Politics & Government

City Council Eliminates Its Pricey Health Benefits

Hercules Patch reports live from the Tuesday, July 12, Hercules City Council meeting. Read along and comment as we go.

Hercules City Council agreed to a self-imposed compensation cut Tuesday night. Unanimously, the council decided to do away with retirement benefits and health insurance.

The council’s budget for fiscal year 2011-2012 is $96,972 annually for all five members. With the cuts, the its budget will be reduced to $60,000 for the year, Councilman Dan Romero said.

Health insurance, which was offered to council members and their families, was costing the city’s general fund up to $25,000 annually per member, interim City Manager Liz Warmerdam said. Council members had the option of taking all, a portion or none of the insurance.

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The council—each member receives an $831 monthly stipend—initially planned to take a 20 percent pay cut and drop retirement benefits and some meeting fees. Council members receive $30 per redevelopment agency meeting.

Instead, the council decided to keep the full stipend and meeting fees, while cutting health insurance and retirement.

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“It’s hard to defend why council members should be getting benefits at all. I don’t think it’s justifiable in these days and times,” Vice Mayor John Delgado said, agreeing with Romero’s proposal to cut the benefits. “I know this is going to hurt some members more than others, but it’s the right thing to do,” Delgado said.

Read Tuesday night's meeting coverage below:

CITY MANAGER REPORTS AND RESOLUTIONS

1. Unanimously adopted with some amendments. Adopt A Resolution Authorizing The Interim City Manager To Execute An Agreement With Intrepid BMS For The Removal Of Soil From City Owned Property, APN No. 404-020-076 (Commonly Known As The Walmart Site, Parcel C). Part of the deal will include allowing Intrepid to dump concrete on the Hilltown site for four months.

Councilman Romero, I have no problem with Intrepid moving the soil. I do have a problem with outside concrete coming into the city (part of the deal for Intrepid to remove the soil).

Vice Mayor John Delgado, Also doesn't want concrete to be dumped on Hercules land.

2. Unanimously adopted. Receive Report And Adopt A Resolution Authorizing The Interim City Manager To Execute Amendments To The Existing Agreements With Jordan And Associates, Michael Bernick And HDR Engineering, Inc. For An Amount Not To Exceed $210,000 To Continue To Provide Services Related To The Intermodal Transit Center/Bayfront Project.

Waterfront development negotiator Charlie Long, Some of the challenges we're facing on the project:

A $1.9 million funding source for the Intermodal Transit Center is in jeopardy due to timing issues.

The Environment Impact Report and other environmental documents need to be approved.

Need to complete negotiations with Hercules Bayfront, which owns the land the city plans to build the ITC on.

We are in a window of opportunity, but if we don't get this project ready to bid by next April we are seriously in jeopardy of losing it, Long said.

Rubio, "The city should not be doing time and material contracts, this is incorrect and should not be a precedent. $210,000 when this is on top of the additional previous costs…I’m not sure what these deliverables are. HDR has been paid millions and millions of dollars and we have yet to see a deliverable from this group."

3. Unanimously adopted with some amendments Adopt A Resolution Authorizing The Acting City Manager/Executive Director To Execute An Agreement With Charles A. Long For Advisory and Project Management Services And Authorizing The Expenditure Of An Amount Not To Exceed $40,000 Paid for Through Grants Related to the Intermodal Transit Center/Bayfront Project.

Wilkins, "I think Mr. Long has been generous...I don't think we need severence."

Boulanger, "I would rather see a month-to-month contract."

Cabral, "I think severence for a contractor is an absurdity. It's not usually done. It's never done."

Romero, Raised a question about the fact that Long's contract includes a severence.

CITY COUNCIL REPORTS AND RESOLUTIONS

1. Conduct Discussion And Designate Voting Delegates And Alternates For The League Of California Cities Annual Conference To Be Held September 21-23, 2011. 

Romero made a motion for the council to stick with tradition and select the mayor and vice mayor to the voting delegates. The motion passed.

2. Receive Report and Conduct Discussion Regarding Council Compensation and Benefits And Provide Direction to Staff. City Council renegotiated compensation.

8:30 p.m. PUBLIC HEARING

Unanimously passed 1. Adopt A Resolution Approving The Collection Of The 2010-2011 Fiscal Year Outstanding Garbage Liens On The County Tax Roll For Fiscal Year 2011-2012 And Reconfirming Of The Delinquent Accounts Report Pursuant To The City Of Hercules Municipal Code Section 5-2.01 To 5-2.16, Mandatory Garbage/Solid Waste Disposal

8:19 p.m. CONSENT CALENDAR

ITEMS

1. Unanimously Adopted Adopt A Resolution Establishing The Appropriations Limit Of $303,527,048 For The 2011-2012 Fiscal Year In Accordance With Proposition 111 And Article XIII B.

Councilman Dan Romero, We are not spending this money.

2. Resolution passes 4 "yes" and 1 "abstain." Adopt A Resolution Confirming The Continued Existence Of A Local Emergency In The City Of Hercules (Carson Slide Area)

Romero recused himself from the vote because he lives in the Home Owner's Association where the slide is taking place.

3. Unanimously Adopted Adopt a Resolution Designating A Board Member And Alternate Board Member To The Municipal Pooling Authority Of Northern California

8:10 p.m. AD HOC AND COMMISSION REPORTS

Jennifer Ways, Chair of the Citizens' Legal Issues Ad Hoc Committee, which is tasked with helping select the next Hercules city attorney. "We have a total of 19 applicants. We've selected the top 10 or so candidates."

Hector Rubio, Chair of the Citizens Advisory Ad Hoc Committee. The committee is looking to reassess a contract.

PUBLIC COMMUNICATIONS

7:45 p.m. (Resident) Tom, This is the first time I see all five of you up there and I want to congratulate all of you--especially to Mr. Wilkins, Mr. Romero and Mr. Boulanger...I have three reasons why your work should be compensated (talking to the city council)...If you don't get paid, some city council later on might try to get money some other way--like under the table...You should be compensated because you have to listen to people like me.

Margie Liberty, It just gives me a great deal of pleasure to know that we the people put you up there (Liberty hands the council a set of colorful folders to the city council. The folders are filled with inspirational and political literature).

Sheryl James, Marketing Representative for a Fire and Water Damage Company. "I have been working for the City of Hercules. We would like to be part of your emergency response plan."

Bill Kelly, Talks about Sycamore North. "Hopefully this (town hall) meeting next week will have (enough) information to inform the public." Wants city's chief financial officer to report straight to the city council instead of reporting only to the city manager. 

Ken Morrison, Wants to know what has been done to recoup money lost on Red Barn..."It doesn't seem like it should take quite this long to get it rectified." Also wants the council to stop severence pay to former City Manager Nelson Oliva.

(In response) City Attorney Alfred Cabral said these issues are being discussed in closed session.

David F. (Hercules resident since 1982), "I'm very, very disapointed in Boulanger. You don't say you have a masters in business administration when you do not have it. It's called lying. It makes me feel like it's a mockery of our system...It actually makes us feel like you do not trust us...the people vote for people who think you're going to do a good job...putting these things in a voter pamphlet is a felony...the recall committee was very adimant...I would say to the mayor, the less you assign to someone who is willing to lie to us the better. I don't feel the apology that I read so far mitigated this...You should resign and if you don't resign, I think you're risking what you did to Don Kuehne and Joanne Ward."

Toni Leance, "I'd like to congratulate the last speaker. I feel exactly the same, but that is not why I'm here." Leance urged the council to bring back Charlie Long as interim city manager instead of Liz Warmerdam.

Eric Williams, Disagrees with recent Contra Costa Times editorial, which says that the city council had failed to go after individuals and companies that have benefited under questionable circumstances from the City of Hercules.

PRESENTATION

7:10 p.m. The city's redevelopment attorney Lynn Hutchins gives a presentation on the Hercules Redevelopment Agency, which will likely be dissolved by October 1, due to the fact that the city cannot pay the state-imposed fee to keep the RDA alive. The city does have an opportunity to appeal the amount of the fee if it chooses to do so to try to continue its RDA.


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