44th day before June 8th. So although this
12 is a final action tonight, what you're doing is
13 declaring your intent to place it on the ballot, but
14 you need a further subsequent implementing action to
15 have that take place.
16 And you could not take that subsequent
17 action and you could certainly rescind this. You have
18 until ;4 days before June 8th to do so.
19 COUNCILEMEMBER LUCAS:: Maybe that would
20 address the Vice Mayor's concern. And 1 think we could
21 instruct the staff to be open to negotiations.
MAYOR APPEZZATO: Thank you. Barbara?
COUNCILMEMBER KERR: Could the city manager
22
23
24 please -- I think there's an assumption here. First of
25 all, I'd like to hear the other speakers.
ALAMEDA CITY COUNCIL MEETING 10-20-98
.CLARK REPORTING (510) 486-0700 43
1 MR. ROBERTS: Mr. Mayor, Vice Mayor,
2 Councilmembers, Don Roberts. I live in Alameda. Some
3 time back a previous Council had the opportunity to
4 resolve this. And it wouldn't be before you now. As I
5 understand it, Vice Mayor Charlie Mannix and City
6 Councilmember Lil Arnerich were both in favor of
7 settling with the firefighters years ago. It's
8 unfortunate that at least one other member of the
9 Council didn't join with them to eliminate that.
10 Mr. Daysog's comment earlier seems to
11 overlook the fact that in terms of reserves to the
12 City, that didn't seem to be a concern in terms of
13 giving pay raises to other city employees, other
14 managers and the city manager and the city attorney,
15 two of our highest paid officials in the City.
16 I think that the treatment of the
17 firefighters has been grossly unfair. And for anybody
18 to publicly state that they have been treated fairly,
19 to use that word "fair" on this situation would require
20 the use of a special definition which would probably
21 only be contained in the dictionaries used by President
22 Clinton. Thank you.
23 MAYOR APPEZZATO:
24 your applause. There's due
25 chamber. Thank you. Diane
I would ask that you hold
respect to everyone in the
Coler-Dark
ALAMEDA CITY COUNCIL MEETING 10-20-98
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
TinyTran
CLARK REPORTING (510) 486-0700 42
MAYOR APPEZZATO: I am. We're going to do
that before we --
COUNCILMEMBER KERR: Yeah. But also, I
would -- city manager, or a selected member of your
staff discuss that if we vote on this tonight, the
amount of money that the firefighters will start seeing
right away, I think there's -- that's been unspoken and
not addressed. It's as if we weren't offering any
increase right now.
CITY MANAGER FLINT: May I respond to that?
MAYOR APPEZZATO: City manager. We do need
to hear the rest of the speakers. You're correct.
CITY MANAGER FLINT: Well, I think that
Mr. Davis might want to take a seat for a minute. I
don't know, if Austris or Liz, would you like to review
the conditions that we're talking about, in response to
Councilmember Kerr's request?
COUNCILMEMBER KERR: I was referring to
Page 6.
elect the
two other
MAYOR APPEZZATO: Barbara, why don't we
other two -- Barbara? Barbara, we just have
speakers. Why don't we hear them, and then
23 we can get into discussion with the Council?
24 okay? Ever
25
y concur?
Don Roberts.
ALAMEDA CITY COUNCIL MEETING 10-20-98
Is that
CLARK REPORTING (510) 486-0700
1 MS. COLER-DARK: Mayor, members of the
2 Council, I did not come here tonight prepared to speak
3 on this issue. I know that there's no way that I'm
4 going to touch or even try to address any of the
5 negotiations or anything.
6 But the reason I felt compelled to stay is
7 because I feel really saddened and really -- this, to
8 me, is a
9 you were
44
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
real downer, because I don't know how many of
around, but 1 can remember way back when, when
there was a particular -- shall I say a Council
vendetta, and that had to do with the arbitration.
And I believe that the firemen called it a
poison pill or something with regards to putting this
to the voters, but -- ultimately 17-17. But I do
remember that in my estimation there was a lot of
dissemination of misleading information to the voters
which had to do about what arbitration was really all
about.
An arbitrator was portrayed as a person who
was doing to come into town who didn't care about the
City and who could give away all of the reserves and
all of the money, and we had to protect ourselves and
all this sort of thing.
Well, in all that confusion, ultimately we
have this now in our Charter, and to me it was, like I
ALAMEDA CITY COUNCIL MEETING 10-20-98
Page 11
CLARK REPORTING (510) 486-0700 45
1 said, a vendetta. It was very devicive. It was very
2 non-productive, and a very, very negative time in our
:y. And I really had hopes that this Council could
4 forward and settle this issue. And I feel very sad
these proposed actions, because I see of it as
6 something that is going backwards and is part of what
7 the past decisiveness was, and I think your employees
8 deserve better than this.
9 And I urge you, if there's any
10 negotiate this issue without an 'election,
11 You're our last hope to settle this issue
12 rexolvcu' Thank vou'
13 MAYOR APPEZZATO: That's the last speaker.
14 I'll close the public hearing and have a five-minute
way to
ptease do so.
and get it
15
16
17
18
19
20
21
22
reoeon'
(Off the Record)
MAYOR APPEZZATO: Ladies and gentlemen,
we'll rocvnvene' With the approval of the Council, we
have another awardee opre' Do we need to take a vote,
city attorney, to recess and make an award real
quiculyv Would someone move to recess for a few
minutes?
23 COUNCILMEMBER KERR: I so move.
24 MAYOR APPEZZATO: We have a move to recess.
25 We have a uecvnu' Any uincuooimo All in favor. The
ALAMEDA CITY COUNCIL MEETING 10'20'98
CLARK REPORTING (510) 486'0700 47
1 exceeds what the City can offer.
2 On the other hand, I support the offer made
3 by the City in August '97, and I move resolution -- the
4 staff recommendation as to that offer'
5 COUNCILMEMBER KERR: seconu'
6 MAYOR APPEZZATO: We have a motion and we
7 have a second. Barbara?
8 COUNCILMEMBER KERR: I had asked that the
9 staff report tn.uo on the money that our action would
10 give the firefighters right away. And I believe the
11 city manager had gotten something, because I think
12 there's an impression that we're offering no raises.
13 CITY MANAGER FLINT: Mr. Mayor?
14 MAYOR APPEZZATO: City manager?
15 CITY MANAGER FLINT: I'll just go ahead and
16 respond. It is also contained in the documentation we
17 provided you on Page 4 of the cover memo.
18 MAYOR APPEZZATO: Would you summarize,
19 please, or bring us up to date? Thank you, Austris.
20 MR. nowoIu: Yes mr' Mayor, Council, the
2i
gust 1997 document that we presented to Mike and his
� am embody these particular improvements. It improves
2-3 the Employee Assistance Program to ten visits annuallv'
24 Effective January 1st 1*95' the EMT 1-A
25 certificate goes to $10e per monm'
ALAMEDA CITY COUNCIL MEETING 10'20'9e
�
CLARK REPORTING (510) 486'0700 46
1 Council stands recessed.
2 (Off the Record)
3 MAYOR APPEZZATO: I'll reconvene the City
4 uounoil' There are no other speakers. I'll open it
5 for council discussion. Karen?
6 COUNCILMEMBER LUCAS: Mr. Mayor, I'm going
7 to support staff's proposal, because as Tony Daysog has
8 indicated, the reserve funds are nec*ooarv' There are
9 many uncertainties. The City is going to 1poe the
10 license fee, a share of it' There are other
11 uncertainties as to the outcome of the November 3
12 election on the utility tox' We can not commit the
13 reserve funds to the firefighters.
14 Also, as any employer probably realizes,
15 when you raise one segment of your employees, you have
16 to balance it with all the other employees. So it
17 isn't just ''
18 (Audience interruptions)
19 MAYOR APPEZZATO: Ladies and eentlemen'
20 you've had your npportunitv' Please have some revpeot'
21 z know there's some people here that don't have respect
32 for others, but I would hope the majority an' Thank
23 you.
24 COUNCILMEMBER LUCAS: Thank you, Mr. Mayor.
25 The increase exceeds the -- the arbitration award
ALAMEDA CITY COUNCIL MEETING 10'20'98
TinyTran
CLARK REPORTING (510) 486'0700 48
1 The ambulance differential increases to
2 $32'*0 per 20'xuur omft'
3 There is an across the board wage increase
4 on January 1st of 19*6 of 3 percent, an across the
5'uwaru wage increase of 2'5 percent January 1st, 1997'
6 In addition, on January 1st' 19*7 the
7 differentials in the ranks will increooe' The fire
8 apparatus operator's top step will be increased by
9 three percent, the lieutenants by four percent,
10 captains by three percent.
11 In addition, firefighters will receive an
12 additional hundred dollars per month in recognition of
13 the intuuatinn'
14 These particular economic adjustments are
15 embodied in this August 21xt' 1997 letter that Michael
16 and his team received, and I believe is also in the
17 documentation that you have in front of you. The
18 implementation of this will' obviously, be effectuated
19 as soon as pmxoiulo' Hopefully the first part of it
20 can be done in the beginning of November of 19e8' and
21 the 1995'1996 by December 11th, 1998, and the 1997'1998
22 in the beginning part of 1999'
23 MAYOR APPEZZATO: What would be the cost ''
24 I'm asking these questions because there are a lot of
25 viewers that may not have the onoverv' What would be
ALAMEDA CITY COUNCIL MEETING 10'20'98
Page 12
1
2
3
4
5
6
7
8
9
10
CLARK REPORTING (510) 486-0700 49
the cost to the citizens of Alameda, to the City
Alameda, to implement the August '97?
MR. RUNGIS: That cost, 1 believe, is
your report. I don't have it in front of this
particular --
MAYOR APPEZZATO: 1 show $763,
CITY MANAGER FLINT: That's correct.
MAYOR APPEZZATO: So almost -- well,
$763,000 immediately?
CITY MANAGER FLINT: That's correct,
of
in
11 Mr. Mayor.
12 MAYOR APPEZZATO: Thank you. Does that
13 answer your question, Barbara? Do you have another
14 comment?
15
16
17
18
19
20
21
22
23
24
25
COUNCILMEMBER KERR: Yes. I just wanted to
dispel the impression that there were no raises or
increases in the proposal before us tonight, and that
they will start happening right away, and that the lump
sun distribution from past raises will be distributed
very promptly.
MAYOR APPEZZATO: Thank you. Do you have
anything else?
COUNCILMEMBER KERR: No.
MAYOR APPEZZATO: We have a motion and a
second. Any discussion? Al.
ALAMEDA CITY COUNCIL MEETING 10-20-98
CLARK REPORTING (510) 486-0700 51
1 Now, with regards to this whole problem
2 here, I think we -- I didn't get a chance to -- when we
3 do negotiations, the City Council uses its resource
4 officer to negotiate with the Union, and we don't get
5 to talk to the firefighters and all those guys
6 directly. So I guess this is my only chance to sort of
7 say what I have to say about the negotiations and all,
8 what-have-you. And it deals mostly with the pay raise
9 and the financial part of it.
10 The City of Alameda is kind of a different
11 city. We're sort of strange. As you can tell by
12 Section 17-17 of the Charter, 1 think we're the only
13 city in the state of California that has that provision
14 in its Charter which allows us to present matters to
15 the voters with regards to pay raises.
16 So it's not strange that an arbitrator could
17 come to in to Alameda and say that our wages are below
18 the below level, because if you'd go from the city
19 manager down to the secretaries, police officers, all
20 of the different unions, you'll find that the City of
21 Alameda's wages are below the average for the other
22 cities around the area.
23 Take, for example, the City Council. The
24 City Council here, our Charter provides that we make
25 $100.00 a month. Emeryville, which has a much smaller
ALAMEDA CITY COUNCIL MEETING 10-20-98
1
TinyTran
CLARK REPORTING (510) 486-0700 50
VICE-MAYOR DEWITT: Mr. Mayor there's been a
2 lot of discussion here this evening, and I think I'll
3 start with Mr. Roberts, who indicated that this whole
4 matter could have been resolved a few years ago when
5 Charlie Mannix was on the Council.
6 I came in on the Council at the same time
7 that Mr. Mannix came in, and I was in the negotiations
8 which were private sessions. We offered at that time
9 approximately the same pay raise they're getting now,
10 which is about the same that the police got.
11 And there are two issues basically facing
12 the firefighters here. One is sort of an
13 administrative issue that they've been negotiating; the
14 other is a financial issue.
15 Firefighters have not been happy with
16 Section 17-17, which allows a council to refer matters
17 to the voters with regards to arbitration awards. And
18 1 believe that they would love to have that go away,
19 declared unconstitutional, whatever.
20 So 1 believe the firefighters have been
21 challenging that and fighting that down through the
22 years. So to say that we could have solved this matter
23 in 1994, I think, is not a correct statement. It's
24 probably a political statement, but that's okay. I
25 understand. I'll be -- I've ran before for offices.
ALAMEDA CITY COUNCIL MEETING 10-20-98
CLARK REPORTING (510) 486-0700 52
1 community then we do, I think they have about 10,000
2 people maybe at the most, the Councilmembers make
3 $1,000 a month. And of course Oakland pays their
4 people $60,000 a year.
5 So it's not strange that an arbitrator could
6 come to Alameda and say that our wages are low. They
7 are below the level. But my point that 1 want to get
8 to is that they're here in the City of Alameda. People
9 work for and they -- they provide service, voluntarily
10 and for wages less than what there are around us. The
11 police officers settled. Their wages are not high.
12 The other employees settled.
13 The firefighters are the only union that did
14 not settle. They work for wages that are below
15 whatever it is. I believe that part of the problem
16 with the firefighters is that there is not a lot of
17 firefighters that live in the City of Alameda, because
18 there's a -- there's a atmosphere of volunteerism, of
19 giving, of support, of providing services.
20 We're a great city. We have lots of goods
21 services. It's a beautiful place to live, perhaps one
22 of the best in the Bay Area. And our fire fighting
23 services along with the emergency services we provide
24 are better than anything that the county can provide.
25 So we here in the City of Alameda are getting our
ALAMEDA CITY COUNCIL MEETING 10-20-98
Page 13
CLARK REPORTING (510) 486-0700 53
1 dollars worth out of the every tax dollar that goes in.
2 And the firefighters and the other people are helping
3' make that come true.
4 So my statement then ends with the idea that
5 need to negotiate and we need to work this out so
6 that the firefighters are treated equitably, but also
7 that the City continues to provide the level of
8 services that we are providing to our citizens. And
9 you can help us do that.
0 So my little request to you is to help us
1 make the City a better place as it is, and continue to
2 support us as we support you. Thank you.
3 MAYOR APPEZZATO: We have a motion and
4 second on the floor. A couple of brief comments. The
5 City and the Firefighters' Union have had a lot of
6 intense discussions since 1980. There's been some
7 controversy with those since 1980. I am pleased to say
8 that, at least to my knowledge, this current Council
9 has not engaged in any negative comment or discussion
:0 regarding our firefighters. I'm not aware of any.
1 We've had -- are you through back there?
2 We have eleven unions in our city. We have
3 agreed to union contracts with ten of the 11. So I
!4 think it would be unfair for anyone to say that we're
5 not sensitive to the 11 unions in our city.
ALAMEDA CITY COUNCIL MEETING 10-20-98
CLARK REPORTING (510) 486-0700 55
1 the City, not only the police but the other employees,
2 and the award to the retirees that will come because of
3 the arbitration award must be considered by reasonable
4 people. And I hope this Council are reasonable when
5 they so consider that.
6 We are going to, if this is approved
7 tonight, immediately grant close to $800,000 in pay to
8 the firefighters. It was the award back in last
9 August. If this goes -- and we must deal with the
10 arbitration award, which 1 will support because I don't
11 think there is any option. It's in the City Charter;
12 the voters approved arbitration. And I will fully
13 support the arbitration award. So what was said
14 earlier by the speaker is not correct, or I don't
15 think, or I misunderstood.
16 But there's also another section of that
17 Charter that says the same people who voted arbitration
18 are the same people who said they want the ability to
19 control their own destiny and to vote the award.
?0
22
If this does go to a vote of the people, and
the Firefighters' Union concurs, I will be the first
e leading the support of that initiative and will
23- .ign on, if, in fact, that's where we go when this
24 comes back. But I will be happy to take the lead as
25 the Mayor of this City, but not only for the
ALAMEDA CITY COUNCIL MEETING 10-20-98
TinyTran
CLARK REPORTING (510) 486-0700 54
1 I know the people in this chamber may not
2 agree, but I understand that the same offer that was
3 offered to the police officers in '95 is the same -- at
4 least the pay portion was the exact same -- that was
5 offered to firefighters, zero, three, and 2.5, and that
6 the issues that were so-called take-aways that they
7 couldn't agree to.
8 There has been a number of ballot
9 initiatives -- none by this City Council -- in 1982 and
10 in 1992. They're two completely different city
11 councils. I think you need to look at the names of the
12 councilmembers who signed or participated in those
13 ballot initiatives in 1980, '82 and '92.
14 Citizens of this community -- and there is
15 no guarantee that this will go to a vote of the people;
16 it has to come back to us, as the city attorney has
17 said. To state that the reserves are adequate to
18 respond to the pay of one union when they're not a
19 continuing evolving source of revenue, of fixed revenue
20 or they're added to every year, I think that it doesn't
21 relate to seriousness of what the reserves are all
22 about. Because when the reserves are gone, then what
23 do you do? What options do you have?
24 We must deal with the issue before us. But
25 the comparability of the pay for the other employees of
ALAMEDA CITY COUNCIL MEETING 10-20-98
CLARK REPORTING (510) 486-0700 56
1 firefighters, but for the police officers and the other
2 employees as well, and our citizens, to recognize the
3 work of the employees of the City of Alameda.
4 I'm going to read something here that should
5 be in the record, and then I will call for the question
6 unless any other councilmember has something to say.
7 It is my understanding that this agenda item
8 has been scheduled because it is our duty under Charter
9 Section 17-17 to consider the Arbitrator's Award which
10 we all received a week ago, the City's offer before
11 impasse was declared by the Union which is summarized
12 in an exhibit to the draft resolution, and the last
13 offer made by the City to the Union which is included
14 in the city manager's letter of August 21st, 1997, also
15 attached to the draft resolution.
16 Charter Section 17-17 has been part of the
17 City's Charter since 1980, when the people adopted it.
18 They read the arguments in the ballot pamphlet that
19 said that Alameda citizens want to control the cost of
20 government, and that the measure would require a
21 two-thirds vote to ratify any arbitration award which
22 did not adopt.the Council's position.
23 I believe that this means that the Council
24 is required to consider the Arbitrator's Award, the
25 City offer at impasse and the last offer made by the
ALAMEDA CITY COUNCIL MEETING 10-20-98
Page 14
CLARK REPORTING (510) 486-0700 57
1 City and to determine what wages, benefits and employee
2 related expenses which are included in the Arbitrator's
3 Award should be approved by the Council.
4 1 have considered the Arbitrator's Award,
5 the City's offer prior to impasse and the City's August
6 21st, 1997 offer. I have concluded that the cost of
7 the Arbitrator's Award is too high given the
8 uncertainties and challenges facing the City.
9 I have also concluded that the City's offer
10 at impasse, while appropriate when it was made, was for
11 1995 only and should not be used for the years
12 following '95.
13 I have also concluded that the City's August
14 1997 offer represents an appropriate level of
15 compensation for the employees represented by the
16 Union. It is consistent with the compensation provided
17 to the police officers for 1995 to 1997, and consistent
18 with the agreements with other bargaining groups for
TinyTran
CLARK REPORTING (510) 486-0700 58
1 and a reward all of our employees adequately.
2 All in favor? Opposed? Motion passes
3 unanimously. Call for a brief reserve.
4 COUNCILMEMBER LUCAS: Mr. Mayor, I believe
5 my motion included only the first part of the
6 recommendation, and I believe we need to vote on the
7 second part.
8 MAYOR APPEZZATO: Okay. Would you make a
9 motion?
10 COUNCILMEMBER LUCAS: I move -- the second
11 part of the resolution stating council's intention to
12 submit measure to the electors'at June 8th 1998
13 election.
14 MAYOR APPEZZATO: We have a motion.
15 UNIDENTIFIED COUNCILMEMBER: Second.
16 MAYOR APPEZZATO: We have a second.
17 Anything discussion. All in favor? Opposed? Motion
no 18 passes unanimously. We'll have a brief recess.
19 wage increase in 1995. 19
2Q We have a motion and a second. And as 1 20
21 said earlier, this will result in an immediate award of 21
22 almost $800,000 to the firefighters. And if it goes to 22
23 a vote of the people at a later hearing before this 23
24 Council, I will be the first one to go forward and 24
25 request that the citizens pass the ballot initiative 25
ALAMEDA CITY COUNCIL MEETING 10-20-98
CLARK REPORTING (510) 486-0700 59
1 STATE OF CALIFORNIA
) SS
2 COUNTY OF ALAMEDA
3
4 I, JILLANNE STEPHENSON, a Certified Shorthand
5 Reporter 8563, do hereby certify:
6
7 That the foregoing proceeding was taken before me
8 at the time and place therein named; and
9
10 That the same was taken in shorthand by myself, and
11 was thereafter transcribed into typewritten
12 transcription.
13
14 I further certify that 1 am a disinterested person
15 to said action and in no way interested in the outcome
16 thereof no connected or related to any of the parties
17 thereto.
18
19 IN WITNESS WHEREOF, 1 have hereunto set my hand and
20 affix my official seal of office this of6V 197,F
21
22
23 LL,4 EITZHENSON
24 .9: REPORTING
25
ALAMEDA CITY COUNCIL MEETING 10-20-98
(End of agenda item)
ALAMEDA CITY COUNCIL MEETING 10-20-98
Page 15