Fiscal Year 2013-2015 Special Budget Meeting

HONORABLE MAYOR AND CITY COUNCIL Subject: Proposed FY 13-15 Proposed Policy Budget Date: May 13,2013 • Page 2 position. Attachment B provides the date each of these positions became vacant. This document (Attachment B) will be part of the semi-annual vacancy report that will be scheduled to go before the Finance Committee on June 11. It is important to note that this report does not reconcile with the Budget Office report (Attachment A) of all positions citywide showing the vacant/filled status of each position because the vacancy report that Human Resources presents to Council reports on "actual" vacancies, meaning that this report adjusts for positions that departments have identified and encumbered (acting assignments, vacancy rate savings, anticipated overtime, etc.). Attachment C provides a list of impacted positions and the detail regarding whether the position is vacant or filled. It should be noted that the individual employees reside in the filled positions proposed for elimination, that are subject to civil service rules and MOU provisions may be impacted by seniority rules and bumping rights. Any savings deriving from vacancies (salary savings) is accounted for in a quarterly expenditure report by department, which is presented to the City Council on a quarterly basis. As background, salary savings is accounted for in numerous ways, for instance in elected offices, the budget assumes that all authorized positions are filled throughout the year; as such, there is no vacancy rate applied to these positions. For other civilian employees not in an elected office, a 4% vacancy rate is applied to the departmental budgets, which accounts for the savings. Given that there is a minimum sworn staffing requirement in the Fire Department, if the vacant positions are filled by interim appointment or Limited Duration Assignment (LDA), the incumbents receive full pay, and therefore there are no savings. Another way to fill the positions is using overtime. The savings is the difference between a fully-time regular position and overtime. For Police swom personnel, the department generally needs to fill "empty" police beats (geographic areas that Police patrol) with overtime. Due to staffing shortages in the Oakland Police Department, in a typical 24-hour period, approximately 35 beats are filled on overtime in Patrol. 3) Fact check of Local 21's presentation at the April 30,2013 City Council meeting. On October 21, 2008, the City Council adopted a revised budget that required employees to take 13 Mandatory Leave Without Pay (MLWOP) days prior to the end of June 2009. The 2008-11 Miscellaneous MOUs required employees to take 12 MLWOP days in FY 2009-10 and 2010-11 and pay 5% into retirement, plus no step increase. The 2009-13 agreement requires employees to take 12 MLWOP days, plus contribute an additional 4%. SEIU agreed to pay 4% into PERS. Local 21 and all miscellaneous unions took additional floating MLWOP days that equal 4%. 4) How much of the pension increase is miscellaneous employee costs? How much is sworn employee costs? The pension increase from FYs 12-13 to 13-14 is $8.7M for Miscellaneous, $3.5M for Fire and $1.6M for Police.