Eidtor’s Note: It is possible to reject a tentative agreement as the Metropolitan Water District Board did this week for the second time.
Is it too much to ask of the nation’s highest paid and most coddled elected city officials to stand up in public and tell their constituents how they can justify giving nearly 9,000 city workers nearly $30 million in cash and guaranteeing them pay raises of up to 4 percent for the next four years?
Common decency demands no less when the City Council takes up Item 29 today, a new five-year contract for Brian D’Arcy’s IBEW Local 18, the union that has more say over DWP policies than the public or the politicians.
This is the union that has kept the city from going green for more than a decade because the jobs are in dirty coal and gas power plants, not wind and solar energy. This is the union that spends millions of dollars to corrupt our elections and buy — or intimidate — our elected officials into doing its bidding. Or more precisely, union bully boy D’Arcy’s bidding.
And his bidding in these tough economic times when even city workers are losing pay or their jobs is to get DWP workers payoffs that are 5 percent greater than the cost of living, which is a negative 2 percent.
One of D’Arcy’s boys even does better, getting a check for nearly $60,000 for his years of selfless service as coordinator of the labor management committee, a group that encompasses some 800 DWP workers. The payment comes on top of his $110,000 annual salary as an electrician, a job he hasn’t performed in years.
In the language of City Hall, all this amounts to a saving for ratepayers, not a cost item.
“This is entirely an obligation of the Department of Water and Power and there is
no impact to the General Fund. Because the 3.25% is a cash payment rather than applied
to base salaries, retirement contributions are reduced by $69 million,” City Administrative Officer Miguel Santana wrote the Council on Dec. 7, surely a day of infamy.
Even that isn’t good enough for DWP General Manager David Freeman.
Just yesterday, he tattled on Santana’s underestimation of the savings of this sweetheart contract and wrote the Council he had “found incomplete and inaccurate information we believe needs to be clarified to the City Council.”
Freeman, a man who knows a lot more about spending other people’s greenbacks than about actually achieving green energy, offers this doublethink math of the “savings” under this contract:.
“The negotiated 2010-2014 MOU will save LADWP at least $181 million and depending on future CPI’s as much as $360 million compared to anticipated budgeted expenses.
“In reviewing the CAO report, the fiscal impact statement appears to be incomplete.
“While it captures the $69 million in projected savings from reduced LADWP
retirement contributions, it failed to state the projected savings of $99 million in lower
wages and $13 million in lower overtime costs that results from the negotiated
3.25 percent lump sum payment rather than 3.25 percent wage rate increase for the
MOU term 2010-2011.
“This $181 million dollars savings includes LADWP’s cost for the lump sum payment.In addition, while actual savings will be subject to future CPI amounts, the CAO’s
report omitted the additional projected savings of $179 million that would result from
a lower floor of 2 percent rather than the current 3.25 percent COLAs.
“These savings will come from reduced retirement, wages, and overtime expenditures
compared to LADWP’s approved financial plan for the next five years.”
I guess we should be thankful that the DWP’s long-term plans to double and triple our rates included such generous raises for employees that taking cash instead of a raise this year and maybe getting only 2 percent raises in the future amounts to saving money.
This is the way our city government operates, turning truth on its head and obscuring reality for the purpose of deceiving the public. It’s why the mayor declares this contract is “a gift that keeps on giving” although despite the “savings,” the cost of DWP pensions to ratepayers will soar from 30 to 70 cents for every dollar of payroll during the life of the contract.
Is it any wonder they bungle everything they touch?
Is it asking too much to expect each of the 14 Council members to stand up in public today
and defend the approval of this contract and explain how it benefits the people?
It’s not just Wall Street which is corrupt!!!
CORRUPTION
Wall Street has turned the economy into a giant asset-stripping scheme, one whose purpose is to suck the last bits of meat from the carcass of the middle class.
Of course it isn’t too much to ask of them to explain anything they do. They have to know after Tuesday’s election that we are watching…
Meanwhile, I went to my local library this morning. The hours have been cut-back…and this is just the beginning of what we can expect to see from an almost bankrupt city.
This council group has been the biggest joke to the city and entire nation. They lack common sense and have shown time and again they can be bought just like Wendy Greuel with IBEW. The most ludicious statement today came from Garcetti who actually said that “the most fiscally conservative member, “Parks” says this is good so we should do it. HELLOOOOO you dumb ass Garcetti, Parks is the member YOU ALL CHOSE NOT TO REAPPOINT AS CHIEF because HE WAS A DUMB ASS!!! Perry and Hahn’s other stupid statements pertaining to AEG not paying the city for the Michael Jackson event were even dumber. The same grass roots community members who campaigned for Measure B and won, Trutanich and won, Krekorian and won should campaign against any bullshit council member who tries to run for another office or re election. WE NEED TO TEACH THEM A LESSON THAT WE HAVE HAD ENOUGH OF THEIR CRAP.
We taxpayers have been treated like s*** eating dogs and the Council have already primed us once. We deserve the representation we elect. If you don’t like these bumbling, self congratulatory, shameless, nimrods representing you…recall them. The power has always been in the hands of the electorate. The question is: What are you prepared to do?
Quit complaining and get off your lazy asses! Otherwise, bon apetite.
The moron above needs to see reality, or else just become a foolish activist. The “average Joe” cannot effect change. It takes a leader to effect a group by inspiring others to act. It is that person who can effect change.
You find that leader who is worthy of fellowship and I’ll gladly join up. Otherwise, I’ll just laugh at Ron Kaye’s posts.
The Council was grateful that the IBEW proposed a new contract in advance. But not mentioned: it was a one time, take it or leave it offer that was artfully contstructed by Boss D’Arcy so that the Members could take cover in the pension savings.
Wannabe US Senator Bill Rosendahl was asking loads of softball questions. Wannabe Mayor Garcetti was pandering. LaBonge was vintage Tom in his Christmas scarf. Jan Perry actually had some decent questions
The Council loves the idea that we have low rates. Rate Payers do too. However, they should be lower. We are getting stuck with the IBEW LABOR PREMIUM and the related restrictive work rules.
But given the pension short fall of over $11.4 billion and the projected 4 year budget deficit of over $3 billion (and that does not take into Sustainable Funding), City Hall will have to address the voters.
That is when the fun begins.
Do I hear: Municipal Acceptance Corporation and Emrgency Financial Control Board, just like NYC in 1975, in return for some concessions.
To December 11, 2009 1:57 PM: I second what you said without the profanity. Common sense tells you to hold the highest person responsible (the head of the snake), its the City Council and the Mayor, stupid. Don’t get mad at the Unions. It’s like getting mad at developers or other contractors ripping off the City. If you don’t guard the gate, people will break in and steal. Vote out the incumbents the soonest that you can.
To Jack Humphreville on December 11, 2009 5:42 PM: As a visitor from San Diego, I can also confirm the problems with giving away the farm. In San Diego, we also have a corrupt Mayor who gave away pension increases without any justification. The problem is that you can promise the moon in future pension benefits, but if you don’t have a sound actuarial footing, your promises are empty because the city will run out of money and never payout to future retirees – its just a pyramid game.
“Freeman, a man who knows a lot more about spending other people’s greenbacks than about actually achieving green energy”
Freeman can do a lot of damage in a short amount of time. Remember he was a deputy Mayor and was behind the scenes of many bad moves BEFORE he became temporary GM.
San Diego Visitor @ 6:15 PM
Arthur Levitt’s 2006 report and recommendations regarding San Diego’s mismanagment should be required reading for the LA City Council.
LA is broke. $11.4 billion pension deficit, projected 4 year operating deficit of $3 billion, even after raiding the pension plans, and that does not include Sustainable Funding for our crumbling infrastructure.
“The Levitt Report suggests several ways of ensuring this sort of thing does not happen again. Since the corruption of financial management in San Diego is so similar to that of companies such as Enron, the suggestions are similar to what Sarbanes-Oxley requires of corporations. Recommendations come under four categories: enhanced accountability, greater transparency, increased fiscal responsibility, and independent oversight. The recommendations include a permanent, independent Audit Committee and Auditor General; whistle-blower laws; personal certification of financial reports by senior officials; enhanced information systems; clear lines of authority supervising finances; an audit of internal controls; annual management reports; a Disclosure Practices Working Group that reports to the Audit Committee; selection of independent auditors who have no conflicts; changes in the pension board; sufficient time for City Council to provide oversight regarding financial disclosures; and a City Monitor, subject to S.E.C. approval, to oversee this remediation process.”
http://www.cityethics.org/node/124
Jack fix your email, I’m still getting kick backs. Great quote in today’s LA Slimes.
“The agreement was negotiated in a year that police will receive no raises and other civilian workers are experiencing pay cuts between December and June. The agreement drew fire from Jack Humphreville, a DWP critic who said it was unfair for the utility’s employees to get raises when others civilian workers face such sacrifices. “Our city workers are getting sliced and diced,” Humphreville said.
It is possible to reject a tenatative agreement but the city would be contractually obligated to honor the 3.25% raise.
And since the IBEW contract wouldn’t be renewed and is expiring, there would also be strikes in 2010.
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