The city comes out finally with its midterm budget report, and buried in the middle is a somewhat shocking revelation, because we cannot find indication of a policy decision or change that has been publicly announced.
The staff report reports, “While these expenditures were intended to be off-set by corresponding General Fund personnel reductions, implementation of additional personnel reductions are being deferred pending the outcome of current labor negotiations.”
When it was finally time for the CalPERS (California Public Employees’ Retirement System) board to come down with the hammer, they padded it up. While their chief actuary had recommended a half percent cut in the projected forecasts, the board went with half of that, and stayed the impact until 2013-14.
According to their press release, the board also directed Chief Actuary Alan Milligan to analyze and bring back an option for consideration to phase in the increased pension costs to employers over a 2-year period.
Back in 2009, the Vanguard called for an independent investigation into DACHA to clarify what had occurred. The problem of a lack of a clear and agreed-upon record remains to this day. As we saw last month, every stakeholder in the process can point to a document that backs up their viewpoint – whether it is the Arbitrator’s Ruling, the Grand Jury report, or the audit, among others.
The city is to be commended for trying to go on the record and clarify the situation, but unfortunately that effort has largely backfired, or at the very least, has failed to occur.
The Davis City Council’s editorial in the March 7, 2012 newspaper was not only improper, as it spoke to confidential settlement communications, it was erroneous and a piecemeal (re)characterization of the events that have been ongoing since 2005.
Perhaps this is a knee-jerk reaction to the Yolo County Superior Court’s latest ruling that both lawsuits would proceed to trial- despite the hundreds of thousands of dollars of City and Redevelopment Agency funds that City Attorney Harriet Steiner spent attempting to avoid both of these meritorious cases.
It was not even a year ago that we continued to accuse the city of being in denial about the extent of the fiscal dilemma it faced. Remarkably, the budget that then-interim City Manager Paul Navazio brought forward last spring continued to have no provisions for dealing with pensions or retiree health, little to no money for road repair and infrastructure, and despite this, projected future years to be in the black.
While we believe the city council gets it now, and certainly the 3-2 vote on the budget last June should have set in motion real reform, a series of events threatens to blow up the best laid plans of mouse and men.
Alan Milligan, the chief actuary of the California Pubilc Employees’ Retirement System, is once again urging it to lower its assumed rate of returns. Mr. Millgan last year was rebuffed by the CalPERS board, after a recommendation that the pension fund cuts its rate from 7.75 percent to 7.5 percent. This time he is recommending an even deeper cut, dropping the return from 7.75 percent to 7.25 percent.
The proposed reduction will be considered by a committee Tuesday, and by the full board on Wednesday.
No good deed goes unpunished. We have been asking for the city to come clean on DACHA for quite some time. And in a remarkable step for a public agency facing multiple lawsuits, the City of Davis released a strong statement about DACHA on Thursday morning that was covered in an article and an op-ed in the Enterprise, and an op-ed in the Vanguard.
Unfortunately, what transpired late on Thursday will undoubtedly muddy an already unclear record. There can be little doubt that Harriet Steiner, the city attorney, if she were monitoring the exchange between Councilmember Stephen Souza and the principals David Thompson and Luke Watkins, was thinking this is precisely why I do not want such statements to be made.
Let me start by saying that the opinions and perspectives presented here in this article are those of the author and are not the opinions and perspectives of the Water Advisory Committee (WAC).
Like the meetings before it, meeting number 5 of the WAC contained considerable discussion of how the WAC should conduct its activities, votes and recommendations. Bill Kopper presented to the Committee a Resolution that put into words how he (in consultation with a Brown Act compliant number of WAC members and alternates) believed the WAC should chart its course. After one friendly amendment that aligned the description of the three Council Check In items to the actual wording of the actual WAC motion sent to Council, Bill’s Resolution failed to pass with a 5-5 vote.
Davis Mayor Joe Krovoza, Mayor Pro Tem Rochelle Swanson, Councilmember Sue Greenwald, Councilmember Stephen Souza, Councilmember Dan Wolk
In response to public interest regarding the Davis Area Cooperative Housing Association (DACHA), the City has decided to release information about settlement offers the City has made to David Thompson, Luke Watkins and the Twin Pines Cooperative Foundation (Twin Pines).
Mr. Thompson and Mr. Watkins are the principals of Neighborhood Partners, and Mr. Thompson is the president of the Twin Pines Board of Directors. Neighborhood Partners sued DACHA in 2006. In 2011, Neighborhood Partners filed a new lawsuit against DACHA and the City. Twin Pines has sued both DACHA and the City in litigation that began in 2008.
UCD Vice Chancellor Cites Compensation Disparity as Officials Insist Reports of Its Death Are Premature
The Vanguard has recently obtained a letter through a Public Records Act request from UC Davis Vice Chancellor John Meyer, dated January 12, 2012, that effectively pauses the merger process until the 2012-13 fiscal year.
In a letter to City Manager Steve Pinkerton, Mr. Meyer, who is also a former Davis City Manager, wrote, “Both of our agencies remain committed to a unified fire department to serve our shared community. However, I believe that we have reached a point of limited progress and that for a variety of reasons, most particularly the City’s pending negotiations with its firefighters, we should pause this process as described below and then reconvene in the 2012-13 fiscal year.”
Earlier this week, we evaluated whether Davis was in compliance with the Palmdale decision that invalidated the water rate structure of the City of Palmdale, based on a ruling from the Second District Appellate Court of California. The court found their rate structure failed to comply with the mandates of Proposition 218 and its “proportionality requirement which specifies that no fee or charge imposed upon any person or parcel as an incident of property ownership shall exceed the proportional cost of the service attributable to the parcel. Accordingly, we reverse the judgment.”
Some believed that the problems of Palmdale were, in fact, unique to Palmdale because “in this instance, the District failed to demonstrate that the proposed budget based rates for one customer class were proportionate to the cost of providing water service in violation of Proposition 218.”
Contrary to charges by some that the city has spent over 800,000 dollars defending itself on the DACHA issue, the true cost, at least according to the city’s disclosure in response to a DavisVanguard Public Records Act requests, is about half of that.
The request was sparked by public claims by those associated with Neighborhood Partners and Twin Pines Cooperative principals David Thompson and Luke Watkins, claiming the higher figure.
On August 9, 2011, the Second District Appellate Court of California struck down the water rates for the City of Palmdale, located in Los Angeles County, ruling: “After conducting an independent review of the record (Silicon Valley Taxpayers’ Assn., Inc. v. Santa Clara County Open Space Authority (2008) 44 Cal.4th 431, 448), we conclude PWD failed to satisfy its burden to establish that its new water rate structure complies with the mandates of Proposition 218 (as set forth in article XIII D of the California Constitution (article XIII D)), including the proportionality requirement which specifies that no fee or charge imposed upon any person or parcel as an incident of property ownership shall exceed the proportional cost of the service attributable to the parcel. Accordingly, we reverse the judgment.”
The question that has emerged in recent weeks is what that decision will mean for Davis. There are really two questions embedded within this. One is a prospective question in that Davis, like all other cities, will have to take this decision into account when it conducts its rate study and ultimately sets its water rates, should the surface water project go forward.
When Kemble Pope sent me his comments from last Tuesday’s council meeting, which began with an economic summit, I figured his comments would be controversial. What I did not guess was that his comments would trigger a lengthy discussion of Davis economic development policies.
In the coming election, it is a foregone conclusion that issues like water, the budget and the environment will be front and center. Development is omnipresent, though somewhat diminished, since the days of Measure J votes and dwindling non-Measure J land parcels. But perhaps a sleeper issue is economic development.
Perhaps the underreported comments of the week were made this past Tuesday during the city’s economic summit, in which leaders from the business community met with the Davis City Council at a public meeting to discuss the future of the city’s economic development, particularly in light of the loss of Redevelopment Agency funding.
One comment from the new executive director of the Davis Chamber of Commerce, Kemble Pope, drew attention from a number of people – some of whom thought that the comments were inappropriate for the Chamber representative to be making and others thinking they were comments long past due.
At Thursday’s Water Advisory Committee (WAC) meeting, in response to Mayor Joe Krovoza’s public comment, Michael Bartolic took the time to clearly state that he feels his responsibility as a member of the WAC is more to the citizens of Davis than it is to the members of City Council. If I heard Michael correctly, his reasons for that position are that in many ways over the past few months many of the citizens of Davis have voiced their concern and/or outright opposition to the Surface Water Plan put forward by the Joint Powers Authority (JPA).
In this latest installment of my series of articles about water/wastewater, lets take a moment to drill down into the point Michael is making, and list and categorize the key interest groups that have expressed their opposition to or concern about the current Plan.
On Monday here in the Vanguard we took a look back at the 2007-2008 Housing Element Steering Committee (HESC) process, in order to see how well the Assessment Factors that the HESC adopted in April 2007 have held up in the five years since their adoption. In that article we asked the following questions:
Now that five years have passed, how well do you think the HESC’s set of factors for evaluating potential sites for housing has held up?
Would you add any factors to, or deemphasize any specific factors on, the HESC’s list?
If the animation team Warner Brothers or Disney were using last night’s WAC meeting as creative fuel for a short cartoon I imagine that their cartoon would have the appearance of the preparations for a Drag Race. Lots of wheel spinning. Lots of smoking tires. Short forays forward followed by backing up to the starting line. All with the anticipation of a fast and furious race once the starting lights actually flash green.
The meeting started out with Chair Elaine Musser reading into the record a statement about “recent OpEds that have appeared in the Enterprise and the Vanguard. She hadn’t finished reading the statement when more than one of the WAC members raised their hands and questioned why this item, which was not on the agenda was being read. After a short explanation of the statement’s purpose, the WAC members agreed that the content of the statement should be placed on the agenda of a future meeting.
Council Also Agendizes Future Discussion on Timing of Agenda Items
With Mayor Joe Krovoza leaving early due to illness, the council briefly discussed the possibility of delaying the discussion of the Davis Diamonds Conditional Use Permit. Ultimately, they decided to go forward with it, with some slight modifications, by a 3-1 vote with Mayor Pro Tem Rochelle Swanson dissenting.
According to the staff report that the Vanguard only received at noon on Tuesday, “staff has been working with the applicant to evaluate the feasibility of an alternative site.”
The preamble to the Ralph M. Brown Act reads: “The people of this State do not yield their sovereignty to the agencies which serve them. The people, in delegating authority, do not give their public servants the right to decide what is good for the people to know and what is not good for them to know. The people insist on remaining informed so that they may retain control over the instruments they have created.”
The Brown Act only requires the public noticing of every meeting with a posted agenda at least 72 hours before the meeting and the agenda must contain a brief description of each item of business.