PAC Report

by Kerry Condon

 

MEMBER ADVISEMENT - AOCDS PENSION LAWSUIT

February 27, 2009  Rejecting legal arguments by the County of Orange that Deputy Sheriff pension benefits in Orange County are unconstitutional, Los Angeles Superior Court Judge Helen Bendix threw out of court a lawsuit by the Orange County Board of Supervisors to overturn 3% at 50 pension benefits for Orange County Deputy Sheriffs (County of Orange v. AOCDS & Board of Retirement, Case #BC389758) yesterday by ruling in favor of the AOCDS’ “MOTION FOR JUDGEMENT ON THE PLEADINGS”, two months before the case was scheduled to go to trial.

The Court ruled that the 3% @ 50 retirement benefit, providing credit for prior service time IS NOT a gift of public funds, sharply rejecting the County’s cause of action on this matter. Judge Bendix further ruled and dismissed the County’s second cause of action (as written), in that the County failed to prove that adopting the 3% @ 50 retirement benefit exceeded the County’s debt limitation requirements. (The Court did however allow the County 30 days in which to amend their complaint on this cause of action. Amending the suit to this cause of action will only serve to delay the eventual dismissal of this matter. The AOCDS legal team, of Morrison & Foerster and Manatt-Phelps, is confident and has advised them that the facts simply do not support this argument.)

Wayne Quint, President of AOCDS said, “The Deputy Sheriffs, their families, and especially those deputies who no longer work, are pleased -- but not surprised -- by the Court's decision to throw out the County's case.”  “The County spent hundreds of thousands of dollars getting opinions from three different outside law firms that all predicted this outcome prior to filing, the opinions of a former and current California State Attorney General do not support, and now a qualified, competent and highly respected Superior Court Judge has ruled against. We only hope they will not lay off any more county probation officers who work with and protect our children or eliminate welfare fraud investigators who save the County tens of millions of dollars annually in thwarted welfare fraud scams in order to finance an appeal. Or, the Board of Supervisors can choose to do the right thing and consider the matter resolved.”

Continued Quint, “To quote County Supervisor John Moorlach -- who has been driving this Don Quixote type effort -- in a speech he made in 2000 to the Orange County Citizens Against Lawsuit Abuse, ‘County agencies should become more accountable to taxpayers for the lawsuits they file.  …every time you hire an attorney, the only person who wins is the attorney.’  Well – the county’s attorneys have made out like bandits in this case – almost $1.3 million so far, at a time the county is suffering a fiscal crisis.   It is unfortunate. It was succinctly said in the beginning and rings more clear today, the County Board of Supervisors are: WRONG ON THE FACTS. WRONG ON THE LAW!

What’s next? The County can chose to pursue one of three basic courses of action;

1. File an amended complaint as to the Debt Limitation cause of action, in which the amended complaint will be heard before Judge Bendix,

2. The County can chose to appeal the Court’s ruling to the Court of Appeal, or

3. The County can do the prudent thing and accept the Courts decision, and consider the matter resolved. 

After months of the County stalling to avoid the inevitable, the matter has been soundly defeated at the trial court level based on the Facts and the Law, (the suit didn’t even merit a trial). The Board of Supervisors should now feel confident in knowing they have met their constitutional oversight responsibilities. The Board of Supervisors is now free to focus their full attention and resources to the more pressing economic matters at hand.

February 24, 2009 The legal team for AOCDS has advised us that Judge Bendix is being very thorough in her review of their Motion for Judgment on the Pleadings. Throwing this out before trial would mean that the Judge does not believe the County has a case, even if one were to believe everything the County alleged in its complaint. Initially, AOCDS believed Judge Bendix would issue her final ruling on February 23. However, she informed the lawyers for all the parties that she would be taking more time than she originally thought would be necessary to complete her legal opinion. The legal team for AOCDS is still optimistic and heartened that the judge is being so careful in her analysis. They believe the more thorough her analysis, the less likely the County will be to waste taxpayers money on appeal.

The APA will continue to keep our members updated on any additional information pertaining to the litigation proceedings.  

February 9, 2009 The APA has learned that a new “Pension Initiative” has begun circulation in the State of California . This initiative is a proposed Constitutional Amendment entitled “RENEGOTIATION OF PUBLIC EMPLOYEE PENSION CONTRACTS. INITIATIVE CONSTITUTIONAL AMENDMENT.  

This initiative, if successfully passed, would amend the Constitution of the State of California . It would allow state and local governments to reduce pension benefits for current retirees and allow reductions in benefits that have been contractually agreed to for active employees. The initiative’s intent appears to allow the provider of the benefit (the state, a city or county) to reduce these benefits without bargaining and provides for no other benefit to replace the benefit that is reduced. 

The initiative’s summary date, according to the Secretary of State’s office, was January 21, 2009. That was the first day the proponent could circulate the initiative for signatures. The minimum number of signatures required is 694,354 and have to be obtained by June 22, 2009. 

The APA is monitoring this initiative and the reports of the actions being taken regarding the initiative throughout the state. We are in contact with our political and legislative advisors who are also monitoring this situation. We are conversing with many of our affiliated organizations such as the California Coalition of Law Enforcement Organizations (CCLEA) and the Southern California Alliance of Law Enforcement (SCALE) and Peace Officer Research Association of California (PORAC) to determine a strategy to challenge this initiative. 

We will keep you advised of further developments in this regard. If you have any questions regarding the initiative please check the Secretary of State’s website at www.sos.ca.gov and go to the section entitled “News Releases and Advisories” or call the APA office.

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Budget Problem

February 23, 2009 On Thursday, February 19th, 2009, The Anaheim Police Association had an initial informal meeting with the City over their structural budget deficit.  In attendance for the APA were President Greg Palmer , Vice-President Kerry Condon and Attorney Robert Wexler.  In attendance for the City were Deputy Human Resources Director Chris Chase, City Finance Manager Bill Sweeney, Budget Manager Blaze Brueney and Deputy Chief Craig Hunter.  City Finance Manager Bill Sweeney updated us on the financial status of all three major revenue streams used for the city.  His information stated that these revenues were down or at best flat over the last two years.  The three revenue streams are the Transit Occupancy Tax, Property Tax and Sales Tax.

Suffice to say this was just a preliminary discussion with the City over their financial state, and the cost of labor which comprises the lion’s share of the general fund.  We entered into these discussions with the City in a cooperative manner.  The city knows that any agreements require the ratification of our membership.

One of the main things we discussed was an actual dollar amount the City wants from the police department.  We wanted this amount so that we could identify cost cutting approaches to our budget while minimally impacting our membership.   The City also was made aware of the fact that we possessed an audit of their most recent CAFAR which identifies amounts the City has in reserves.   We had a good discussion on reserve accounts also.  The bottom line is that we will be holding more meetings and the City will begin to identify a bottom line amount they need in order to meet their budget constraints.  They also elected to do a side by side comparison of our audit of the city finances and the city’s own numbers which they claim are more recent.  They will present this to the APA in upcoming weeks

In essence, we are now in negotiations with the city over our next contract.  When this happens things often change rapidly.  Ideas are put on the table and also taken away during these meetings.  It is not productive to bring the membership the information discussed at every contract discussion as they are not binding and often change from meeting to meeting.  We have a lot of work ahead of us.  The APA Negotiating Team needs to look at the cities finance information given by the city and our own audit to determine the amount of financial cuts that are reasonable, determine what cuts need to be made by the city, police department management, and AMEA prior to making any cuts affecting the APA Membership.   As we continue to work side by side with our legal team, we will strive to bring forward the best contract for our membership.  There is no quick and easy solution to our negotiations and financial responsibility with the city of Anaheim , and we will not shortcut the process to appease anyone.