Feeling the Squeeze: City's recent round of layoffs will be noticeable

By Li Terrell
The South Lake Tahoe City Council voted October 18 to approve the budget for Fiscal Year 2011-2012, which imposed layoffs for 19 employees who were relieved of their duties last Friday, November 18.
The meeting itself was supposed to be celebratory in nature, as Mayor Hal Cole presented the first “State of the City” address that morning. Even as he heralded new capital improvements, he tempered the address with the acknowledgement that economic woes were at their worst in a lifetime. By the afternoon session, the budget was presented (with few changes from the initial unveiling September 15), public comments were heard, and the vote was unanimously carried to move forward as planned. With that - the positive spin from the morning’s address was forgotten amidst tears in the lobby of the airport.

“For the last month we have been going through this process, said Councilman Tom Davis. “Not one group or individual has come up with $5.2M dollars.”
“As ugly as these layoffs are,” added Councilwoman Angela Swanson. “We have a responsibility to the 20 thousand residents here, and they are not going to be held hostage by the 200(employees).”
Many in attendance were visibly and audibly showing disappointment and anger as the motion passed.
“What am I going to do?” asked one tearful employee, who would be virtually alone in her department after layoffs. “I just lost everyone I know and trust, and there’s nobody left to DO this.”
State of the City
Mayor Hal Cole began the meeting that morning with the State of the City address. He began by outlining what most on the ground in Tahoe already know – that times are tough all over. He admitted that Tahoe has a deeper hole to get out of than the rest of the country, because of the nature of our economy is based on others’ disposable income. He also gave a nod to the history of Tahoe, and the harsh elements and disasters the community has weathered. Ha added that as we come have together as a community during troubles, such as the Angora Fire, we can weather this economic storm.
“We are a resilient and strong community and we will recover from our current challenges,” he stated.
Mayor Cole then shifted gears, noting the improvements the city is making, from water treatment in the Bijou area to the upcoming improvements planned at Harrison Avenue. Mayor Cole spoke of his own long time interest in that area, and that Harrison Avenue was to be the crown jewel in the center of town.
“Now with the completion of the Lakeview Commons," he added. “It’s more important than ever that area match the tourist experience they are going to have at the beach there.”
The state of the city address ended on a high note, with the mayor also bringing up a campaign for “lights on the snow” to encourage both commercial locations and residents to make South Lake Tahoe a showcase for Holiday guests.

Cuts and new taxes
With capital improvements and roads sitting on top of the priority list for the city, the details may be more difficult to hash out, considering the budget deficit. With a figure of $5.2 M to make up, the first pruning would come from employees, since the city had already focused on the fact that 65 percent of capital funds goes to employees. Layoffs would constitute a net savings of $1.7 million. Increased additional revenue of $2.4 M, only brings the net increase to $4.1 million.
As a result of the many suggestions made to council and the city manager since September’s explosive meeting, there were several new avenues of revenue that were added to the budget. Increasing Vacation Rental Fees will bring in approximately $170,000. Increasing Business Taxes for the larger businesses in town should increase revenue there by $200,000. Last but not least is raising the fees for utility companies to cut our soon to be renewed streets, which should gross on average about $70,000. With total estimated new revenue of $340,000 added to the above $4.1million, a gap of approximately $760,000 still remains. According to the city, the numbers may appear different because they are from the September 15 meeting and the gap is still being closed.

How to get it done
Also in question is how the city expects to pursue these new venues of revenue and also track delinquent accounts, when both senior accounting technicians in the finance department have been laid off. An accountant position has been created, which includes responsibilities for both revenue and accounts payable.
Collecting revenue for the city is no small task. There are more than 3000 business licenses processed by the city Finance Department. Quarterly, TOT for over 600 vacation rentals is collected, and approximately 100 motels and rental agents submit monthly. Furloughs have been eliminated, yet the finance department window at the airport will be closed every Friday. Regular hours for the window are being reduced as well. (Monday –Thursday, 10-2pm. By appointment if you need a different time)

Same stuff, different decade
The city historically functions with somewhere between 180 and 250 employees. During the restructuring more than a decade ago - - known as Destination 2000 - - there was a similar round of layoffs to streamline services. Then a few years later as the economy boomed with the housing bubble, the city indulged and hired on another 20-30 people over a handful years. That number is very close to the 25 layoffs that have occurred this year between March and October.
According to former employee Al Turner, a street maintenance and sign maintenance worker with 30 years of service, this is not a new chapter for the city and its employees. In 2000, the rash of layoffs was similar to now, and the city manager at the time declared the city “right-sized.” He recalls that current city council members Cole and Davis were on council at that specific meeting, praising the cuts as well.
“Over the last 38 years I have seen 4 of these cycles and I think there will be more.” He added. “This last one did not need to happen if only they had followed their own findings from before.”
“Historically the pattern has been if employees came up with ideas to help the city out and take cuts it was all fine,” said Candy Morganson, who served 24 years for the city in both fire and public works departments. “But when we’d suggest things that could be done to make things work more efficiently, it never went anywhere.”
Retirees have also been concerned during this whole budget and negotiation process in regards to health care changes and not being involved in decision making.
“We know healthcare is not going to change until early next year, when they (bargaining units) all agree,” Said Tom Fay, former public works street superintendent with 28 years of service. “But we were never told about our bargaining unit.”
Retirees were informed at the October 18 meeting that they would have to contact their respective bargaining units. Apparently, the word is getting out now through the interconnection of retirees. They hope to be able to get on-board with the units that they were members of when they left the city’s employment. Fay’s concern is that retirees pay no dues or have continued contact with these units once retired. He is still hopeful that communications with the units goes better than that with City officials thus far.
City services to be outsourced?
Mayor Hal Cole wrote a letter and posted it at the Senior Center recently to address concerns about services. According to public information officer Nancy Kerry,
“No direct services are being outsourced at this time. The City will evaluate services that could be provided more efficiently and cost less through public / private partnerships such as the Airport.”
However, at the Oct 18 meeting, during his budget presentation, city manager O'Rourke did say that they were planning to transfer services for the senior center to El Dorado County, and recreation services may be picked up by Boys & Girls club.
Neither of these entities was available to confirm or deny negotiations before press time. Follow up on this is pending.

Public safety services on the chopping block
The fire department is losing three division chiefs. These are the commanders who have experience in handling more than one engine company. As explained by Candy Morganson, who worked in the department for 19 years. She has concerns that captains in these positions may not have the authority or the experience for a large scale incident, since they are usually responsible only for their own crew and engine company.
“The first big incident they have,” she adds. “It’s going to be chaos.”
In regards to fire division chiefs, a police captain and two sergeants, Police and Fire Chief Brian Uhler commented that each has different functions and on any given day, all could be called upon.
“There are duties that are being absorbed by others in both the fire and police department.” He said. “There are also other duties and functions which won’t be able to be completed.”
However, he was unable to elaborate on these details. The public information office responded instead:
“In general, all core levels of service will continue. In some non-core services areas small levels of service may be adjusted.”
“The majority of the reorganization savings are from management positions. Senior managers have absorbed most of these workloads. The City has purposely minimized front-line service delivery impacts.”

Here comes the snow
Several of the initial cuts from the city’s snow crew were salvaged between the September and October budget presentations. Both current and soon to be laid off employees believe the ‘save’ was really a tactic.
“They offered up the snow plow guys to scare the public,” said one employee who spoke anonymously for fear of retaliation. “Then they give those jobs back and the public doesn’t miss the others being laid off as much, until they need them.”
The city moved forward at the November 1 council meeting by authorizing payment for a $ $34,759.61 GPS and automatic Vehicle Tracking system for the City's snow removal vehicle fleet for diagnostic and tracking purposes. The system has an additional annual cost of $5,892.00. The city hopes to reduce the number of calls by citizens by to tracking plows and knowing when each is estimated to pass through neighborhoods. The GPS is also expected to assist drivers in optimizing their routes and becoming more efficient in the field.
“It doesn’t tell you where the road is under you, or tell you how deep the snow is,” said Fay.
As a 28 year veteran of the department, Fay has a bit of an instinct when it comes to the white stuff. He is glad that some of the positions were rescued in the department; however, he is still concerned with the elimination of veteran drivers in favor of temporary ones.
“I pray every night that you guys get a good pounding up there, sorry to say,” Fay added. “But these guys (in management) need to see what they are up against.”