The Hollister workforce would function without a fire chief,
finance director and planning director
– three senior officials among 36 proposed layoffs – if the City
Council approves a staggering proposal tonight.
During the 7 p.m. meeting at City Hall, officials expect
criticisms and emotions to flare, as a city in financial turmoil is
attempting to reduce its payroll by $1.8 million.
The Hollister workforce would function without a fire chief, finance director and planning director – three senior officials among 36 proposed layoffs – if the City Council approves a staggering proposal tonight.
During the 7 p.m. meeting at City Hall, officials expect criticisms and emotions to flare, as a city in financial turmoil is attempting to reduce its payroll by $1.8 million.
Thursday and Friday, City Manager Dale Shaddox spoke with every employee among a 175-person workforce, and he informed anyone whose position made the dreaded list. He wanted to speak with them “eyeball to eyeball,” he said.
That slate of job titles – including many top level managers – could be slightly changed or overhauled by the Council tonight, according to Shaddox. The layoffs would be effective July 1.
“It’s just ugly. It’s like a nightmare,” Councilman Robert Scattini said.
But the $1.8 million shortfall projected for the 2004-05 fiscal year, officials believe, must be absorbed by employee layoffs. Other means of cutting the budget – reduction of capital projects and two creative real estate transactions – already contributed to slashing projected expenditures.
Shaddox and a Council subcommittee used an unprecedented strategy that emphasized examining management positions first for cuts – while maintaining “essential services.”
Aside from three department heads, the list of proposed layoffs also includes several other leadership roles – senior building inspector, building official, recreation services manager, public works superintendent, airport manager and code enforcement officer.
In his initial recommendation to the Council subcommittee, Shaddox even advised that the city manager position and its maximum $120,000 salary also be vacated, he said. He believes his role’s duties could be dispersed among other senior officials.
“Well, there are two or three principles here,” Shaddox said. “One of them is that a city manager ought to have the best interests of the community and the best interests of the organization as the number one priority.”
He went on: “I couldn’t go out and fix a water main break. I couldn’t go out and ride around in a patrol car and enforce the law. I couldn’t jump in a fire truck and go put out a fire at your house.”
The subcommittee, though, made up of Mayor Tony Bruscia with Councilman Brian Conroy, overruled that notion.
Bruscia acknowledged the city manager duties don’t directly benefit the public, but that he “vehemently opposed” laying off Shaddox because of his personal value to the city.
“I’ve asked him to commit to staying for another fiscal year,” Bruscia said. “If he wanted to leave after that, I couldn’t blame him. We need his help – badly.”
Overall, the proposed reduction would cut 21 percent of the workforce. Still, the financial problems will likely worsen in 2005-06 and beyond, Shaddox said.
In the coming fiscal year, the city expects to save nearly $3 million by using what he calls “one-time solutions.” Hollister will sell the Fremont School and downtown Fire Station to its own Redevelopment Agency (RDA) – a way to shift dollars into the General Fund.
But that same gap of $2.7 million lurks in 2005-06, too.
“That’s a killer, and I don’t have an answer for it,” Shaddox said.
Plus, the governor’s budget proposal released last week includes more potential losses to local government through a shift of property tax dollars.
After the current fiscal year ends June 30, the city expects to have $8.9 million left in the General Fund. And a policy was set last year to remain at or above $4.5 million. Since 1999, the reserve has been drained by more than $6 million.
“We’re going to get from $8.9 million to the $4.5 million very quickly,” Shaddox said. “And we’d be facing added layoffs beyond this 36 if we don’t bring other revenues to bear.”
Shaddox added: “Could this city reduce its workforce by another 36 positions the following year and still provide a basic level of services? I think not.”
Another strategy of the layoff plan revolved around the building permit moratorium, which runs through October 2005. With no growth for at least the next two years, the Community Development Department – and its planning and building divisions – would take a major hit.
It would lose its director, a position held by Bill Card, Code Enforcement Officer Tim Burns, two building inspectors, the senior building official and clerical staff.
The plan doesn’t include a relative abundance of slashed jobs that support basic services – such as public safety, water operations and Animal Control departments.
The Police Department would lose a sergeant, along with its police service and multi-service officers.
The Fire Department would lose its leader and one clerical employee, but no one else. Regarding Chief Bill Garringer’s job, Shaddox reiterated that every city position had been under consideration.
With decisions based on maintaining basic service levels – and public opinion denouncing reduced fire protection – the proposal cuts the chief because it is the only firefighter position not “directly” responding to emergencies, Shaddox said.
“We heard loud and clear from a lot of people in the community that we don’t want to diminish our ability to respond to fires and medical responses,” Shaddox said.
The list released Friday also includes a total of eight clerical positions, an associate engineer, a recently hired RDA housing official and many others.
The agenda does not include any names, though, because some employees with seniority could use “bumping rights” to accept demotions or equally ranked positions, officials said.
Furthermore, some positions are employed by people who may be eligible for retirement, including Garringer and Finance Director Barbara Mulholland, Shaddox said.
Once the Council approves a plan, an extensive implementation process will begin. As part of that, senior officials must, by law, meet with unions to discuss layoffs.
“We have a lot of work to do,” Shaddox said. “As much work as this has been – and all the anxiety and angst about it, and I do worry about it – this is the start of the work once the Council adopts the plan.”
Shaddox acknowledged he is drained from the process.
“Emotionally, I’m worn out,” he said.
Tonight, Bruscia wants to remain calm as chairman of the Council. Though he doesn’t “expect everybody to be a lady and a gentleman.”
“I think it’s going to be ugly,” he said.
