Vanguard Council Appointee Interview: Part One

The Vanguard will have wall-to-wall coverage of the council appointment process.  Last week we had Former Mayor Ken Wagstaff, Former Councilmember Lamar Heystek, and former Council candidate Jon Li talk about the candidate field and changes in Davis politics.

Today we bring the first of a three-part interview with the council candidates.  One thing we have learned is that with ten candidates, it is a bit like herding cats.  We never did reach Linda Parfitt despite several emails and numerous calls.  We will try to get her this week.

We are still waiting on Steve Williams who did respond to our request for an interview, but had some work and personal obligations that might make the responses a bit late.  We also did not get photos from everyone, but we hope to have them today.

The Vanguard asked each candidate 12 questions and asked them to limit their response to 100 words (some went over 100 words, but we decided not to edit).  Given the complexity of the questions, that is not completely fair and their answers should be judged accordingly.  However, breaking the questions into three groups of four, and having a full ten candidates respond, would produce a 4000 story at minimum, which is a lot for people to absorb.

So we have done our best under the circumstances to provide the public with some information about these candidates, one of whom will become the fifth councilmember within the next month.

Here are the first four questions:

1. Pick an issue that you think is important that you don’t feel will get much ink and tell us about it and what you propose to do.
2. What do you see as your top priority if you are the one appointed to council?
3. What is your understanding of the problems facing the city in terms of unfunded liabilities and pensions?
4. How would you resolve the city’s budget problems within the scope of the collective bargaining agreements with various bargaining units?

1.  There is a serious and growing drug and alcohol problem among Davis teens.  Before my son went away to college he told me all about the drug/alcohol culture at the high school. Until then I was like most other Davis parents – i.e., blissfully ignorant. I intend on quietly pursuing enhanced dialogue and collaboration between the City and DJUSD.

2. In order to get the people’s business done it is essential to avoid deadlocks.  That’s why governing bodies consist of an odd number of decision makers. Right now there are four sitting council members. They need a fifth to avoid 2-2 deadlocked votes on action items.  If I am chosen to fill Don Saylor’s seat, my primary function will be to act as the tie-breaking vote, and that means my top priority will be to listen as well as I can, be as informed as possible, and then make the best and wisest decision I can based on what is best for Davis.

3. I understand that there is a big problem – the same problem every other California city, county, school district, fire district, community services district, water district and cemetery district is facing. Unfunded mandates are demanding a bigger and bigger share of revenues to satisfy, reducing the funding available to address other concerns.

4. I am a negotiator by training and vocation.  All I can say is that I believe in the interest based bargaining model – an answer that might not make any sense to some of your readers, but it is the best I can do given the time available to answer.  Beyond that, it would be a mistake to discuss strategy on how to achieve a new agreement that helps resolve contractual issues, including but not limited to the unfunded liability and pension problem alluded to in the previous question.  All I can say is that it can be done.

1. The Davis Redevelopment Agency (RDA) started 1987 and has achieved some major improvements but many residents are not aware how it functions.  I sense a need to improve the transparency of the RDA so residents can better understand the City’s redevelopment goals and budget.

The RDA will receive tax increment revenues totaling $9,900,000 (city budget). 26.89 Percent goes to the County via our Pass Thru Agreement and 20 percent goes for affordable housing.  As assessed property values increase in the Redevelopment Area, the tax increment revenue will continue to increase.

We will be halfway through the 50-year plan in 2012 when we need to start drafting the next five-year implementation plan.  Part of that process would give us an opportunity to do outreach workshops and evaluate impacts on the General Fund.

2. The FY 2011-2012 budget would be my highest priority.  Using careful analysis, I would try to minimize increases requested by each Department while setting aside more funds to pay for obligated pension and health benefits.

One aspect would be to evaluate opportunities to limit the amount of overtime hours authorized with the provision for the City Manager to reassign hours during the year. 

3. The City depends on CalPERS to grow our pension fund contributions.  Our annual contributions are dependent on their projected annual rate of returns which are variable year-to-year due to their investment strategies. 

Council members have lost confidence in CalPERS.  Councilmember Sue Greenwald estimated that using a more realistic 7.25% ARR means that the City’s costs would increase by $7 million.

This situation makes our budgeting process very difficult.

4. I believe we could start work toward reducing the City’s long-term unfunded liability by developing alternatives for employee compensation and retirement benefits in preparation for contract negotiations in 2012.

This effort would need the help of the Finance and Budget Commission and a representative from each bargaining unit.  I expect some of the alternatives could be two tier employment systems.  We will need input from each bargaining unit to craft salary and benefits that will still attract new employees.

1. Issue: Olive Drive/Amtrak Station. I propose a formal visioning process. Let’s think beyond the railroad fence and think about the opportunities for safe and legal access for Olive Drive residents and a multi modal infrastructure for our community. We need to think long-term about transportation and what that will look like in the future.  We should consider utilizing RDA funds and contracting grant writing services to pay for the plans.

2.  My top priority would be a creative long-term approach to solve the problem of our unfunded liabilities. We need to think in terms of our current defined liabilities relating to employee benefits. We also should think conceptually—such as deferred street maintenance and other off-the-books deferred projects and community expectations. 

3.  We need to bring our liabilities on to our books and find a way to balance our budget and pay as we go moving forward.

4.  We need to be able to run through all the “what-if” scenarios without fears and adversarial feelings. Let’s all be willing to look at different models to get a sense of how the bargaining units will respond by including them early in the process.  If I were to be appointed to City Council I would be willing to commit extra time and energy to this important issue.

1. Decisions made by Council members and how those decisions are communicated to the residents is important.  Misunderstandings create distrust and a feeling of “my opinion does not count” to the concerned resident.  I propose Town Hall meetings to gather information from the public prior to major decisions.  This allows every council member opportunity to clarify and solidify their decisions.

2. Managing growth in Davis is a priority.  Growth involves increased demand for water, city services, educational expenses and housing.  Reviewing current infill projects, allocated growth percentages, and the fiscal budget will provide a better understanding of how to manage realistic growth.

3. Unfunded liabilities  in excess of $53 million in retiree health care costs and current levels of CALPERS pension costs is a tremendous challenge.  As a city, Davis must comply with State and Federal restrictions.  Assisting in establishing methods to decrease the city’s monetary contributions is a responsibility of city council.  In today’s fiscal environment, employers in all phases of production and service are placing more monetary responsibilities for funded pension and health care benefits on the employee.  The city council must find a way to communicate how changes are necessary in order to balance the current budget.

4. Bargaining unit agreements are contracts between the employer and employee unions.  Negotiations between the union representatives, city staff and city council can only happen during contract hearings.  Prior to negotiations, open communication between city staff, council and employees is necessary.  Communication to those involved in negotiations as to how increasing or decreasing budget line items affect the overall fiscal stability would assist in fair solutions for all.

1.  Municipal budget concerns, financial liabilities, and appropriate economic development are receiving significant and necessary attention.  In the midst of these discussions, I feel it is imperative to focus on maintaining stability, efficiency and creativity within city management and staff. Key quality of life issues—infrastructure, public safety, parks and recreation opportunities, for example—are dependent on keeping talented, qualified people to run city services. Appointing Davis’ next City Manager is a major upcoming City Council responsibility, likely to be completed in the next four to six months. This executive level administrator is ultimately responsible for City staff, programs, budget and other municipal affairs, and is also primary liaison between Council and City departments. 

2.  I think sustainability is key for Davis’s future vision. Most important is to consider all three inter-connected “E’s”: sustainability of the Environment, Economy, and social Equity.  Without a stable economy, Davis cannot be a magnet for green technology and environmental design innovations nor can we ensure equity of jobs, housing and services. We must address economic restructuring and development strategies proactively, using the budget crisis as an opportunity for public engagement. Enhancing the downtown as a shopping destination should include participation by the Chamber, DDBA and existing small businesses. Boulder and Portland have brought a fresh perspective to city departmental structure, with sustainability as the key organizational factor. Studying the urban design and downtown revitalization approaches of other cities, such as San Luis Obispo or Vancouver, is also valuable. 

3, 4.  (she combined these into one answer): I think it’s safe to say that every city in the state is facing similar problems of budget shortfalls and unfunded liabilities created by policies adopted in ‘fat’ years, just as most private citizens have had to tighten belts in this difficult economic downturn. The harsh reality is that sacrifices must be made across the board. While none of the options available to address this untenable situation is attractive—instituting a two-tiered pension system, layoffs or furloughs, hiring freezes or salary reductions—concessions must be made. Inviting key players from the various bargaining units to share in problem-solving and mediated discussion is one workable way to get input and buy-in to solutions generated. What are top priorities?  What can be cut or deferred? Rather than creating roadblocks, transparency and inclusion in the process are the answer.

1. On the bicycle path along Russell Blvd. between Hwy. 113 and Lake Blvd.- how many council members have ridden along this path recently?  I am a bicyclist, and I ride it every time I go into town on my bike, and it is  pretty bumpy now.  I would propose that it either be resurfaced or at least fill in the holes. 

2. My top priority would be to learn the issues facing the City Council at this time. 

3. I was not aware of any unfunded liabilities and pensions, since I have not been on the City Council in the past.  I would certainly like to reduce these liabilities as much as possible. 

4. I would first inform myself by reading the current bargaining agreements.  Then I would ask to meet with the heads of the bargaining units, and begin to resolve the city’s budget problems by meeting with each bargaining unit head.

1. I have expertise in local government and public finance, which appear to be garnering most of the attention these days.  But I am also well-versed in social services.  And one issue that I think is important that will not get much ink is the state of social services for children in our community.  Cuts to our city’s child care program, cuts to mental health services, and continuing homelessness, among other things, have greatly impacted children.  It is my expectation that the Social Services Commission, which I chair, will look into this issue in the near future and will provide recommendations to the City Council about what might be done about it.

2. As I wrote in my application statement, the city’s number one priority right now should be its budget and fiscal challenges.  These challenges are both short-term (including the possibility of the elimination of our redevelopment agency and the millions it brings to the city every year in property tax dollars), as well as long-term (most notably, unfunded liabilities in the areas of pensions, retiree health benefits, and public infrastructure).  From day one, I would join with the Council in making a concerted effort to address these daunting issues.

3. The issue of how to pay for our unfunded liabilities is one of the main reasons I submitted my name for the vacancy.  It is a problem of particular concern to my generation, which is worried about the impacts these liabilities might have on our lifetimes and those of our children.  Under current estimates (which may actually undervalue the problem because of the CalPERS rate of return), we are looking at a nearly $100 million liability between retiree health benefits (OPEB) and pensions (CalPERS).  And this does not include capital projects, such as improvements to the wastewater treatment plant or transportation infrastructure, which also should be considered “unfunded liabilities.”  All this translates into millions more per year that would have to come out of our already-squeezed budget.  I commend the City Council, at its January 18 meeting, for unanimously recognizing the gravity of this situation and asking staff to come back to the Council with a plan to address this problem.

4. As a public employee of a local government myself, I deeply value the commitment of our city employees.  And considering that the residents-to-employee ratio is at its highest level in decades, those employees are working harder than ever.  As Jerry Brown said recently, however,  there is a need in this challenging time for “shared sacrifice” from all sides and that “everything should be on the table and everyone should be at the table to talk about it.”  For example, my unit and others at Solano County have had to make sacrifices and are steeling for more.  All sides, including management, employee groups, and the public, must be willing to work collaboratively in addressing our fiscal challenges.