Title
Resolution in support of the Michigan Municipal League in their efforts to change Public Act 312
Body
Whereas, the Rochester Hills City Council believes that the current provisions of State Act 312 of 1969, (the "Act") unreasonably removes control of personnel costs for police and fire from local control; and
Whereas, Economists who have studied the impact of the Act indicate that the law adds five (5) to ten (10) percent to the cost of police and fire labor contracts; and
Whereas, Human Resources accounts for more than 75 percent of the costs of a municipality, and over 50 percent of that is typically for public safety; and
Whereas, the Act may only be modified by action of the State of Michigan.
Now, Therefore, Be It Resolved, that:
1. The Rochester Hills City Council asks that the State immediately enact the following modifications to the Act;
- Limit the total economic costs of an arbitrator's award to the total percentage of increase of the local units' General Fund Revenue or the Consumer Price Index, whichever is less. In cases where either the General Fund Revenue or the Consumer Price Index is decreased, mandate that the total economic affect of the award reflect those decreases.
- Prohibit awards that change pensions or retiree health care that result in an increase in the unfunded accrued liability of a local unit and/or its pension system.
- Prohibit arbitrators from considering unused millage or assessment capacity.
- Eliminate the authority of an arbitrator to grant retroactive wage adjustments.
- Eliminate the authority of an arbitrator to issue any award that extends more than eighteen months from the date of the award.
2. The City Clerk shall deliver a certified copy of this resolution to the Governor of the State of Michigan, our State Senator, State Representative, Michigan Municipal League, SEMCOG and Oakland County Municipalities.