Mayor Robb Davis and Council Member Rochelle Swanson published an editorial in both the Davis Enterprise and the Davis Vanguard on June 3. In the editorial, Davis and Swanson say that the City has been negotiating with the City employee labor groups to share the risk of rising pension costs. Rising pension costs is a critical risk factor to the long-term financial health of the City of Davis.
"This City Council has been exploring ways that employees can share in the risk of rising pension costs, while maintaining the City’s responsibility as an employer. For over a year, the City Council has been negotiating with labor groups to come to mutually agreeable terms on labor contracts, a responsibility of the City Council and required under state law. This aspirational goal of shared responsibility has been at the forefront of the City’s interests.
We are working to reach agreement on a unique new model—the Employee Compensation Model or ECM—for current contracts that allows for additional cost sharing beyond what is typical in other communities and that is considered separately from annual COLAs."