RPVCCA_CC_SS_2014_04_15_02b_Proposed_RPV_Open_Public_Engagement_In_Negotiations_OrdMEMORANDUM RANCHO PALOS VERDES
TO: MAYOR AND CITY COUNCIL
FROM: COUNCILMAN BRIAN CAMPBELL
DATE: APRIL 15, 2014
SUBJECT: PROPOSED RANCHO PALOS VERDES OPEN PUBLIC
ENGAGEMENT IN NEGOTIATIONS (OPEN) ORDINANCE
REVIEWED: CAROLYNN PETRU, ACTING CITY MANAGERSD
RECOMMENDATION
Direct the City Attorney to prepare a draft Rancho Palos Verdes Open Public
Engagement in Negotiations (OPEN) Ordinance for consideration at a future City
Council meeting.
BACKGROUND
Transparency is the cornerstone of good governance. Pay, benefits and pension costs
are the largest portion of the City budget and the outcome of labor negotiations impacts
each resident. Engaging the public throughout the negotiation process increases the
public's trust in its local government and upholds the duties of the local government to
its citizens by ensuring transparency and civic involvement.
The precedent for the proposed OPEN Ordinance is the successful effort by the City of
Costa Mesa, California who designed and passed in 2012 the very successful Civic
Openness in Negotiations (COIN) ordinance. COIN is now being considered by
numerous other public agencies as a model for best practices in California to ensure
the public's ability to monitor its city negotiations with its municipal employee unions.
This would be a modified RPV version called the: RPV OPEN Ordinance.
DISCUSSION
Below is a brief explanation of the proposed ordinance in order to consider adopting
something similar for RPV. This ordinance opens to the public the process of labor
negotiations between the City and its employees. Increasing government transparency
would benefit all stakeholders (the City, its' employees, their representatives, and the
public) in the negotiation by creating a more open, accurate and efficient process.
SS2b-1
Topic: Proposed RPV Open Public Engagement in ·Negotiations (OPEN) Ordinance
Date: April 15, 2014
Page2
This ordinance would apply anytime a change is considered to any terms or conditions
of employment either by the City or the Union.
Primary components would include:
• An independent labor negotiator (the City currently has one) in addition to a third-
party financial analysis that would be completed to assess the fiscal impacts of any
proposed changes to the current employment contract. The analysis would provide
current financial data of the current labor contract to the public at least 15 days before
negotiations begin. This would create a starting point, or base line with which to assess
each new proposal.
• Any proposed changes to the labor contract throughout the negotiating process
would trigger another report on the fiscal impacts compared to the current financial
base line, or most recent proposal from either side. The report would be itemized to
show costs and the funded and unfunded (if any) actuarial liability that would result if
the proposal were agreed upon. This enables a long-term perspective and
understanding of the financial health of the City, as well as the feasibility of each
negotiating position. The public would be fully informed on the cost of any change in
pay and benefits. This will help all parties find the best balance between the pay and
benefits the City provides its union employees with the associated costs to the
taxpayers.
• Each Council member would provide a written acknowledgment that they have
read and considered each report by the auditor throughout the negotiating process.
This increases accountability for decisions made while ensuring all Council members
are fully informed on the ongoing negotiations.
• City Council Closed Session discussions of potential future proposals and
strategies would be exempt from public publication so as not to disadvantage the City's
negotiating position. However, all City Council members, outside consultants and the
City's labor attorney and applicable non-union management personnel would be
required to disclose any communications with any employee association (Union)
representatives about anything relevant to the negotiation process. This also includes
disclosing any individual terms in a Closed Session-considered proposal (or the whole
proposal) no longer being considered, and the financial impacts from that decision,
throughout the negotiating process. This maintains the public's need for integrity in the
ordinance.
• A change in the contract terms or the memorandum of understanding (MOU)
could then be adopted after at least 2 City Council meetings during which the public
reviews and has the ability to make comments on it. Materials explaining the basis for
the planned adoption would be posted on the City website at least 7 days before the
first of the two required Council meetings to allow time for public engagement.
SS2b-2
Topic: Proposed RPV Open Public Engagement in Negotiations (OPEN) Ordinance
Date: April 15, 2014
Page3
CONCLUSION
The premise behind OPEN is simple: Increase transparency in negotiations, inform the
public of the annual cost of the current and any proposed changes to the labor contract
and provide an independent fiscal impact/financial analysis of each new proposal.
SS2b-3