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Money Ball Vallejo Style
A Six Million (or so) Dollar Story
By Robert Schussel, Ph.D 10/3/12
Purpose The purpose of this analysis is to explore in greater depth the "Other Wages" that City of Vallejo employees received in calendar year 2011.
Background As part of VIB analyses of the City of Vallejo employees 2011 W2 wages it was noted that the category "Other Wages" particularly for those in the IBEW(International Brotherhood of Electrical Workers) bargaining unit seemed to have increased significantly from prior years. To better understand the increase that occurred VIB obtained information about the total amount paid out to all employees in 21 "Other Wages" categories available from the Finance Department and the same information for the 20 employees who received the highest amount of "Other Wages" .
Caveats Some categories (not in the "Other Wages") such as Educational Incentives, Paramedic and EMT pay, Motor Cycle pay ,HazMat pay and Housing Allowance for Reservoir Keepers are included in an employee's base pay. It should be noted that an employee's base salary determines the size of the pension they receive upon retirement.
In the past the total annual cost of Educational Incentives and Paramedic pay was over $750,000.
Bilingual pay is included in both an employee's base wages and the "Other Wage" category.
The total amounts shown for the 21 "Other Wage" categories has been rounded to the nearest $100 as a final audit has not been completed.
Findings The below table summarizes the Total "Other Wages" received. As noted in the caveats some other wages such as Educational Incentives are not included in the 21 categories provided by the City.
Below is an explanation of specific "Other Wages"
Although the size of an employee's bankruptcy settlement varied greatly the average payout was over $9,000 per IBEW employee.
"The City set aside $6 million into the bankruptcy claims pool. From these funds, we paid IBEW $1,650,000 and their lawyer $450,000 for a total paid to IBEW of $2.1M. We paid IAFF $2,100,000 and their lawyer $900,000 for a total paid to IAFF of $3M. The amount that was paid to each employee was provided by the union. IBEW was paid in 2011 and IAFF was paid in 2012". [email from Deborah Lauchner Finance Director]
To get around paying 100% of a retirees healthcare insurance the City gives current employees and retirees.$300 per month for health insurance. For current employees a Cafeteria Plan was developed that pays the for the amount between the $300 and 75% to 80% of the cost of a Kaiser HMO plan. VPOA members (police) continue to have 100% of their health insurance paid for and CAMP (management) members have 80% paid for. The remaining employees have 75% of their health insurance paid for by the City..
Most of the payouts upon leaving service go to employees in Fire and Police who cash out large amounts of accrued vacation and sick leave. The average amount paid out was $32,254. The top 18 payouts averaged $69,196 .
Holiday pay is in lieu of taking time off for the holiday. Employees in Fire, Police, Water Plant Operators and Communication Operators are most likely to use this buyback.
Employees in the CAMP bargaining unit receive a 5% bonus. Unlike Vallejo most Cities do not offer this benefit.
Medical Flex pay is given to employees who elect not to use the City's health insurance plan as they have other coverage. The amount per month varies from $250 to $600 depending on the bargaining unit.
Employees in Fire ,Police and those in IBEW who wear uniforms receive an allowance to defer the cost of their uniforms and keep them clean and in good repair.
Examples of differential pay include covering for a co-worker who is out for an extended period, workload increase, performance of higher-level duties or performance of duties outside of current classification.
Employees in IBEW receive one hours pay for every 8 hours of standby and 4 hours if standing by for 24 hours.. Police receive 1.5 hours for each 8 hours and 3 hours if standing by between 5PM and 830AM.
An employee is paid at a higher rate for filling in, typically for a manager/supervisor etc.
From IBEW MOU Section 2.2 E. Overtime.. .Employees who have completed a regular work shift and are called back to work shall be paid at the overtime rate and shall be paid a minimum of two (2) hours.
Section 2.4 Stand-by From VPOA MOU Section 13.B Call Back - Employees called back to duty during off-duty hours shall be compensated at the rate of time and one-half for all hours of such call back with a minimum of three hours compensation. This minimum shall not apply when an employee is called back to duty within one (1) hour of a scheduled work shift. In this case, the employee shall receive one hour pay at the rate of time and one-half.
VPOA (police) member with 20 years of police service (8 years can be somewhere else) receive a 5% bonus and those with 25 years of total service receive an additional 10% of their base salary.
Vallejo Firefighter/Paramedics who are certified as Preceptors( trainers) in Solano County are compensated on a monthly basis at five percent (5%) above their base salary.
Canine Officers receive pay for the care and feeding of their K9 dog. The contract specifies these expenses must have advanced approval. In the past 7.5% of an officers base salary was used.
Two firefighters are assigned to repair and maintain breathing apparatus. They receive per month 5% of top step of an Engineer base salary.
Police and Fire Chief receive 5% bonus for advanced courses such as POST or a Bachelors degree
As an example the maximum amount a police officer out of town can charge per day for meals is $33.62 .
Police officers receive $6.53 per month to maintain a telephone.
Police are paid for the cost of bullets etc to be recertified with their firearms.
Police and Fire employees whose position qualifies for bilingual pay and pass an exam receive a 1% increase based on their base pay.IBEW members receive $75 per month.
Other types of pay
COMMENTS
Every time I have done these one of these analyses I continue to find information that I did not expect.
During the bankruptcy employees in IBEW and IAFF (International Association of Firefighters) complained bitterly about the sacrifices they had to make. The reality is that members of both unions took a much smaller hit than what had been portrayed. In fact it appears they were almost made whole with the bankruptcy settlement. In addition VPOA (police) received a $1,000,000 settlement--about $10,000 per member .
While there have been discussion of possible bankruptcy settlements for current employees the City's management has been very quiet about the details--$1.65 million to IBEW members, $2.1 million to IAFF members and $1.35 million to the unions for legal expenses. It is this lack of transparency from the City Manager and his Staff that continues to be a concern-- What else are they hiding from the taxpayers?
The bankruptcy was an opportunity to improve the financial future of Vallejo. Our City negotiators and those City Council members who voted for some of the contracts approved during bankruptcy need to be reminded of the poor job they did. It looks like little if any real improvement has occurred. With binding arbitration removed from the city charter, it is my hope that meaningful changes can occur. Wages need to be cut and employees need to share more in the cost of the benefits. Excessive amounts of vacation and sick leave should be reduced as well as the ability to accrue massive amounts of vacation and sick leave payable upon retirenent. Most educational incentives should be eliminated. In most instances Vallejo only hires fire fighters with the equivalent of an AA degree and police those with a bachelors degree. Why should employees receive additional financial incentives for degrees that are actual or de-facto requirements?
Pressure needs to be applied to the City Manager and City Council to push for contracts that the taxpayers can afford for the long-term and that will allow the City to provide the services we deserve.
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