What's So Funny About Peace, Love and Memos of Understanding?

WHAT’S SO FUNNY ABOUT PEACE, LOVE AND MEMOS OF UNDERSTANDING?

In their shortest soiree since Sept. 20 of last year—hey, that’s a big deal for those of us who have to cover these things—the Laguna Beach City Council on Tuesday approved what’s officially termed a “memo of understanding.”

Sounds … ummm, understandable? Actually, this particular memo is an agreement between the city and the Laguna Beach Police Employees' Association (LBPEA), and its passage by a 5-0 vote means that new cops and other police department employees have essentially agreed to receive fewer retirement benefits, while current police staffers will start paying more out of their wallets towards their retirement.

Well, that doesn’t sound very nice now, does it? Blame the state’s economy, which has been spinning in the crapper for the past few years. This has impacted—or, to use the layman’s term, screwed—the California Public Employees Retirement System, which in turn has forced myriad public agencies to pony up more cash to cover employee pensions.

You want numbers? We got ‘em. Under the new plan, current Laguna Beach Police employees will now have to cough up two percent of their salary toward retirement costs—but they’ll get three percent of their highest salary for every year worked back when they retire, which they can now do at 50.

New employees? They’ll pay nine percent toward retirement, and get back three percent of their highest salary for every year worked if they retire at 55.

When all is said and done, the city will save $65,000 by the end of the second year of the contract, and then $130,000 each year after that.

"It's very much appreciated by the city," said a grateful City Manager John Pietig.

If you think you’ve heard a variation on this theme before, you have. Laguna Beach firefighters also negotiated a new contract with the city last year, one that’s predicted to save the city around $400,000.

"I thank the employees for their cooperation," chimed Councilmember Elizabeth Pearson.

Seems like this deal could’ve easily devolved into anger, resentment, and general pissed-offness among Laguna Beach’s finest. And, while there were a few months of backdoor negotiations, Larry Bammer, who heads the LBPEA, tells Laguna Beach Patch that it all worked out in the end.

“A reduction in take-home pay hurts when everybody is having financial struggles,” says Bammer. “I’m hopeful that in the future—the next contract comes up in 2014—we won’t be hit so hard."

Bammer says that City Manager Pietig has made comments about the city’s bed and sales tax intake improving, so there seems to be a lot of hope in the air for a brighter financial future where budget coffers are concerned.

But getting back to those contract negotiations for a sec: how hard was it to convince LBPEA members to go along with the eventual agreement? It couldn’t have been that simple, right?

"I was fortunate that when I presented the contract to our membership, I was able to get a unanimous vote to sway the offer," Bammer tells us.

Didn’t some members need more persuading than others?

"I would say educating," Bammer says. "Eductaed in what’s going on at the local Orange County level, and statewide."

ADDENDUM!

Bruce "The Gadfly" Hopping received a proclamation from the City Council for, essentially, keeping them honest. Of course, that wasn’t going to keep Bruce from doing what he does, so after the accolades were handed out, he was up there at the podium a few minutes later, proposing that the council start encouraging the city’s art galleries to have more outside displays of visual art. “All we have are storefronts here!” he decried. Good on ya, Bruce!