Harbor View 1

Santa Barbara News-Press:
Our Opinion:
Don't bid adieu to harbor savings

5/29/05


Instead of being supportive of ideas to save money, the city administrator said, among other reasons, that now is not the time to look at outside bids. What better time could there be than now?

The first of three editorials on the city's harbor operations.

If the Santa Barbara City Council wants to get a handle on its budget problem and set a course for long-term fiscal health, it will require thinking like a business and acting more creatively.

This is exactly what members of the Harbor Commission tried to do before City Administrator Jim Armstrong batted down their plan to see if the harbor could save money on landscaping services.

Should it really cost the city $107,000 a year to care for the harbor's ice plants and other rather meager greenery?

The commission wasn't even saying it wanted the harbor operations to discontinue paying $107,000 to the Parks and Recreation Department for the work. The commission only wanted to investigate the idea of contracting out the services to a private company.

Mr. Armstrong wouldn't even let them get bids on the costs to maintain the waterfront's green spaces in nine parking lots.

Harbor Commission Chairman Frank Kelly wrote in a letter to the City Council: "The commission believes that Mr. Armstrong acted inappropriately when he blocked the efforts of the waterfront director during the investigation of 'landscape cost savings' for the department. During these challenging budget times, government should be supportive of all cost-saving measures."

Instead of being supportive of ideas to save money, the city administrator said, among other reasons, that now is not the time to look at outside bids.

What better time could there be than now? The city is facing a multimillion-dollar shortfall in the upcoming fiscal years and plans to spend reserve dollars to make up for annual shortfalls projected until 2009.

The harbor flare-up also has exposed the degree to which City Councilman Das Williams will be a roadblock to fiscal reform.

He told the News-Press: "Of course you can get it cheaper if you go out and bid your work to private companies who pay poverty wages, but that doesn't mean that it is good public policy."

It's astounding Mr. Williams would denigrate local employers in such a manner. His past and present deep connections to the public-employee Service Employees International Union and its local director call into question whether Mr. Williams should be involved in city matters regarding labor relations.

Clearly, the rest of the City Council needs to step in and veto the city administrator's decision. The city often notes that the Harbor Department is a separate enterprise unit responsible for its finances.

As such, shouldn't the harbor commissioners at least be allowed to explore cost savings? Wouldn't it be responsible and prudent for them to do so?


[ SBN-P Online Edition:
Our Opinion: Don't bid adieu to harbor savings ]

Waterfront Spending

Waterfront spending divides harbor board, top Santa Barbara official

5/24/05
By JOSHUA MOLINA
NEWS-PRESS STAFF WRITER


In a rare public standoff, Santa Barbara's Harbor Commission wants to look into privatizing landscaping services in the city's waterfront parking lots to save money -- but top official Jim Armstrong won't let them.

The five-member advisory panel believes that if they bid the work out in the private sector, they might get the service cheaper than the $107,000 they have to pay the city's Parks and Recreation Department to do the job now.

The issue escalated at a commission meeting last Thursday, when Mr. Armstrong went before the panel to explain his decision. They bluntly told him that they had better ideas for overseeing the waterfront budget, while Mr. Armstrong steadfastly defended his budget decision.

The next day, the chairman of the Harbor Commission sent a letter to the City Council criticizing Mr. Armstrong's judgment.

"The commission believes that Mr. Armstrong acted inappropriately when he blocked the efforts of the waterfront director during the investigation of 'landscape cost savings' for the department," wrote Chairman Frank Kelly.

"During these challenging budget times, government should be supportive of all cost-saving measures."

The standoff comes at a time when Santa Barbara is struggling with severe financial problems in its proposed $96 million general fund budget, and the idea of saving money by contracting out some city services has already risen to the fore. Police Chief Cam Sanchez said at a recent budget hearing that it may be a possibility for his department, although he doesn't want to do this.

Facing a $7.4 million budget shortfall next year, the city plans to spend nearly $10 million in reserves through 2009 to help balance the general fund budget. The city is expected to adopt the budget on June 21.

Mr. Armstrong commended the Harbor Commission for attempting to cut costs, but said now is not the time. The Waterfront Department, which is separate from the general fund, pays the parks department about $107,000 annually to maintain the green areas in the nine parking lots in the waterfront. The parks department is already thin, he said, because of budget cuts in recent years.

"If I start contracting that out I have morale problems in that department and it creates other issues not related to the waterfront, but related to the whole city," Mr. Armstrong said.

"My job as the city administrator is to look at what I think is in the best interests of the whole city and I have to sometimes make decisions that may not benefit one department, but benefit the whole city."

Harbor commissioners are clearly frustrated with the situation. They believe they are powerless to do anything.

"We're looking at labor costs that are in my mind out of control," said Commissioner Charles Watson.

The City Council gave raises to 1,061 employees earlier this year, at a time when pension costs are rising for employees.

"Someone's been making promises to labor unions about pension benefits that apparently can't be controlled," Mr. Watson said.

"As a Harbor Commission, we need to consider means of controlling costs, and if it's cheaper to contract out some services we should do that."

The commissioners just want the chance to bid the work out to see if it money can be saved.

"You don't know whether putting it out to bid would be cheaper or not," Commissioner Paul Kuhn told Mr. Armstrong.

"Neither do we, but I find it very frustrating that you won't let us do it. For you to say this is simply not the right time, it's hard to accept that."

The decision is Mr. Armstrong's call unless the City Council gets involved.

City Councilman Das Williams doesn't like the idea.

"Of course you can get it cheaper if you go out and bid your work to private companies who pay poverty wages, but that doesn't mean that it is good public policy," Mr. Williams said.

"Contracting it out only promotes low wage service jobs for people who can't afford to live here."

Councilman Brian Barnwell, the council's representative to the Harbor Commission, is more open to the idea. He said if the work can be contracted out for less money, then the parks department should be offered the chance to match or beat the price.

"I cannot fault the harbor department for wanting to save money," Mr. Barnwell said.

"I think that's a good thing. It would seem to me that Parks and Recreation need to be competitive."

Because of the city's general fund budget problems, Mr. Armstrong has suggested making a combined $1 million budget adjustment this year and $1.3 million next year, either by raising revenues or cutting costs. Each department in the general fund will be on the hook.

The parks chief said the $107,000 contract is equivalent to about two positions.

"Unless we could generate $107,000 in replacement revenue, which I would highly doubt, we would be reducing expenditures, which most likely would be positions," said Nancy Rapp, the city's acting Parks and Recreation Department director.

[ SBN-P Online Editiion:
Waterfront spending divides harbor board, top Santa Barbara official ]

Bethel House Recovery Center

Bethel House dedicates separate recovery center

5/21/05
By HILDY MEDINA
NEWS-PRESS STAFF WRITER

Treatment facility for women is moving out of Rescue Mission


Eleven years ago, longtime philanthropist Baroness Léni Fé Bland envisioned a stand-alone women's residential drug and alcohol recovery facility.

"Today my dream has come true," Ms. Fé Bland said Friday at a dedication ceremony for Bethel House's new center at 24 W. Arrellaga St.

Officials with the Santa Barbara Rescue Mission, which runs the yearlong recovery program that only serves women, expressed their gratitude for her contributions of time and money by naming the 8,000-square-foot facility the Léni Fé Bland Bethel House.

"Residents of the program know Léni as a friend as a counselor," said David Winter, Rescue Mission chairman. "I wish you knew the role Léni plays -- it encourages all the rest of us to jump in this, as well."

Bethel House residents will move this weekend from the Rescue Mission's Yanonali Street location, where a women's facility has been since 1997.

"I'd like to think this is a franchise day in the history of the Rescue Mission," Steen Hudson, the nonprofit's president, told a crowd of 100 that included Mayor Marty Blum and City Councilman Das Williams. "We're thrilled and proud, but the reality is we're dedicating a building that will nurture the lives of countless women . . . that will affect future generations of families."

The new two-building facility will give staff members a chance to focus on the women "without distractions," said Sarah Hughes, a Bethel House spokeswoman. Residents will also have their own learning center, which was previously shared with the men.

A former drug-abuse prevention center, the new facility underwent a $1 million renovation. The Rescue Mission does not receive government or United Way funds because of its religious focus, so most donations come from individuals and local churches.

The main building has a reception area on the ground floor, and six bedrooms and five bathrooms on the second and third floors.

On Friday, each of the 25 beds featured a teddy bear plus a brightly colored name tag.

The old Bethel House will be used for the Rescue Mission's outpatient facility program, which currently has 15 patients.

"It'll be a huge expansion," said Mr. Hudson. "We can go up to 200 to 250 people."

e-mail: hmedina@newspress.com


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Bethel House dedicates separate recovery center ]

Downtown's Free Parking

Downtown's free parking period could be in danger

5/18/05
By JOSHUA MOLINA
NEWS-PRESS STAFF WRITER


S.B. to raise rates, look at cutting back or abandoning no-cost 75 minutes

A Wednesday story about downtown parking rates incorrectly identified the management of the downtown lots. They are managed by the city of Santa Barbara.

Also, the article quoted Marshall Rose, the executive director of the Downtown Organization. Mr. Rose says that his comments at the meeting were in his role as chair of the Downtown Parking Committee, a city advisory board, and not on behalf of the downtown business group.

Reeling from severe budget problems, Santa Barbara plans to raise rates at 12 downtown lots -- and may eliminate or reduce the popular 75-minute free parking system.

The proposal unfolded Tuesday during a tense meeting where two council members squared off in a small room at City Hall with more than 20 members of the public watching.

The policy debate centers on how much to raise parking rates. City and business officials agree that the rates need to go up to pay for maintenance, new stairways, improved elevators and other changes. Some transportation activists and council members want to use the proceeds from raised rates to boost bus service to help relieve traffic congestion.

The increase could come in many forms, including the elimination or reduction of the free 75 minutes, or adding an extra 25 cents or 50 cents on the rate after 75 minutes. The city is looking to put the increase in place in January.

The city needs to raise at least $1.8 million in additional revenue from people who park at the lots.

However, Councilman Das Williams suggested the city raise the rates even higher to gain up to $2.4 million in annual revenue to pay for both parking lot maintenance and more bus service.

"We need to take care of parking, and we need to take care of transit," said Mr. Williams.

The proposal to raise rates comes as part of the city's two-month-long budget process. The city's three-member finance committee, made up of Mr. Williams, Councilman Dan Secord and Councilman Roger Horton, has been meeting in marathon sessions in the past few weeks to hammer out the nitty-gritty details before they go to the full council.

Overall, Santa Barbara is facing a $7.4 million deficit next year in its $96 million general fund budget and is looking to raise fees, cut costs and spend millions in reserves to balance the budget. While money from parking lots goes to a separate downtown parking fund, the city also expects a deficit in that fund.

Tuesday's committee meeting, however, often took a back seat to the personalities and political maneuvering of the people in the room.

Mr. Williams and Dr. Secord went at each other with sharp words for several charged moments.

In a rare display of anger, Mr. Williams accused Dr. Secord of trying to stonewall his idea. Usually poised, the councilman pointed both index fingers in the air as his face turned red and he gave a piercing look to Dr. Secord, the chairman of the group.

"I am amazed, Mr. Chair, at how effective you have been the last half-hour at blocking a motion from taking place," said Mr. Williams, raising his voice.

Caught off guard, Dr. Secord fired back: "Maybe you would like another chair."

Typically, finance committee meetings are low-key. The council members and city staffers discuss details, sometimes over sandwiches and cookies. Rarely do members of the public attend. The comments tend to be loose and free-flowing.

However, the small conference room was packed Tuesday with supporters of Mr. Williams and of mass transit.

The finance director had to scramble and pull chairs from other offices to seat everyone. The 20 people who showed up at the meeting distracted Dr. Secord, who at one point turned to City Administrator Jim Armstrong and asked that the meeting be moved to the main City Council chamber. Mr. Armstrong resisted.

With his backers watching, Mr. Williams fiercely defended his proposal to find more money for transit. Throughout the meeting, Dr. Secord disagreed with Mr. Williams.

When Mr. Williams said Santa Barbara can do more to fund buses, Dr. Secord stung him with criticism.

"Transit is happening," Dr. Secord said. "It just isn't happening at the rate you like."

Mr. Williams fought back. "Yeah, but based on the number of people in this room, it's not happening at the rate a lot of people don't like," he said.

The other player in the discussion was Marshall Rose, the executive director of the Downtown Organization, which manages the parking lots.

He said improving bus service is a community issue, and he questioned why downtown parking dollars are seen as the main possible revenue source for transit.

"The parking fund is looking like low-hanging fruit here, but we're not," Mr. Rose said.

Mr. Rose said downtown businesses support raising the parking rates to gain $1.8 million, but moving up to $2.4 million would mean new discussions would have to take place.

Mr. Williams was irked by Mr. Rose's resistance, noting that the city just spent a "ridiculous amount of money" ($25 million) on the Granada Garage, which clearly benefits downtown parking.

At one point, Mr. Williams even interrupted Mr. Rose because Dr. Secord was allowing him to talk before it was time for public comment.

Mr. Williams asked if Dr. Secord was going to let other members of the public speak for as long as Mr. Rose.

Dr. Secord stopped Mr. Rose and apologized for losing control of the meeting.

"I did let myself slide," Dr. Secord said.

In the end, Mr. Horton tried to smooth things over. He persuaded the panel to look at other ways to reach Mr. Williams' $2.4 million goal, other than downtown parking revenues.

He wants the city to look at regional solutions to boost transit funding, including talking to nearby cities, the county and other sources of city funding. Next, the City Council will meet with the Planning Commission and other city groups to talk about ways to boost transportation funding, essentially putting all options on the table.

"My feeling would be that we would look at a whole range of possibilities," Mr. Horton said.

e-mail: jmolina@newspress.com


[ SBN-P Online Edition:
Downtown's free parking period could be in danger ]

Police Chief on Budget Cuts

Police chief: Budget cuts may lead to fewer officers

5/17/05
By JOSHUA MOLINA
NEWS-PRESS STAFF WRITER


Santa Barbara police officials on Monday told the City Council that they might have to eliminate six officer positions in the next two years to help balance the budget.

They also suggested outsourcing Police Department jobs to the private sector to save money.

Police Chief Cam Sanchez and Deputy Chief Rich Glaus painted a bleak picture of the Police Department as City Administrator Jim Armstrong is asking all departments to make financial cuts.

"Quite frankly, this ugly worst-case scenario isn't something the community deserves," said Chief Sanchez. "I know sacrifices will have to be made. I just more or less think public safety is pretty important to people."

Council members in upcoming weeks will have to make hard decisions about the city's budget, challenged with severe deficits the next few years.

A combination of higher salaries, rising pension and insurance costs, and state budget cuts is forcing the city to scrounge for dollars.

Santa Barbara plans to spend nearly $10 million in budget reserves through 2009 to avoid layoffs and maintain services.

Next year, the city is looking at a $7.4 million shortfall and is spending savings, cutting costs and raising fees to help balance the proposed $96 million budget.

All departments are feeling the squeeze, largely stemming from across-the-board raises approved by the City Council earlier this year. Each of the city's 1,061 employees received at least a 4 percent pay raise in a year when three council members are running for re-election.

Also at Monday's special meeting, the city's planning and fire departments outlined their plans to balance the budget. Development, planning, and building and safety fees are all projected to rise next year, resulting in nearly $500,000 in additional revenue for the city.

The fee increases, according to Community Development Director Paul Casey, are geared toward big developments. Mr. Casey said the higher fees are necessary to pay for the raises. Those fees will also help pay for three new positions to speed up the review process for developers.

According to a fee study done for the city last year, Santa Barbara's planning fees are lower than most nearby cities, including Ventura, Camarillo, Goleta and Oxnard.

Likewise, Fire Department fees, such as those for business inspections, will increase to pay for $1.1 million in salaries and benefits increases. Fire Department salaries and benefits will increase 7.2 percent next year -- to $15.4 million from $14.3 million.

"Primarily the growth is related to salaries and benefits," said acting Fire Chief Mitch Vaughn.

Most of Monday's meeting focused on the Police Department.

Salaries and benefits for the police force will rise by about $1.7 million next year -- to $26.1 million from $24.4 million. The department's budget currently authorizes 222 positions.

The department isn't proposing to raise fees, although Councilwoman Iya Falcone suggested that higher parking fees could be an option.

"I am not sure parking fees and fines are where they need to be," Ms. Falcone said.

The Police Department needs to come up with about $700,000 over the next two years, either through budget cuts or by raising revenues because of the budget deficits.

Chief Sanchez said the department may look to the private sector to see if there are any ways to save money by contracting jobs. He didn't offer any specifics.

The idea troubled Councilman Das Williams, who said he wants public servants protecting the community, not "people worried about making a buck."

"To me, privatizing public safety is absolutely unacceptable," Mr. Williams said.

Chief Sanchez said he wouldn't hire retired cops to work the streets, but perhaps would consider ways technology could be used to help with things such as parking enforcement.

Chief Sanchez said if the budget cuts are unavoidable, he must focus his officers on patrol, the most fundamental police work.

That means there's a possibility that the department could replace a sworn officer with a nonsworn officer in the Police Activities League, a nonprofit organization that provides after-school educational, cultural and athletic programs for children ages 4 to 18.

The same could apply to its involvement with DARE, a program in which the department works to educate youth about the benefits of avoiding drugs, violence and gangs.

Chief Sanchez said the department has already eliminated 20 positions since 2003, and nine of those are sworn police positions. He said he hopes the council makes law enforcement a priority and allows the department to cut as little as possible.

"We're going to have to get really creative," Chief Sanchez said. "We're just going to have to have the courage to say this is important."


[ SBN-P Online Edition:
Police chief: Budget cuts may lead to fewer officers ]

Pols Who Connect

For a change, pols who connect

5/14/05 - OPINION from Travis Armstrong, editorial page editor of the SB News-Press.


Everything is always so adversarial with you."

The yipping on the phone came this week from Santa Barbara City Councilman Brian Barnwell.

I'd love to praise Mr. Barnwell, but his record so far doesn't give much to work with, unless you consider a tendency of windiness and bluster from the dais to be a virtue.

But it did get me thinking about elected officials who succeed at their jobs. I might not agree with their political stances, but here are the names of those who connect with constituents or are skilled at getting their messages out and making deals.

1. Top of the list goes to County Supervisor Joe Centeno of Santa Maria. As chairman in 2004, he tried to bring civility to the polarized Board of Supervisors, even though he wasn't part of the majority bloc. He's responsible for getting a government building named after his political opposite, former Supe Naomi Schwartz. The former cop is the board's moral center, and don't expect much to get through the board without his backing.

2. Chairman Vincent Armenta of the Santa Ynez Chumash government has helped lead his tribe through complex financing and construction projects. He's brought greater self-determination and economic prosperity to the Chumash people. In the process, he's also created 800 jobs and helped inns, restaurants and other businesses in Solvang and Buellton keep the money flowing in. The Chumash's new power disturbs the guardians of the status quo -- and that's a good thing.

3. Santa Barbara City Council member Iya Falcone's de facto mayor title rankles Marty Blum because the present mayor knows the truth in it. It's little wonder that some are trying to plot against Ms. Falcone in the next election. This lawyer's street smarts and connections frighten them. Hey, put me on her endorsement list!

4. The City Council's outsider, Das Williams, has connected with residents from different stations in life because they feel that he'll be a voice for them in City Hall. Other pols talk about neighborhood empowerment, but it's merely campaign rhetoric for them. He's the one on the council with his own feverish following.

5. Goleta Mayor Jean Blois deserves combat pay for putting up with her colleagues. Is there anyone who doesn't appreciate the job she's doing?

6. Goleta School Board member Susan Epstein came from nowhere to win votes. What's next for her? County supervisor?

It would be great to add Santa Barbara Councilwoman Helene Schneider to the list, but is she, so early in her political career, on the verge of becoming an apologist for the city? Is she falling into the trap of representing City Hall to residents, rather than representing residents in City Hall?

FIELD TRIPS: Residents are concerned about the city Planning Commission's "lunch meetings" -- which aren't televised and, some argue, have been known to stray from agenda topics. But what about the commission's and, for that matter, the City Council's trips to see development sites?

The city needs to explain whether these have the potential to violate the state's open-meeting laws. Is one mole correct that city business has been discussed inside the vehicles but outside the public's view?

CITY HALL TRITE: Am I the only one who wants to roll my eyes the next time a Santa Barbara City Council candidate uses the City Hall steps to announce his or her candidacy? It's beyond getting tired. Isn't there some more creativity out there from the people who want to govern us?

[ SBN-P Online Edition:
For a change, pols who connect ]

How Green is City Hall?

How green is City Hall?

5/10/05
OUR OPINION [Santa Barbara News-Press]


What are the priorities of Santa Barbara's city government?

And is true environmental stewardship one of them?

These are a couple of the questions Santa Barbarans will be asking the candidates for mayor and City Council over the next months.

The election will be in November. It could be a wild one for local candidates if Gov. Arnold Schwarzenegger calls a special statewide election in November to push his reform agenda. City elections usually have low turnout, but the governor's special election could bring out a large number of voters who usually ignore city elections.

Let's hope a bigger turnout will force candidates to address the challenges before the city, rather than rely on special interest groups to get supporters to the polls.

Perhaps, then, Santa Barbarans will hear more than vague references to a commitment to environmental excellence by the city.

Too often, the city has a "do as I say, not as I do" approach to the environment.

City officials tried to get Cottage Health System to put in green building features as part of the rebuilding of its Oak Park hospital. Yet these same officials were virtually silent when it came to construction of the Granada Garage -- a monument to the automobile that may have hard and soft costs totaling more than $25 million or $30 million when the city adds up all the expenses.

At least City Council members Dr. Dan Secord and Das Williams have at various times brought up the idea of putting solar panels on the garage's roof. Maybe someday it actually will happen.

In the end, the Granada Garage will stand as a wasted opportunity to build green.

There also was a litany of excuses about why the city couldn't immediately put solar panels on the roof of the downtown library, which is a great place for them and could be used as a tool to educate the public about solar power. Instead, the city will be pursuing putting panels on a more out-of-the-way fire station as it looks at other solar options.

We've long argued that City Hall needs an environmental focus, with a political and staff culture that promotes eco-friendly practices and policies, rather than one that can be more concerned with image.

To that end, we are heartened that the administration, finally, is assembling a staff "green team" to look at environmental policies. But we worry that one of its first charges -- to compile a list of what the city already is doing -- will end up as little more than a device to justify future inaction or delay.

Real reform and progress only will come after our elected leaders, staff members, and land-use and design panels put environmentalism at the forefront.

Will those people running for mayor and City Council commit to making sure such change really occurs?


[ SBN-P Online Edition:
How green is City Hall? ]

Roger Horton's Reelection

Horton announces plan to seek council re-election

5/3/05
By JOSHUA MOLINA
NEWS-PRESS STAFF WRITER


Surrounded by dozens of supporters, Santa Barbara City Councilman Roger Horton on Monday announced plans to seek a second term on the council in November.

From the steps of City Hall, Mr. Horton said he wants to continue his focus on child care services, commuter rail and the environment.

"For me to have the opportunity to serve the city is a great joy," he said.

The councilman has already assembled an array of endorsements for the seat, including fellow council members Helene Schneider, Brian Barnwell, Das Williams and Mayor Marty Blum.

Also in attendance at Monday's media event were county Supervisors Salud Carbajal and Susan Rose and former City Council members Babatunde Folayemi, Rusty Fairly and Harriet Miller, along with several other community activists and business leaders.

Mr. Horton highlighted a handful of examples from his first term that he is proud of. Among them:

* Creating a city committee on youths that worked to improve after-school programs.

* Working with Ms. Schneider to convene a forum on commuter rail possibilities.

* Working with Mr. Williams to acquire money to replace the city's leaky sewer system to improve ocean water quality.

"For any of you out there who support what I have done, who support what Helene has done, you have to support Roger Horton," Mr. Williams said.

Fire Capt. Pat McElroy, a member of the city's Firefighters Association, said Mr. Horton is a solid supporter of fire and police. "We have been very happy with what Roger has done with regards to public safety."

Mr. Horton joins former Planning Commissioner Grant House as the first candidates to announce plans to seek one of the three open seats on the council. Councilwoman Iya Falcone, Loretta Redd and Dianne Channing all plan to run, but they have yet to make formal announcements.


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Horton announces plan to seek council re-election ]

Solar-Panel Roofs

Fire station to get solar-panel roof; S.B. library may be next

5/4/05
By JOSHUA MOLINA
NEWS-PRESS STAFF WRITER


Fire station to get solar panels; downtown library may be next

Santa Barbara is going solar.

The City Council voted on Tuesday to install solar panels on top of Fire Station 2 on the Eastside and to strongly consider using them on the three-story downtown public library in the next five years.

The vote was 6-0 with Mayor Marty Blum absent. Officials want to have the solar panels powering the fire station by spring 2006.

The council's support came amid a lively and wide-ranging discussion about the city's financial challenges, its long-term environmental policies and how solar energy fits into the city's future.

"It is just absolutely imperative that we at least offer one project as a first step," Councilman Das Williams said.

The council members went back and forth about whether to consider solar projects as they come up, or to wait until the next fiscal year when the council is expected to adopt solar-energy guidelines.

Early in the discussion, Councilwoman Iya Falcone suggested holding a meeting with experts before moving too fast with solar projects. She said she supports solar projects, but the city may not know enough about the issue. "It's so complicated, and it's so expensive; we have to make sure we do this in a judicious way."

But environmental activist Karen Feeney told her there is no reason to wait. "Other communities have been implementing solar all around the country very successfully. It's happening. I don't think we need more experts to tell us what to do. The technology is already there."

Powering the fire station using solar panels is estimated to cost about $145,000, after rebates. It will take about 20 years before the panels are paid off through the energy savings. Using solar to power the library would cost about $453,000, after rebates, and take about 23 years before it would be paid off.

City facilities manager Mike Grimes said the cost of the library is just too much right now. "In good conscience, I could not say move forward on that project because of the cost."

City Councilman Brian Barnwell, who has been pushing the city to adopt environmental guidelines to use when considering projects, said the city should consider installing solar panels every time it replaces roofs on city buildings.

"I don't want to just do a demo project," Mr. Barnwell said. "That's not what I am here for. I'm here to integrate solar technology into the city's policies."

Even though Councilman Dan Secord supported the solar project in the end, he took the opportunity to criticize his fellow council members' liberal spending habits and focus attention on the city's budget.

Santa Barbara is facing budget deficits through 2009 and will spend nearly $10 million in budget reserves during the next five years.

Dr. Secord said he is not sure why the city needs to spend $140,000 in taxpayer funds for a solar demonstration project at the fire station when everybody already knows solar energy works.

He said already "this council" is going to raise the minimum wage later this year, referring to a proposed $13.40 living wage ordinance on the table that would be paid by some businesses and organizations that contract with the city. "Our general fund is under some assault here on other matters," Dr. Secord said.

e-mail: jmolina@newspress.com

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Fire station to get solar-panel roof; S.B. library may be next ]

Solar Power for Fire Station

S.B. council to decide on solar power for Eastside fire station

5/3/05
By JOSHUA MOLINA
NEWS-PRESS STAFF WRITER


Santa Barbara is looking to the sun to power a fire station on the Eastside.

The City Council will consider today whether to blanket the roof of Fire Station No. 2 on Cacique Street with up to 3,000 square feet of solar panels.

"The city government has to lead by example," said Councilman Das Williams. "We have to do some of these projects by ourselves if we expect private citizens to step up to the plate and install solar energy systems themselves."

In a city where red tile roofs dominate the tops of many buildings, Santa Barbara is attempting to embrace solar energy and overcome its concerns that the solar panels would clash with the city's architectural standards.

The city last year partnered with the nonprofit Community Environmental Council to promote solar technology and overcome barriers such as aesthetics and cost.

After that meeting, the city paid for a study to determine what it would take to power the downtown three-story library using solar panels. The study concluded that using solar panels on the library would cost about $453,000, after rebates, and take about 23 years before it's paid off.

In addition, the library is heavily shaded by trees and could require the removal or heavy pruning of the trees -- a road the Public Works Department staff doesn't want to travel.

"I don't have to tell you that removing trees in this city can become a delicate situation," said Mike Grimes, the city's facilities manager.

But there are no trees that shade the top of the fire station. And the cost is cheaper in the short term.

Powering the fire station using solar panels is estimated to cost about $145,000, after rebates. It would also take about 20 years before the panels are paid off through the energy savings.

The panels would not be visible from the street, although they could be seen from Highway 101.

"This is an excellent project to really see if solar panels can run a building," Mr. Grimes said. "The beauty is there are no tree issues. You will see it from the freeway, but that's OK."

Nine firefighters work out of Fire Station No. 2, across from Casa Esperanza homeless shelter. Mr. Grimes said the fire station would never be in jeopardy of losing power.

During the day, the solar panels will use energy from the sun. During those hours, the electricity meter will run backward. When the sun goes down, the station will draw from the banked electricity stored on the energy grid.

City fire Battalion Chief John Ahlman supports the idea.

"I think it's time," he said. "We don't want to let this opportunity get by us."

The Community Environment Council said the fire station project is a good start.

"Right now with the city coffers not exactly being flush, we think this would be a good first step," said Tam Hunt, energy program director for CEC. "It's not huge and it's not tiny. We certainly support any project the city chooses to invest in, and we urge them to look at as many buildings as possible."

Santa Barbara is facing multimillion-dollar budget deficits through 2009.

Councilman Williams said because of the current financial situation, it makes sense to put the library project on hold, but only temporarily. Eventually, Santa Barbara needs to power a larger building, he said, because it will save much more energy.

He said he wants the city today to commit to the solar-power library project in the next five years. The roof is near the end of its life and he said the city should install solar on the roof at that time.

"We should make a commitment to doing both," he said. "The library is a much bigger deal."


[ SBN-P Online Edition:
S.B. council to decide on solar power for Eastside fire station ]

Black History Month

[ Excerpt from SBN-P "PUBLIC SQUARE" Column, 5/3/05 ]

(To submit announcements for consideration, send a typed letter to Karna Hughes at Public Square, P.O. Box 1359, Santa Barbara 93102, fax us at 966-6258 or e-mail us at publicsquare@newspress.com. Information must be received two weeks in advance.)


YOU SHOULD KNOW

When the greatest hits of legendary R&B, funk and soul musicians fill the air, like at last month's "Motown Night" hosted by the Black History Month Parade Committee, "you can either sit there or get on up," reckons committee chair Ron Current.

It was a no-brainer for Marty Blum, claims Mr. Current: "The mayor just got on up."

"Everybody just had a really good time" grooving to classic oldies, from The Temptations' "My Girl" to Marvin Gaye's "Got to Give It Up."

Nearly 80 people turned out for the dance party fundraiser, which was held at the Eagle's Lodge in downtown Santa Barbara.

Guests included city councilmember Das Williams, who is currently on the parade board, and Zack Gonzales, an infantry communications specialist on leave from Iraq.

The event is the first in a series of upcoming fundraisers for Santa Barbara's first Black History Month Parade, slated for February 2006.

A celebration of African-American history and culture, the parade will feature community groups, school marching bands and educational displays. Organizers are trying to raise funds to bring bands from at least two inner city schools in LA.

The next event, "Come As You Are Oldies but Goodies Dance," will be held July 2 at 6 p.m. at the Eagle's Lodge, 923 Bath St. Tickets will go on sale June 1.

For more information, call the parade hot line at 961-3933.

[ SBN-P Online Edition:
http://search.newspress.com/2005/05/03/050305public.htm?now=55870&tref=1 ]

Pension & Budget

[ SBN-P 5/2/2005 ]:

Pension pressure

Santa Barbara's budget reserves are shrinking as retirement costs soar

5/2/05
By JOSHUA MOLINA
NEWS-PRESS STAFF WRITER


Santa Barbara's budget reserves are shrinking as retirement costs soar


(The second in a three-part series examining Santa Barbara's multimillion-dollar budget deficit. Part 1 ran on April 25. Part 3 runs on May 9.)

Skyrocketing pension costs are pummeling Santa Barbara's budget and worsening deep financial problems for a city that faces a $7.3 million deficit next year.

Santa Barbara's pension debt has more than doubled in the past three years, and next year the city must pay $14.5 million in retirement benefits to cover 1,061 employees who are guaranteed retirement payouts no matter the state of the economy or the city's finances.

The city known as the American Riviera is on a rapid pace to eat up nearly all of its budget reserves by 2009 to pay for the pensions.

Up and down the state, pension benefits have pushed budgets and finances into the public spotlight and forced politicians to be accountable for how they manage the public's money. Just days ago, the mayor of San Diego resigned over that city's enormous pension deficit.

Earlier this year, Gov. Arnold Schwarzenegger pushed for an overhaul of the public employee pension system through a November ballot initiative. He backed down after running into opposition from union leaders.

In Santa Barbara, pension costs aren't the only problem hurting the city's government. This year the City Council handed out raises to union employees, managers and department heads -- everybody on the payroll -- in a year when three members are running for re-election.

Last year, council members placed a measure on the November ballot to triple their own salaries. It passed overwhelmingly.

When salaries go up, workers are eligible for higher pension payments after they retire.

"It is becoming a major problem for local governments, state governments and corporations," said Robert Stern, president of the Center for Governmental Studies, a nonprofit watchdog organization. "Local governments are going to have a tougher time because labor unions have become very powerful in local elections."

The world of pensions is complicated and even many of the elected officials don't seem to fully grasp the topic.


PENSION PAYOUTS

Under state law, government employees are guaranteed retirement benefits.

In Santa Barbara, for the next fiscal year, the city will pay 40 cents to the state in retirement money for every $1 it pays in salary to each police officer. For firefighters, the city pays 44 cents.

And for general workers -- essentially everybody else -- the city pays 21 cents to cover their retirement.

Employees do not have any money deducted from their paychecks to cover pensions, a deal that was struck during labor negotiations.

Instead, the city uses general fund taxpayer dollars, collected from sales, property and hotel-bed taxes, and other fees.

California cities place that money with the California Public Employees Retirement System, a state agency which collects the funds, invests in the stock market and then pays benefits out to government employees who have reached retirement age.

In the late 1990s, boosted by successful investments in dot-com and other high-tech companies, investments in CalPers soared.

But five years ago, the game changed. The fall of many of those same companies crippled investment portfolios around the country.

CalPers' shrinking investments pulverized its accounts with the state's municipalities. But unlike workers in the private sector, who saw their 401(k) accounts free fall, government employees didn't have to worry about losing any money planned for retirement.

Because of labor contracts, government workers are guaranteed their pensions.

So the cities had to fund CalPers to make up for the losses.

Next year, the city will pay a total of $14.5 million in pension costs, more than double the amount just three years ago.

The pension costs are contributing to the city's serious budget problems, along with rising insurance costs, salaries and a budget deficit.


PUBLIC SAFETY

Police officers and firefighters have the best pension benefits of all city employees.

Public safety employees can retire at 50. They are entitled to payments equaling their years of service multiplied by 3 percent -- up to 90 percent of their highest salaries. Other city workers can retire at the age of 55 and earn 2 percent for each year of service.

The bar for public safety was set by then-Gov. Gray Davis in the late 1990s. He agreed to lower the retirement age from 55 to 50 and increase the percentage from 2 percent to 3 percent for California Highway Patrol officers and state corrections officers.

The new contracts trickled down to labor negotiators in many cities, including Santa Barbara.

Mayor Blum recalls there was a statewide effort by unions to push for the increases.

"At the time, we could afford it," she said.

The city wasn't paying anything additional to CalPers because stock returns were great.

And then the political equation changed.

"When 9/11 occurred, there was tremendous confirmation of support for police and fire," she said. "There's no doubt they do a difficult job and if you only had a couple hundred employees to hire, it would be police and fire."

The mayor, who last month incited outrage from the head of the Police Officers Association for voting against 10 percent raises over two years, said now the city needs to pull together and figure a way out of its budget mess.

Even though she believes that government workers deserve good retirement benefits, the reality is that the city -- and the taxpayer -- have to figure out how to pay for those benefits.

Soaring pension costs hurt the budget, she said.

"It's huge," she said. "It's almost as much of an issue as the raises. When someone says to me 'What are the problems with the budget?' I say 'No. 1 salaries, No. 2 is CalPers.'Ê"

Currently, CalPers is paying retirement benefits to 754 retired city workers whose pensions cost $13.3 million during 2003.


'WE WORK 24/7'

One of those people is retired police Lt. Gil Zuniga.

Mr. Zuniga said he was attracted to work in the public sector because of the pension benefits he would draw, even though in the early 1970s the benefits weren't as good as today.

In those days, police officers were able to retire at 55 and earn 2 percent for each year of service.

Mr. Zuniga worked for the city for 28 years. At retirement he was able to take 84 percent of his highest salary. He said he was earning close to $100,000 when he retired.

"My pension is serving me well," Mr. Zuniga said. "I am not hurting for money."

Over the years, he worked several police beats, including narcotics, burglary, internal affairs, patrol and others.

Police work is tough, he said, and it takes a special kind of person to commit to that kind of work. Law enforcement officers should be rewarded.

"We work 24/7," he said. "When you are off duty and you see something happen you are required to take action. It's not like the everyday job where you get off at 5 o'clock, and you don't have to worry about going back to work until 8:30 a.m. in the morning."

On the other hand, the pension isn't the windfall that some cynics paint it, he said.

For example, when government workers retire before 65, their Medicare benefits don't kick in. They have to pay for their own health insurance until they are 65. Mr. Zuniga said that costs him about $8,000 a year.

Government workers don't pay into the Social Security system. So they don't draw Social Security checks.

Mr. Zuniga, who enjoys playing golf, also teaches police management classes.

"It's not like we just walk away and everything is taken care of," he said. He retired three years ago at 53. "They get this unfair opinion of us that we are going to get paid and this and that, but we don't."


Former Fire Chief Warner McGrew retired from the city last month -- after 35 years.

Mr. McGrew retired at age 61, even though he could have left at 50. He said he stayed on the job because he believed he still had something to offer.

Even though Mr. McGrew worked 35 years, state laws say the maximum pension a public safety employees can earn is 90 percent of their annual salary. The top salary for fire chief in Santa Barbara is about $135,000.

When Santa Barbara invests in its employees, said Mr. McGrew, the community enjoys the benefits.

"All one has to do is walk outside and look around and really enjoy what an awesome community we live in," Mr. McGrew said. "And I mean that."

He said working for the Fire Department took hold of his life.

"I was all consumed by the Fire Department," he said. "I never did not think about it. When you do that, you get up in the middle of the night. You do things to be responsible."

Mr. McGrew is spending his time walking and riding his bike, he said, trying to get into better shape.

"I want to enjoy my community and my family," Mr. McGrew said.


PENSION POLITICS

Steve Cushman, executive director of the Santa Barbara Region Chamber of Commerce, said that without an overhaul of the current pension system local governments will face bankruptcy over the next 20 years.

Mr. Cushman said that in the 1960s people took government jobs because they genuinely wanted to make a difference and were willing to accept lower salaries in exchange for good retirement benefits.

But the rules changed over the years. He cited the 1978 passage of Proposition 13, which lowered property taxes for some, but stripped away tax revenue to cities and counties.

The recession in the 1980s worsened matters, he said. With soaring interest rates and a generally unstable economy, he said, government workers decided to take matters into their own hands.

"At that point the guys in government said the game has changed," Mr. Cushman said. "The security is not there, so the promise we entered in on has gone away."

He said that's when unions took over and, Mr. Cushman maintains, "very, very skillfully manipulated the system" and took control of politics at all levels.

"They established benefits far beyond, frankly, what is sustainable," Mr. Cushman said. "And politicians still are making promises at every level of government that they know they won't be held accountable to."

Mr. Cushman liked the governor's now abandoned idea to reform pensions. Mr. Schwarzenegger essentially proposed a two-tier system -- ending the guaranteed pension plan for new employees. New employees hired after July 1, 2007, would be enrolled in "defined contribution plans," meaning the employers' contribution would be fixed and not fluctuate based on waves on the stock market.

Most private sector companies are moving toward the defined contribution plan, Mr. Cushman said.

Over the long term, Mr. Cushman said governments need to act more like private businesses if they want to survive.

"I think there should be a revision of the retirement system for public employees and I think it should be consistent with general practices in business," he said.

About half of the city's workforce will be eligible to retire in five years.

The council members are reluctant to suggest any changes to retirement benefits.

Some elected officials don't believe the problem is that bad. Councilman Das Williams said the worst part of the stock market fall is over and the retirement situation will improve in upcoming years. The current problem is short term, he said.

The budget reserve account, he said, is being used wisely.

"That's what it was created for."

Others say that offering excellent benefits is a smart way to do business.

"We want to keep good people," said Councilwoman Iya Falcone. "We are an above-average city. These are priorities that we have to make."

Ms. Falcone questions the budget forecast of the city. She believes it is a worst-case scenario.

"I don't think it has an expenditure problem in the chronic sense," said Ms. Falcone, who is running for re-election. "I think that as the entire nation, but most acutely in California, we have been going through some very difficult times due to 9/11 and the climbing-out process and the dot-com bubble burst and the climbing out of that difficulty."

She doesn't believe that the city will end up spending about 85 percent of its budget reserves, as the 400-page forecast shows.

"I would be very surprised if we were to be sitting in the year 2009, you and I, looking back. I think it will be doubtful, but there's no way of knowing here in 2005," she said.


THE BUDGET PROBLEM

*Santa Barbara has a $7.3 million deficit for fiscal year 2006.

*Santa Barbara gave raises to 1,061 employees -- at an ongoing cost of $10.5 million by 2009.

*Pension costs have more than doubled in the past three years, and city owes $14.5 million in pension payments next fiscal year.

*Insurance costs are expected to double by next year to $15.5 million.

*The city plans to make cuts or raise revenues totaling $2.3 million in next two years to help balance the budget.

*The city plans to spend nearly $10 million in budget reserves to help balance the budget, nearly depleting the account by 2009. About $1.7 million would be left.


[ SBN-P online edition:
Pension pressure ]

Cottage Hospital Rennovation

[ SBN-P 4/27/2005 ]:

Cottage clears last hurdle to renovation

4/27/05
By JOSHUA MOLINA
NEWS-PRESS STAFF WRITER

Hospital expects heavy construction to start in June


In a major milestone for the medical community and county residents, the Santa Barbara City Council on Tuesday unanimously approved the rebuilding of Santa Barbara Cottage Hospital, the largest and most expensive project in the city's history.

"We will now begin construction on what will be one of the best teaching hospitals in the country," said Cottage Health System Chief Executive Officer Ron Werft.

The approval came more than two years after Cottage proposed rebuilding the hospital in the Oak Park neighborhood on the upper Westside.

Tuesday's go-ahead was expected because the city and Cottage have been negotiating practically every detail of the project, which will result in a 337-bed hospital with two parking garages totaling 1,200 spaces.

For the first time, however, Cottage officials publicly suggested that they might need public money to help pay for the hospital. The project is expected to cost $413 million, but officials fear the price tag could be much higher.

"We may need your financial assistance," said Cottage board member Dr. Nicholas Vincent, who suggested the cost of the hospital may be as high as $460 million to $480 million. "This isn't done."

The revelation surprised Mayor Marty Blum. But she said that rebuilding Cottage Hospital is absolutely essential, and if Cottage needs financial help, then the city and its residents should consider chipping in.

Cottage had promised to pay for the project using no taxpayer dollars, relying on a plan to sell private bonds, use hospital reserves, spend money from its foundation and raise funds in the community.

"This is a community project, actually," the mayor said after the meeting. "We're working together on it, and we'll have to figure out how to pay for it together. If it is through bonding or private funds, maybe there's a way for the city to help. I am not sure."

After Tuesday's meeting, Mr. Werft emphasized that as of today, Cottage doesn't plan to use any taxpayer dollars. But around the state, he said, construction bids for hospitals are coming back 15 percent to 20 percent higher than some institutions had expected and it is possible that something similar could happen here.

"To the extent that the city will help, we would certainly appreciate it," Mr. Werft said.

Cottage expects to start heavy construction in June.

The hospital will remain open throughout construction, expected to last through 2013. Cottage is working to meet a state deadline that requires all hospitals to be able to withstand a major earthquake by that time.

Cottage assembled a who's who of political insiders, consultants, architects and power brokers to steer the project through the city's channels. Early on, many neighborhood residents complained about the effects of the hospital construction.

The medical center's team wore them down, however, and some of them moved from the neighborhood when they realized the project was unstoppable.

The nonprofit Cottage Health System operates the only three hospitals on the South Coast.

It purchased St. Francis Medical Center in 2001 after that hospital, bleeding red ink, shut down. Cottage plans to build below-market housing for its workers at the upper Eastside site.

As part of the approval, Cottage agreed to many expensive upgrades -- about $10 million worth -- that are unrelated to medical services, including putting utility wires underground, making dozens of road and sidewalk improvements, and installing an underground creek culvert to stop flooding in the area.

On Tuesday, Councilman Das Williams advanced a final request: Cottage agreed to operate a solar-powered water heating system at the Child Care Center, which is part of the hospital reconstruction.

The council members praised the hospital's efforts. Councilman Dan Secord did not vote because he owns property near the hospital.

Mr. Williams said he appreciated Cottage's willingness to give employees $75 a month if they do not drive their cars to work, in an attempt to encourage alternative transportation.

"Cottage is paying their employees not to drive," he said. "That's revolutionary."

The mayor said she doesn't know what she will be doing in 2013, but she looks forward to seeing the hospital completed.

"It's been a pleasure to work with Cottage Hospital," Mrs. Blum said. "You are making an amazing investment in this community."

e-mail: jmolina@newspress.com



AT A GLANCE

Santa Barbara Cottage Hospital's rebuilding project is expected to cost $413 million.

However, an increase in construction bids for similar projects around the state has officials worried that the price tag could end up as high as $460 million to $480 million.

The renovated hospital will have 337 beds and two parking garages with a total of 1,200 spaces.

Construction is set to begin in June and is expected to last through 2013. A state deadline requires all hospitals to be able to withstand a major earthquake by then.

MIKE ELIASON / NEWS-PRESS PHOTOS

[ SBN-P online edition:
Cottage clears last hurdle to renovation ]