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Council Votes 5-4 (See Vote Tally On Motion By Schipske, Seconded by DeLong) To Withhold Approval Of City Mgm't Pay Raise Until Nov. 5 Report On Restoring Some Fire Services Cut In Previous Budget Cycles; Council Votes 7-2 (DeLong & Johnson Dissenting) To Approve Raises Up To 15% For Three Other Groups (With 6% Of Raise Paid Toward Pensions)

Johnson explicitly states that in his view, the new contracts are raises, not pension reform



(Oct. 24, 2013) -- As carried LIVE by LBREPORT.com, a City Council majority voted 7-2 (DeLong and Johnson dissenting) on Oct. 22 to approve 15% previously unbudgeted pay raises over the next two years (with 6% of the raise paid toward their pensions) for city engineers, lifeguards and (12% for) confidential employees.

However, on a motion by Councilwoman Gerrie Schipske, seconded by Councilman Gary DeLong, the Council voted 5-4 to delay approval of raises for management employees until the Council receives a management report on whether some services taxpayers -- specifically Engine 8, Engine 12 and Rescue 12 -- which were cut in previous budget cycles will be restored for the remainder of FY14 (or simply through November as budgeted by the Council in Sept. 2013.)

Councilwoman Schipske said raises shouldn't be granted to management before significant services that had been cut (she cited Fire Engines 8, 12 and Rescue 12) were restored. Councilman DeLong agreed with that point, as well as a point madeby Councilman Johnson (below) in not granting management raises across the board but on individual manager merits, in seconding Schipske's motion.

The vote to withhold action on management raises until November 5 was: Yes (withhold action to Nov. 5) Lowenthal, DeLong, O'Donnell, Schipske, Johnson; No: Garcia, Andrews, Austin, Neal.

Mayor Foster spoke in favor of awarding raises to all four employee groups, saying it completes pension reform. He acknowledged the raises will increase future pension costs but argued that if an employee leaves LB [because pay and benefits are too low] and receives a pay raise elsewhere, Long Beach would still pay the additonal cost. Foster said unnamed persons might "grandstand" in opposition to the raises, then exited the Council Chamber before Council and public comment and the Council vote.

During Council discussion, Councilman James Johnson stated that in his view. the new contracts should be called raises, not pension reform. He said previous pension changes negotiated with other employee groups were made to their existing contracts that contained raises to which those employees were already entitled. In contrast, the contracts being considered by the Council now are new contracts with newly granted salary increases, with pension changes, but shouldn't be called pension reforms, he said. Johnson said some employee raises might be warranted, but should be described transparently for the public and shouldn't be portrayed as something they aren't.

Councilman Johnson also said he believes any raises for management employees shouldn't be granted across the board but individually on the merits, rewarding excellent performance by specific managers. To hear Councilman Johnson's statement, click here.

As previously reported by LBREPORT.com, the offered raises were approved in a July 2013 closed Council session. LBREPORT.com has requested and is awaiting the vote tally on that closed Council action. In August 2013, Mayor Foster and City Manager West told the press and public that their proposed FY14 budget didn't include pay raises...and in September 2013 the Council was clearly aware that pending raises were approved in a closed session months earlier but weren't part of their adopted FY14 budget.

Under questioning by Councilman DeLong, Financial Management Director John Gross acknowledged that the new conrtacts are expected to cost $800,000 in FY 2014 (general fund) and $1.8 million in subsequent years (all funds.)

During public comment, Kathy Ryan and Tom Stout of the Long Beach Taxpayers Association spoke in opposition to the raises. To hear their testimony, click here.

No members of the public spoke in favor of the new contracts.



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