The Vallejo City Council and the Vallejo Police Officers Association approved contract changes that will reduce city labor costs and remove the union from a legal challenge to the city’s bankruptcy filing.

The new contract cuts police staffing costs by 18% compared to the old contract, according to city manager Joseph M. Tanner. The deal will save the city’s $77 million general fund about $6 million in fiscal 2009 and 2010.

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