The city council approved deals with two Morgan Hill employees’
unions that will prevent at least two layoffs going into the fiscal
year that starts July 1.
The city council approved deals with two Morgan Hill employees’ unions that will prevent at least two layoffs going into the fiscal year that starts July 1.
A contract amendment with the Police Officers Association, which represents 33 sworn Morgan Hill officers, says the city cannot lay off any of its members for the next five years. In return, the union agreed to give up 3 percent raises for each of the next three years, saving the city about $2.1 million in the same time period, according to city staff.
As the city manager’s recommended budget was being printed last week, City Hall received the proposal from the POA, according to budget manager Jimmy Forbis. As a result, the proposed budget recommended a total of 15.9 layoffs as a way to reach an annual savings of $2.3 million.
The city council’s approval of the POA contract amendment Wednesday reduces the recommended job eliminations to 13.9, Forbis said.
The concession by the union also saves the city more than the two layoffs over five years would – an estimate of about $1.7 million.
Also approved by the council Wednesday was a contract amendment with the Community Services Officers Association, which represents 18 police support staff, dispatchers, the animal control officer, multi-services officers and community service officers.
That agreement also gives up scheduled raises for the next three years, saving the city about $330,000 over the next five years.
The animal control officer, a multi-services officer and half a dispatcher’s position are still recommended for layoffs next fiscal year, as the agreement does not contain an explicit no-layoff clause. However, the agreement gives the council the financial room to save at least some of the positions if they choose.
The contract amendment with the CSOA also states the city will make a “good faith effort” to ensure the union’s 18 members are included in any potential contract with an outside agency the council may enter into for police services in the coming five years.
Last month, the POA proposed that the city consolidate police services with the Santa Clara Sheriff’s Office as a way to save up to $2 million a year on public safety. The council approved a process for seeking proposals from a number of outside agencies for such consolidation.
Both agreements also give up seniority-based raises for fiscal year 2010-2011.
Since December 2009, the city has sought contract amendments from its three unions to save costs on personnel – recognized as the council’s top priority at a goal-setting workshop at the time.
So far the city and its largest union, the American Federation of State, County and Municipal Employees Local 101, have not reached an agreement. AFSCME represents 86 city employees. The union and the city are still in the process of negotiating a potential deal, and City Manager Ed Tewes said the group has shown interest in meeting with the city council next week.
Adoption of a final budget for fiscal year 2010-2011 is scheduled for June 16.
