Re “Culver City, the Odd 1 Percent Community for Health Benefits”
The six employee associations and City Manager John Nachbar have been hard at work bargaining with each other in good faith.
On behalf of Culver City taxpayers, the City Council has asked these six unions to help them bend downward the cost-curve of future California State Public Employees Retirement System (PERS) health benefits.
On the hard bargaining table is this concept – save more city jobs now and manage future retirement costs better. Thanks to a 4 to 0 City Council vote, we have a win/win budget deal on the table.
For too many years, prior City Councils effectively have ignored, at annual budget time, the unfunded future costs of taxpayer-paid lifetime health insurance and medical care for retired City Council members.
This “quiet little perk” to our City Council members has been sitting under the budget radar screen for years with scant, if any, public disclosure.
Now at this late date, a seventh employee bargaining unit, the City Council Part-Time Workers Union (CCPTWU), has entered the scene.
The CCPTWU has an ongoing letters-to-the-editors campaign and recently established its Culver City 2020.com website to advocate its singular, self-serving view that –
…The City Council recently has approved labor contracts covering many of our employees that radically alter retiree medical benefits. While financial necessity does indeed require us to move towards a different and more sustainable model, there is a right way and a wrong way to do so …
How many CCPTWU members are there?
Here Is the Exception
One: Councilman David Scott Malsin.
What is the issue? According to knowledgeable sources, an estimated cost of between $20,000 and $25,000 per retiree, per year, for his or her remaining lifetime. This covers PERS health insurance and 95 percent paid medical care for the CCPTWU retiree and his family.
There is a 5 percent co-pay cost to the retiree. What is the unfunded cost of lifetime health benefits to Culver City taxpayers?
Only a PERS insurance actuary could tell you.
In past years, what was the justification for this tax-free Council perk?
Prior to the 2006 City Charter change to the City Manager form of government, Culver City was managed far more directly by the City Council.
In those days, the Council interviewed and negotiated the salary contracts of all department heads.
Duties Sharply Changed?
The City Council had hands-on responsibility to negotiate annual contracts with the six employee associations. The City Council had to meet nearly every single Monday to adopt policy and give management directions to the City Administrator Officer (CAO) and every department director.
Council-Agency meetings would require hours of public discussion – often not concluding until 1 a.m. With some justification, considering all of the micro-management duties and responsibilities, prior City Councils felt entitled to full PERS health insurance benefits.
When he ran for Council in 2006, Mr. Malsin supported the argument that City Council should not be micro-managing every city department. He was successful in being a strong advocate for City Charter change to the City Manager form of government.
We would have a City Manager to do all the hiring and firing of management personnel. City Council should allow the city professionals to do their jobs for Culver City residents — without behind-the-scenes interference and micro-management by individual Council members.
With reduced responsibilities, the City Council should be more concerned with governmental cost efficiency, policy matters, public issues and the city and Redevelopment Agency annual budget matters.
Effectively, Mr. Malsin was advocating that his City Council job should require much less hands-on work for himself.
Now that the City Council hires the City Manager and allows that professional to do his job in managing Culver City without Council interference, it only makes pragmatic sense — especially during these economic times — to reduce the cost of City Council health insurance benefits to the taxpayers.
With the state of California attempting to vacuum up nearly every tax dollar, the City Council (by 4 to 0 vote) is working to save more city jobs now and manage future retirement costs better.
By reducing its own PERS health insurance benefit costs, the City Council is giving back exactly what city employees are being asked to give back.
Mr. Malsin, did you hire a City Manager who has reduced City Council workload or not?
Did you vote a 15 percent pay raise for the City Manager because he does more work? If the City Manager does more work, then you are working less.
What are you going to give back for doing less work?
Mr. Deen, a CPA, a 20-year Culver City resident, is a former Parks and Recreation Commissioner, a former Fiesta La Ballona Treasurer, and he may be contacted at supercpa@pacbell.net
