8/3/2019 Corrections Guild Doc

1/11

Executive Summary

Issue Description: Correctional Officers Interest ArbitrationFunding Potential Interest Arbitration Award

Meeting Date: February 1, 2012

Attendees: Amber DAmato, Dennis Bonneville, Ned Newlin, Bert Furuta,

Fernando Conill, Jacquelyn Aufderheide, Deborah Boe

Action Requested At This Meeting: Discussion and planning for funding of potentialinterest arbitration award.

Background: The collective bargaining agreement between the County and the Kitsa

County Correctional Officers Guild expired in 2009. Unable to reach terms on asuccessor contract, the parties participated in mediation; however, certain economicissues were not resolved and were certified for interest arbitration. The Guild hassubmitted the following proposals for arbitration:

8/3/2019 Corrections Guild Doc

2/11

were intended to rebuild critical general fund reserves which were reduced todangerously low levels during the first years of the economic downturn. Low reservelevels have been identified as a credit weakness by the agencies which set the County

credit rating for the purpose of issuing long term debt. Low reserve levels led to internborrowing from other County funds in 2008, 2009, and 2010 to provide enough cash tomake payroll and payable obligations, and these loans had to be repaid with a totalinterest cost of just over $56,000.

Likewise, the Jail has felt the negative effects of the economy. The Jail offsets some ofits costs from contracts with other correctional facilities, cities, and tribes. In 2011, theJail was able to maintain its most levels of service and staff because of a contract withSCORE. However, these revenue sources have been eliminated or greatly reduced in2012. This loss of revenue, combined with the Jails share of general fund budgetreductions, is likely to have a significant impact on the number of inmates who can behoused in the County jail.

The economic recovery is occurring at much slower pace than expected; for examplethe Countys projections for general fund revenue in 2012 equal actual revenue receip

in 2003. Thus, as the County prepares for the upcoming interest arbitration,consideration of how to fund an award must be discussed.

Recommendation in the Short Term: In the eventthat some or all of the Guildsproposals are awarded the County will probably have between 30 60 days to pay an

8/3/2019 Corrections Guild Doc

3/11

2013 with the potential for further reduction likely in order to maintain theincreases in compensation associated with the award.

Option 2 Funding 100% of the award fromSheriffs Office 2012 budget

o 2012 Adopted Budget for the Sheriffs Office in total (including the Jail) =$29,126,362.

o Fully absorbing the impacts of the Guilds proposal ($1.783M) representsmore than a 6% cut over the 2012 adopted expenditure budget for the

Sheriffs Office.

o This option would reduce the Sheriffs budget to about $27,351,653 for2012 and this level would need, at a minimum, to be maintained into 201with the potential for further reduction likely in order to maintain theincreases in compensation associated with the award.

Option 3 Funding 100% of the award with reductions in all departmental

2012 budgets

o 2012 Adopted General Fund budget = $78,593,701.

F ll b bi th t f th G ild l ($1 783M) t

8/3/2019 Corrections Guild Doc

4/11

8/3/2019 Corrections Guild Doc

5/11

8/3/2019 Corrections Guild Doc

6/11

8/3/2019 Corrections Guild Doc

7/11

8/3/2019 Corrections Guild Doc

8/11

8/3/2019 Corrections Guild Doc

9/11

8/3/2019 Corrections Guild Doc

10/11

8/3/2019 Corrections Guild Doc

11/11