City Council Highlights

January 27, 2009

Police get Deal—Adopted 5-2—You Know Who—Amputation Expected For other Unions—New Taxes Promised for Citizens—Mandarich Ducks $700k fee

1/29/09

By Marc Garman and Katy Miessner

Tuesday's episode of the Osby Springer Show got off to a late start. Councilmembers emerged from the trenches of closed session at 7:40 PM. One can only imagine the heated vocabulary flung with energetic abandon across the boardroom table. A cloud of intensity and weariness hung over the dais.

The house was reasonably full...around 90 people present...but the tension was palpable.

Councilmembers Gomes and Schivley both looked elegant dressed in funereal black.

During the first community forum Frederick Taylor claimed he had been assaulted twice by Vallejo Police officers. First by Pepino Messina in an unprovoked attack. The second time Police wouldn't even give him the officer's name. Taylor continued to claim that he was essentially brushed off by Vallejo PD Internal Affairs. While we have no idea as to the veracity of Mr. Taylor's claims, the timing was certainly ironic. Councilmember Gomes spoke up referring to past experiences she has had with internal affairs and suggested that the formation of a Citizens' Police Review Board be considered and asked that it be put on a future agenda..

Councilmember Schivley dedicated the meeting to Bethel H.S. Student Bryant Lee, who was severely beaten while trying to stand up for a fellow student in a confrontation.

Northgate Specific Plan—Passed faster than procedural lightning on crack.

This one sailed through 5-2 Gomes and Schivley opposed.

“This is a new deal. It is a new project and we are missing out on $700,000 in revenue that the city cannot afford to lose.” said councilmember Gomes referencing the re-zone of the project from progressive senior housing to age restricted housing to multi family residential. Normally a re-zone of a project generates new fees. At least in most places. But here in Vallejo—our bankrupt little enclave by the bay—Developer Gary Mandarich will be moving forward with his project without paying the city any additional money. BAU.

Contract with Police--We Hope We're Wrong

“All staff members including myself were unanimous in approving the resolution.”

Sandy Salerno—labor consultant and negotiator for the City of Vallejo.

Salerno continued to describe the balancing act between budget, labor and revenue as “slippery, slippery” she continued to emphasize the hard work that has gone into “re-knitting the relationship between city staff and the Police Department” (they forgot about the citizens apparently).

The details of the contract are complicated, but here are some general concepts:

• The contract will be extended until 2012

• Police in Vallejo will continue to receive free medical coverage. While the contract caps the health benefit cost at Kaiser North for a 4% savings, medical costs rise 5% to 9% a year on average, so any savings will be wiped out after one year. And most employees are already on Kaiser North...

• Raises resume in 2010. We have promised raises at a time when property tax revenues are expected to drop by record amounts. The wages will be compared to seven cities that were chosen during negotiations. They are: Alameda, Berkeley, Daly City, Hayward, Oakland, Richmond and San Leandro. According to market researcher and VIB contributor Bob Schussel, these cities are in the top 25% in terms of wages—thus keeping the Vallejo pay scale for Police very near the top. (Sandy Salerno and Assistant City Manager Craig Whittom disagree with Schussel's conclusion.) The cities were also chosen on criteria regarding their staffing level, workload and violent crime rate. Per capita incomes or median home prices were not even considered. Benefits were not factored into the wage comparison either. This is a likely red herring as benefits for Vallejo Public Safety are on the way high end of the spectrum.

• Should the city default on the contract, the city will be required to pay the union's legal expenses. This one is potentially messy. The only out is if the city goes bankrupt again. Predictions are that we will run out of cash in July – sounds like a set-up.

• Minimum staffing requirements have been waived. This leaves the city with the option of layoffs as the primary means of controlling expense. If the cash doesn't roll in we can always lay off cops. I guess VPOA doesn't really give a rat's ass about safety or their brethren losing jobs as long as pay and benefits keep coming.

• Vallejo Police will continue to receive longevity pay for having worked in other cities. New hires will have to wait 8 years for longevity incentives to kick in. But all their years will still count.

• Vallejo Police Officers' Association agrees to waive compensation claims against the city for apparently millions of bucks if the City agrees to pay them just one million. Remember, if a contract gets squished in bankruptcy, the union can still sue for wages not paid while the city was in bankruptcy. This, along with the associated legal fees can add up to quite a bit. Probably more than the million according to Marc Levinson, Vallejo's bankruptcy attorney. So this one is probably not a bad thing.

Overall, there are some good aspects to this deal as well as some not so great ones. It is a great show of good faith effort on the part of the city to make nice with a labor group. This might make the judge smile warmly, and look kindly on Vallejo. It gives the city a little added leverage in court. The VPOA has legitimately given some concessions...It just won't add up to anything close to viable unless everybody else gives huge AND revenue comes roaring in all at once. Unlikely.

There is, of course, the fact that the two remaining “combative” unions IAFF (International Association of Firefighters) and IBEW (International Brotherhood of Electrical Workers) are left to fight the court battle without the financial support of the Police. The proportion of money these unions have to pay their lawyers just went up by a third. The judicial parking meter is ticking really fast now. So much for the whole union brotherhood thing. It's every man, woman, child or invertebrate for themselves.

Remember the game of Duck Duck Goose when you were a tot? You walk around the circle touching each person on the head calling DUCK, DUCK, DUCK until you call GOOSE. Then that person is IT and has to catch you,the caller, before you can circle around and take their seat. Well, VPOA President Steve Gordon just tapped IAFF 1186 President Kurt Henke on the head and Kurt is IT. It would seem probable that Kurt and his firefighters are about to have their goose cooked. Considering the chunk of the pie VPOA got I wonder how much will be left to support the Fire Lifestyles of the Rich and Shameless ? I'll bet not as much as the membership would like.

Unfortunately, the city's other unions are likely to come up with the short end of the stick as well. IBEW, the people who maintain pretty much all aspects of our city have never had the pay or benefits that public safety has. They are left to shoulder half (I presume) of the legal expenses in bankruptcy and hope they get a piece of pie. IBEW has always been pretty accommodating when the city has been in financial hot water until now, but I guess when you play with trolls...you get warts.

The city's management union CAMP, which has not been part of fighting the city in court is likely going to get squeezed too.

Bottom line. Everybody supporting this deal danced around the large steaming pile of crap sitting in the middle of the room. That crap would be the economy. Yes folks, unless you've been marooned on a desert island you know the WORLD is in the middle of a giant economic suck hole. And Vallejo is in the middle of a foreclosure crisis that is resulting in a drop in property tax revenue that will take years to return under California Prop. 13. Think like a decade.

Rob Stout, Finance Director didn't say he was for or against the amendment. He very straight forwardly delivered the facts: he has no idea how we will pay for the raises. In our current situation, it will be impossible. We are almost guaranteed to end next year $10 million in the hole, and we have no idea how much property taxes will plummet. The City is even counting on Lennar, facing their own bankruptcy, to completely pay us back what they owe us, and they have not set aside any reserve to account for what the State will do to us. At least last year they had $1 million set aside. And I can;'t imagine this was Stout's idea since he very clearly stated we will run out of money unless something drastic happens.

In public comment, bankruptcy attorney Robert McConnell put it succinctly when he predicted that the city will “be right back in chapter 9” if the deal with the police is agreed to. McConnell spoke of the long hours he has been putting in with clients lining up to go bankrupt. He feels that the economic downturn in Vallejo will be far worse in length and severity than the surrounding areas.

I won't bore you with a list of people who also spoke. The message was essentially the same:

Please don't do this unless we can actually pay for it.

In comments before the vote, Councilmember Schivley spoke eloquently against the measure stating “We can't afford it. It is as simple as that.” and referenced “the 2003 Deja Vu all over again” when she had signed the public safety contracts the first time.

Davis gave Schivley a hostile retort when pushed by Schivley to report how many emails and letters he received on the topic (there were a lot according to other council members). He apparently had no time to read them. He was in DC. So folks, after you spent time pouring over the contracts, any email or letter you wrote to Davis he didn't bother to read. So much for your constituents, Mr, Davis, on one of the most important votes that will come in front of you.

City Manager Joe Tanner threw his support behind the measure along with the rest of city staff. Along those lines, Councilmember Gomes stated “Even though I don't agree with him tonight, I still think he's doing a good job.” She continued to say, “I won't support a class system in this city” referencing the impending unequal distribution of pay and benefits between the city's employee groups and new hires vs old. In reference to the fact that that staff and lawyers are recommending this deal, Gomes concluded “In 2003 staff supported that contract. I didn't agree with them then, it's what got us here now, and I don't agree with them tonight.”

Sunga, Wilson and Hannigan indicated their support citing the vital importance of police services. Bartee at least asked a few questions before indicating his support. Hermie spoke about our inability to generate revenue and how that must change. Good luck with that in this economy as VPOA raises come due.

In his comments, Mayor Davis positively waxed poetic in his adoration for the police. A soliloquy of worship in which he referenced the heroism of police who ran into the burning Casa de Vallejo. Police who risk their lives every day. How police services are the most important thing a city provides for its citizens. If you don't have police, you have nothing. He really worked up a froth. At one point I thought he was going to walk into the audience, give VPOA president Steve Gordon a hug, climb up on Steve's lap and ask for a belly rub PLEEEEASE !! WOW. Osby concluded with the stinger: “revenue enhancements” Read that as more taxes coming down the pike for YOU and ME. I expect a measure for an increased Utility Users' Tax on the ballot any day now.

The police union was absent from the podium. I guess they already knew the outcome.

The measure passed 5-2 –Gomes and Schivley opposed.

Final Thoughts:

All this talk from Davis last week about not doing “Business as Usual” (BAU) and here we go again. Yes, 2003 all over again. In the same evening, the council also refused to secure developers fees that are rightfully Vallejo's. It was an all night giveaway, with the five shamelessly rationalizing why the VPOA contract was so great for Vallejo. Only Gomes and Shivley mentioned all the funds taken away from the community and that it will be years before these will be restored. Whittom suggested the Council “make a list of spending priorities” for next year. That was the funniest thing said all night – or the most insane.

At least this time, in 2009, there was a large, vocal and angry crowd witnessing the giveaway. In 2003, when there was a smattering of folks, at least Intintoli had the “decency” to publicly warn us, and agree with the 2003 letter-writers that Vallejo would be facing massive deficits in the future.

This time, we have the Five Frauds: pay no attention to the deficit behind the curtain.

BAU

And if you stuck with it this long...Here's a shot of VIB editor Garman and VPOA past president Burky Worel deflecting a photo attack from Bob Schussel.  By working together and using the glare of our bald heads, we were able to cause the autofocus mechanism in Schussel's expensive camera to jam.  Amazing what you can accomplish if you work together.