1. COIN Background In 2012, the Costa Mesa passed the Civic Openness In Negotiations (COIN) ordinance to bring the greatest transparency possible to public employee labor contract talks. From the COIN preamble: WHEREAS, the City Council of the City of Costa Mesa finds that civic openness during labor negotiations is essential to good government; and WHEREAS, the City Council finds that public information and knowledge is enhanced by virtue of employees and public agencies undertaking their duties and obligations pursuant to the [Meyers- Milias-Brown] Act in an open and transparent manner; and

2. COIN Preamble WHEREAS, the City Council finds that the communication between the City and its employees required by the Act, regarding changes in wages, hours and other terms and conditions of employment, would benefit from the opinions of an informed and knowledgeable public; and WHEREAS, it is the determination of the City Council that performance by the City and its employees of their respective duties and obligations under the Act will be facilitated when undertaken in the presence of an informed public.

3. Why COIN? In Costa Mesa, the cost of labor contracts make up more than 70% of its general fund budget. Labor contracts make up, by far, the single largest expense in the city’s budget. Traditionally, labor negotiations have been done behind closed doors, with virtually no oversight or input from the public or media. In Costa Mesa and many other cities, the city’s negotiator was a department head untrained in labor talks who directly benefited from any pay and benefit increases.

4. Why COIN? Once a deal was struck, there was little time for public review or financial analysis before the contract was approved by the City Council. The results of these closed door negotiations done with almost no oversight or media scrutiny can be seen throughout California, as City Councils and other governing bodies approved contracts over the years that were too generous and contained unsustainable pension plans. COIN sets forth procedures and practices to keep the public informed of labor negotiations, including the costs of any new or increased benefit.

5. COIN Principles Bring maximum sunshine to the negotiations of the most expensive contracts in which in the city enters. Bring in a professional negotiation to represent the taxpayers’ interest. Give the public easy access to the cost of each benefit under consideration. Show the public each offer and counteroffer, making them overseers of the negotiations. Allow for ample time for the public and media to examine the deal under consideration before it’s voted upon.

6. WHEREAS, the City Council of the City of Costa Mesa finds that civic openness during labor negotiations is essential to good government Hire an independent negotiator to represent the City Have an independent auditor determine the fiscal impacts of each benefit listed in the employee association’s current contract and publish a report of that analysis at least 30 days before negotiations begin for a new contract Produce a public report that details the fiscal impacts of each proposal for new contracts compared to the current contract Have the City Council publicly report from closed sessions any portion of the negotiations—along with their fiscal impacts—that are no longer being considered During each round of negotiations, have council members acknowledge in writing that they read and considered the report detailing the fiscal impacts of each offer Allow the public to review and comment on proposed employee contracts during at least two City Council meetings prior to a vote Place the proposed employee contracts and any related materials on the City’s website at least seven days before the first council meeting where the proposed contracts will be on the agenda COIN – Civic Openness In Negotiations

7. COIN: Step 1 Hire independent negotiator to represent the city.

8. COIN: Step 2 Have an independent auditor determine the fiscal impacts of each benefit listed in the employee association’s current contract and publish a report of that analysis at least 30 days before contract negotiations begin on a new contract.

9. COIN: Step 3 During each round of negotiations, have council members acknowledge in writing that they read and considered the report detailing the fiscal impacts of each offer

10. COIN: Step 4 Have the City Council publicly report from closed sessions any portion of the negotiations—along with their fiscal impacts—that are no longer being considered.

11. COIN: Step 5 Produce a public report that details the fiscal impacts of each proposal for new contracts compared to the current contract.

12. COIN: Step 6 Allow the public to review and comment on proposed employee contracts during at least two City Council meetings prior to a vote.

13. COIN: Step 7 Place the proposed employee contracts and any related materials on the City’s website at least seven days before the first council meeting where the proposed contracts will be on the agenda.

14. Financial analysis

15. COIN results Generate true public engagement in what had been a shadowy, closed-door process. Maximize public oversight, including an examination of special pay categories and other added benefits that before got swept unnoticed into contracts. Amplify media interest in contract talks that have the largest impact on a city’s budget. Bring better balance between the interest of employees and taxpayers, which in the end will translate to better fiscal health.