City will help pay employee benefits

Jenny Marder

Employees are thrilled at the City Council’s decision to put $470,000

in city funds toward their benefits, but it could result in as many

as five future layoffs.

At the suggestion of Councilman Gil Coerper, the council voted to

cut four vacant positions that were left empty in anticipation of

another hit to the city’s budget and an annual department audit. The

decision came after four hours of employee pleas that the city help

absorb a drastic hike in health benefits.

Negotiations are scheduled to continue today as a Friday deadline

to sign up for next year’s health plan quickly approaches. Employee

unions have been mired in talks with the city since August.

The unions have been asking the city, which contributes anywhere

from $236 to $814 per employee, to help shoulder the burden of rising

health care costs. With a jump in insurance, city workers who choose

their own physician would have had to pay as much as $343 a month for

a plan that now costs $62.

Now the city will absorb some of the increase.

John Von Holle, president of the Municipal Employees Assn., said

that Monday’s decision made it clear that the council has listened

and wants to help.

“The City Council definitely wants to try and help the employees,”

Von Holle said. “It was just good knowing that they cared enough to

do that. This shows that they’re willing to give partially to us.”

Von Holle said he is not yet sure how much this will cut costs for

individual employees.

Not all council members supported the proposal, however.

Councilwoman Connie Boardman argued that the money provided a cushion

that could have prevented five future layoffs.

“While I know [the money] will really help out with paying for

healthcare benefits, what’s more disruptive to a family -- being laid

off or paying for health care benefits,” Boardman asked.

The state board of equalization’s decision to devalue the AES

power plant will cost the city more than $1 million in property tax

revenue. This, compounded with fears that the state government won’t

backfill the $3 million Huntington Beach is losing in car tax funds

this year, makes layoffs a very real possibility.

“We’re not getting our [vehicle license fee] backfill, which is

essential to the city’s operation, so we simply can’t afford to do

this,” said City Councilman Dave Sullivan, who also opposed the

measure. “We’re going to need that money.”

Sullivan added that high medical costs are simply a reality. Other

workers in California have been paying into their insurance for

years, he said.

Council members who supported the measure said they wanted to do

whatever they could to help employees with the skyrocketing costs.

“Although I agree that we have a lot of tough decisions to make in

the next year, I can’t ask the employees to take what is a pay cut

and not support them,” said Mayor Pro Tem Jill Hardy. “They have

really supported us in taking on extra duties.”

Huntington Beach employees can choose between a PPO or an HMO,

administered by Health Net. They are also advocating for more choices

in healthcare providers.

Von Holle called Monday’s decision a step in the right direction.

“This shows that [the city] is willing to give partially to us,”

Von Holle said.

* JENNY MARDER covers City Hall. She can be reached at (714)

965-7173 or by e-mail at jenny.marder@latimes.com.