Loading...
02/16/1989 - Minutes 41 - MINUTES: Committee of the Whole Thursday, February 16, 1989 5:00 - 8:30 p.m. City Council Conference Room Suite 300, City Hall 324 South State Street In Attendance: Florence Bittner, Wayne Horrocks, Sydney Fonnesbeck, Alan Hardman, Tom Godfrey, Roselyn Kirk, Willie Stoler, Linda Hamilton, Cindy Gust- Jenson, Lee King, Christine Richman, Cam Caldwell, Mike Zuhl, Emilie Charles, Sgt. Dana Orgill, Det. Greg Smith, Kirk Heaton, Roger Straub, Chief Michael Chabries, Chief Pete Pederson, Officer David Greer, Major Ed Johnson, Charlie Quick, Sgt. Mac Connole, Press 1 . Kirk Heaton and Roger Straub briefed the City Council on their proposal to alter the Class A Liquor licensing ordinance to allow for the sale of beer from refrigerators in hotel rooms. Mr. Heaton stated that the refrigerators would contain only 6-8 cans of 3.2 beer. Mr. Straub indicated that the hotel would control the distribution of the keys, because it is not in their best interest to have teenagers disturbing the stay of their other guests. Det . Greg Smith, Salt Lake City Police Department, stated that the Police Department does not support the change in the ordinance because of a lack of supervision in the hotel rooms when minors may be present. Council Member Tom Godfrey expressed concern that the Police Department may be exaggerating the risks associated with the change. He stated that he didn't know of any high school age kid who would be willing to rent a hotel room just to get to 6-8 cans of beer. Detective Smith stated that the Police Department's problem is one of how to monitor each room in each hotel. He also stated that the Police Department had not received a copy of the proposed ordinance. Council Member Bittner indicated that she would like the Police Department to review the ordinance and submit their opinion to the City Council by Tuesday evening. 2. Cam Caldwell, City Council Budget Analyst, reviewed the proposed budget staff recommendation format with the City Council. Council Member Godfrey stated that his only concern was that the format facilitate the Council 's discussion of the budget on the program service level. 3. Linda Hamilton, Executive Director, briefed the City Council on the early retirement program. She reviewed the history of the program for the City Council. Ms. Hamilton stated that the benefits of the program include the facilitation of bringing new blood into the Departments which allows for a creative new look at old problems and providing public safety officers on the street who are younger and more physically fit. Ms. Hamilton stated that the overall program is not negative to morale, but the long-term maintenance of vacancies in order to balance the budget does have a negative impact on morale. She indicated that other negative impacts of the program are the decreased service to the public by maintaining vacancies, the loss of leadership in the Department, and the shrinking labor pool. Ms. Hamilton indicated that she had developed two options for the Council discussion and review. She encouraged the Council to make the decision clear during the meeting because the longer the Council delays their final decision, the greater the impact of the mass exodus of public safety employees through the early retirement program. Ms. Hamilton stated that the first option is the total elimination of the program. She indicated that the disadvantages of this option are that if the Council decides to eliminate the program the ordinance finalizing that decision would not be effective for one week to ten days allowing a window of opportunity for all those who are currently eligible to retire immediately. She stated that the Departments have already taken a big financial hit due to early retirements, and could not absorb the additional cost of these retirements. Ms. Hamilton reviewed the second option for the Council which is designed to maintain the advantages and mitigate the disadvantages. She stated that option two is to allow a one time window of opportunity at 25 years, cap sick leave at six months, and allow for payment of all vacation time accrued and continue to pay two months of base pay. She stated that the Departments would still have to carry the costs, but would be better able t.o manage the program by effectively anticipating when the retirement would take place. If the window occurred in July, the Department would have an entire fiscal year to absorb the cost. Ms. Hamilton indicated that one of the major benefits of accepting option two is that the number of people taking early retirement in the interim between the Council's decision and the effective date of the ordinance would be fewer, reducing the short-term liability to $1. 1 million. Ms. Hamilton indicated that if the program were eliminated and all currently eligible employees took advantage of the window of opportunity, the Fire Department would have to leave 50 positions vacant for a year which is 50% of sworn firefighters and the Police Department would have to leave 46 positions vacant for a year which is equal to 14% of all sworn officers. If the Council chooses option two, the Fire Department would probably have t.o leave 11 positions vacant or 11% of the sworn firefighters, the Police Department would probably have to leave 19 positions vacant or 16% of their sworn officers. She stated that the longer the Council discusses the early retirement program the higher the level of anxiety in the departments, and the more the costs for the current fiscal year. escalate. She urged the Council to take action as quickly as they felt comfortable with. Council Member Hardman asked why the pattern of expenditures relating t.o early retirements would alternate a high amount and a low amount for each year. Pete Pederson, Fire Chief, stated that the early retirement began as a two year pay out which would explain the alternating amounts. Council Member Hardman stated that the figures he has for the current year do not reflect staff"s assessment of the situation as a "mass exodus". Ms. Hamilton indicated that the figures Council Member Hardman had were through September 30, 1988. The current figure is $1.. 3 million higher. Council Member Kirk asked if the Council was expected to make a decision immediately. Council Member Stoler stated that staff had only provided two options when there are numerous other ways to deal with the same problem. Ms. Hamilton stated that the reason she had only provided two options was the need for quick action on the part of the Council, and the limited staff time available to dedicate to the issue. Council Member Godfrey stated that one of the benefits he could see in Option 2 was the ability of the Council to easily identify the impact of early retirements in departmental budgets. Council Member Kirk indicated that she agrees that the Council should make a decision quickly. Council Member Stoler stated that one additional option would be to hold those who are currently eligible harmless, and completely eliminate the program. No one could become eligible following the Councils action. Council Member Godfrey stated that he did not support eliminating the program. Council Member Hardman asked what the financial benefits of the program are. Ms. Hamilton indicated that the Department of Finance had assessed the savings at $2 million over the life of the program. She indicated that the money saved came from leaving the positions vacant, hiring the replacements at a 19% lower salary, and never filling 31 positions. Ms. Hamilton stated that the real savings comes from the ability to eliminate redundant positions. Council Member Hardman asked how long the Fire Department must leave positions vacant. Chief Pederson stated that lately the Fire Department has been leaving the positions vacant for nine months although in the past he has been able to budget for the impact of the early retirements. Council Member Hardman asked how the lack of replacement firefighters impacted service. Chief Pederson stated that the impact is not in response times, but has resulted in 3-person crews. A three person crew is not as effective in fighting large fires as the desired 4-person crew. Michael Chabries, Chief of Police, stated that if the Council wants to approach the issue as strictly a dollar and cents issue they should consider the liability the City assumes when employees retire with a full 30 years. He indicated that the City saves approximately $12,000 per individual in the first year. Council Member Kirk indicated that Option 2 looked good to her. Council Member Horrocks stated that he would be more comfortable with Option 2 if it held harmless those who are currently eligible for early retirement. Ms. Hamilton stated that holding harmless those who are currently eligible would have a positive impact on morale. Council Member Fonnesbeck indicated that she would like to clarify the goal of the Council in changing the early retirement program. She stated that her goal is not to eliminate the program, but to make it manageable. She indicated that Option 2 meets her goals. Council Member Godfrey observed that the only reason the Council was interested in altering the early retirement system, was because the City had experienced some problems with it in the past year. Council Member Horrocks stated that he wanted to avoid the possibility of all eligible employees making a "run" on the opportunity, and therefore would not want to eliminate the program but make it more manageable. Chief Chabries stated that a workable variation on Option 2 would be to have two windows of opportunity for retirement: one at 20 years and one at 25 years. This would make the program manageable, but still allow the employees greater opportunity for retirement.. Ms. Hamilton stated that she would like the Council to come to some consensus so that staff can get the ordinance drafted in time for consideration on the following Tuesday. She indicated that allowing a window at 20 years would make the City liable earlier, and send the employee out with a lower salary. Council Member Bittner suggested that the new program consist of two windows of opportunity: one at 20 years and one at 25 years. The City would offer the employees 100% of their accrued vacation, a percentage of 6 months of sick leave (based upon accepting at the 20 year or. 25 year window), and two month base pay. Ms. Hamilton indicated that the new program would be more manageable if the Council based the sick leave buy out on an actual month accrual rather than based upon a percentage of the total allowed. Council Member Bittner indicated that that would be 4 1/2 months for 20 years and 6 months for 25 years. Chief Chabries indicated that he currently has one employee who has more than 25 years service. Council Member Bittner stated that those who are currently eligible for early retirement remain eligible under the program in place when they became eligible. Lt. Ken Thirsk indicated that his only concern on limiting the amount of sick leave an employee can receive is that it may lead to abuse of sick leave. The City Council took a straw poll on continuing the early retirement benefit and putting in place the new program outlined by Council Member Bittner. The Council voted in favor of the program 7 to 0. W. M. "WILLIE" S ER, CHAIR ATTEST: -A/114A424;446Z--- CI Y E D .R