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~ process has a chilling effect on sincere negotiations, because people are less willing to try to resolve their differences first. Answering a question from Ms. Schue, Ms. Norris said Oregon law would have to be changed to permit this type of arbitration. Mr. Sercombe added that Roseburg had this type of arbitration process and it was struck down by the Oregon Supreme Court because the state statute regarding impasse resolution takes precedence over statutes of local jurisdictions. Mr. Gleason said the settlement will represent a total increase of approximately $300,000 to $400,000 more than was budgeted. He said the union is unsatisfied with this settlement too. Ms. Norris said this settlement puts Eugene at market rate when using the area chosen by the City as comparable to itself. Using cities the union feels are comparable to Eugene, the settlement leaves the employees at approximately 5 to 15 percent below market. She said the arbitrator picked a balance of the cities proposed by the union and the City. Mayor Obie said he was troubled by the settlement because it exceeds the general trend of the community. He said this settlement represents an increase of approximately 7.5 percent for these employees. This is a higher increase than any other area unions have been awarded in the last several years and is more than the tax payers have been willing to pay. Mayor Obie said the City is already inadequately meeting the service needs of the community and asked where the money to pay for the increase will be generated. He said in all likelihood, it will mean even poorer services for e the community even though they will be spending more for those services. Ms. Schue said this award puts police salaries at market with the cities to which Eugene is comparable. She felt the settlement was fair and said the council must accept it although it does put a burden on the financial resources of the City. Ms. Schue said the council is going to have to concentrate on ways to improve public safety given the resources that are currently available. Mr. Holmer agreed that this award cannot be changed, but felt the council should pursue a legislative change regarding the arbitration process. He felt this would benefit the public and employees. Mr. Miller said it is shortsighted to believe that the police force must remain understaffed because of this award, which puts the wages of those employees at market rate. He said the council must face the problems surrounding community safety and said this would need to be a major agenda item in the future. Mayor Obie said the council needs to take a hard look at the City's ability to serve the public in many ways. He felt that in order for the City to improve its services, the scope of services provided may need to be narrowed. II. BALLOT FOR INTERVIEWEES FOR OPENINGS ON THE DOWNTOWN COMMISSION e MINUTES--Eugene City Council October 26, 1988 Page 5