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Politics & Government

Menlo Park Residents Speak Out About City Labor Negotiations

Some were concerned the city doesn't have enough money to keep up with employee pay raises and pension obligations.

Menlo Park City Council hosted a special meeting for the public to comment on upcoming city employee labor contract negotiations Tuesday night, inspiring many citizens to come forward with their concerns.

Some were worried that the City of Menlo Park does not have enough money to keep up with employee pay increases and pension funds.

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Fear of bankruptcies due to pension fund requirements is not a new occurance.

Each of the city's unions wants a one percent increase in compensation (see charts in this article), which adds up to a substantial sum.

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For example, the value of a one percent compensation increase for the Menlo Park Police Officers’ Association, a group of 36, would be $39,200.

According to a staff report prepared for Tuesday's meeting, it is projected that the tradition of increasing personnel costs will continue.

In the last 10 years, the average cost per employee rose by 79 percent from $79,900 in the 2002-03 Fiscal Year to $142,700 in the 2012-13 Fiscal Year. Between these two time periods, the city’s workforce was reduced from 260 to 230, or 12 percent. 

Mayor Pro Tem Ray Mueller said the focus of the meeting was problem solving and accountability.

Roy Sardina, co-chair of Citizens for Fair Responsible & Responsible Pension Reform group in Menlo Park, said it was a welcome change that the council decided to have public comment before negotiations occur.

“There is unsustainability in the current pension system and its cost,” Sardina said. “Menlo Park doesn’t need the highest paid employees to run the city.”

Planning Commissioner Henry Riggs spoke, saying that the city needs to do what it needs to do to prevent cuts or increases in taxes and city fees in light of employee costs.

“Seniority in unions traps and discourages talent,” said resident Mickie Winkler. 

Other concerns brought up:

  • Reserves are dwindling down
  • Need for city employee reduction through subcontracting out work
  • Overuse of worker compensation
  • Losing good talent if salaries aren’t up to par 

71.6 percent of the city's general fund is allocated to personal services, according to public records. Current labor contracts expire for the two police unions on June 30, while other groups’ expire in October.

View the full staff report here.

 

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