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1998-10-20 Special and Regular CC MinutesMINUTES OF THE SPECIAL CITY COUNCIL MEETING TUESDAY- -OCTOBER 20, 1998- -7:05 P.M. Mayor Appezzato convened the Special Meeting at 7:05 p.m. Roll Call - Present: Absent: Councilmembers Daysog, DeWitt, Kerr, Lucas and Mayor Appezzato - 5. None. The Special Meeting was adjourned to Closed Session to consider: (98-555) Conference with Labor Negotiator; Agency Negotiator: Human Resources Director and Austris Rungis; Employee Organization(s): International Association of Firefighters, Local #689 - IAFF. Following the Closed Session, the Special Meeting was reconvened and Mayor Appezzato announced that Council gave instructions to the City's negotiators. Adjournment There being no further business, Mayor Appezzato adjourned the Special Meeting at 7:25 p.m. Respectfully submitted, Diane B. Felsch, CMC City Clerk The agenda for this meeting was posted in accordance with the Brown Act. Special Meeting Alameda City Council October 20, 1998 MINUTES OF THE REGULAR CITY COUNCIL MEETING TUESDAY- -OCTOBER 20, 1998- -7:30 P.M. Mayor Appezzato convened the Regular Meeting at 7:31 p.m. Councilmember Lucas led the Pledge of Allegiance. Reverend Myong Bae Choi, Alameda Korean Presbyterian Church, gave the Invocation. ROLL CALL - Present: Absent: Councilmembers Daysog, DeWitt, Kerr, Lucas and Mayor Appezzato - 5. None. AGENDA CHANGES None. PROCLAMATIONS, SPECIAL ORDERS OF THE DAY AND ANNOUNCEMENTS (98-556) Presentation of Certificates of Service to: Diane Coler- Dark, Economic Development Commission; James Pittard, Economic Development Commission; Dr. Stephen Post, Recreation Commission; Bernard Roberts, Recreation Commission; Dave Sillers, Recreation Commission. Mayor Appezzato presented Certificates of Service to Diane Coler- Dark, James Pittard, and Bernard Roberts. (98-557) Proclamation declaring October 19 through October 23, 1998 National Business Women's Week. Mayor Appezzato read the proclamation and presented it to Alameda Business and Professional Women co-presidents, Jessy Gettman and Madeleine Layton. (98-558) Councilmember Lucas stated the Adelphian Club building, which has existed since 1907, was sold last week; the new owners of said Club, Marla Fibish and James Bell, are in attendance this evening; the Adelphian Club will continue to meet at said location; requested the new owners to discuss their plans. Marla Fibish stated they plan to create a center for the arts at the historical building which will be called the Adelphian Center for the Arts; the Adelphian Club will continue meeting at said location; the cabaret theater group, which has put on productions in the building for 29 years, will continue to have that venue; the Regular Meeting Alameda City Council October 20, 1998 building also will be used for concerts, lectures, theater, exhibits and private events. James Bell stated they intend to become an important part of the cultural fabric of the community; the building will be available to members of the community for private events. CONSENT SALERDAR Councilmember Lucas moved adoption of the Consent Calendar. Councilmember Kerr seconded the motion, which carried by unanimous voice vote - 5. [Items so enacted or adopted are indicated by an asterisk preceding the paragraph number.] (*98-559) Minutes of the Special City Council Meeting (Closed Session) held on October 6, 1998, the Special Joint City Council and Community Improvement Commission Meeting (Closed Session) held on October 6, 1998, the Regular City Council Meeting held on October 6, 1998, the Special City Council Meeting held on October 13, 1998, and the Special Joint City Council and Community Improvement Commission Meeting (Closed Session) held on October 13, 1998. Approved. (*98-560) Recommendation to accept the work of Vanguard Construction for Webster Street/Eighth Street Project, No. P.W. 07- 97-16. Accepted. (*98-561) Resolution No. 13049, "Authorizing Execution of Program Supplement No. 007 to the State-Local Transportation Partnership Program (SB 300) Agreement No. STLPP-5014." Adopted. (*98-562) Ratified bills in the amount of $2,111,198.55. REGULAR AGENDA ITEMS (98-563) Public Hearing to consider a Rezoning (R-98-3) to change the zoning designation of recently acquired City property located on the east side of Main Street between Atlantic Avenue and Singleton Avenue from R-4-G (Neighborhood Residential, Special Government Combining District) and M-2-G (General Industrial, Special Government Combining District) to 0 (Open Space District), to enable the development of a Greenway along the east side of Main Street; and (98-563A) Ordinance Reclassifying and Rezoning Certain Property within the City of Alameda from R-4-G (Neighborhood Residential, Special Government Combining District) and M-2-G (General Industrial, Special Government Combining District) to 0 (Open Space District) by Amending Zoning Ordinance No. 1277, N.S., for that City-Owned Strip of Land Along the East Side of Main Street Between Regular Meeting Alameda City Council October 20, 1998 3 4 4 Atlantic Avenue and Singleton Avenue. Introduced. Mayor Appezzato opened the public portion of the Hearing. The being no speakers, Mayor Appezzato closed the public portion of the Hearing. Councilmember Daysog moved approval of the staff recommendation. Vice Mayor DeWitt seconded the motion, which carried by unanimous voice vote - 5. (98-564) Resolution No. 13050, "Declaring Support for Proposition 10, the California Children and Families Initiative." Adopted. Don Bergen, Alameda, stated it is the responsibility of parents, not government, to supervise children; this matter should be raised under oral communications. Len Grzanka, Alameda, stated with one exception, this City Council has not seen a tax it does not like; on November 3rd [Election day] the voters will tell Council whether they approve of the [Council's] tax and spend attitude. Ed Dankworth, Social Service Human Relations Board, submitted information on Proposition 10 to the City Council; stated the Social Service Human Relations Board [SSHRB] is requesting Council support of Proposition 10; the Proposition will provide funds for a wide variety of children programs, e-g- child care, smart healthy babies work program; reminded Council of two previously adopted Resolutions: 1) May 19, 1998 Council adopted a "Stand for Children" Resolution committing to improve the quality of life for children, youth and families in Alameda; and 2) on May 20, 1997, [Council] proclaimed June 1, 1997 as "Stand For Healthy Children Day" urging citizens to improve the quality of life for all our children. Lois Workman, Social Service Human Relations Board, stated that she was available to answer questions. Councilmember Kerr stated due to the volume of the Council Agenda Packet, she did not have an opportunity to review the voter information on Proposition 10 and would abstain. Councilmember Lucas stated the SSHRB has done a thorough job; and moved adoption of the Resolution. Vice Mayor DeWitt seconded the motion, which carried by the following voice vote: Ayes: Councilmembers Daysog, DeWitt, Lucas and Mayor Appezzato - 4. Abstentions: Councilmember Kerr - 1. (98-565) Consideration of Arbitrator's Award (IAFF Local 689) Regular Meeting Alameda City Council October 20, 1998 pursuant to Charter Section 17-17; (98-565A) Resolution No. 13051, "Making Findings, Approving Certain Wage and Benefit Increases for Fire Department Employees Represented by IAFF, Local 689, Calling Election and Submitting Measure to Voters to Approve Special Tax to Raise Revenue to Pay Additional Wage and Benefits Increases to Such Employees." Adopted; and (98-5658) Resolution No. 13052, "Stating Council's Intention to Submit Measure to the Electors at June 8, 1999 Special Election to Raise Revenues to Fund On-Going Arbitration Costs and Retiree Costs." Adopted. A TRANSCRIPT OF DISCUSSION IS ATTACHED HERETO (ATTACHMENT A) AND MADE PART OF THE OFFICIAL RECORD. * * * (98-566) Following a Recess called at 8:42 p.m., at the request of the Mayor, Councilmember Kerr moved Council re-open Special Orders of the Day, presentations of Certificates of Service. [paragraph no. 98-556] Councilmember Lucas seconded the motion, which carried by unanimous voice vote - 5. Special Orders of the Day (98-567) Mayor Appezzato presented Dave Sillers with a Certificate of Service for serving on the Recreation Commission. Following the presentation of said certificate to Mr. Sillers, the aforementioned agenda item, Consideration of Arbitrators Award, was continued. (See Attachment A) * * * Mayor Appezzato called a recess at 9:19 p.m. and reconvened the Meeting at 9:25 p.m. * * * (98-568) Resolution No. 13053, "Resolution of Intention to Levy Reassessments and to Issue Refunding Bonds." Adopted, Councilmember Lucas moved adoption of the Resolution. Vice Mayor DeWitt seconded the motion, which carried by unanimous voice vote - 5. Regular Meeting Alameda City Council October 20, 1998 (98 -569) Resolution No. 13054, "Adopting Reassessment Report, Confirming and Ordering the Reassessment by Summary Proceedings and Directing Actions with Respect Thereto." Adopted. Councilmember Lucas moved adoption of the Resolution. Vice Mayor DeWitt seconded the motion, which carried by unanimous voice vote - 5. (98 -570) Resolution No. 13055, "Authorizing Issuance of Limited Obligation Refunding Improvement Bonds." Adopted. Councilmember Lucas moved adoption of the Resolution. Vice Mayor DeWitt seconded the motion, which carried by unanimous voice vote - 5. (98 -571) Resolution No. 13056, "Authorizing the Issuance and Sale of Revenue Bonds in the Aggregate Principal Amount of Not to Exceed $30,000,000 to Refund Outstanding Improvement Bonds and to Construct Additional Improvements and Approving Related Agreements and Actions." Adopted. Councilmember Lucas moved adoption of the Resolution. Vice Mayor DeWitt seconded the motion, which carried by unanimous voice vote - 5. (98 -572) Ordinance No. 2777, "Authorizing the City Manager to Execute a Sublease of 1701 Webster Street between the City. of Alameda, as Sublessor, and American Red Cross - Alameda Service Center, as Sublessee." Finally passed. Councilmember Kerr moved final passage of the Ordinance. Councilmember Daysog seconded the motion, which carried by unanimous voice vote - 5. ORAL COMMUNICATIONS, NON - AGENDA (98 -573) Gail Greely, Vice President, Board of Education, stated that she was addressing the City Council as an individual Board Member, although she believes her Board colleagues share her views; she is present to make sure the Council understands the implications of the likely passage of State Proposition 1 -A and the accompanying legislation SB 50, and the changes those laws will make on financing of school facilities; schools in Alameda are becoming increasingly overcrowded; the School District faces large new enrollment from development of the FISC property and the rest of Alameda Point; she participated for two years as the School District's representative on the ARRA; during that period the Regular Meeting Alameda City Council October 20, 1998 Community Reuse Plan was adopted, which specifically addresses school facilities [policies]; she has been surprised how poorly everyone has managed to implement those policies in the Community Reuse Plan; since April, the City and AUSD have been negotiating to develop a Plan to mitigate impacts on school facilities, with respect to the proposed FISC development; Catellus has not been directly involved, at least not involved with AUSD; however, the City seems to be representing Catellus's interest by arguing for lower developer fees which the School District considers inadequate to provide additional schools; the District's last reply to the City's information request was at the end of August; in September, the State legislature finally got a School Facilities Bond on the Ballot: Proposition 1 -A on the Supplemental Ballot; accompanying that is SB 50, which fundamentally changes the State-wide program for financing school facilities; SB 50 changes the State funding system from full - project funding to no more than 50% funding, and in the case of urban districts about 40% funding; SB 50 caps developer fees at a $1.93 per square foot, which is less than a third of the estimated per pupil cost of building new schools;, the ability of cities and counties to seek additional mitigation from developers has been suspended until 2006, and there is no change in the requirement for a two - thirds majority [vote] for local General Obligation Bonds; that of the $8- to $12 Million it takes to build a modern elementary school, State funds will provide no more than 40 %, and developers fees at the statutory cap will provide no more than 30 %; the remainder of the funds will come from local sources, either General Fund sources or General Obligation Bonds; a two - thirds vote - required bond for schools to serve only Alameda Point would be tough to pass; many cities, school districts and counties throughout the State have been pushing to get developer fee agreements signed by November 3; if signed by November 3, fees are grandfathered and not effected by the upcoming legislation; what has Alameda done ?; Alameda's response was not to hurry up; instead, the City on October 12th responded to the District's August 31st letter and suspended negotiations; that she was shocked to receive correspondence that suspends negotiations at a time when she would be seeking to speed them up; she is present to make sure Council understands the District is losing a golden opportunity to get the situation resolved before the legislation takes effect, and losing a golden opportunity to deal with the problem of upcoming school facilities; in effect, the very principles the ARRA agreed to back in January, 1996, when it passed the School Policies, are being violated; and she wants to make sure the Council understands the implications of suspending negotiations at this time. Mayor Appezzato stated the City_ fully understand the implications, and does not have a signed agreement with Catellus Ms. Greely stated that she was aware there was no signed agreement; District would like to sit down with the City and Catellus to talk about the need for future schools and make sure that whatever Regular Meeting Alameda City Council October 20, 1998 happens on November 3 with Proposition 1 -A, there are adequate schools for Alameda Point. Mayor Appezzato stated there is forum for addressing said matter; the City Manager and Superintendent of Schools would be happy to get together and continue the discussions; and unfortunately under "Oral Communications," Council cannot continue discussion. (98 -574) Kurt Bohan, Alameda, stated that he is concerned about the City Golf Course proposal; the City Golf Course could end up in litigation, the proposal is being accelerated; the proposal calls for a three -story complex in the middle of the airfield area Eat Alameda Point]; said complex is within 500 feet of huge cavities which will eventually collapse; there are nine destroyers buried in the runway areas; destroyers are slowly rusting away; it is believed the destroyers are actually like hollow eggs which will collapse and produce huge sinkholes; said sinkholes will grow and anything within a reasonably far distance would be effected, his fear is City will not investigate matter;' condition of ships is unknown; the City has a liability problem if developers are encouraged to make plans based on the assumption that these sinkholes` do not really exist; the City should immediately put the Golf Course proposal on hold, and not waste City funds on staffing until the liability is known, and, also, the seismic nature of the soil is a threat to construction. Mayor Appezzato responded that there was no proposal to build a Golf Course. (98 -575) John Beery, Alameda Gateway, Ltd., stated that he has worked with the Port of Oakland for thirteen years; Alameda Gateway is working with a firm in Hawaii which has won two major cases against the Corps of Engineers; Alameda Gateway ®s legal people should sit down with the City Council and explain exactly where things are with regard to what Alameda perhaps should be afraid of in the next year dealing with the Port of Oakland. Mayor Appezzato stated the City Attorney will work out the details; the City Council has been briefed; there is litigation with the Port which the Council cannot discuss; and Council is familiar with what is transpiring. Robert Thomas, speaking on behalf of Alameda Gateway, Ltd., stated Council is being addressed tonight because of the ongoing cases coming to a head on November 2nd involving the Port of Oakland, Corps of Engineers, and Alameda Gateway; a decision on November 2, 1998 in San Francisco Federal District Court may affect the City of Alameda; the basic contention in the Hearing is the request of the Corps of Engineers and the Port of Oakland for the Federal Court to rule that property removed, and in the way of their projects in the Estuary, be done at the landowners' expense; the City should pay Regular Meeting Alameda City Council October 20, 1998 attention to the case; what happens to Alameda Gateway will happen to the City with respect to the FISC property; Alameda has an interest in protection of its citizens along the Estuary and where the Port of Oakland potentially has jurisdiction, such as the Airport; the decision on November 2, 1998 will probably be used by the Port and the Corps of Engineers as binding precedent for all riparian landowners in the City along the Estuary; the Port's project primarily benefits taxpayers of the City of Oakland; when property removal takes place, it takes place on the Alameda side of the Estuary; and the Port is pushing the burden of the project onto local citizens in Alameda and not sharing much of the benefits with Alameda citizens. Mayor Appezzato stated the City is vigorously protecting the interests of the City of Alameda, and the City and Alameda Gateway will do so together if necessary. (98-576) John Fee, Alameda, suggested a water slide for Alameda Point; stated he is looking for any City work; and inquired whether people will be able to better control the Bureau of Electricity with respect to the new wiring system. Mr. Fee questioned why there is no Police Report on what happened to Bob Davis, requested Council to direct the Police Department to provide a report on any information to Marlena Davis; stated Ms. Davis has never seen the truck or damage thereto; one official indicated there is more to the case than has been shown; and questioned whether the City Council could comment on said matter. Mayor Appezzato responded that Council could not comment on the matter; Council would refer the issue to the City Manager. Mr. Fee stated Mr. Davis was very dear to him, as was Mr. Neil Patrick Sweeney. COUNCIL COMMUNICATIONS (98-577) Mayor Appezzato announced that the Regular Council Meeting of November 3, 1998 would be adjourned to November 10, 1998 due to the November 3, 1998 Election. (98-578) Councilmember Kerr stated [in response to comments made by Gail Greely under Oral Communications] the City Manager has been meeting with the School District on a regular basis since his arrival to Alameda; for anyone to say that the City is not meeting, recognizing, and trying to come to an agreement with the Alameda Unified School District is outrageous; if someone wants to address the matter, it should be placed on an Agenda so all sides of the story can be heard; that she found the statements about the City staff and lack of responsibility tonight offensive; and there is a complete other side to the story, but there can be no long debates Regular Meeting Alameda City Council October 20, 1998 [under Council Communications] due to the Brown Act. (98-579) Vice Mayor DeWitt announced the opening of Starbucks Coffee at Webster Square in the West End. (98-580) Councilmember Lucas stated the City of Oakland gives preference to Oakland residents in its hiring practices, recently there was a San Francisco Chronicle ad stating applicants for a San Francisco firefighter position must be residents; and staff should provide a report on whether Alameda can give preference to its residents, including public safety personnel. ADJOURNMENT There being no further business, Mayor Appezzato adjourned the Regular Meeting at 9:48 p.m. Respectfully submitted, D ne B. Felsch, CMC City Clerk The agenda for this meeting was posted in accordance with the Brown Act. Regular Meeting Alameda City Council October 20, 1998 ATTACHMENT 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 8 Consideration of Aribtrator's 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 8, 13 1999 special election to raise revenues to fund ongoing arbitration costs and retireee costs. IN AND FOR THE CITY OF ALAMEDA PUBLIC HEARING PROCEEDINGS BEFORE THE CITY COUNCIL TUESDAY, OCTOBER 20, 1998 AGENDA ITEM 5 -C: 14 15 16 17 18 19 20 21 22 23 24 25 11F!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 1 2 CITY COUNCILMEMBERS: 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 A P P E A R A N C E S: RALPH APPEZZATO, Mayor AL DEWITT, Vice -Mayor ROBERT WONDER BARBARA KERR KARIN LUCAS TONY DAYSOG ALAMEDA CITY COUNCIL MEETING 10 -20-98 CLARK REPORTING (510) 486 -0700 3 1 MAYOR APPEZZATO: We'll move to item 5 -C. 2 CITY CLERK: 5 -C is a consideration of 3 Aribtrator's Award pursuant to Charter Section 17 -17 4 and adoption of resolution making findings, approving 5 certain wage and benefit increases for fire department 6 employees, represented by IAFF Local 689, calling 7 election and submitting measures to voters to approve 8 special tax to raise revenue to pay additional wage and 9 benefits increases to such employees, and adoption of 10 resolution stating council's intention to submit 11 measure to the electors at June 8, 1999 special 12 election to raise revenues to fund ongoing arbitration 13 costs and retiree costs. 14 MAYOR APPEZZATO: This evening first we'll 15 have a brief report from the city manager, and then 16 David Lee of the firefighters has asked for fifteen 17 minutes for the Lawyer to give a presentation. 1 will 18 grant that fifteen minutes, and then we'll get into the 19 speakers. 20 So, city manager? 21 CITY MANAGER FLINT: Thank you, 22 You have before you tonight a very lengthy 23 and two draft resolutions as identified by Mr. Mayor. staff report 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 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 Understanding. 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 impasse. 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 12 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 proposals. The City and the Union received the 17 Aribtrator's Award in mid-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 25 steps. First the Council must decide what wages and ALAMEDA CITY COUNCIL MEETING 10 -20 -98 The process under Section 17 -17 involves two Page 1 CLARK REPORTING (510) 486 -0700 1 benefits to approve, and must do so by resolution. 2 5 The second step in the process is for the ^ uncil to call an election to submit a special tax to e voters to generate the revenues to pay any wages benefits which the Council does not approve by 6 resolution. 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 1995 to 1997. 22 With that, Mr. Mayor, I think that we have 23 more than a hundred pages worth of documentation; 24 probably enough to put you to sleep several times over 25 the weekend as you read this packet. We have Zinda 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 CLARK REPORTING (510) 486 -0700 James, the finance director, Liz Kingsley, our Human Resources director, our negotiator -- where is our chief negotiator -- Austris, thank you. And we have also Tim McNeil, our Fire Chief here, to answer questions you may have regarding any of the information contained within this packet. With that, my presentation concludes. MAYOR APPEZZATO: Thank you. Mr. Davis, you have two speaker slips here. I only have one other speaker. Would you prefer I get that other speaker have him speak for three minutes and have you go for fifteen? You're welcome to have fifteen minutes, but I have one other speaker that's not a firefighter. Or would you prefer to take the first fifteen minutes? MR. DAVIS: I don't really care. It's up to you as well as to the speaker how you want to proceed. 1 don't have any particular preference. AUDIENCE MEMBER: You're there now, go ahead 6 and go. MAYOR APPEZZATO: And you have two slips; you only needed one So I presume you made a mistake. There are two here from -- MR. DAVIS: Welt, I signed one and someone else probably signed another. Mr. Mayor, Members of the City Council, let ALAMEDA CITY COUNCIL MEETING 10 -20 -98 inyTran CLARK REPORTING (510) 486-0700 7 1 me introduce myself, first of all. My name is Alan 2 Davis. I'm a long time attorney for the 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 Aribtrator's Award in its 7 entirety, and ask you to do that for the reasons I'll 8 explain in a few moments. 9 But 1 also ask you to 10 11 12 13 14 15 16 consider that if you're not prepared to implement the arbitration award in its entirety because of its clear fairness, that you at least put off the idea of any type of vote, any type of tax, until such time as there is a very careful consideration on the part of this community, a careful study session of that matter, as well as the 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 expressed. 2" We've just received this packet and this 2 aff recommendation -- that many of you probably have 2 :en 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 8 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 condiment his efforts to work with firefighters and 4 other labor organizations. 5 But it is a gentle criticism, I think, of 6 the idea of a matter 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 I think most of you know, in 1980 15 there was an adoption of the citizen - sponspored 16 initiative measure that provided for binding 17 arbitration. 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 firefighters. Firefighters have, as 1 think many of ALAMEDA CITY COUNCIL MEETING 10-20 -98 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 years, 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 vith, 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 employees. Whatever the reason, the citizens 12 in 1992 decided not to adopt that meaou,e' But still 13 for years there was no arbitration of any kind that 14 followed. 15 But then ultimately there vao' 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 /ono period of time' And they began the arbitration 19 process in 1996' They asked for hearinoo, 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 arbit,abie' They actually (eft 25 the arbitration xearino, which forced the firefighters ALAMEDA CITY COUNCIL MEETING 10'20-98 TinyTran 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 items' So they did that. 5 Nearly a year went by before the parties 6 began to go back into arbitration, and did so. And 7 then ultimately the arbitration proceedings went for 8 manv, 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 13 14 15 16 17 18 19 20 21 22 23 24 25 this year. Now, let me suggest to you that among the issues that were raised during the arbitration proceedings was the subject of the financial condition of the City of Alameda, what we in this field cal( the ability to pay. But it was really the financial condition of the City, because it's a required criteria that arbitrators look at the financial condition when they're issuing an award for any group of employees where, in fact, the award is to be final and binding. So this arbitrator looked at that' But the arbitrator not only looked at that, the parties argued that issue vigorously. They presented their own financial consultants; they provided sworn testimony; ALAMEDA CITY COUNCIL MEETING 10-20-98 CLARK REPORTING (510) 486-0700 11 1 they provided numerous exhibits that addressed the 2 whole subject of the financial condition of the City. 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 evrr/thinn, as I'm sure you 9 know. 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 prvpm»ul' Not at all. 12 And as I'll get into -- if I had time, / 13 would get into also the representations that were made 14 by staf as to the costs of what the arbitrator has 15 issued is, in fact, 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 / 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 CLARK REPORTING (510) 486-0700 12 1 the financial condition of the oitv' And if I can read 2 from a portion of thatxribt,amr'o Award, I'd like to 3 address a subject matter that the arbitrator himself 4 reviewed, because 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 hwve' 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 unreaoonabie, 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 1 2 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 CLARK REPORTING (510) 486 -0700 general fund reserves to pay for wage and benefit increases which have been agreed upon following the adoption of the budget. Such historical practices are not sacrosanct. " And then he goes on on Page 18 to say: "Nor is the arbitrator convinced that given the limited scope of the issue, Proposition 4 and the reasonable cost of providing the service statute are applicable to 1995. As a matter of fact, from the totality of the record evidence on this issue, the arbitrator seriously doubts that such matters were truly of any concern to the City during 1995. In any event, all of the above not withstanding, for the City to have granted some kind of salary and /or benefit increases for 1995 would not have required the raising of revenue. Something was done for the police by the way of, quote, ALAMEDA CITY COUNCIL MEETING 10 -20 -98 13 CLARK REPORTING (510) 486 -0700 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 14 TinyTran CLARK REPORTING (510) 486 -0700 1 officers by way of retention pay, 2 and for fire and police management 3 by way of a return to the 1991 4 differential. The City should, 5 likewise, have done something for 6 this bargaining unit. The record 7 discloses six undeniable facts 8 that are compelling here. First, 9 this bargaining unit has not had a 10 raise in over four years. Second, 11 the last salary increase was just 12 one point nine percent." 13 One point nine percent. 14 "Third, the firefighters' salaries 15 compared to the police 16 significantly out of tine. 17 Fourth, the City provided salary 18 increases regardless of names used 19 to police and fire and police 20 management in 1995. Fifth, 21 regardless of whose comparability 2; data the arbitrator considers, the 2.. conclusion is the same; i.e., the 24 city's firefighters are generally 25 underpaid. Six, salaries only ALAMEDA CITY COUNCIL MEETING 10-20 -98 15 CLARK REPORTING (510) 486-0700 16 1 data show that in all 2 classifications the city's 3 firefighters are paid 4 significantly Less than their 5 counterparts in comparable 6 jurisdictions. " 7 Now, I've just highlighted from sections, 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 1 2 3 4 5 6 7 CLARK REPORTING (510) 486 -0700 17 themselves presented ample resources to provide for the costs of the Aribtrator's Award that were very, very carefully analyzed. And that Charter language which was, in fact, adopted by the voters and was written by a former kinds of City attorney here, in fact, has different meanings, depending on who's reading it. 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 else. That's not proper interpretation procedures that 22 are applied by courts of law; that's not the way it's 23 done. 24 25 language, But what it really does point out, that that 17 -17 that begins, "No additional financial ALAMEDA CITY COUNCIL MEETING 10-20 -98 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 TinyTran CLARK REPORTING (510) 486 -0700 18 burdens may be imposed on the taxpayers" is, in fact, very ambiguous. Because here you in fact have, we strongly believe, no additional finance burdens to be imposed upon the taxpayers. The monies are available. It's really a question of priorities as to what you want to spend it on. The arbitrator commented, as you know, that, in fact, you have reserves for your general fund that are unrestricted, in the area of 25 percent. That's a policy issue, and you can decide upon that if you want to have the 25 percent unrestricted general fund reserve. But as I think many of you know, and I think many people who practice in this field and I think many citizens know, that generally the reserve requirement for the general fund is in the area of 5 percent, not 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 1 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 19 1 right to do, of having not a 5 percent general fund 2 unrestricted reserve, but a 25 percent unrestricted 3 reserve. And that's a decision you've made for, I'm 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 sure, a variety of reasons for various kinds of projects that you have in mind that you want to implement. And no one argues with that. No one argues with the benefit of those kinds of projects. But what is being suggested here is that, in fact, there is an additional financial burden that's being imposed upon the taxpayers, and that's not accurate -- I'm sorry. MAYOR APPEZZATO: Go ahead and continue, Mr. Davis. Since there is no one else from the firefighters to speak at this time, please continue, unless the continue. have those 22 is not the Council has an objection. MR. DAVIS: I won't take much of your MAYOR APPEZZATO: -- you are free to I'd like to hear whatever you have to MR. DAVIS: Thank you very much. As I was saying, that in fact where you do types of unrestricted reserves, in fact, it kind of financial burden that requires any time. say. 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 CLARK REPORTING (510) 486-0700 20 1 with the staff report on that, as l 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 say, we just saw this on Friday. 7 So I want to end, really, where we began. 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 compromises,.not one party won on all the 11 issues; in fact, it was a compromise on.almost 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 contract? I mean, that's 20 unheard of. 21 Your staff really has recognized that, that 22 there's no precedent in California, and 1 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 that. 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 that, but I know how things work and how things 4 -k politically. I've been around a while, as I'm 5 •e you can tell. But what I would urge you to do is 6 put that off. 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 20 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 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. I 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 1999 for the year 12 1997, that simply isn't fair. You really do have the 13 money to implement it now, and I think you're 14 recognizing that by your proposal. 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 Barsomium (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 all. ALAMEDA CITY COUNCIL MEETING 10 -20 -98 TinyTran CLARK REPORTING (510) 486 -0700 23 1 ;= 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, please make it effective 7 tonight. Thank you very much. 8 MAYOR APPEZZATO: Mr. Davis, you indicate 9 you want us to put this off. 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 MR. DAVIS: Well, as a matter of fact I have 15 the letters in which I've written not to your city 16 attorney here, but your hired city attorney, a woman by 17 the name of Silver. 1 wrote her several letters asking 18 for the implementation of the award and asking for the 19 staff recommendation. As late as last -- 20 MAYOR APPEZZATO: That's not my question. said you want us to put this off. Why haven't you 2c' 1e a petition to put it off? 23 MR. DAVIS: I did -- welt, not to put it 24 off; I asked for the staff recommendation, and, in 25 fact, I was told -- 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 tonight. Have you officially requested of the city 4 attorney, city manager not to take action tonight? 5 MR. DAVIS: No, Mayor, I have not. 6 MAYOR APPEZZATO: But you're asking us to do 7 that. I was wondering why you haven't done that. 8 MR. DAVIS: That's what I'm trying to 9 explain, if I 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 award. And then when 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 her asking for the staff's 19 recommendation, which 1 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 Friday. 24 That's really not enough time. 25 MAYOR APPEZZATO: City attorney. 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 by the 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 1 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 continuance 5 with respect to this hearing. They wanted a 6 continuance in order to challenge in court the 7 8 9 10 11 12 13 14 15 16 Aribtrator's Award. That's what they wanted. And the firefighters aren't willing to agree to an extension of time to challenge the award in court. In fact, their recommendations to you tonight are not to challenge it in court, and there isn't any need to act upon it. That's what was asked of us. Nothing else. Tonight's meeting with respect to the recommendations were never brought up. That was not part of the recommendation. And what I said was 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 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 1 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, 22 that. But, in fact, their approach to and I understand 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 1 MAYOR APPEZZATO: l 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 1 extend. 2 CLARK REPORTING (510) 486 -0700 29 MR. DAVIS: Mayor: I'd like to respond, and +ant to make it very clear -- 41 MAYOR APPEZZATO: This is not a court, by 5 way, okay? But go ahead. 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 well. 9 But I want to make very clear to you in the 10 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 do. 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 there 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. 1 want to 20 make that crystal clear, that it's not my deadline, 21 it's theirs. 22 MAYOR APPEZZATO: Mr. 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) 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 considering. 1 have it in writing that their 4 outside counsel said to us that, in fact, they were 5 considering vacating the award. 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 MS. KORADE: Mr. Mayor, there is no -- there 11 is no time limit set forth in the Charter upon which 12 you have to make a decision. 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 reconsideration. 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 Mr. Davis agreeing to that. 23 MR. DAVIS: Well, can I follow up? 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 TinyTran CLARK REPORTING (510) 486-0700 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 -- 4 MAYOR APPEZZATO: Mr. Davis, please don't 5 put words in my mouth. I said that I don't know of any 6 action of this Council to go to court. Okay? Now, 7 Karin? Tony? 8 COUNCILMEMBER LUCAS: Yes, Mr. Mayor, I 9 suggest we follow the advice of our attorney. And, of 10 course, this is an adversary hearing here; I think we 11 have to rely on our attorney and her advice. So I 12 suggest we cut the discussion off at this point. 13 MAYOR APPEZZATO: Tony. 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 give. There's just so much percentage that we 19 can go to. And from what I understand that the 20 firefighters and the Union want, they want something a more than what we can afford. And I think that's e crux of the matter, is whether or not we can afford 24 You're saying that we can. 1 mean, I 25 certainly would have more comments on that subject. So ALAMEDA CITY COUNCIL MEETING 10 -20 -98 CLARK REPORTING (510) 486 -0700 32 1 I don't understand deadlines or timelines are the 2 issue. 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: Barbara? 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 elevator. 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, l would have severe problems with 21 working out any kind of a new agreement within -- 22 tomorrow, which is the 21st. I mean, 1 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 Council. And so 1 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 I 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, I 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 I 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 TinyTran CLARK REPORTING (510) 486 -0700 34 1 improve, especially if Measure B passes and a few other 2 things, so there may be a possibility that additional 3 funds might be available for a Little bit better raise 4 than what you have, a little bit closer to the 5 arbitrator. 6 So what I'm trying to say is that I'm not 7 opposed to having this thing postponed and let the 8 negotiators Look at it, work it out, and we see whether 9 packages -- these contracts are done over periods of 10 two, three, four years, and the funds might be 11 available in the future. But these kind of things can 12 be negotiated. 13 So rather than taking it to the voters and 14 what have you, which I: don't really see it's in the 15 best interest of the firefighters or the City, really, 16 I think that we should go ahead and try to negotiate 17 it. 18 So I guess what I'm saying here is I'm not 19 opposed to some type of a delay here if the 20 firefighters were agreeable and see the wisdom to that. 21 And, of course, 1 would presume that I would need the 22 permission of the Council to award a delay if the Union 23 was in that -- was willing to do that. 24 So perhaps in the form of a question: Does 25 the Union wish to provide some kind of a written okay ALAMEDA CITY: COUNCIL MEETING 10 -20 -98 CLARK REPORTING (510) 486 -0700 35 1 to delay this decision we have before us? 2 MR. DAVIS: Well, I've indicated that we are 3 asking that. And I think the only open question was 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 has 7 asked that you do something, in writing, I guess. So 8 it's hard for you to answer questions on your feet with 9 all your firefighters behind you and you're trying to 10 talk to for all of them, but with regards to what the 11 City Council -- I 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. 1 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 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 10 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 wilt harm 16 you or not. 17 18 19 20 21 22 23 24 25 CLARK REPORTING (510) 486 -0700 36 -- with what the -- in regards to what our Council has said. MAYOR APPEZZATO: I can't do that. COUNCILEMBER LUCAS: I can't do that either. BOARDMEMBER DAYSOG: Mr. Mayor, I have just one comment. MAYOR APPEZZATO: Tony? BOARDMEMBER DAYSOG: Thank you, very much. I think the comments made by Vice-Mayor Al Dewitt are honorable and should be weighed heavily. 1 think every effort that we can make to come to some common ground ALAMEDA CITY COUNCIL MEETING 10 -20 -98 Page 9 CLARK REPORTING (510) 486 -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 3 '—'3ortant. 4 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 25Z reserve. 1 think it comes out to be something 11 like eight million dollars, six million dollars reserve 12 that the City of Alameda has. 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 20 maintain our practice of not dipping into the reserves. 21 Base conversion alone for one year costs 22 eight million dollars to provide the services that we 23 do. We do try to get the funds to do the services when 24 we can from the federal government. And we did that, 25 had some firefighters out there. And also, you know, ALAMEDA CITY COUNCIL MEETING 10 -20 -98 CLARK REPORTING (510) 486-0700 38 1 with all the future changes going on at the base, I 2 think we have to have a cushion. 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 emergency? How many of those other cities, 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 filled? 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 I think the Measure B that you alluded to in 18 1980 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 did. But Measure B of 1980 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 is. 24 Measure 8, again, was then reaffirmed by 25 Measure D in 1982, and Measure D -- and again, in 1992 ALAMEDA CITY COUNCIL MEETING 10-20-98 inyTran 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 1 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 got 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, 20 but also things that are on our table right now. 21 So I think we're making the right decision 22 moving forward. 23 MAYOR APPEZZATO: All I was trying to do was 24 trying to clarify your request to put this off, and 25 apparently 1 didn't get far with that. ALAMEDA CITY COUNCIL MEETING 10 -20 -98 1 2 3 4 5 6 have -- 7 CLARK REPORTING (510) 486 -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 that. 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: Sure. 20 COUNCILMEMBER 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 88th 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 88 days before June 8th to do so. 19 COUNCILEMEMBER LUCAS:: Maybe that would 20 address the Vice Mayor's concern. And I think we could 21 instruct the staff to be open to negotiations. 22 MAYOR APPEZZATO: Thank you. Barbara? 23 COUNCILMEMBER KERR: Could the city manager 24 please -- I think there's an assumption here. First of 25 all, I'd tike 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 settling with the firefighters years ago. It's unfortunate that at least one other member of the Council didn't join with them to eliminate that. Mr. Daysog's comment earlier seems to overlook the fact that in terms of reserves to the City, that didn't seem to be a concern in terms of giving pay raises to other city employees, other managers and the city manager and the city attorney, two of our highest paid officials in the City. I think that the treatment of the firefighters has been grossly unfair. And for anybody to publicly state that they have been treated fairly, to use that word "fair" on this situation would require the use of a special definition which would probably only be contained in the dictionaries used by President Clinton. Thank you. MAYOR APPEZZATO: I would ask that you hold 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 your applause. There's due respect to everyone in the 25 chamber. Thank you. Diane Coler -Dark ALAMEDA CITY COUNCIL MEETING 10-20 -98 TinyTran CLARK REPORTING (510) 486 -0700 42 1 MAYOR APPEZZATO: I am. We're going to do 2 that before we -- 3 COUNCILMEMBER KERR: Yeah. But also, I 4 would -- city manager, or a selected member of your 5 staff discuss that if we vote on this tonight, the 6 amount of money that the firefighters will start seeing 7 right away, I think there's -- that's been unspoken and 8 not addressed. It's as if we weren't offering any 9 increase right now. 10 CITY MANAGER FLINT: May I respond to that? 11 MAYOR APPEZZATO: City manager. We do need 12 to hear the rest of the speakers. You're correct. 13 CITY MANAGER FLINT: Well, 1 think that 14 Mr. Davis might want to take a seat for a minute. 1 15 don't know, if Austris or Liz, would you like to review 16 the conditions that we're talking about, in response to 17 Councilmember Kerr's request? 18 COUNCILMEMBER KERR: I was referring to 19 Page 6. 20 MAYOR APPEZZATO: Barbara, why don't we 21 elect the other two -- Barbara? Barbara, we just have 22 two other speakers. Why don't we hear them, and then 23 we can get into discussion with the Council? Is that 24 okay? 25 Everybody concur? Don Roberts. ALAMEDA CITY COUNCIL MEETING 10 -20 -98 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 feet really saddened and really -- this, to 8 me, is a real downer, because I don't know how many of 9 you were around, but I can remember way back when, when 10 there was a particular -- shall I say a Council 11 vendetta, and that had to do with the arbitration. 12 And I believe that the firemen called it a 13 poison pill or something with regards to putting this 14 to the voters, but ultimately 17 -17. But l do 5 remember that in my estimation there was a lot of 6 dissemination of misleading information to the voters 7 which had to do about what arbitration was really all 8 about. 9 An arbitrator was portrayed as a person who 20 was going to come into town who didn't care about the 21 City and who could give away all of the reserves and 22 all of the money, and we had to protect ourselves and 23 all this sort of thing. 24 Well, in all that confusion, ultimately we 25 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 3 ;y. And I realty had hopes that this Council could 4 forward and settle this issue. And I feel very sad 5'.,, 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 way to 10 negotiate this issue without an election, please do so. 11 You're our last hope to settle this issue and get it 12 resolved. Thank you. 13 MAYOR APPEZZATO: That's the last speaker. 14 I'll close the public hearing and have a five - minute 15 recess. 16 (Off the Record) 17 MAYOR APPEZZATO: Ladies and gentlemen, 18 we'll reconvene. With the approval of the Council, we 19 have another awardee here. Do we need to take a vote, 20 city attorney, to recess and make an award real 21 quickly? Would someone move to recess for a few 22 minutes? 23 24 25 COUNCILMEMBER KERR: I so move. MAYOR APPEZZATO: We have a move to recess. e have a second. Any discussion? All in favor. The ALAMEDA CITY COUNCIL MEETING 10 -20 -98 CLARK REPORTING (510) 486 -0700 46 1 Council stands recessed. 2 (Off the Record) 3 MAYOR APPEZZATO: I'll reconvene the City 4 Council. 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 necessary. There are 9 many uncertainties. The City is going to lose 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 tax. 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 gentlemen, 20 you've had your opportunity. Please have some respect. 21 I know there's some people here that don't have respect 22 for others, but I would hope the majority do. 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 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: Second. 6 MAYOR APPEZZATO: We have a motion and we 7 have a second. Barbara? 8 COUNCILMEMBER KERR: 1 had asked that the 9 staff report to us 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. RUNGIS: Yes Mr. Mayor, Council, the 2 }gust 1997 document that we presented to Mike and his 2: am embody these particular improvements. It improves 2 "tne Employee Assistance Program to ten visits annually. 24 Effective January 1st 1995, the EMT 1 -A 25 certificate goes to $108 per month. ALAMEDA CITY COUNCIL MEETING 10 -20 -98 CLARK REPORTING (510) 486 -0700 48 1 The ambulance differential increases to 2 $32.40 per 20 -hour shift. 3 There is an across the board wage increase 4 on January 1st of 1996 of 3 percent, an across the 5 "board wage increase of 2.5 percent January 1st, 1997. 6 In addition, on January 1st, 1997 the 7 differentials in the ranks will increase. 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 intubation. 14 These particular economic adjustments are 15 embodied in this August 21st, 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 possible. Hopefully the first part of it 20 can be done in the beginning of November of 1998, 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 answers. What would be ALAMEDA CITY COUNCIL MEETING 10 -20 -98 Page 12 CLARK REPORTING (510) 486 -0700 49 1 the cost to the citizens of Alameda, to the City of 2 Alameda, to implement the August '97? 3 MR. RUNGIS: That cost, I believe, is in 4 your report. 1 don't have it in front of this 5 particular 6 7 MAYOR APPEZZATO: 1 show $763,688. CITY MANAGER FLINT: That's correct. 8 MAYOR APPEZZATO: So almost 9 $763,000 immediately? 10 CITY MANAGER FLINT: That's 11 Mr. Mayor. 12 MAYOR APPEZZATO: Thank you. -- well, correct, Does that 13 answer your question, Barbara? Do you have another 14 comment? 15 COUNCILMEMBER KERR: Yes. l just wanted to 16 dispel the impression that there were no raises or 17 increases in the proposal before us tonight, and that 18 they will start happening right away, and that the lump 19 sum distribution from past raises will be distributed 20 very promptly. 21 22 anything 23 24 25 second. MAYOR APPEZZATO: Thank you. Do you have else? COUNCILMEMBER KERR: No. MAYOR APPEZZATO: We have a motion and a Any discussion? Al. ALAMEDA CITY COUNCIL MEETING 10 -20 -98 TinyTran CLARK REPORTING (510) 486 -0700 50 1 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 I believe that they would love to have that go away, 19 declared unconstitutional, whatever. 20 So I 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 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 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 cane to Alameda and say that our wages are low. They 7 are below the level. But my point that I 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 tots 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 ke 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. 10 So my little request to you is to help us 11 make the City a better place as it is, and continue to 12 support us as we support you. Thank you. 13 MAYOR APPEZZATO: We have a motion and 14 second on the floor. A couple of brief comments. The 15 City and the Firefighters' Union have had a lot of 16 intense discussions since 1980. There's been some 17 controversy with those since 1980. 1 am pleased to say 18 that, at least to my knowledge, this current Council 19 has not engaged in any negative comment or discussion 20 regarding our firefighters. I'm not aware of any. 21 we've had -- are you through back there? 22 We have eleven unions in our city. We have 23 agreed to union contracts with ten of the 11. So 1 24 think it would be unfair for anyone to say that we're 25 not sensitive to the 11 unions in our city. ALAMEDA CITY COUNCIL MEETING 10 -20 -98 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 mast 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 TinyTran 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 I 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. 20 21 22 If this does go to a vote of the people, and the Firefighters' Union concurs, I will be the first leading the support of that initiative and will 23'sgn 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 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 I 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 1 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 no 19 wage increase in 1995. 2Q We have a motion and a second. And as 1 21 said earlier, this will result in an immediate award of 22 almost $800,000 to the firefighters. And if it goes to 23 a vote of the people at a later hearing before this 24 Council, I will be the first one to go forward and 25 request that the citizens pass the ballot initiative ALAMEDA CITY COUNCIL MEETING 10-20-98 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 CLARK REPORTING (510) 486 -0700 and a reward all of our employees adequately. All in favor? Opposed? Motion passes unanimously. Call for a brief reserve. COUNCILMEMBER LUCAS: Mr. Mayor, I believe my motion included only the first part of the recommendation, and l believe we need to vote on the second part. MAYOR APPEZZATO: Okay. Would you make a TinyTran 58 motion? COUNCILMEMBER LUCAS: 1 move -- the second part of the resolution stating council's intention to submit measure to the electors at June 8th 1998 election. MAYOR APPEZZATO: We have a UNIDENTIFIED COUNCILMEMBER: MAYOR APPEZZATO: We have a motion. Second. second. 17 Anything discussion. All in favor? Opposed? Motion 18 passes unanimously. We'll have a brief recess. 19 20 21 22 23 24 25 (End of agenda item) 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 1 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, I have hereunto set my hand and of6t/19{Ij= 20 affix my official seal of office this 21 22 23 24 25 ST PHENSON CIKRK REPORTING ALAMEDA CITY COUNCIL MEETING 10 -20 -98 Page 15