City defends labor agreements
Anger over a series of labor deals that included, in part, pay raises for some Santa Barbara city employees came to a head yesterday when a group of concerned citizens expressed their discontent to city leaders.
The City Council was slated to ratify several union agreements — largely as a technical matter, having already approved them last week — but complaints about the contracts sparked a lengthy debate about city finances.
Citing a continuing economic crisis and a projected $9.5 million budget shortfall for the city next year, a string of public speakers criticized officials for approving any salary and benefits increases.
Councilmember Das Williams countered by pointing out that the agreements also include concessions that will save the city money in the next fiscal year compared to budgeted figures.
“At this point, the rhetoric of this has gotten so out of control that nobody is reading the fine print of this agreement,” he said. “…There are massive concessions in this agreement that save the city money.”
For example, he said, city supervisors and managers will be subjected to a mandatory 5 percent furlough and won’t be able to cash out vacation time. That outweighs their 2.5 percent salary increases next year, which are also being delayed to lessen the impact on the city’s cash-strapped general fund.
The plan will put the general fund $288,814 below current labor costs next year, said Kristine Schmidt, the city’s employee relations manager.
“It is true that, in the long term, these labor agreements are going to increase the city’s ongoing budget costs,” she acknowledged.
But those impacts — $1.8 million across the city’s ledger and $690,000 in the general fund specifically — won’t be felt until 2011 and 2012, she said, adding that the city could continue furloughs and other cost-cutting measures in the future.
Williams also pointed out that some of the contracts up for approval deal with employees who are paid through enterprise funds, which are separate from the general fund and are weathering the economic downturn better.
“We need to do this agreement to save money for next year,” he said. “…I think we talk too much and we need to take action.”
Councilmembers Dale Francisco and Iya Falcone had the opposite approach in mind. They asked for a few weeks to take another look at the agreements in closed session.
Citing the latest tax revenue figures for the city — which show a 11.7 percent drop in sales taxes in the fourth quarter of 2008 as well as a 20.8 percent drop in transient occupancy taxes last month over the same periods last year — Francisco said city leaders have a responsibility to deal with economic realities.
“The situation has grown dramatically worse for the city’s revenue picture just in the last week,” he said. “…What I don’t want to see happen is large-scale layoffs of city workers.”
Several public speakers argued that point as well, saying that any wage and benefits increases now will result in more layoffs down the line.
Falcone said she still isn’t sure how city employees fall on the issue — whether they would prefer a salary increase and possibly more layoffs, the status quo, or even wage cuts.
“We don’t know where the true sentiment lies, particularly with the folks that are in the various bargaining units,” she said.
But she said one thing has been made clear in recent weeks: the public is not happy with salary and benefits increases, particularly given the economic crisis.
“The community is speaking out in very, very loud and large numbers with their apparent discomfort with how things have been handled not just now, but previously,” she said.
Community angst has been growing since early February, when the city finalized a deal with its largest group of union workers; an agreement that provided salary and benefits increases between 5 and 8 percent during the next two years.
The downward economic spiral has since prompted city negotiators to return to the table with that bargaining unit, Schmidt said, and they are currently in the process of discussing possible amendments to the deal.
“We have a joint interest in preventing the loss of jobs and in preventing the loss of services to the community,” she said. “I think they’ve been a very active partner in discussing ways in which we can do that.”
Schmidt said options include unpaid furloughs, suspension of vacation payouts and other concessions to address the impending budget crisis.
Some city leaders used those discussions to counter the proposal put forth by Francisco and Falcone to wait a few weeks and examine the latest round of union contracts.
With negotiators already reaching out to the city’s largest union group, as well as police and fire unions, Councilmember Helene Schneider said there is little need to discuss the agreements up for approval yesterday.
She said those contracts have the “smallest fiscal impact” of most, if not all, labor agreements in recent memory.
Mayor Marty Blum took it a step further, saying the discussion about city labor contracts has morphed into a political issue that is drawing attention because of the already-heated municipal election this fall.
“We need to look at what’s best for the city,” she said.
Ultimately, the council voted 5-2 to approve the contracts, with Falcone and Francisco in opposition. The agreements involve nearly 575 employees, including water and wastewater workers, harbor and airport patrols, hourly workers, supervisors and managers.
Comment on this article
Marty Blum said something silly? : 3/25/2009
" Marty says it has morphed into a political issue because of elections this fall ." ???? I voted for Blum and have regretted it since . No Marty , it is an issue because the council wants to spend more of our tax dollars at a time when all private sector enterprises are belt tightening . That makes people angry .
Ned
Politics as usual : 3/25/2009
Actually, it has become a political issue. Iya Falcone was more than willing to give Police and Fire a HUGE pay raise last fall, knowing that doing so would garner their support during her Mayoral bid. If you noticed, she wasn't at all supportive of going back to look at ALL the bargaining unit MOUs, just the one discussed yesterday... the one bringing so much heat from the public. I did find it interesting that the Mayor defended their own pay raise a few years ago (and we aren't talking hundreds, we are taking thousands of dollars), saying that it was the voters who gave it to them... uh, someone please correct me, but didn't the council have to vote to place it on the ballot to begin with, so the voters could vote on it... and my sources say, that both Marty and Iya were in support of this. Ms Mayoral wanna be, really isn't all that worthy in my opinion, and I hope that the fine citizens of our fair city start to realize it. A vote for Iya would be a vote for politics as usual! I say, go back and look at ALL the bargaining units MOUs,
Robin Lane
Please, just go away........... : 3/25/2009
It is really rich that Marty, in her usual passive aggresive madness, tries to lay the blame on others political ambitions. That's right right Marty, blame it on the election that finally rids us of you, the most politically motivated person to ever sit in that seat. Disgraceful.
How can we miss you if you won't go away?
All MOU's : 3/25/2009
Politics As usual, All MOU's are being looked at, they just weren't on the table yesterday. Despite Helene's posturing, the POA and FF's have been talking to the City for over 6 weeks about cutting costs. They just didn't endorse her this year so she took a shot at them. It was cheap but, who cares? Let's face it, they all looked terrible yesterday, the worst, most dysfunctional council in history. By the way despite repeated references to an agreement signed last fall with POA and Fire, POA signed in 2006 and Fire in 2007. Not that accuaracy matters, but........Whole different world back then.
Just the facts ma'm.
Economics 101 : 3/25/2009
Uh yeah maybe there are furloughs, but along with raises all that means is that the city is getting less bang for it's buck out of the employees. Das is such a dope, and he assumes that we are too.
Stupid Money : 3/25/2009
"Williams also pointed out that some of the contracts up for approval deal with employees who are paid through enterprise funds, which are separate from the general fund and are weathering the economic downturn better." Uhhh yeah, but it's still money Das! Duhhh
Common Sense : 3/25/2009
"Francisco said city leaders have a responsibility to deal with economic realities." Yay! As usual Dale is the only one with his brain in the real world.
Throw em a bone : 3/25/2009
Won't these workers be happy when the raises cause the necessity for lay offs.
Skeptic : 3/25/2009
Yes but Falcone will get the vote for Mayor for the simple reason that she looks Mayorly, just as Das will get the vote because he surfs and appears young and energetic - oh and he has hair. Trust me nobody in this town pays attention to anything the council does, nor do they care until the collateral damage hits their own back yard.
Mayorly, Smayorly : 3/25/2009
One person's Mayorly is another person's arrogance and condescension. Just what did Falcone and Francisco think would happen if that vote were postponed by two weeks? The only thing that happened was that Iya Falcone would have a window to pander a bit more. Iya was for the labor contract last week until she was against it yesterday, knowing full well the whole intricate deal would not be changed in a week.
Silly Season is upon us fully
Dear Skeptic, : 3/25/2009
Iya looks Mayoral? Well she certainly doesn’t sound it. I think that woman says anything that comes in to her head. Iya said, yes this bargaining unit is being made the “fall guy” for all of the bargaining units that need to negotiate --and then proceeded to vote with Francisco. Huh? Like a lot of people I got more City Council than I was expecting as I waited for other issues to begin. This was enlightening.
Sneaky Snake : 3/25/2009
Pandering is right, however for those of you who were really paying attention... did anyone else notice that right before voting, Iya turned off her mic and push it away. Though some of the media is reporting that she voted 'No', along with Dale, I personally wasn't close enough to hear, but I find it curious that she would turn off her mic. Sneaky move - now she can appear to appeal to the financial conservatives AND pander to the union. I wonder who the city will be obligated to record her vote? I say Cushman will be our best bet. We need CHANGE. A vote for Sneaky Snake Falcone will be a vote for status quo!!
No Status Quo
Interesting... : 3/26/2009
I find it interesting that many here are complaining about salary increases. SB city employees are not even in the median of what other like city municipalities are paid for the same job(s). If the going rate for a plumber in LA is 'X" $'s, you can be sure the city pays a lot less for the same skill here in SB. It has always been that way and has not changed despite any increases in salary. What citizens should be wondering about with regard to their tax money is all the funds going to "green" projects, Creeks division, Food waste program, Tree division (there were very few trees in SB a 100 yrs ago),city housing authority, etc. City services have lost their way; The reason for their existence is to provide the citizens with Police, Fire, Water and Sewage... the rest is pork, yet the city continues to make cuts to the above vital services.
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