Taxation Without Representation is Alive and Well

On Wednesday, April 20, the Board on a 4-1 vote negotiated by the employees for the employees with no ratepayer representation.  That’s right!  Mark Weston and Lisa Irvine, employees of Helix Water, were appointed by the Board to represent the ratepayer’s interest in the negotiations with the employees. 

Ok, what did I miss?  General Manager Weston ($200,000+ salary) and Administrative Services Director Lisa Irvine negotiated against themselves on our behalf.  That is like the NFL owners sending in the NFL Players Association to negotiate against the NFL players. 

Who were the brilliant Board members who came up with this idea (again)?  Yes, this is at least the third MOU in a row (over the last 12 years)  the Helix Water ratepayers have had no independent party represent them in negotiations with the non-union employee association.  An employee association that still enjoys 100 percent of their medical, dental, vision, and life insurance paid for 100 percent by the ratepayers.   In addition, the employee’s dependents health coverage is also covered 100 percent by ratepayers, while active and in retirement and each employee gets a minimum of 192 hours of paid time off each year and 12 paid holiday days. 

This year with all the publicity of pension reform including 2 tiers and the desperate situation most cities find themselves in financially, the HWD is in great shape financially because there is no ability for the ratepayers to vote no against rate hikes like taxpayers have.   Rate hikes, that not only go to improve our water infrastructure and pay for increasing water costs, but also go to pay for the most generous employee salaries ($76,000 is the average HWD salary) and benefits package found in any public agency. 

Board President Verbeke pontificated about how wonderful the employees are and the quality of service they provide, which has nothing to do with the benefit package they receive.  Employees are paid a salary and in this case a very good salary to do the best they can in their job, which is the same for any employer’s expectations of their employees.  The 8 percent employee share of the pension has been paid by the HWD for many years.  This is an employee’s share that should be paid in full by the employees.  An amount that is not a pay cut if they were forced to pay it, but rather an investment in their own retirement.

The rate payers already pay 11.4 percent (this year) for the employee salary in pension costs and another 6.3 percent for them into the social security system before the additional 6 percent they will pay in FYE 2012. 

Yes, the employees are paying 2 percent this upcoming year towards the full 8 percent, but don’t worry, the Board also approved the greater of 2 percent or the CPI as a cost of living wage increase so the employees are not out any money. 

The Board (except Kathleen Hedberg) made excuses why they didn’t get more for the ratepayers in this MOU, stating they wanted to see what Governor Brown was going to recommend even though two cities they service, La Mesa and Lemon Grove, both have required employees to pay the full 8 percent share.  The Board also could not negotiate a second tier pension formula for new hires or a significant change in employee pension and benefit costs for new hires. 

This is what we get from not having independent representation.  Board Members Smith, Linden, Muse and Verbeke are part of a good old boys (and girls) network and it is time to vote them out in their next election or we, the ratepayers get what we deserve.

David Smyle
East County Tax Hawks
La Mesa