California County News

LA County Retirement System Refuses to Release Pension Data Despite Cases in Other Counties

Los Angeles County appears to be standing in opposition to legal trends that have affected several county retirement systems in the last few months. Most notably, two appeals court decisions required San Diego and Sacramento’s pension systems to disclose data to the public and counties have continually lost in court when it comes to trying to keep pension information confidential. Judges have ruled repeatedly that the public’s right to access such data cannot be denied. That being said, the Los Angeles County Employees Retirement Assn has announced that it will withhold information about how much its retirees are receiving. The LA Times reports:

“Christine Roseland, the association's attorney, argued that disclosing the records ‘poses a significant threat to retirees' privacy rights and safety but reveals little if anything about the workings of government.’ But similar arguments failed when argued in front of state judges. On May 11, the 3rd District Court of Appeal ruled that the Sacramento County Employees' Retirement System ‘must disclose names and corresponding pension benefit amounts of its members.’”

Orange, Ventura, Tulare, Kern San Bernardino and Contra Costa Counties have all made their pension data public, but it appears that LA County is sticking to its guns and affirming its long-standing policy of keeping retirees’ names confidential.

Troubled Alabama County Delays Bankruptcy Filing; Deal with Wall Street Lenders?

In what would be the largest bankruptcy in municipal history, officials from Jefferson County in Alabama have delayed a special meeting in regards to the filing due to a proposal from creditors that could help the local government to avoid being crushed by its massive debt, namely $3 billion from corruption-tainted sewer deals. As it stands, a 'standstill' period has been scheduled, which will expire Thursday. While officials consider their options, they have noted that bankruptcy is still on the table and County Commission President David Carrington emphasized that a deal still had not been reached. According to officials, the response from creditors led by JPMorgan Chase & Co was within “striking distance” of the county’s offer. The Associated Press reports:

“The deal it offered last week would erase more than $1 billion of its debt with the promise of repaying the remaining amount through a combination of modest sewer rate increases and loans. Officials say the total value of the bankruptcy would exceed $4.1 billion once the county’s other debts were included, eclipsing the record municipal bankruptcy of $1.7 billion filed by Orange County, Calif., in 1994. Jefferson County Commissioner Joe Knight said yesterday that he is unsure whether bankruptcy or a settlement would be best. ‘Bankruptcy is the great unknown. You go into it, and you don’t know where you might end up,’’ he said. ‘A settlement is certainty, but do you give away the farm?’’”

We relayed last week that officials were claiming there was an 80 percent chance that they would file for bankruptcy. While there have been some concerns that a bankruptcy filing could affect the municipal bond market, others say that investors have long expected Jefferson’s fiscal woes in their risk assessments, as the county has been trying to stave off bankruptcy for roughly three years. An independent borrowing authority would be created under the proposal being considered, and the NYT notes that “Jefferson County’s finances are in such disarray that it cannot currently borrow at any price.”

Sacramento Supervisors Look to Regulate Overgrown Pot Stores; Surge in Dispensaries

Dispensaries are currently not permitted in any part of Sacramento County, so much to the frustration of officials, these operations have been increasing every year. The county has yet to decide if it wants to permit dispensaries, but in the meantime, officials do have consensus that something needs to be done to halt the surge in marijuana stores. So far, 51 marijuana stores have been given closure notices but officials think it’s safe to assume there are actually more than 80 stores currently operating. Back in June we relayed that the county was considering a proposed ordinance that would implement greater regulations, much to the annoyance of dispensary owners and marijuana advocates. Opponents of the proposed ordinance called it a de facto ban; consequently, the Board of Supervisors voted to continue, or revisit at another date, the Urgency Ordinance to the Zoning Code related to the cultivation and dispensing of medical marijuana. County staff recently recommended that work on the urgency ordinance discontinue so that a permanent Amendment to the Zoning Code can be initiated, including stakeholder input. The Bee reports:

“Supervisors voted 4-1 to study remedies, perhaps including giving enhanced resources or funding for legal action to the code enforcement division. Supervisors, who are considering passing a new law to allow some dispensaries in the county, argued they can't deal with the matter until they first stop the influx and close those operating illegally.  ‘We've had a proliferation because our ordinance is perceived to be soft,’ said Supervisor Don Nottoli. ‘I'm concerned that this thing continues to bloom out of control. We need to take a stand for what's currently in the law in this county.’”

Staff will return to the Board on August 10 at 10:30 a.m. with a report and recommendation on enhanced enforcement options. While some supervisors expressed support for having a few dispensaries remain open, Supervisors Jimmie Yee and board Chairwoman Roberta MacGlashan said they all should be completely banned.

Employee Sues Alameda County Retirement System to Have His Job Reinstated

An employee who has been on paid administrative leave since June 2010 is claiming that his supervisor at the Alameda County Employees' Retirement Association falsified her time sheets and as a result, received pay for unearned vacation time. The employee, Anthony Macaulay, filed a lawsuit alleging that the retirement system tried to fire him because he spoke out about his supervisor and that termination was retaliation. Macaulay leveled the accusation against Chief Investment Officer Betty Tse and the employee is also alleging that he has been subject to discrimination because he is black. Mercury News reports:

“Tse had been Macaulay's supervisor since ACERA hired him in January 2009 as a junior investment analyst and she consistently ranked Macaulay's performance as "very satisfactory," according to the lawsuit. Her evaluation changed dramatically after Macaulay confronted Tse in February 2010 with his concerns about the unearned vacation and records to back up the allegations, the lawsuit says. Meanwhile, he had placed second in a list of five candidates for an investment officer position at ACERA. By March 2010, Macauley received a ‘performance improvement plan’ to ‘discipline’ him.”

According to Macaulay, he was warned to drop the allegations by someone working in human resources due to the consequences. The employee is asking that his job be reinstated. A hearing will take place in November.

Survey on Local Govt Shows 71% Have Smaller Workforces; Retaining Staff Key Concern

During May of 2011, the Center for State and Local Government Excellence conducted research on the economic and workforce realities facing local government and the findings have been released. The study is a follow-up to similar research that was completed during late fall of 2009 regarding the impacts of the recession. So what are the chief workforce issues that local governments are facing? Based on the survey results, retaining staff needed for core services, reducing employee health care costs, and addressing employee morale are the top work-related problems. Also, 25 percent of respondents reported that employees are accelerating their plans for retirement and 71 percent say their workforce has shrunk since the 2008 economic downturn. Leslie Scott, director of NASPE, commented that “With furloughs, pay cuts, and additional out-of-pocket expenses for benefits, coupled with an increased workload and often intense media scrutiny, public sector employee morale is low. Earlier, this year, NASPE members, identified low employee morale as the number one issue facing state government HR executives.” The key findings are as follows:

• Shifted more health care costs to employees (72 percent)
• Pay freezes (62 percent)
• Hiring freezes (54 percent)
• Layoffs (41 percent)
• Created wellness programs (33 percent)
• Shifted more health care costs to retirees (23 percent)
• Raised contributions to pension plans (23 percent, new hires; 22 percent, current employees)

Read the full study here.

LA County Wants Peace and Quiet: Bill Would Target Helicopter Noise with New Rules

Residents and officials in LA County have had it up to here with noise from helicopters that have become increasingly utilized in the region for TV News coverage and traffic reports on the congested and traffic-burdened freeway system. Take fears about the so-called Carmageddon, as choppers were out in force over that weekend and complaints led Rep. Howard L. Berman (D-Valley Village) to introduce language that would put limitations on helicopter activity with the hope of bringing some peace and quiet to neighborhoods. Entitled the “Los Angeles Residential Helicopter Noise Relief Act,” Berman’s legislation would implement new rules on flight altitudes as well as the paths that the choppers can legally take. The Federal Aviation Administration would be required to enforce the rules. The LA Times reports:

“The bill could face difficulty in the House, controlled by regulatory-wary Republicans who rejected an effort by Berman and fellow San Fernando Valley lawmakers earlier this year to give Burbank's Bob Hope Airport and Van Nuys Airport authority to impose nighttime curfews. But Berman noted that Sen. Charles E. Schumer (D-N.Y.) earlier this year won Senate approval for an amendment to an FAA bill requiring the agency to adopt rules to reduce helicopter noise above Long Island.”

The president of Helicopter Assn. International commented that while the industry is mindful of noise issues, it does not feel that legislation is necessary to solve the problem.

Impact of Union Power on Pension Benefit Levels is Subject of New Research

The Center for State and Local Government Excellence has undertaken a research project on the topic of what role union power has had on benefit levels, wages, and employment. The authors of the brief conclude that that the average annual benefit in 2008 was $23,000 and that while public sector pensions are more generous than those in the private sector, wages for public sector workers are lower than for private sector workers with similar jobs. One of the key findings of the brief is that “The results show that unions have no measurable effect on plan generosity or rate of growth in pension benefits, but do have a quantifiable impact on wage levels and perhaps number of workers.” The authors also note that 52 percent in the public sector have a college degree compared to 35 percent in the private sector and 57 percent in the public sector are female and 42 percent are in the private sphere. Other key findings from the study are as follows:

• Public sector pensions are legislated, not bargained, so the articulateness and acumen of the
• lobbyists may be more important than the number of union members; in contrast, wages are bargained and union strength could have a more direct effect.
• The fact is that average wages in the public sector are lower than those in the private sector, and the ratio of public to private sector wages has declined over time
• On average over the 2001-2008 period, public sector wages were 93 percent of those in the private sector.
• Union strength appears to reduce the relative size of the public workforce. Given the effect on wages, reductions in employment would not be unexpected. 

The study’s conclusion notes that more work needs to be done in examining the relationship between pension benefits and the role of unions, as greater understanding and information is needed. You can read the full study here.

San Mateo County Wants More All-Mail Elections; Push for Bill Similar to Yolo County?

In mid-July we relayed that a bill was working its way through the Legislature that would allow Yolo County to conduct some of its local elections through just mail-in ballots. In an update, the bill has now been sent to the governor, so he could sign it into law, which would allow the county to have three separate local elections using all mailed-in ballots through 2018. Assemblymember Mariko Yamada (D-Davis) introduced the legislation and commented the following about its impact: “An important feature of this bill is the data that will be collected about the effects of all-mail ballot voting.  The study element featured in this bill could help guide the future of elections in California. I am proud to have received support on both sides of the aisle this year. This practical bill will give local governments an opportunity to save thousands of dollars per election.” Yolo will be required to report the outcomes of the all-mail ballot elections to the Legislature.

And in San Mateo County, the success of a special all-mail election in May has led officials to consider pursuing more all-mail elections. According to Assessor-County Clerk-Recorder Mark Church, the county could save $900,000 if a county supervisor was elected by mail instead of at precincts. The county reports that not only were there cost savings but also participation was higher and many voters turned their ballots in before Election Day, which helps with efficiency in tallying. Mercury News reports:

“County voters approved a charter amendment in November 2010 allowing for special all-mail races to succeed elected officials who leave their posts early. To allow all-mail elections for other kinds of races, though, state legislation is needed, county officials say. But state leaders aren't all as enthusiastic about the idea, which some say could discourage voter participation. In recent years, several legislative attempts to allow various California counties to hold all-mail elections have failed, according to a county staff report for Thursday's meeting.”

In light of the bill concerning all-mail elections in Yolo County, San Mateo officials have stated they should push for similar legislation.

Job Savers: Monterey County Likely to Avert More Layoffs

Thanks to a mix of pay concessions and state funding, Monterey County will be able to avert many of the layoffs that were workers were slated to face, although it is not yet clear the exact number of jobs that will be saved. We relayed earlier this month that almost 100 jobs were slated for the chopping block, but that $8 million in pay concessions from the County’s SEIU Local 521 were a potential lifesaver for many of the jobs on the line. Officials will know more next month, but it is believed that about half those jobs will be saved for now and that if Supervisors approve a second round of restorations, then overall about 90 positions will be safe from layoffs. The Herald reports that averting these layoffs softens the blow of the projected cuts:

“The original plan approved by the board called for 180 layoffs as part of a 320-position reduction effort aimed at balancing the county's 2011-12 budget. That number was whittled to about 167 as a result of retirements and transfers. Among the restored positions previously marked for layoffs are 33 in county probation, including 26 restored through vehicle license fees; 11 in the Sheriff's Office as a result of pay concessions; and 30 SEIU-represented employees and eight managers, also through pay concessions.”

Some workers that have more seniority could affect the final outcome of how many jobs will be saved. Officials expect to have final numbers in the next couple of weeks.

City Writes Scathing Response to Sac County Grand Jury’s Report on Pot Farm Deal

We relayed previously that the Sacramento County grand jury was very critical of the city of Isleton for a pot farm deal that would have generated $25,000 in monthly revenue. The county jury concluded in its report that Isleton officials allowed the town’s procedures and laws to be compromised due to the lucrative profits that the deal with Delta Allied Growers could provide. Eventually, every manager and elected official in the town was subpoenaed by Sacramento County District Attorney Jan Scully to testify about the massive spread of greenhouses that were planned for the eastern edge of Isleton for the purposes of growing medical marijuana. But did the country grand jury get it wrong? Isleton has now responded to the jury report with 52 pages of feedback. According to the town’s officials, the jury’s interpretation was mistaken when it came to the facts and the town also criticized the “unnecessary” expense of having to defend itself. Isleton City Attorney Dave Larsen commented that “Despite hearing testimony from twenty witnesses, the grand jury's eleven page report contains more than fifteen material errors of fact.” The Bee reports:

“The town rejected findings that it had failed to exercise due diligence before approving the project, which would have allowed construction of a massive medical marijuana farm on the north end of town and provided large monthly payments to the city of Isleton. The response also flatly rejects the grand jury finding that Larsen was being paid by both the city and the project founders, Delta Allied Growers, in an arrangement that was a conflict of interest. Larsen, one of only two people who weren't offered immunity by the grand jury during its probe, is paid $150 an hour for services provided to the city, but during the approval process for the marijuana farm was being paid $250 an hour, partly by Delta Allied, to help draft documents for the project. Larsen and Isleton officials have said such an arrangement is typical for many cities and was not a conflict but an attempt to save Isleton costs.”

The project is no longer moving forward, as the growers decided to shelve the project. The town’s responses to the jury’s recommendations can often be summarized as scathing, with one response simply stating, “This recommendation will not be implemented because it is not warranted.” The city’s response also concludes that the jury report was essentially a waste of time and money because it “adds almost nothing of value concerning how Isleton conducts its business.”