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Joan Coston, Vice President of City of Sunnyvale Service Employees International Union (SEIU), stated concern over layoffs occurring on June 2, 2008, and requested that the layoffs do not occur until June 30, 2008, as previously discussed. Coston stated the union is also asking that Council extend Consolidated Omnibus Budget Reconciliation Act (COBRA) benefits for an additional two months for affected employees. Coston requested staff explore ways that other cities in the Joint Power Agreement may assist.
Mayor Spitaleri explained he sent out six letters to the surrounding communities asking for assistance in finding placement for NOVA employees.
Public comments opened at 7:45 p.m.
Curtis Black, President of Sunnyvale Managers Association (SMA), stated the association is concerned over the City’s rush to permanent changes without conducting the discussions that the director of human resources promised during the meetings held in February 2008. Black stated the association is also concerned with the absence of information regarding associated service levels within this report.
Black stated the association requests Council delay action on this item as follows:
- Delay sending out proposed layoff notices until April 30, 2008, with layoff notices to then be effective as of June 30, 2008.
- Direct staff to meet with affected employee groups to develop alternatives.
- Continue the decreased service levels until a full amount of savings has been obtained without laying off workers.
- Extend COBRA coverage an additional 60 days.
Vice Mayor Hamilton inquired under the current proposal how long would COBRA benefits last. Director of Human Resources Erwin Young explained that under the current proposal, layoff notices would be implemented as of June 1, 2008, and medical benefits would last until the end of July at the City’s expense.
Vice Mayor Hamilton inquired as to why employee associations were not given time to review this report ahead of time. Director Young stated the employee associations were notified that a report would be going before Council in March; however, they were not promised that the report would be reviewed by the associations prior to going before Council. Staffing decisions are made by Council and the impacts of those decisions are discussed with the bargaining units afterwards.
Councilmember Lee verified with staff that the cost to extend the layoff date for the 18 positions for two pay periods (until June 30, 2008) would be approximately $120,000.
Mayor Spitaleri verified if Council approves this item, meetings with the bargaining groups will be set to discuss the impacts of this decision and how to lessen the impact, if possible.
City Manager Amy Chan stated it is premature to speak to those affected until Council provides direction.
Jill Jackson, Vice President of Sunnyvale Employees Association (SEIU) stated City SEIU representatives would like NOVA employees to receive COBRA benefits and have the opportunity to apply for vacancies in the City before they are announced to the general public. Jackson stated additionally, the association requests that contacts be made with other cities that NOVA supports to see if they have any opportunities for the affected employees.
Mark Bowers, Treasurer of the Sunnyvale Managers Association, verified that the estimate of $120,000 to keep NOVA employees until June 30, 2008, did not include Friday closures.
Public comments closed at 8:03 p.m.
Councilmember Whittum inquired if it is possible for employees to apply for vacancies prior to being announced to the general public. City Manager Chan stated the City offers promotional opportunities for those employees who are eligible and qualified. City Manager Chan stated the City does not offer preferences, but if a candidate is qualified for a position, they would be eligible to apply for a promotional or employment opportunity.
Director Young stated sessions have been held with NOVA employees and the list of available vacant positions has been given to the employees.
Vice Mayor Hamilton verified with Director of Employment Development Michael Curran that should things change, the action taken this evening could be rescinded.
Councilmember Lee inquired when layoff notices have to be issued and Director Curran explained that each bargaining unit has a different level of requirement with the largest requirement being 30 days. Should Council decide to give a 60 day notice, then notices would need to go out on Thursday, April 3, 2008, (for June 2 layoffs).
City Manager Chan explained that based on staff estimates, and given the action plan before Council, staff anticipates NOVA employees would be employed until June 30, 2008. City Manager Chan stated that if Council has other direction, or if the anticipated funding does not materialize, then different actions will be required. Should the City receive additional revenue, which is not anticipated, then it is possible that layoff actions could be deferred. City Manager Chan stated working with the bargaining units is part of the City’s labor negotiations and staff will explore a variety of ideas and options with these units as they are operational in nature. City Manager Chan explained that the ideas and options mentioned have been acknowledged by staff as achievable.
Councilmember Lee inquired if this item were delayed until the next Council meeting, how would that affect the City from carrying out what is needed. Director Young stated any delay will mean that those affected will receive a shorter layoff notice. Mayor Spitaleri questioned why the layoff notice would not be extended the same amount of time as the extension. City Manager Chan explained that a delay would either shorten the notice period or would create a need to find additional funding to extend the notice period. Director Curran added that a one-week extension is $30,000. Director Curran stated that two options exist: either NOVA stays closed on Fridays, or the City’s General Fund would need to be used. Director Curran stated that the staff recommendation is predicated on the City saving $120,000 with layoffs occurring on June 2, 2008. Should layoffs not occur at that point, then another source would need to be found.
Mayor Spitaleri verified with Director Curran that approximately $25,000 would be saved by closing on Fridays.
Vice Mayor Hamilton stated that waiting a week to make a decision will only negatively affect those being laid off and delay discussion of ideas and options.
Mayor Spitaleri stated if Council is planning to do something that will impact the employee groups, such as a layoff, it is important to come up with options or ideas as early as possible, regardless of whether the actual notice has been served. Mayor Spitaleri stated the fact a layoff is being planned is enough to work with the groups.
Vice Mayor Hamilton stated until Council knows which employee classifications are impacted it is not possible to start exploring other employment ideas and options.
MOTION: Councilmember Whittum moved and Vice Mayor Hamilton seconded to approve Alternative 1: Council approves Budget Modification No. 45, decreasing the Department of Employment Development (DED) expenditure and revenue budget for FY 2007/20008 by $1,066,212 from $8,546,212 to $7,480,000; approves reduction in budgeted positions by 25, of which 18 are currently filled.
Councilmember Howe offered a friendly amendment to extend COBRA benefits through the end of August 2008. Councilmember Whittum verified with Director Young that a one month extension would cost $13,500.
Councilmember Whittum accepted the friendly amendment.
City Manager Chan explained that NOVA would not be able to cover the $13,500 for extending the coverage, and this expense would have to come out of the City’s General Fund on behalf of the other six cities involved.
Councilmember Howe stated that NOVA employees are City of Sunnyvale employees and they should be treated similarly as Council has dealt with laid-off employees in the past.
Vice Mayor Hamilton stated she has not accepted the friendly amendment.
Councilmember Whittum stated that an amendment does not need to be accepted by the second.
Councilmember Lee inquired if the June 2 layoff date could be delayed if additional grant funding was found. City Manager Chan explained that if additional funding was received, the nature of the grant received and its requirements would need to be considered, but it is possible that additional funding could delay some of the layoffs.
Councilmember Lee verified with City Manager Chan that it is possible for Council to use General Funds to delay layoffs, if that was their decision.
Vice Mayor Hamilton stated Council’s practice has always been that the second has to accept the friendly amendment for it to be added to the motion. City Attorney David Kahn stated he would need to check, but it is his opinion that the City generally requires the second to also accept the amendment.
Councilmember Moylan explained that friendly amendments are not typical, normally regular amendments are made. Councilmember Moylan stated the role of someone seconding a motion is to avoid lengthy discussions on motions that are supported by only one person. Councilmember Moylan stated in the City of Sunnyvale, those who second a motion have been given more power over a motion than was ever intended. Once a second has been made, the second to a motion should not have any further role in the motion.
Mayor Spitaleri stated he agreed with Councilmember Moylan regarding friendly amendments; however, due to past practice and in the spirit of cooperation, he will approve the continuation of past practice which requires a second to friendly amendments.
Vice Mayor Hamilton offered an amendment to the friendly amendment whereas, the City would work with other employee associations to do some type of matching program to provide the extra month of COBRA and, should that not be successful, then this item would return to Council for approval of funding from the General Fund.
Councilmember Whittum spoke in favor of his motion and early notification of those affected by the layoff. City Manager Chan verified with Councilmember Whittum that the intention of his motion is that if there are no other options then funding will come out of the City’s General Fund.
Vice Mayor Hamilton withdrew her amendment and stated she will support Councilmember Howe’s friendly amendment.
Restated MOTION: Councilmember Whittum moved and Vice Mayor Hamilton seconded to approve Alternative 1: Council approves Budget Modification No. 45, decreasing the Department of Employment Development (DED) expenditure and revenue budget for FY 2007/08 by $1,066,212 from $8,546,212 to $7,480,000; approves reduction in budgeted positions by 25, of which 18 are currently filled,
with additional direction that COBRA benefits for laid-off NOVA workers shall be extended through the end of August 2008 at a cost of up to $14,000, and if there are no other options for funding, appropriate funding from the General Fund.
VOTE: 6-1 (Councilmember Moylan dissented)
Councilmember Lee requested staff keep Council informed about any additional funding that may be received. Should the layoff date not be able to be extended to June 30, 2008, due to funding, Councilmember Lee requested staff bring this item back to Council in order that additional action may be considered. |