flywheel text

Program for Friday January 23, 2004

Dana Rambo speaks on Prop 56

Proposition 56, which is on the March ballot, proposes to eliminate the 2/3 budget vote requirement of the Calif. Legislature. This will make it easier to raise taxes on Californians our speaker says.

Door Duty: Donna Bell and Donna Uriyu

* * * * * * * * *

Program for Friday January 30, 2004

Don Hardison speaks on Easter Hill

Don Hardison the architect of the Easter Hill public housing project will explain its groundbreaking design.

Door Duty: Joanne Blum and Joseph W. Thomas

* * * * * * * * *
Program of January 9, 2004

Tom Butt, Richmond City Council Member

Today's program about "Main Street Richmond" was cancelled as the program itself is being postponed indefinitely under the current public sector budget crisis. Tom Butt, Richmond City Council member graciously agreed to speak extemporaneously about the city's budget problems and the premature report of the city's bankruptcy in "The West County Times".

The Editor notes here that "The Flywheel" is not the journal of record and facts and figures should be checked with Tom as they have not been checked by the writer.

Tom noted that the budget shortfall has been know by the City Council from inception as the 2003 budget was approved with a $6,000,000 short fall as recommended by the City Manager. It was understood at the time of approval that one of two things had to happen during the year in order to balance the budget. Either the city employee unions would have to give back some combination of pension and salary benefits previously negotiated, or, there would be city staff layoffs.

Butt noted his own expectation that public safety employees, who had been granted very lucrative retirement benefits based on the late '90s unprecedented growth in public employee retirement funds, would reconsider those benefits. Reconsideration seems essential because the stock market run up of fund values that created the source of the lucrative benefit awards evaporated in the 2000-'01 market bust. In 2003 the continuing pension benefits are a direct drain on the city's general fund taking operating funds away from all other programs and salaries. Tom sighted two "unfortunatelys"; Unfortunately the public employees/firefighters have not reconsidered their benefits, and; Unfortunately he voted for the red ink budget, which he regrets and won't do again.

The initial budget shortfall has worsened as the State has withdrawn it Vehicle Licensing Fee (VLF) from local coffers as part of the Govenator's election promise. So far, the city has laid of 50 employees and has left 50 unfilled positions vacant. Eighteen of the layoffs were firefighters, who as group represent the primary reason for the non-VLF revenue shortfall. Butt also felt that the firefighters along with some particularly untimely comments from city staff, provided the primary energy for the recent "bankruptcy" article in the "West County Times".

Butt felt that the firefighter characterization as the city being "unsafe" was disingenuous and politically motivated, the firefighters wanting to maintain all their union members as well as all their negotiated benefits when the city simply did not have the money to cover all expenses. Tom estimated that $10,000,000 of the current deficit is a result of the "50/3.00%" retirement benefit negotiated with the fire and police employees. He also said that because of the formula the city adopted for funding the benefit, it will continue to generate future similar deficits unless the funding formula is changed, the benefit is reduced, other city expense are cut or somebody comes up with a whole lot of new revenue.

The "bankruptcy" comment, attributed to the City Council in the newspaper actually came from city staff and was a major overstatement given the city's unfortunate but real option to continue layoffs of its 1,000 +/- employees. Tom, who should know, noted that the city is quite different from the school district when it comes to service provision and consequential bankruptcy. The city has few, if any legally mandated services and can continue to cut staff until the budget is balanced or revenue returns from the state or other sources. Butt thought the consequences of the city actually going bankrupt would be far worse than staff layoffs which are reversible. Speaking specifically about the city's debt, he noted that all debt service payments are more than current as the city has prepaid all its bond obligations through the end of the fiscal year (June 30) in order to reduce the concern of it bond holders. He said a major review of the financial situation is underway by continuing city staff and expected to be delivered to the City Council February 17.

Port of Richmond Executive Director Jim Matzorkis gave a short presentation of the current activities at the Port, which he characterized generally as alive and well. He noted that the Point Potrero facility has been leased to an automobile import company that will shortly begin to delivery Hyundais through the Port. The Port is working closely with the National Park Service to develop the Rosie the Riveter National Historic Park while maintaining the ongoing "working port" activities. The Port is also working with ABAG to develop the Bay Trail which will provide foot and bicycle access to the Rosie the Riveter facilities as well as pedestrian access through the port area which is traditionally restricted to the public for a lot of reasons. Jim noted this is a real challenge given traditional stevedoring operations but it is getting real attention from the port and is a real opportunity for Richmond to do something unique.

`

Last Week
Prez Stoney began the meeting with the Pledge of Alliance, a silent prayer for peace and freedom, followed by a thought for the day from Theodore Roosevelt.

Visiting Rotarians
None

Rotarians With Guests
Prez Stoney introduced Joe Kelman, who is really a member, welcome back Joe!
Jim Bates introduced Jim Matzorkis, Executive Director of the Port of Richmond.

Sunshine Report
David K. reported that Joe Bagley's Sister-in-law passed away this week and that it has been tough on both Joe and Rita.

Recognitions

Announcements
Dan E. reported on thank yous received from the staff at Peres Elementary School including Nia Morrell and Maxine Harris. The club gave each teacher and several of the aids $100 each to be used at the school and, "It makes a big difference." Dan noted this is the fourth year the club has supported Peres with program enrichment and cash.

Happy/Sad$$$
Tom Butt had $1 Happy Dollar for the $10,000 donation from Mrs. (Vice President) Cheney for the contribution to the Rosie the Riveter Foundation. Dan E. had $20 Happy Dollars for his SFO visit with his daughter who returned safely from a trip to Chile. George Egan had Sad Dollars for the all day tax class he has to take Saturday.Jim Cannon had Happy Dollars for his new grand daughter. Joe Kelman had Sad Dollars because he can't find his badge. Father Nick had Happy/Sad Dollars and a story to tell about Father Chris who has had serious medical problems with his foot, part of which had to be amputated. Father Chris is recovering from the surgery, is in good spirits and is looking forward to receiving a prosthetic shoe that will allow him to stand and walk with a cane. Judy K. had $5 Happy Dollars as she looks forward to another year using her current wardrobe (which is believed to be a reference to her successful diet program).

Raffle
There was almost $400 in the kitty. Prez Stoney asked Jim Matsorcus to pick a name, Mark Howe (again) as the rafflee. Mark picked a white ball. Prez. Stoney rang the bell and the meeting was adjourned.

& Etc.
Werner Jokes (from the politically incorrect era)

So the Cardinal hurries into the Pope's chambers at the Vatican and says, "Your Holiness, I've got very important good news and bad news, which do you want first?"
HH"Well, tell me the good news."
C"Our Savior has returned."
HH"Good news?, That's fabulous news! How could there possibly be any bad news?"
C"He's calling collect from Salt Lake City."

Why are Jewish Princesses such good house keepers?
Because they always keep the house after the divorce.

So Dr. Goldberg goes to the San Wherever Country Club and applies for membership as he is an avid golfer. His application is quickly reviewed by the club's Executive Director who says, "I'm sorry Dr. Goldberg but you can't join, this club is restricted."
Dr. G. replies, "Really, I'm only half Jewish. Is it OK if I play the back nine?"

Your Acting Editor,
Jim Young

Important Dates
01/25/04 Annual Reno Train Trip
02/20/04 Help celebrate Rotary's 99th B'day
06/04/04 D-Day meeting on The Red Oak Victory

Upcoming Speakers
02/06/04 Dr. Grant Dorsey, UCSF on Malaria
02/13/04 Valentines Day Program - Love Songs

Door Duty Reminder
02/06/04 Erle Brown and Stanley Teaderman
02/13/04 Tom Butt and Daniel Tanita
02/20/04 Herbert Cole
02/27/04 Henry Covell and Loren Straughn

Where to Make Up
San Rafael   Monday       12:15 Seafood Peddler
Albany        Tuesday       12:30 Mira Vista G&CC
El Sobrante Tuesday       12:15 Joe's of El Sobrante
Berkeley     Wednesday   12:15 His Lordships
Hercules     Wednesday    7:15 am Hercules Senior Center
San Pablo   Wednesday 12:15 San Pablo Casino
El Cerrito    Thursday       12:15 Mira Vista G&CC
Pinole         Thursday      12:30 Outback Steak House
Vallejo        Thursday      12:15 World Holiday Inn