Monthly Archives: March 2014

Have the Measure A Supporters Earned Our Trust?

by Michael D. Robbins
Director, Public Safety Project, PublicSafetyProject.org

March 31, 2014

Measure A is at least eleven permanent tax hikes in a single ballot measure – four on residents and seven on businesses.

Four City employee unions have donated $17,500 to the “Yes on Measure A” campaign to raise our taxes and their pay and pensions:

  • The El Segundo Firefighters PAC donated $5,000.00 on 02/11/2014;
  • The El Segundo Police Officers’ Association PAC donated $5,000.00 on 02/24/2014;
  • The El Segundo City Employees Association PAC donated $5,000.00 on 02/28/2014; and
  • California Teamsters Public Affairs Council in Sacramento donated $2,500.00 on 02/28/2014, presumably for the El Segundo Supervisory and Professional Employees’ Bargaining Unit, Teamsters Local 911.

( PROOF:
Public Records Act Request Response Documents: 2/27/2014 FPPC Form 460 filed with the El Segundo City Clerk by the “Yes on A” campaign. (532 KB PDF file),
3/27/2014 FPPC Form 460 filed with the El Segundo City Clerk by the “Yes on A” campaign (799 KB PDF file),
3/27/2014 FPPC Form 497 filed with the El Segundo City Clerk by the “Yes on A” campaign (393 KB PDF file), and
3/31/2014 FPPC Form 460 filed with the El Segundo City Clerk by the El Segundo Police Officers Association PAC (372 KB PDF file). );

These four City employee union gave a total of $17,500 to the “Yes on Measure A” campaign to get $6.6 million per year in return for past and future union pay raises and resulting pension increases.

There is an inherent and unavoidable conflict of interest when government employee unions contribute money and provide other forms of campaign support for candidates and ballot measures that will increase their pay and pensions, and then raise taxes on residents and businesses to pay for it.

The “Yes on Measure A” campaign claims Measure A is “supported by people you know and trust”. But if you really knew most of them, you probably would not trust them!

"Measure A - Supported by People You Know and Trust" slogan on a "Yes on Measure A" campaign mailer delivered on 3/29/2014.
“Measure A – Supported by People You Know and Trust” slogan on a “Yes on Measure A” campaign mailer delivered on 3/29/2014.

Looking down their list of supporters, we find:

  • Four were city council candidates sponsored by the fire and police unions, who get huge pay raises in return for their campaign support – Bill Fisher, Sandra Jacobs (one of the two “Yes on Measure A” campaign co-chairs), Cindy Mortesen, and Janice Cruikshank;
  • One tried to steer a city contract to a friend for $120,000 when the more qualified bid was $65,000 for the same job;
  • One was AGAINST the tax hikes when he was a Hacienda Hotel employee, but now, as an ex-employee, he is FOR the tax hikes that will harm his former employer and the entire hotel industry – Joe Harding (one of the two “Yes on Measure A” campaign co-chairs), spoke out strongly against smaller Utility Users Tax (UUT) and Transient Occupancy Tax (TOT) hikes at the 8/3/10 El Segundo City Council meeting, saying, “Most of you have seen first-hand what our industry has endured over the past 27 years.” “Our industry just can’t handle any increase.” “You must say ‘No’ to the hotel killer tax.” “A TOT and a UUT would hit us twice. That’d be like kicking us when we’re down, and then running us over for good measure.” “The City must make unpopular and difficult adjustments to their payroll and expenses.” “Leave the TOT where it is.”;
  • One had to resign his elected office due to his long-time persistent affair with a school board member also on the list, which he admitted to in writing, after her husband contacted the City Council regarding the persistent affair with his wife – former City Treasurer Christopher Powell and current School Board Member Laura Gabel
    ( PROOF:
    Public Records Act Request Response Documents: 11/24/2012 email from Laura Gable’s Husband, Greg Gable to the El Segundo City Council and City Clerk (140 KB PDF file),
    11/26/2012 Letter of Resignation from El Segundo City Treasurer Christopher Powell (27.5 KB PDF file), and
    11/27/2012 email from resigned City Treasurer Christopher Powell via City Clerk Tracy Weaver admitting to his extra-marital affair (30.2 KB PDF file). );
  • One is a former elected official who allegedly had an affair with his campaign manager, which allegedly broke up her marriage.
  • One was a no-show city clerk who worked full-time for another city but collected two government paychecks – Cindy Mortesen;
  • One is a school teacher union member who misused School District public facilities, public resources, and students to campaign for a City Council candidate – Ray Gen;
  • One is a police captain who made the news for bullying and harassing a city resident at his workplace for posting the public record police and fire union salaries on his website – Police Captain Robert (Bob) Turnbull;
  • Three crashed and disrupted the meet-and-greet of City Council candidate Mike Dugan, and heckled and interrupted him, causing some of the voters to leave early – City Council Member David Atkinson, City Council Member (and Los Angeles police officer and union member) Marie Fellhauer, and police captain and union member Robert (Bob) Turnbull;
  • One is the election official who runs the entire election and counts all the ballots, and should not endorse candidates or ballot measures in elections she conducts – Tracy Weaver;
  • And missing are the four City employee unions who contributed $17,500 to the Yes on Measure A campaign to raise our taxes and their pay.

I could go on, but you get the picture. Please vote NO on Measure A.


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Posted in California, El Segundo, El Segundo Election Coverage, El Segundo News, El Segundo Tax and Fee Increases, Elections, Firefighter and Police Union Compensation and Pensions, Firefighter Union Corruption, Fraud Waste and Abuse, Government Employee Compensation and Pensions, Measure A - 5 New Taxes and 6 Tax Inceases, News, Police Union Corruption, Political Corruption, Politics, School Teachers Union Corruption, Tax Policy and Issues, Union Corruption | Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Comments Off on Have the Measure A Supporters Earned Our Trust?

El Segundo City Employee Unions Contributed $17,500 to Measure A to Raise Our Taxes and Their Pay

by Michael D. Robbins
Director, Public Safety Project, PublicSafetyProject.org

March 31, 2014

The El Segundo City employee unions contributed $17,500 to the Measure A Tax Hike campaign, thus far, with more than a week left to make additional contributions, according to the second set of campaign finance disclosure statements for the April 8, 2014 El Segundo General Municipal Election. Clearly, the City Employee unions are trying to buy the city election to raise taxes on residents and businesses so they can get big pay raises and pension increases.

Public record city employee compensation data show that the city employee unions get millions of extra tax dollars per year by spending thousands of dollars on city elections every two years. Firefighters and police are paid about $160,000 to more than $360,000 per year in total compensation. All but one or a few firefighters DO NOT live in El Segundo. Most police officers and other City employees DO NOT live in the city.

The campaign finance disclosure statements were due by close of business on Thursday, March 27, but were not made available by the City Clerk’s office until close of business on Monday, March 31. City Hall is closed on Fridays. There is a week left before the election for the City unions to contribute even more money to raise our taxes. The final financial disclosures would normally be due on Friday, April 4. However, since City Hall is closed on Fridays, they will be due by noon on Monday, April 7 – the day before the election. This allows the unions to give more large campaign contributions without enough time for the voters to learn about them.

Wealthy real estate developers and investors who depend on City Council approval for their projects donated thousands of additional campaign dollars to raise our taxes.

Here are the major contributions:

MAJOR DONOR ID # DATE AMOUNT
El Segundo Firefighters PAC 1231824 02/11/2014 $5,000.00
El Segundo Police Officers’ Association PAC 960463 02/24/2014 $5,000.00
El Segundo City Employees Association PAC 1363708 02/28/2014 $5,000.00
California Teamsters Public Affairs Council (for El Segundo Supervisory and Professional Employees’ Bargaining Unit, Teamsters Local 911) 1363708 02/28/2014 $2,500.00
TOTAL CITY UNIONS $17,500.00
Continental Development Corp. NONE 02/07/2014 $5,000.00
Mar Ventures, Inc. NONE 03/6/2014 $2,000.00
TOTAL WEALTHY DEVELOPERS $7,000.00
S&S Hardware Co., Inc. NONE 02/07/2014 $2,000.00
S&S Hardware Co., Inc. NONE 02/28/2014 $660.00
TOTAL MAJOR DONATIONS $27,160.00

Continental Development Corp. is owned by a billionaire (or at least a multiple hundred-millionaire) who lives in this $11.1 million 7 bedroom, 12 bathroom 15,242 square foot mansion in Palos Verdes Estates. The $6.6 million per year in new taxes on residents and businesses, and the $150,000 to more than $380,000 the City pays individual firefighters and police in total annual compensation, may seem smaller to him than to the average El Segundo resident and small business owner taxpayer.

Continental Development Corp. is owned by a billionaire (or at least a multiple hundred-millionaire) who lives in this $11.1 million 7 bedroom, 12 bathroom 15,242 square foot mansion in Palos Verdes Estates. The $6.6 million per year in new taxes on residents and businesses, and the $150,000 to more than $380,000 the City pays individual firefighters and police in total annual compensation, may seem smaller to him than to the average El Segundo resident and small business owner taxpayer.


PROOF:

Click HERE to download the 2/27/2014 Yes on Measure A Tax Hikes FPPC Form 460 (532 KB PDF file).

Click HERE to download the 3/27/2014 Yes on Measure A Tax Hikes FPPC Form 460 (799 KB PDF file).

Click HERE to download the 3/27/2014 Yes on Measure A Tax Hikes FPPC Form 497 (393 KB PDF file).

Click HERE to download the 3/31/2014 El Segundo Police Officers’ Association PAC FPPC Form 460 (372 KB PDF file).


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Posted in California, El Segundo, El Segundo Election Coverage, El Segundo News, El Segundo Tax and Fee Increases, Elections, Firefighter and Police Union Compensation and Pensions, Firefighter Union Corruption, Fraud Waste and Abuse, Measure A - 5 New Taxes and 6 Tax Inceases, Police Union Corruption, Political Corruption, Politics, Tax Policy and Issues, Union Corruption | Tagged , , , , , , , , , , , , , , , , , , , , , | Comments Off on El Segundo City Employee Unions Contributed $17,500 to Measure A to Raise Our Taxes and Their Pay

No on Measure A – Letter to The Beach Reporter by Michael Robbins

No on Measure A

Mayor Fisher claims the “business community” supports Measure A, and the City Council has no control over employee pension costs. Not true.

Most El Segundo businesses oppose Measure A. Ninety percent are not Chamber members, and the Chamber board did not allow its general membership to vote before supporting the tax hikes.

City Council controls pension costs in three ways: (1) Amounts of employee salaries, which are increased by pay raises and “special compensation”; (2) Percentage of total pension contributions employees are required to pay; and (3) Pension plan options the city provides.

Firefighter and police pensions pay 3 percent of their single highest year salary for each year worked, up to 90 percent. Fisher supported firefighter and police pay raises of 11.25 percent to 32.3 percent over three years, plus additional 5 percent annual “step” raises, approved 4/7/09 and 12/2/08, jacking up pension costs.

The council can save more than $3.3 million yearly by requiring city employees to pay half their total pension contributions, as allowed under state law effective 1/1/13. The city now pays 71 percent to 94 percent of total pension contributions.

The council can save several million more yearly by eliminating automatic additional 5 percent annual “step” raises, and “special compensation” for things that are existing job requirements or unrelated to the job.

These savings must be negotiated with the city unions later this year, after the April election. The Measure A tax windfall will weaken the City Council’s bargaining position and preclude these savings.

See PublicSafetyProject.org for more information. Vote “no” on Measure A.

Michael Robbins
El Segundo Continue reading

Posted in Beach Reporter Letters, California, Economy and Economics, El Segundo, El Segundo Election Coverage, El Segundo News, El Segundo Tax and Fee Increases, Elections, Firefighter and Police Union Compensation and Pensions, Firefighter Union Corruption, Fraud Waste and Abuse, Government Employee Compensation and Pensions, Letters to the Editor, Measure A - 5 New Taxes and 6 Tax Inceases, Police Union Corruption, Political Corruption, Politics, Union Corruption | Tagged , , , , , , , , , , , , , , , , , , , , , , , , , | Comments Off on No on Measure A – Letter to The Beach Reporter by Michael Robbins

Not happy with Measure A – Letter to The Beach Reporter by Marianne Fong

Not happy with Measure A

Mayor Fisher is threatening to contract out our fire services to county if we don’t approve his Measure A tax hikes. These are empty threats. There’s no advantage in outsourcing. It would reduce services – not save money. Ninety percent of voters rejected Measure P to outsource fire services. Clearly, we can do a referendum against an ordinance to outsource services.

Last year City Council raised Chevron’s taxes by more than $8.5 million on average per year for 15 years. And the council can save many millions of dollars per year by getting the employee compensation and pension cost increases under control.

All residents will pay much more of the $6.6 million annual Measure A taxes than the “Yes on A” campaign mailer claims. We will pay the new business taxes that are passed on to us as customers, in addition to the new taxes on our electricity, water, gas, landline and cellular telephone, cable TV, satellite and Internet bills.

The money won’t go for schools or infrastructure. The city attorney said the resolution on how to spend the money is not binding, and only language in the ballot measure can be binding. Fisher chose the nonbinding route – he refused to put language in the ballot measure for money to schools and infrastructure.

The new taxes will go for huge past and future fire and police union pay raises and resulting pension cost increases, as in the past. That’s why the fire union donated $5,000 to the “Yes on A” campaign.

Marianne Fong
El Segundo Continue reading

Posted in Beach Reporter Letters, California, Doug Willmore's Great Chevron Shakedown, El Segundo, El Segundo Election Coverage, El Segundo News, El Segundo Tax and Fee Increases, Elections, Firefighter and Police Union Compensation and Pensions, Firefighter Union Corruption, Government Employee Compensation and Pensions, Letters to the Editor, Measure A - 5 New Taxes and 6 Tax Inceases, Measure P - Firefighters Union Initiative, Police Union Corruption, Political Corruption, Politics, Tax Policy and Issues, Union Corruption | Tagged , , , , , , , , , , , , , , | Comments Off on Not happy with Measure A – Letter to The Beach Reporter by Marianne Fong

No on Measure A – Letter to the El Segundo Herald by Mike Robbins

No on Measure A

Mayor Fisher claims the “business community” supports Measure A, and the City Council has no control over employee pension costs. Not true!

Most El Segundo businesses oppose Measure A. 90% are NOT Chamber members, and the Chamber board did not allow its general membership to vote before supporting the tax hikes.

City Council controls pension costs in three ways: (1) Amounts of employee salaries, which are increased by pay raises and “Special Compensation”; (2) Percentage of total pension contributions employees are required to pay; and (3) Pension plan options the City provides.

Firefighter and police pensions pay 3% of their single highest year salary for each year worked, up to 90%. Fisher supported firefighter and police pay raises of 11.25% to 32.3% over three years, plus additional 5% annual “Step” raises, approved 4/7/09 and 12/2/08, jacking up pension costs.

The Council can save more than $3.3 million yearly by requiring City employees to pay half their total pension contributions, as allowed under state law effective 1/1/13. The City now pays 71% to 94% of total pension contributions.

The Council can save several million more yearly by eliminating automatic additional 5% annual “Step” raises, and “Special Compensation” for things that are existing job requirements or are unrelated to the job.

These savings must be negotiated with the City unions later this year, after the April election. The Measure A tax windfall will weaken the City Council’s bargaining position and preclude these savings.

Vote “No” on Measure A.

– Mike Robbins Continue reading

Posted in California, Economy and Economics, El Segundo, El Segundo Election Coverage, El Segundo Herald Letters, El Segundo News, El Segundo Tax and Fee Increases, Elections, Firefighter and Police Union Compensation and Pensions, Firefighter Union Corruption, Fraud Waste and Abuse, Government Employee Compensation and Pensions, Letters to the Editor, Measure A - 5 New Taxes and 6 Tax Inceases, News, Police Union Corruption, Political Corruption, Politics, Tax Policy and Issues, Union Corruption | Tagged , , , , , , , , , , , , , , , , , | Comments Off on No on Measure A – Letter to the El Segundo Herald by Mike Robbins

Something Fishy About Measure A – Letter to the El Segundo Herald by Marianne Fong

Something Fishy About Measure A

Mayor Fisher is threatening to contract out our fire services to County if we don’t approve his Measure A tax hikes. These are empty threats. There’s no advantage in outsourcing. It would reduce services – not save money. 90% of voters rejected Measure P to outsource fire services. Clearly, we can do a referendum against an ordinance to outsource services.

Last year City Council raised Chevron’s taxes by more than $8.5 million average per year for 15 years. And the Council can save many millions of dollars per year by getting the employee compensation and pension cost increases under control.

All residents will pay much more of the $6.6 million annual Measure A taxes than the “Yes on A” campaign mailer claims. We will pay the new business taxes that are passed on to us as customers, in addition to the new taxes on our electricity, water, gas, landline and cellular telephone, cable TV, satellite, and Internet bills.

The money won’t go for schools or infrastructure. The City Attorney said the resolution on how to spend the money is not binding, and only language in the ballot measure can be binding. Fisher chose the non-binding route – he refused to put language in the ballot measure for money to schools and infrastructure!

The money will go for huge past and future fire and police union pay raises and resulting pension cost increases. That’s why the fire union donated $5,000 to the “Yes on A” campaign!

– Marianne Fong Continue reading

Posted in California, El Segundo, El Segundo Election Coverage, El Segundo Herald Letters, El Segundo News, El Segundo Tax and Fee Increases, Elections, Firefighter and Police Union Compensation and Pensions, Firefighter Union Corruption, Fraud Waste and Abuse, Government Employee Compensation and Pensions, Letters to the Editor, Measure A - 5 New Taxes and 6 Tax Inceases, Measure P - Firefighters Union Initiative, Police Union Corruption, Political Corruption, Politics, Union Corruption | Tagged , , , , , , , , , , , , , , , , , , , , | Comments Off on Something Fishy About Measure A – Letter to the El Segundo Herald by Marianne Fong

NO ON “A” – Letter to the El Segundo Herald by Art Lavalle

NO ON “A”

You already live in one of the most heavily taxed states in the country. Why would you want to add to your family’s burden? City operating costs have not gone down as claimed. They will not, until we have a council that is willing to confront the unions and demand realistic pay and retirement contracts for city employees. Look at all the new construction in town in the last few years on top of the Chevron settlement. Each provided large amounts of additional revenue to the city. Yet, the increased inflow will never be enough to pay for the city employee’s union contracts that your council has approved. Do not give the council more money to waste. Look at the candidates that receive backing from these unions. The cities unions are backing candidates that will give them more of your tax dollars.

– Art Lavalle Continue reading

Posted in California, Economy and Economics, El Segundo, El Segundo Election Coverage, El Segundo Herald Letters, El Segundo News, Elections, Firefighter and Police Union Compensation and Pensions, Firefighter Union Corruption, Government Employee Compensation and Pensions, Letters to the Editor, Measure A - 5 New Taxes and 6 Tax Inceases, Police Union Corruption, Political Corruption, Politics, Tax Policy and Issues, Union Corruption | Tagged , , , , , , , , , , , , , , , , , , | Comments Off on NO ON “A” – Letter to the El Segundo Herald by Art Lavalle

Measure “A” – Letter to the El Segundo Herald by Jane Waag Friedkin, Former Councilwoman

Measure “A”

I urge residents to read Measure A in its entirety. You will find there is not a sunset clause on the tax increase, but simply reduces the 2.5% to 2% in 2017, creating a “forever” tax.

I firmly believe, based on current and past irresponsible deficit spending by our city council, and the persistent mentality of all elected officials, is to raise taxes every time they overspend.

Raising taxes discourages new businesses from coming to El Segundo. Don’t’ believe the threats made by the “Vote Yes on A”. They do not have residents best interests in mind. They only say what they want you to believe. Let these “well to do Yes on A” contributors write a check to the city in any amount they want and as often as the want. They can write off whatever they give on their federal tax.

Another important point to consider – it now takes only 50% of voters to pass the tax increase, not the 2/3 as in the past. Please get out and vote No on Measure A.

The City Attorney said, “The resolution on how to spend the money is non-binding.” This Council chose the non-binding route.

Please vote and vote No on Measure A.

– Jane Waag Friedkin, Former Councilwoman Continue reading

Posted in California, El Segundo, El Segundo Election Coverage, El Segundo Herald Letters, El Segundo News, El Segundo Tax and Fee Increases, Elections, Letters to the Editor, Measure A - 5 New Taxes and 6 Tax Inceases, Politics, Tax Policy and Issues | Tagged , , , , , , , , , , | Comments Off on Measure “A” – Letter to the El Segundo Herald by Jane Waag Friedkin, Former Councilwoman

Thoughts on TopGolf – Letter to the El Segundo Herald by Tom Courtney

Thoughts on TopGolf

I’m glad that Bill Fisher has decided to make his support of TopGolf a major campaign issue. Golfers are opposed because the model prices the average golfer out of the market, $30-40 per large bucket at normal, peak practice times. Fisher minimizes the opposition, calls them misinformed and disregards the fact that over 1400 people signed a petition urging the council to keep the Lakes the same, over 300 of which were El Segundo residents.

The deal – a twenty year lease, with six 5 year options, at $425,000 a year , increasing only 10% every five years. There is no sharing in revenues, Wooddale, Ill negotiated a sharing of revenues including alcohol sales, why not here? The lease calls for the facility to be built like that in Austin.

Staff came up with a positive TopGolf economic effect of $332,000 (currently estimated at $ 200-300,000) – repeated by Mr. Fisher as a reason why he voted for it. The truth, TopGolf is a negative for the City-the driving range is highly profitable, $550,000 and rising per year. The city gets to their “positive” number by relying on “assumed” savings of $253,000 and by mistreating overhead allocations, charging the range income but not TopGolf income.

TopGolf is not the answer!

– Tom Courtney


Note by Michael D. Robbins:

I championed construction of The Lakes at El Segundo city golf course and driving range when I campaigned for City Council, and after I was elected to the El Segundo City Council. I followed through diligently to help get it built as had long been promised to the community before I ran for City Council.

El Segundo Mayor Bill Fisher and Councilmembers David Atkinson and Marie Fellhauer, who usually vote in lock-step with Fisher, voted to give TopGolf what is effectively a 50-year lease of the City-owned Golf Course driving range, in the form of a 20-year lease with six 5-year options for TopGolf to unilaterally extend the lease. Most El Segundo voters will be dead before the City can regain control over its golf course property.

A 50-year lease of the City of El Segundo’s golf course driving range property is totally irresponsible and unjustifiable, whether or not TopGolf will to an adequate job providing golf services on that City-owned property.

Mayor Pro Tem Carl Jacobson and Councilmember Suzanne Fuentes voted against the 50-year lease. Continue reading

Posted in California, El Segundo, El Segundo Election Coverage, El Segundo Herald Letters, El Segundo News, El Segundo Tax and Fee Increases, Elections, Letters to the Editor, Politics | Tagged , , , , , , , , , , , , , , , , | Comments Off on Thoughts on TopGolf – Letter to the El Segundo Herald by Tom Courtney

Welcome to the City of El Segundo $100K+ CalPERS Pension Club!

by Michael D. Robbins
Director, Public Safety Project, PublicSafetyProject.org

March 25, 2014

Below is a list of City of El Segundo, California employees who retired with California Public Employees’ Retirement System (CalPERS) pensions paying them $100,000 or more per year. The highest annual pension for El Segundo is $198,272.04. El Segundo is a small City with about 5.5 square miles of land area and about 16,849 residents in 2012.

CalPERS pensions are Defined Benefit Plans that guarantee retirees their full pension payments, regardless of how much was paid into the pension fund and regardless of the performance of the pension plan’s investment portfolio, with taxpayers obligated to make up the difference. In contrast, 401(k) plans, which are common in the private sector, are Defined Contribution Plans, where the benefits paid out to retirees depends on how much was paid into the retirement plan, and on the performance of the investment funds the employees individually selected from the available choices.

The CalPERS pensions are so high because the City employee salaries are so high, especially for the firefighter and police employees, and because the City provides the employees with the maximum allowable pension formula. The annual pension income from firefighter and police CalPERS pensions is 3% of the single highest year salary for each year they worked, up to a maximum of 90%, with retirement at age 50 or 55. Upon retirement, firefighters and police live just as long as miscellaneous (non-safety) employees – about age 83 for the men and 85 for the women – and the life expectancy keeps increasing over time with medical advances.

Thus, the taxpayers end up paying for at least two fire and police departments – the ones doing the work, and the ones enjoying long lavish retirements while receiving multi-million dollar pensions.

The salary upon which CalPERS pensions are based includes all those “Special Compensation” add-ons in the union contracts, that average an additional 33% on top of base salary for El Segundo police and firefighters. “Special Compensation” is paid even for things that are already existing job requirements or are unrelated to the job, including wearing a uniform and having a driver license.

For example, fire engineers (second-level firefighters) whose job description includes driving the fire engine are paid additional “Special Compensation” under their union contract to have a driver license to drive the fire engine. All “Special Compensation” increases the salary counted towards the pension payout and the pension cost to the City’s taxpayers.

The elected City Council controls pension costs in three significant ways: (1) Amounts of employee salaries, which are increased by pay raises and “Special Compensation”; (2) Percentage of total pension contributions employees are required to pay; and (3) Pension plan options the City provides.

Firefighter and police pensions pay 3% of their single highest year salary for each year worked, up to 90%. El Segundo Mayor Bill Fisher supported firefighter and police pay raises of 11.25% to 32.3% over three years, plus additional 5% annual “Step” raises, approved 4/7/09 and 12/2/08, jacking up pension costs.

The El Segundo City Council can save more than $3.3 million yearly by requiring City employees to pay half their total pension contributions, as allowed under state law effective 1/1/13. The City now pays 71% to 94% of total pension contributions.

The City Council can save several million more yearly by eliminating automatic additional 5% annual “Step” raises, and “Special Compensation” for things that are existing job requirements or are unrelated to the job.

These savings must be negotiated with the City unions later this year, after the April 8, 2014 election. Measure A is on the ballot for that election. Measure A bundles ELEVEN TAX HIKES in one ballot measure. The Measure A tax windfall will weaken the City Council’s bargaining position and preclude these savings. … Continue reading

Posted in California, El Segundo, El Segundo Election Coverage, El Segundo News, El Segundo Tax and Fee Increases, Elections, Firefighter and Police Union Compensation and Pensions, Government Employee Compensation and Pensions, Measure A - 5 New Taxes and 6 Tax Inceases, Politics, Tax Policy and Issues | Tagged , , , , , , , , , , , , , , , , , | Comments Off on Welcome to the City of El Segundo $100K+ CalPERS Pension Club!