Oxnard Councilman questions City Manager on 4 labor contracts cost/savings

By George Miller

Councilman Bert Perello was dissatisfied with the handling of the labor contracts approval at the 9-13-16 City Council meeting. He has taken the position that the “cost savings” claimed are questionable, that the versions developed by former CFO Dave Millican and current staff differ considerably, and that no financial analysis at all was presented to the public prior to the approval vote. Multiple members of he public stepped up to the podium to agree with him. The Council and members of the public didn’t seem opposed to the terms of the contracts in principle, only whether they are affordable,

Perello voted against the four contracts because he could not verify the financial impact beforehand. Councilman Bryan MacDonald, who is running for re-election and is a former Oxnard Assistant Police Chief and public safety advocate, was absent the night of this biggest financial vote of the year. The other three- Flynn, Ramirez and Padilla, voted for it.

Perelllo did release competing spreadsheets on it, which we were told by Perello were used internally and appeared in our last article on the subject:

Oxnard Councilman Perello opposes pay increases without proof of fiscal responsibility

Perello also released a letter on his questions to City Manager Greg Nyhoff:

Questions to Oxnard City Manager on Labor Contract Costs- 9-19-16

This was a summary of the financial impact provided:

“Although the MOU changes result in initial higher wage increases than the original budget forecast over the period of FY 16/17 through FY 18/19, the adoption of these four MOU’s will result in a cumulative General Fund savings through FY 24/25 of $6.5 million. This savings is attributed to lower direct personnel costs to the General Fund. The other modifications outlined in these MOU’s should not impact costs as they are either non-economic in nature or memorialized current practice.”

The real question is: savings relative to what? Certainly not the previous contract, since it is a significant increase.

Perello is asking for cost breakdowns by 9-29-16: by contract, by year, by fund; model assumptions, which he suggested might be far too optimistic; projected period end reserve balances for each; estimated revenue and expense projections, INCLUDING Measure O, PACC (Performing Arts Center) and Golf Course; contingencies for a recession.

Note added: Perello says he wants data 10 days before on council agenda.

Police and Firefighters people we talked to told us that the contracts were satisfactory to them. 

The Labor agreement discussion:

SUBJECT: Adoption of (I) Successor Memoranda of Understanding Between the City of Oxnard and (A) Service Employees International Union, Local 721, (B) Oxnard Peace Officers Association, (C) the International Association of Fire Fighters, Local 1684, and (D) Oxnard Public Safety Management Association – Police Unit and (II) a Resolution Approving Paying and Reporting the Value of the Employer Paid Member Contribution to CalPERS for Employees in the Bargaining Units Covered by the Successor Memoranda of Understanding (5/30/35)

Management summary and actual agreements:  N-1 MOU (pdf 1.56 MB)

George Miller is Publisher of CitizensJournal.us and a “retired” operations management consultant residing in Oxnard.

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