Asst. CAO Tom Coultas and Personnel Head Maggie Whelan stood their ground Friday and told it like it is to the LA City Council when grilled about the chaos that might ensue at City Hall in coming weeks as 2,400 workers quit their jobs under the city Early Retirement Incentive Program. Coultas repeatedly pointed out the Council and mayor approved the ERIP plan despite clear warnings about its flaws in and out of City Hall and without regard for the problems in implementing it. Coultas had good reason to keep a smile on his face until this moment of truth — he’s among the 2,900 who have over-subscribed the plan.
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“THIS IS JUST THE BEGINNING, NEXT YEAR IS WORSE”
PART I:
PART ii:
:
Read Perr’sy her lips while Rosendahl prattles::
We elected these people.
It’s utterly unbelievable.
I’m actually speechless.
No one should feign surprise at any of this.
All the career politicians in City Hall are agents of the unions. If Villaraigosa and the City Council acted in the public interest, they would have given the unions a simple choice: either accept pay cuts, or we will have to lay people off.
Instead, the union obtained golden parachutes while maintaining above-market wages for those who stay behind.
Villaraigosa and the City Council have delivered an unemployment rate of 13.9% two months in a row — 39% higher than the 10.0% national average. And they have kept all of that unemployment in the private sector.
This is who you elected. This will continue as long as you continue to elect “machine” candidates.
I am constantly and continually amazed at how stupidly these CMs and the Mayor operate the city government. The idea that the “Early Retirement” would cause a rush to the exits by the veterans who have the most experience is not a difficult result to predict.
As the council proceeds with city business, it’s like no one paid attention early on to signs and warnings that could have mitigated the problems. And when they do learn of a problem, it’s handled at their normal speed: snail’s pace. If the CMs were a fire department, no buildings would be left standing.
Instead, the CMs, led by the Mayor, further aggravate the problems with the choice of actions. The unions run the state and have a pretty good grip on the city. The low man on the totem pole continues to be the taxpayer/resident/business owner.
I think organizing and complaining as a coordinated effort is all they recognize since it can hurt chances for re-election or running for a new office. They try not to draw any negative attention and avoid being exposed. Something like an old t.v. commercial where a man in a supermarket was checking out and had a product for his wife that was not priced- the checker calls out on the P.A., “Price Check on large box of super tampons,” causing the customer to cringe. And that was only about being embarrassed. The CMs and the rest should be ashamed of how they let things get out of control.
The city is surrounded by dozens of other cities and L.A. is usually the worst run as a regular matter. No wonder Tony Villaraigosa and the cohort CMs stay on the soap box for sort of award or distinction, real or fabricated, when the opportunity turns up.
Some of those distinguishing items are hefty spinning, very clearly that, so the down side of the particular distinction is not noticed; like when Ed Reyes was at City Hall for a “Legislator of the Year Award” presented by the downtown chapter of the UCLA Alumni Association- Reyes went on and on with his view of acomplishments and added at one point “My district is over 80% below poverty level.” That’s a “good” thing?
But spin is what it’s all about.
They need to “look behind the curtain” and do it early on so we don’t have to see the obvious again claimed to have been a surprise to them.
Question: If there were salary savings by retiring people in higher positions, do they leave departments without managers so that there are no “promotions” that will revive the salary levels? Do they count the net effect or the superficial one?
And boy, do I get tired of Eric Garcetti trying to make everything that the CMs do (often as a remedial measure to their earlier ineptness) look like such an accomplishment. That word “Leadership” needs to be removed from their vocabulary as its become so trite now, used in knee-jerk reflex fashion nearly every Council meeting.
Even as employees leave under ERIP, our GM is promising that 10% of those vacancies will be filled, and within two years there will be promotional opportunities to positions being vacated now. This is the reality within City Hall, where buffoons like Rosendahl are feigning surprise and anger. Nobody is fooled by their grandstanding at this late stage, even as they gave obscene pay increases to DWP employees yesterday. How can they possibly resolve the current problem, when they have just created another one.
Are you implying I am feigning surprise, Walter?
Kristin — No. You didn’t say you were surprised. You weren’t surprised, were you? Me, neither.
I’m thinking more of the City Council Members themselves. They are going to feign surprise, and then they are going to find the City “needs” the guidance of the same people running for the exits. Result? Not only will they get to keep their golden parachutes, but they will get lucrative “consulting contracts” to come back and do their jobs.
I think that needs to be a part of our mantra. If you take the Early Retirement, you cannot come back and get a Consulting Contract. This is what is happening with David Nahai, and so we are paying Nahai and David Freeman’s salary at the LADWP.
And then there is the question – why are we hiring any new people period – except Police and Fire – when the City is at this level of deficit?
These ERIP’s cannot be a case of “you can have your cake and eat it too.”
If the higher management people retire, those below move up. There should be a hiring freeze until the GMs of each department say exactly what the fallout will be on each department after the freeze.
I think there was another pipe break this week on
Fallbrook in West Hills. Where is the money going that should have gone into these repairs?
The LADWP should be the first department audited by Wendy. Saving a few million because we don’t pay our bills closer to the date due and we don’t get bulk deals is literally small change compared to the LADWP budget.
Chris — Great point! I forgot that this scam has already been pulled! Yeah, “No more Nahai’s!”
Bill-OMG, did I really vote for this ERIP thing? Shame on me.
Dennis- Bill, I believe we did vote for this. How dumb were we?
Eric-Yes boys, we did indeed vote for ERIP. Do I hear a motion on how dumb we are?
Janice-I move that the Council is really dumb.
Tony-I second that motion, with the added amendment of increased term limits and an increase in our salaries.
Tom-I don’t think we can increase term limits without it being a ballot measure. Whoa, did I just say that?
Ed-Okay, let’s make this a ballot measure where the citizens can vote on how dumb we are provided it also includes increased term limits and increased salaries.
Jose-That’s a great idea. Who wouldn’t vote for yes on how dumb we are? We can call it the Council is Ripped measure.
Bill-Yes, Measure E(Ripped). Hold my time please.
Herb-’Better to save that term for the medijuana vote.
Paul-Good herb. I mean, good call Herb.
Richard-It’s important that no unions back this measure lest it fails. I think the voters are on to us.
Dennis-Richard, we can deal with that and the Beck commercials during the campaign.
Bernard-We need a cost analysis to justify salary increases.
Greig-I think a cost analysis of the DWP rate increases and my water bill will justify the increase in our salaries.
Bernard-’Good enough for me.
Eric-Okay, so we have a motion for a ballot measure E Ripped stating that we are dumb with increased term limits and salaries.
City Attorney-Um, I think you have to agendize this. The public needs a chance to comment.
Eric-The public been tossed out indefinitely for violating the Rules of Decorum.
Tom-Even those grammar school kids from my ol’ alma mater?
Eric-They were very bad Tom.
City Attorney-Nonetheless, this must be agendized.
Jan-Are you threatening us?
City Attorney-I am advising you.
Jan-Well, unless you are threatening us with jail time, I say we proceed with the motion.
Eric-Okay, open the roll; close the roll; tabulate the votes.
15 ayes.
Motion passed.
Eric Garcetti used to brag about the credit rating of the city and how it was both fiscally conservative and socially progressive.
All of the issues now facing the City vis-à-vis the budget and the ERIP could have been dealt with up front. The City Council was specially warned by the brave and honorable Sally Choi.
The way to deal with the problems were so obvious that you didn’t need a degree in economics to understand it.
A combination of either imposing layoffs, capping the number of people who could apply for ERIP (so that there is no over-subscription problem), and properly paying for ERIP (or not offering it at all).
Also they should implement MANDATORY retirement for those who qualify. There should be no 45-year service time employees at the City. The mandatory period should be when the employee qualifies for full retirement.
Garcetti’s BS: Garcetti once again get’s away with his double-talk. Let’s look back at the praising of King Garcetti for the “successful” resolution of the budget problem that protected labor and balanced the budget.
The ERIP (with no cap), the lack of layoffs, the payoffs to the highest paid employees (six figure salaries). Garcetti and his subjects were warned, but tried to live in a fantasy world.
http://www.youtube.com/watch?v=lye7cmKWfN8
Garcetti loves unanimous votes and hates Free Speech (at least the speech that criticizes him and exposes corruption) – That is why Smith and Parks were not present during the DWP-IBEW vote even though Smith was present that day. Smith is a coward and two-face too scared to vote against the political machine and instead hide in the dark.
Just watch “Part II” and the questions and answers between Rosendahl and the staff. He asks for a report on how the vacated positions are going to be handled. But obviously Rosendahl doesn’t fully digest reports before he votes.
Why are we paying City Councilmen the highest salary in the nation?
HR won’t know until Dec 16th (in the future from Dec 10th). Now the City Council is just realizing that their beloved ERIP may not have been the best idea. As tough as it may have been, there should have been NO GOLDEN PARACHUTE – they should have bit the bullet and implemented layoffs.
If we wish to help rectify our “significant budget problem” then we should take “significant” steps to FURLOUGH THE CITY COUNCIL.
The lack of any organizational planning is grossly negligent, if not criminal.
But next year is even worse with a projected deficit of $408 million, down from $821 million because of an under the radar screen raid on the two scandal tainted city pension plans, jeopardizing the retirements of their over 70,000 members.
And it does not get better. Projected deficits increase to over $1 billion for the fiscal year 2013-14.
These projected deficits are understated because of the lack of Sustainable Funding – money that is needed to repair, maintain, and improve our crumbling infrastructure such as our streets and sidewalks.
The solution: a massive reorganization of the City’s finances and operations.
Bankruptcy is inevitable. The bad news is going to be rolled out in January, “slowly, to ease the pain”. Hold-on to your seats.
Thank you Walter. I was shocked. Not surprised.
No, I was shocked at what a stupid show of “concern” Rosendahl was suddenly making, and shocked at how stupid he and his roomates around the whore-shoe must think we are.
Finally, I am beyond offended and I am gonna take it personally.
The most amazing part of this ERIP deal, is that 7% of the positions will be allowed to backfill in each department. So we are ridding the most experienced with new employees. How does the city save any money from this scheme. Every department should be restructured and layers of bureacracy eliminated permanently. Instead, you have GMs promising promotional opportunities to these very positions.
We can blog away with sound advise, but this city is a train wreck under control of 15 fools as “Silly Me” has identified humorously. And don’t forget the traveling pants in Copenhagen, whose continued jaunts at taxpayer expense while the city is ready to implode, should be reason enough for a recall.
9:31 AM
Unfortunately I believe they are going to kite this Ponzi scheme way past January in anyway they can.
Are you kidding? Los Angeles won’t go bankrupt. Don’t you understand the Ponzi scheme that they played on us? IT’S STILL GOING ON, and only the Federal Government knows when they’re going to PULL THE PLUG on us. Read the Rolling Stones article about what occurred, and don’t concern yourself about and question the source. It’s all true.
http://www.rollingstone.com/politics/story/30481512/wall_streets_naked_swindle/2
THE BANKS WERE WRITING LOANS WITH MONEY THAT THEY DIDN’T HAVE. THEN, THEY GAVE WHAT AMOUNTED TO IOUs TO THE RECIPIENT OF THE LOAN, ANOTHER BANK.
The City of Los Angeles cannot go bankrupt if the banks do not call in the loans delinquent. AND THEY NEVER WILL CALL THE LOANS DELINQUENT.
But, there will be another DEPRESSION, and it’ll be deliberate. IT’LL HAPPEN WHEN THE FEDS WISH IT TO HAPPEN.
Everyone must realize by now, even on only a gut level, that something REALLY PHONEY is going on.
http://www.npr.org/templates/story/story.php?storyId=121394511&ft=1&f=1003
Senate Passes $1.1 Trillion Spending Measure
by Andrea Seabrook
December 13, 2009
The Senate on Sunday passed a $1.1 trillion spending bill that will fund much of the federal government through next September.
And OH YEH, the L.A. City Council is also playing that “funny money” game… And nobody is refereeing and calling foul.
There is not a single person on the City Council with any idea of how to govern — not one. And we, as an electorate, do not demand that they know anything about how to govern. They are little people who suddenly were put in positions of great responsibility. And, nearly each one of them is serving some interest group or other highly placed developer or corporate type.
Voters just want somebody — anybody — who is different than the one they have. For example — and many hanks to KFI — we got a bigger fool than Gray Davis in Sacramento. When we replaced Tom Bradley because of the riots — he was at least one term over due anyway — with the great REAR-Don we put the fox in the hen house. That, my dears, was the beginning of the union take over of the City of Los Angeles. He wanted union peace — whatever the cost!And it is still costing.
The next jump will be to replace the GREAT MAMBO KING MAYOR and all his dancing boys and girls. And again, the voters will open the gates to another sweet talking incompetent, greedy pack of wolves.
And, just so you don’t get too comfortable, this ERIP is going to devastate the City in ways you cannot imagine. What it won’t do is save anything.
If you have never worked in government, you cannot possibly know the value of understanding the laws, regulations,and codes that it is built on. So when all that dead wood leaves there will be chaos, which will also have a price tag. The City Attorney’s Office is likely to be the hardest hit. But, the wolves will benefit from this situation. As a tax payer you won’t. You’re too easy a mark. Just get you upset and emotional about DUMM STUFF. You’re going to be manipulated again. The laws, rules that are there to protect you and to give fair play a chance will be overlooked because few will know much of anything.
When DWP had the famous early retirement in the late 1997 (?)it left a vacuum and Brian D’Arcey became KING KONG!
How did it come to all this?
I agree with Dec 13 at 2:28 PM. The extra layers must be eliminated. These layers are presently a means to by-pass accountability since no supervisor will turn in a fellow union member(or even a neighboring one). GM’s cannot even go after the bad workers because contracts dictate the chain of command. Add to that, some jobs that one or two can do have four or five doing it. That is also a way to hold individuals less accountable. It also breaks up any consistency and continuity. The not so old joke of how many union members does it take to screw in a light bulb holds true. It should take one. With union contracts, it could take several-only after all sorts of administrative reviews occur. This isn’t necessarily to stifle productivity so much as to ensure more union members which ensures more union dues which ensures more union power during elections. And, as we can see, Council is unable, or unwilling, to think and vote realistically and logically. Don’t get me wrong, I know of many employees that would just assume put that light bulb in all by himself/herself. However, once the contract says otherwise, that employee can eat poop if such an astounding feat was done. For those that do not wish to work, such contracts serve them well.
In addition, under the existing Charter, commissions are as good as the mayor’s backing. This mayoral admin micro-manages commissions and they have just become an extension, a cushion and a front for the mayor.
As for the ERIP, it is astounding that backfills can happen. So much for saving money. The city is paying for workers without the benefit of a work product. Then, they’ll be paying those retirement fees plus the 7 percent refill which will probably be more as new contracts are drafted.
‘Simply unbelievable.
The question is: what can we do about it?
Part I, 2:20, “Unfortunately, since this wasn’t a targeted program…”
Question: Shouldn’t it have been targeted to specific civil service classes?
Contrary to claims of Eric Garcetti, the City Council and the Mayor have not demonstrated leadership. They have shown a lack of backbone to stand up to the public employee unions.
Layoffs would have been based upon seniority in the civil service class. This means that those WITH THE LEAST experience would have been eliminated until the City could balance the budget. More lower salaried persons would have been removed from the payroll, but the institutional experience would not have been lost in one swoop.
ERIP was Fool’s Gold sold to the Council by the Unions. “Yes, Councilmember, we need to get rid of the higher salaried positions and at all costs avoid any layoffs at all.”
One wonders how many of those who advised the Council to approve ERIP are themselves signing up for the Golden Parachute to abandon the City in its time of need for experience and good advice.
For me, bankruptcy is the preferable route. It is a legal basis to restructure the City’s Departments and to tear up the Villaraigosa Union Contracts that led to this bankruptcy.
And precisely why are the community activists in this City NOT preparing the recall petitions for the Mayor and City Council President who demonstrated such “leadership” to put the City at risk?
As long as the Council listens to only one source-General Managers-, they will hear the same message. The sky is falling, and they cannot function without the backfills. They have no interest in being part of the solution other than to ensure their high pay. More employees, more money.
Dec 14 at 10:27 Am wrote: “For me, bankruptcy is the preferable route. It is a legal basis to restructure the City’s Departments and to tear up the Villaraigosa Union Contracts that led to this bankruptcy.”
I’m with you. The only glitch is, it would be the mayor redrafting the new contracts.
As a city employee I do not even beleive the ERIP passed, I think the union made up the vote tally to make it pass. I talked to a large majority of the personel in my department and they told me they would vote no on ERIP. Then we hear rumors that part time employees voted on the ERIP,but they have no union repersentation so they should not be able to vote on a city & union matter. The passing of ERIP will cost remaining employees a 6% pay cut with our reduced hours and higher contribution to retirement. I can not speak for other departments but I kmow mine is 30% low on personel. I dont know how vital my position is but I know people appreciate what I do, but I cant do it fast enough, because we have lost half our shop personel, and now our management is retiring also. In extereme financial dificulties the city is supposed to lay off part time employees, but for some reason this hasnt happened. I cant say what department I work for, but get used to seeing more graffiti, trash,& pot holes.
Is either Tom or Maggie on the list of EIRP participants?
Don’t know about Maggie but Tom is going by way of the ERIP.
Did you see the list of 30+ people from planning? That is going to be a horrible loss. Let’s hope the new people get broken in by NC’s and HOA’s early!
I swear, if ONE PERSON who leaves comes back to consult – why then I will join your revolt!
No lobbying or consulting. And don’t play that silly “wait a year” thing. Never let them do it.
More than 40 people are leaving Planning. Don’t be bamboozled by the Director who is crying wolf. She is the reason most are leaving.
You made some good points there, I did a search on the topic and found most people will agree with your blog.
I’d personally really suggest you to write much more frequently.
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Did you read the report at all? ERIP and the Budget: Honor Among Bureaucrats in the Face of Official Deceit – Ron Kaye L.A.