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Multi-Million Dollar Portion Of City Hall's Projected Deficit (And Resulting Proposed Cuts To Police, Fire, Libraries) Due To City Employee Contracts That Mayor Foster Supported: See May 2008 VIDEO Of Mayor Foster Re City Employee Union Contracts, Compare To His Statements Now

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(Aug. 3. 2011, updated 1:40 p.m.) -- A significant sum -- in the millions -- of Long Beach City Hall's $40 million three-year projected deficit is attributable to actions advocated in his first term by Long Beach Mayor Bob Foster.

LBReport.com provides below on-demand video from a May 5, 2008 news conference in which Mayor Foster supports (during Q & A) proposed five year contracts with the Long Beach Firefighters Association (LBFFA) and the Int'l Ass'n of Machinists (non-public safety employees) that he now describes as unsustainable and for which he now seeks Council approval to cut police, fire and library funding while simultaneously seeking concessions/changes to the contracts from the unions.

At the May 5, 2008 news conference, LBReport.com asked Mayor Foster why he was supporting new five year agreements instead of the usual three year agreements with the Firefighters and non-public safety employee unions.

The City Council ultimately approved the two agreements 8-1 (LBFFA, Gabelich dissenting) and 7-2 (IAM, Gabelich and DeLong dissenting).

In 2009. Mayor Foster supported and the Council approved a five year agreement with the Long Beach Police Officers Association (LBPOA). That agreement followed a 2007 "re-opener" of the LBPOA's then-current contract in which City Hall voluntarily agreed to increase officers' wages and benefits, part of an effort to reach "median" levels publicly justified as a way to prevent the loss of experienced officers.

If the 2008 and 2009 contracts had been three year agreements instead of five year agreements, they would be expiring in 2011 or 2012. Rather than having to seek union concessions to existing contracts, City Hall would now be in the position of negotiating new agreements.

If those negotiations reached an impasse when the contracts expired, City Hall would have the option of imposing cost-saving terms on the city employee unions, something it did last year to a smaller city employee union. Because the five year contracts aren't expiring, City Hall doesn't have that option with the Big 3 union contracts.

The five year contracts with the Big 3 city employee unions now extend into 2013 (IAM) and 2014 (LBFFA and LBPOA). [LBFFA's 2008 agreement was previously extended for a year in exchange for concessions made by the union].

How big are the negotiated salary increases in the five year agreements? A city management Power Point accompanying its proposed FY12 budget release indicates that for FY12, LBPOA has 0% increase (with skill pay and step increases totaling $955,000), LBFFA has 2-4.5% and IAM has 4%. When FY13 and FY14 increases are included (IAM's contract expires at the end of FY13), the three year negotiated salary increases for the Big 3 city employee unions are 9% for LBPOA, 6-16.5% for LBFFA and 8% for IAM.

City management's Power Point doesn't break out specific amounts attached to these percentages for the "Big Three" unions, but they are in the millions of dollars.

On August 1, 2011, Mayor Foster and LBPOA President Steve James issued a joint statement saying that they had reached agreement in principle on a new contract...but provided no details. LBPOA Pres. James told LBReport.com that the agreement in principle includes significant concessions to City Hall. Caveat: the percentage increases cited above don't reflect whatever agreement in principle the Mayor and Lt. James reached.

The next day, the Mayor and city management held a news conference unveiling their proposed FY12 city budget. In his opening statement, Mayor Foster made reference to the agreement in principle announced a day earlier...and said that if LB's two other major city employee unions (LBFFA and IAM) agreed to measures similar to what LBPOA's President had agreed to in principle, LB's budget deficit would largely disappear and LB City Hall might see a surplus.

For video of the salient portion of Mayor Foster's opening statement at the Aug. 2, 2011 news conference, click here or click arrow below.


During Q & A, LBReport.com asked Mayor Foster about the 2008 five year contracts and the cost impacts associated with them. Mayor Foster replied at length. To launch video, click here or click arrow below:


For City's full budget document page, click here.

Further Background

At a May 5, 2008 City Hall news conference, Mayor Bob Foster said City Hall can pay for contracts covering non-public safety city employees and LB firefighters, carrying a combined Gen'l Fund cost of roughly $26.5 million over five years, despite City Hall's continuing structural deficit, declining Gen'l Fund property tax and sales tax revenue and living "paycheck to paycheck."

Appearing alongside City Manager Pat West with senior city management and union reps present -- but without Councilmembers visible -- Mayor Foster said the two proposed five-year contracts are sustainable...and said that they don't "contemplate" or "advocate" tax increases.

Mayor Foster said the raises/increased benefits will be paid by City Hall becoming leaner, more focused on core services, possibly with fewer employees.

Pressed for specifics, Mayor Foster indicated that he didn't have the figures at hand and didn't cite numbers. He said City Manager West is preparing the FY 09 budget and shares the Mayor's view that the new agreements can be paid without new taxes.

Mayor Foster called the proposed agreements "fair" and said City Hall's goal was to bring LB city employees to the "median" in terms of pay and benefits with other jurisdictions, saying this was necessary to deter LB city employees from leaving for jobs elsewhere.

Asked why a shorter contract length wouldn't be more prudent in a period of declining revenue (to see if City Hall really can become sufficiently leaner and more efficient to produce millions in savings), Mayor Foster indicated he believes the five-year proposed length (instead of the usual three years) will help ensure that city employees reach "median" pay/benefits with other jurisdictions.

City management indicated that the contracts also include a "re-opener" before they expire, allowing them to be extended without lengthy future negotiations.

The May 2008 exchange with Mayor Foster took place as the economy was slowing, Wall Street's Bear Stearns had been swallowed up by Morgan Chase and Goldman-Sachs was headed for a September collapse that would usher in the "Great Recession."

When the Firefighter and IAM contracts came to a Council vote in May 2008, Councilwoman Rae Gabelich turned to City Manager Pat West and asked bluntly, "How are we going to pay for this?" When she received a response from city management that she considered insufficient, Councilwoman Gabelich voted "no" on both contracts. Councilman Gary DeLong voted "no" on the IAM contract but voted "yes" on the Firefighters contract. The remaining Council incumbents voted "yes" on both five year contracts.

The 2008 Firefighter and IAM contracts came roughly a year after Mayor Foster supported and the Council agreed to re-opening City Hall's contract with LBPOA (police officers union) to increase pay and benefits. The 2007 reopener was publicly justified as a way to deter experienced officers from leaving by seeking to raise LBPD pay and benefits to area medians.

Mayor Foster was elected in June 2006 with the endorsement of the Big 3 city employee unions. He was reelected in April 2010 without serious opposition. In September 2010, Foster filed paperwork forming a political committee enabling him to raise money for a 2014 run for CA State Treasurer.

In his 2006 Mayoral campaign, candidate Foster criticized Mayoral candidate Councilman Frank Colonna for joining in 2002 Council votes (9-0) that boosted ("spiked") pension benefits for LB's non-public safety employee union (IAM).

In 2010, Mayor Foster and city management asked the three unions to agree to changes to their 2008 and 2009 five year contracts that the Mayor had supported when entered into. In August 2010, the Mayor and management proposed and in September 2010 the Council enacted a FY11 budget based on "proportional reductions" to City Hall services (including police and fire) and "Plan B" (deep, not preferred) budget cuts if the unions didn't agree to those changes. Police and IAM declined; Firefighters offered changes that management and Mayor Foster called insufficient...and the "Plan B" cuts went into effect.

On August 1, 2011, Mayor Foster and LBPOA President Steve James issued a joint statement saying that they had reached agreement in principle on a new contract. (LBReport.com coverage, click here.)

The LB Firefighters Association indicates that it has (again) offered City Hall contractual concessions; at an August 2 news conference unveiling the Mayor/Management proposed FY12 budget, Mayor Foster indicated that he (again) considers the Firefighters' concessions insufficient.


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