You would never know it was Thanksgiving at City Hall.Impending
layoffs not only have depressed workers looking for new jobs, but
many are also considering a demotion at the expense of subordinates
who did not receive pink slips
– a process known as
”
bumping.
”
GILROY
You would never know it was Thanksgiving at City Hall.
Impending layoffs not only have depressed workers looking for new jobs, but many are also considering a demotion at the expense of subordinates who did not receive pink slips – a process known as “bumping.”
City Administrator Tom Haglund sent out 44 pink slips Monday, a formality following verbal notices and the city council’s 6-1 approval of layoffs earlier this month. The move will save the city $3.3 million this fiscal year and $6.7 million next year, helping Gilroy slow the draining of its general fund reserve from $26 million a year ago. Without the layoffs, which will occur Jan. 31, the reserve would drop to $4.9 million by June 2009 and to negative $23 million a year later.
“We needed to put this in place right away to have an impact on next year’s budget so by the end of the fiscal year we don’t have as much of a deficit,” Mayor Al Pinheiro said of this year’s expected $2.7 million deficit.
The council will meet Dec. 15 to discuss its financial health and to hear from Haglund, who the council told to free up another $1.5 million at its Nov. 5 meeting. At that meeting, the body also told Haglund to delay more infrastructure projects, cut employee salaries and delay raises, seek more revenue, and reduce hours before laying anyone off. But the pink slips indicate union negotiations and other cost-cutting measures have not panned out.
“We’ve reached out to each of the unions, but in the absence of working something out between now and Jan. 31, the only other option is for the layoffs to take effect,” Haglund said.
Haglund stressed repeatedly that shrinking tax receipts, investments turned sour, rising employee compensation costs and a practical standstill in fee-generating construction are the major factors for the city’s seemingly overnight debt. Also, the city uses its general fund to insure nearly $32 million worth of infrastructure and public facility projects that were supposed to draw funds from fees that developers have stopped paying. The city has already postponed road, bridge and park improvements to spare more of its general fund – about 78 percent of which finances police and fire operations – but Gilroy has made certain commitments, such as agreeing to finance the construction of the sports and aquatics facilities at the new high school for $6.5 million. The city also used the fee-based funds to buy Gilroy Gardens for $13.2 million.
Such tight funds prohibit much wiggle room when it comes to negotiations, said Tina Acree, business agent for the local chapter of the American Federation of State, County, and Municipal Employees, which represents 126 Gilroy employees that include the city’s equipment mechanic, building inspector and deputy fire marshal.
“All the capital projects have either been canceled or in the immediate wind-down process. That’s already been done.” Acree said. “In terms of the mentality of the council and the mayor, I don’t see any change. A lot of financial mistakes were made, and they’re solving their financial irresponsibility on the backs of the employees that were laid off.”
Firefighter Jim Buessing, who represents Gilroy Fire Local #2805, had a more positive approach, saying that possible retirements and ongoing negotiations could avoid some layoffs, which have targeted four firefighters.
The union requested a formal meeting with city representatives Tuesday, Buessing said, to talk about possible pay cuts and staffing reductions at the city’s three fire stations.
“Any option will be explored, but we need a definitive dollar amount (from Haglund Dec. 15) to see what the total cuts are,” Buessing said. He added that fewer emergency employees coupled with a down economy will contribute to “violence going up and fires not being handled at their incipient stage.”
Police officer and union president Cherie Somavia, along with other officers, said after budget cuts in June that froze 11.5 positions, including four uniformed officers, that the department cannot afford to lose an additional three sworn officers who were planning to retire, a probation officer, three community service officers and a secondary officer – all of whom have been targeted in the layoffs.
While Pinheiro acknowledged passing deficit budgets, he said past councils did so to spare layoffs.
“Now we’re looked upon as the bad people, but you need to understand that those layoffs were prolonged, and now they’re here,” Pinheiro said.
City employees fear it will only get worse.
Many have expressed worry that if the cash-strapped state takes money from cities, and people continue to hold off on shopping or building homes, then more layoffs will occur, further reducing service levels at the city.
Engineer Cheri Carlet told the council as much earlier this month when she said six people in her department doing the jobs of 16 “will cause a defunct department.”
Acree said many others have expressed similar concerns.
“A big concern from the employees is that there will be a lack of personalized service,” Acree said. “People will deal with phone trees when they call City Hall, not a real live person. Paying bills will take longer. Getting a permit to fix your roof could take forever because you have to wait in line longer.”
Included in the layoffs are also cuts to materials and services. This means eliminating uniforms for city recreational officials, ending the city’s day camp, and closing the museum and laying off its staff.
Most employees who received layoff notices – including IT Director David Chulick, who also serves as president of the Gilroy Managers’ Association – declined to comment, but the down mood at City Hall throughout the past week has been apparent.
“It’s very somber around here. It’s not a happy time,” Buessing said.
The mood also largely has to do with the uncertainty of who, exactly, will leave. Human Resources Director LeeAnn McPhillips would not release the names attached to the laid-off positions until everyone – some of whom are out of town – have received formal, written notices.
“Some employees may not be fully aware that they can be bumped by another employee as not everyone has worked for the City for a long time to know the work history of each employee and whether or not they have held prior jobs which would then give them the ability to bump another employee,” McPhillips said.
Web Developer John Diego came to the city 15 months ago from Oracle. He makes $116,051 at Gilroy (including benefits) but said he has since learned even government jobs are not secure.
“I took this city job thinking it’d be more stable than the private sector, but it looks like I’ll be going back up to the Bay Area,” Diego said earlier this month, adding that workers viewed the city as a sinking ship, and those left behind were preparing resumes and looking to get off.
Others like City Planner Laura McIntyre merely wrote their friends and colleagues an e-mail after receiving their pink slips.
“I am new so I am one of those 44,” she wrote in an e-mail. “May you have a blessed thanksgiving in these challenging times.”
