►
Description
City of San Bruno City Council Meeting 09-08-09 10a. Response to Grand Jury Report
B
Thank
You
mr.
mayor
members
of
the
council.
The
item
before
you
tonight
is
a
draft
response
to
a
grand
jury
report
that
was
prepared
and
circulated
to
all
of
the
cities
in
San
Mateo
County
at
the
beginning
of
june
of
this
year.
As
the
council
knows,
the
grand
jury,
each
county
is
required
to
impanel
a
grand
jury
every
year
and
that
grand
jury
is
tasked
with
the
responsibility
of
evaluating
at
its
choice,
certain
public
agency
issues,
as
it
deems
appropriate
when
the
grand
jury
prepares
and
releases
a
report.
B
That
report
is
distributed
to
the
agencies
to
which
it
is
relevant
and
typically
those
agencies
are
required
to
provide
a
response
to
the
grand
jury's
findings
and
their
recommendations.
As
I
indicated,
this
particular
report
is
was
distributed
and
it
has
as
its
subject
each
and
every
of
the
20
cities
in
San
Mateo
County
in
a
particular
the
what
the
grand
jury
calls
the
upward
trajectory
of
employee
costs
in
each
of
these
cities.
B
B
It's
not
uncommon,
as
fact
is
typical,
that
employee
costs
are
the
single,
most
significant
cost
factor
expenditure
item
within
each
of
our
cities,
because
we
are
in
fact
public
service
agencies,
and
so
it's
to
be
expected
that
a
very
significant
percentage
in
that
that,
as
reported
in
the
grand
jury's
findings,
is
that
is
roughly.
Seventy
percent
of
costs
in
each
of
our
agencies
is
devoted
to
employee
compensation
or
the
the
total
of
employee
compensation.
B
C
B
Areas
of
the
grand
jury's
findings
and
conclusions
with
which
the
draft
response
and
your
staff
does
actually
agrees
enthusiastically
with
there
are
numbers
of
the
conclusions
or
the
recommendations
that
that
we
believe
and
are
recommending
to.
You
may
be
a
little
bit
off
the
mark
in
terms
of
both
the
analysis,
as
well
as
the
conclusion
and
the
recommendation
and
we'll
talk.
We
wanted
to
go
through
those
with
you
tonight.
B
The
material
is
actually
fairly
lengthy
and
fairly
complex
and
what
I
wanted
to
do
first
and
then
I'm
going
to
ask
our
administrative
services,
director
Jim
O'leary,
to
make
some
additional
comments.
I
wanted
to
cover
some
of
those
topic
areas
that
the
grand
jury
has
addressed,
that
that
are
sort
of
the
most
significant
or
most
overarching
conclusions
that
the
grand
jury
has
reached
and
to
give
you
a
brief
comment
on
what
the
draft
response
says
about
that
and
the
first
that
those
three
areas
are
employee:
retirement
costs,
the
costs
for
retiree
medical
benefits
or
premiums.
B
And
thirdly,
the
area,
the
general
area
of
the
appropriate
manner
in
which
a
community
or
city
ought
to
be
establishing
its
compensation,
philosophy
and
policy.
Those
are
the
areas
that
all
comment
on
and
then
Jim
will
comment
on
a
several
of
the
other,
more
detailed
areas
of
the
grand
jury's
findings.
B
First,
as
it
relates
to
retirement
costs,
this
is
an
area
that
has
been
the
subject
of
a
great
deal
of
discussion
in
our
state
for
a
long
time
for
many
years
now,
and
it
is
the
subject
of
some
previous
activity
in
what
I
expect
will
be
a
renewed
interest
in
legislative
reform.
As
you
know,
the
this
city
and
the
other
cities
in
our
county
participated
in
the
CalPERS
or
California
Public
Employee
Retirement
System
program
for
retirement
benefits.
B
Pers
costs
have
been
seriously,
or
rather
pers.
Resources
have
been
seriously
impacted
by
the
recessionary
economy
and,
in
particular,
the
purses
loss
in
investment
earnings.
The
system
itself
is
based
on
the
provision
of
retirement
benefits
based
largely
upon
investment
earnings
and
then
as
well,
by
the
employee
contributions
and
the
employer
contributions.
In
times
when
investment
earnings
are
not
adequate
to
meet
the
pers
target,
public
employer
rates
can
be
impacted
by
increases,
and
that
has
in
fact
been
the
case
over
the
past
number
of
years.
B
It
is
more
significantly
the
case
right
now
and
although
the
pers
rate
increase
lags
the
actual
situation
of
the
investment
earnings
decline,
we
are
expecting
a
an
additional
amount
and
probably
a
significant
increase
in
our
rates.
As
a
result
of
the
current
economic
situation,
pers
has
concluded
I'm
sorry,
the
grand
jury
has
concluded
that
the
current
level
of
benefit
is
unsustainable
for
our
communities
and,
as
I
said
before,
this
is
an
issue
which
long
does
consideration.
B
We
believe
that
that
is
a
viable
recommendation
and
one
that
should
be
considered
by
the
city
as
it
is
being
considered
by
our
colleagues
up
and
down
the
peninsula.
I
need
to
say,
and,
as
we
have
said
in
the
draft
response
to
the
grand
jury,
there
is
no
immediate
cost
savings
that
would
result
from
such
a
strategy:
the
creation
of
a
two-tiered
retirement
system.
However,
it
is
possible
that
savings
would
be
realized,
or
at
least
in
cost
increases
could
be
contained
into
the
long-term
future
and
simply
as
a
matter
of
public
policy.
B
We
think
that
throwing
out
the
baby
with
the
bathwater
is
probably
not
a
good
idea.
Ie
total
reform
of
the
purse
system.
However,
a
ratcheting
back,
if
you
will
of
the
level
of
the
benefit,
does
make
sense
in
the
long
term
and
is
something
that
both
your
city
managers,
as
well
as
the
grand
jury
conclude
is,
is
a
is
a
viable
recommendation.
B
Many
others
of
the
recommendations
in
the
grand
jury's
report.
I
guess
I
will
say
right
at
the
right
at
the
outset,
at
least
in
the
in
the
detail,
in
the
way
that
the
grand
jury
has
analyzed
them
are.
I
am
not
as
strongly
endorsing
in
many
of
the
recommendations
we
have
included
in
the
draft
response,
a
statement
that
these
are
items
that
we
should
and
will
look
at
as
part
of
the
annual
negotiations
and
budget
setting
process,
and
that
is
the
case
with
the
retiree
medical
benefit
item.
B
B
Third
area
I
want
to
comment
on
is
the
grand
jury's
several
recommendations
related
to
the
establishment
of
city
policy
with
respect
to
compensation
in
this
area.
The
grand
jury
has
some
fairly
strong
recommendations
for
any
increase
in
public
involvement
up
to
and
including
the
establishment
of
a
citizen
task
force.
That
would
be
tasked
with
developing
an
action
plan
for
the
City
Council's,
that
would
that
would
essentially
establish
the
city's
compensation
philosophy
and
would
guide
negotiations
and
the
overall
area
of
employee
compensation
management.
B
Fundamentally,
this
response
and
I
should
note
that
this
response
tracks
on
a
similar
response
is
made
by
others
of
our
colleagues
in
other
cities.
This
response
suggests
that,
in
fact,
the
City
Council
and
the
City
Council
in
particular,
is
not
only
well
prepared,
but
but
very
well
understands
its
role
in
its
obligation
in
this
very,
very
important
area
of
organization
management
and
policy
setting.
B
How
this
council
has
demonstrated
leadership
and
and
maintained
a
very
strong
policy
position
in
support
of
containment
of
costs,
where
appropriate,
related
to
compensation
related
issues
and
beyond
that,
where
this
council
has
demonstrated
its
its
willingness
to
make
tough
decisions
when
those
must
be
made
with
respect
to
the
levels
of
public
service
that
are
affordable
and
the
numbers
of
staff
that
must
be
employed
or
that
are
affordable
to
be
employed
in
order
to
deliver
those
public
services.
So
in.
B
In
general
terms,
this
response
suggests
that
the
recommendation
for
the
establishment
of
a
citizen
task
force
and
the
companion
recommendation
that
a
ballot
measure
potentially
be
established
that
would
vest
the
public
generally
with
this
type
of
important
policy
setting.
This
response
suggest
that
those
recommendations
are
not
as
highly
supported
in
our
fat,
in
fact
not
expected
to
be
implemented
here
in
San,
Bruno
I
call
those
out
for
your
attention
because
it's
obviously
important.
B
This
is
your
response
and
it's
obviously
important
that
that
it
reflects
your
particular
understanding
and
opinion
with
respect
to
the
areas
that
the
grand
jury
has
has
called
out.
With
that
I'm
going
to
ask
Jim
to
quickly
review
some
of
the
other
areas
of
the
grand
jury's
recommendations
and
the
general
comments
that
this
response
makes.
D
Again,
just
completing
the
overview
of
the
recommendations
by
the
grand
jury
that
are
covered
by
the
draft
response
from
the
City
Council
in
the
agenda
packet.
There
are
really
four
other
areas
of
consideration
by
the
grand
jury.
The
first
is
to
renegotiate
contracts,
with
unions,
to
modify
current
benefits
provided
to
employees
with
a
partial
goal
of
again
in
this
area,
creating
a
two-tier
system
for
existing
employees
and
for
new
employees.
The
grand
jury's
comments
cover
sick
leave,
vacation
and
personal
days,
provided
as
part
of
a
compensation
package.
D
Again
your
response,
as
drafted
points
out
that
these
and
other
benefits
that
exist
have
been
agreed
to
following
bargaining
in
good
faith
with
the
with
the
units
and
that
these
are
all
part
of
a
compensation
package
that
is
the
subject
of
negotiations
on
an
annual
or
periodic
basis
with
the
expiration
of
mo
use.
The
next
round
of
negotiations,
which
would
begin
next
year
and
again
as
the
council,
sets
the
strategy
and
determines
the
level
of
compensation
to
be
negotiated.
These
are
subjects
that
the
council
well
may
may
want
to
consider.
D
The
next
area
in
the
in
the
grand
jury's
report
is
to
initiate
what
they're
saying
competitive,
hiring
practices
which
considers
such
things
as
doing
more
copper
ability
of
jobs
and
job
salaries
between
the
private
and
public
sector.
Similarly,
a
more
market-oriented
compensation
practice
related
to
the
number
of
applicants
and
the
demand
for
positions.
D
They
specifically
call
out
considering
the
number
of
applicants
when
negotiating
salaries
and
then
to
outreach
to
colleges,
community
colleges,
veterans
groups
and
high
schools
to
maximize
the
number
of
individuals
involved
in
the
competitive
process.
Among
other
points
in
the
response
just
to
point
out
as
it
relates
to
the
comparability
of
jobs
between
the
private
and
public
sector
in
our
general
fund,
nearly
one-half
of
the
positions
are
police
and
fire
positions
with
which
obviously
presents
an
obstacle
for
comparability
in
the
private
sector.
So
the
that
the
comparability
is
is
presents
a
challenge.
D
The
report
also
talks
about
the
need,
the
perceived
need
to
reduce
the
need
for
the
number
of
staff
through
either
expanded
technology
contracting
out
or
what
they're
calling
partnerships
again.
Your
response
discusses
the
extensive
use
of
technology
by
the
city
and
the
positive
impact
that
has
had
in
the
area
of
contracting
out.
D
There
is
a
great
deal
of
contract
services,
provided
all
the
way
from
animal
control
to
crossing
guards
to
to
other
use
of
contracts,
and
that
is
been
an
undertaking
of
the
city
and
again,
the
creating
of
partnerships,
probably
the
most
noteworthy
being
the
shared
services
agreement
that
the
city
has
for
fire
chief
and
battalion
chief
services
with
the
city
of
millbrae.
That
has
been
both
a
functional
good
thing
for
both
cities,
and
it
has
had
budgetary
impact
sandoz
allowed
for
further
reduction
of
our
workforce.
D
D
That
is
done
again,
as
I
mentioned
at
the
public
meetings,
but
both
all
of
the
bargaining
unit
agreements
and
the
salary
schedule
for
a
quite
a
period
of
time
has
existed
on
the
web
page
of
the
city
and
is
accessible
to
the
all
the
public
at
any
time,
so
that
information
has
been
made
public
to
a
large
extent.
So
those
are
the
remaining
areas
that
the
report
covers:
I.
D
C
Agree,
I
was
just
going
to
say
it
sounds
like
you
made
a
very
complicated
issue,
very
clear.
The
public
often
looks
at
cities
and
their
salary
at
them.
I'm
sorry,
the
their
budgets
and
want
to
know
how
come
everything
is.
So
how
how
come
the
salaries
are
so
high?
What
do
we
have
to
show
for
it
and
more
times
we
repeat
it?
Cities
don't
produce
anything.
They're,
a
service
organization
really
I
think
the
better
it
is,
and
maybe
everyone
will
learn
a
little
bit.