Vallejo unions say their plan can avert bankruptcy; Council to discuss Tuesday

Times-Herald reports:

Unionized Vallejo city employees have given the city a new $10.6 million salary reduction proposal which representatives said Monday would avert bankruptcy and even build city reserves.

"We (city officials and union representatives) had a marathon session on Friday ... and ultimately, what came out of it was this," said Det. Mat Mustard, vice president of the Vallejo Police Officers Association at a press conference attended by nearly 75 rank-and-file union members.

Three city public safety unions - International Association of Fire Fighters Local 1186, Vallejo Police Officers Association and International Brotherhood of Electrical Workers - said their fiscal strategy will solve Vallejo's crisis using city figures, provide the city some reserves, and, thereby, make filing for bankruptcy unnecessary.

"We do not believe the city is bankrupt, and that filing for bankruptcy is like a big ship aimed at an iceberg. Bankruptcy is not cheap," Mustard said.

The unions expect the City Council to mull their contract proposal during a closed session scheduled Tuesday night, before the council's regular meeting.

The City Council last week unanimously voted to take the historic action of authorizing staff to file for bankruptcy
under Chapter 9 to keep the city solvent. Elected officials said with the city projected to run out of money by the end of June, they had no other choice.

It is unclear when the city would actually file for bankruptcy. The council has been advised that the city should seek Chapter 9 protection within 30 to 60 days of authorizing it.

The city-projected $16 million deficit for the coming fiscal year is not a true figure, union officials said Monday. That is because it does not take into consideration current staff reductions already in effect, and the closure of two fire stations, they told reporters.

A four-month stop-gap agreement to push back raises and close fire stations that was struck with union negotiators in early March expires June 30. City spokeswoman JoAnn West said the $16 million deficit is projected for the fiscal year beginning July 1. Asked about Monday's union proposal, West said the City Council is looking for a long-term financial solution rather than a short-term one. The council wants to find a plan that would see the city through 2012 with a general fund reserve for each year, she added.

"The mediation sessions, one occurred Friday - what happened there will be disclosed tomorrow night at the (council) closed session," West said. "They will look at anything in mediation with that (long-term) goal in mind."

The deal is a departure from last week, when union representatives hinted at their own financial audit of city finances. The report by the San Francisco-based Harvey M. Rose Associates allegedly offers a less bleak view of city finances than what has been presented so far.

That report has not yet been released publicly, though Vallejo City Council members received a copy before last week's unanimous bankruptcy declaration.

Union representatives said they are continuing to call for another state-level independent city audit, and stressed they would ultimately prefer to avoid bankruptcy.

International Brotherhood of Electrical Workers Vice President Ken Shoemaker said Monday that the most recent proposal does not significantly differ from past offers, which union members felt were sufficient.

"There are things in the proposal that have been talked about today that are different and more severe from our side of it in reference to salary reductions," Mustard said of the newly proposed deal.

The unions' proposal:

Shave 6.5 percent off police and firefighters' salaries

Eliminate 11 percent in fire and police raises scheduled for 2008 and 2009

Limit future police and fire raises.

General city workforce employees salaries' reduced 3 percent

Eliminate 10 percent in 2008 and 2009 general employee wage increases.

Cuts to complement the city's current plan to cut 26 police officer and 26 city employee positions and the closure of the two fire engine companies.

Shave 6.5 percent off police and firefighters' salaries