Hollywood wants to negotiate benefits package with unions

Hollywood - As officials grapple with closing a $14 million gap in next year's budget, and negotiate contracts with all of the city's unions, one commissioner says now is the time to take a look at employee benefits.

"When you look at the salaries, I feel they are more than justified," said Commissioner Beam Furr, who has been decrying the high compensation costs for years. "But when you start looking at other things such as pension contributions, that's the real kicker."

On par with most large cities, Hollywood spends about 77 percent of its budget on salaries and benefits for its 1,500 employees.

Furr says the multimillion-dollar cost of such benefits is straining city finances and they need to be considered when setting next year's budget and negotiating with the unions.

Russ Chard, the Fire-Rescue Department's union representative, said Thursday he agrees the city's pension contributions "are a problem" and are on the table for discussion. But he maintains the high costs are a result of many factors such as poor investments and poor market performance.

"You can't look at this list as a snapshot and not factor everything that has happened over the years," he said.

To rein in expenses, Furr has suggested raising the number of years before a person can retire, and lowering pensions once an employee begins to receive Social Security benefits.

In a May 4 memo to commissioners, City Manager Cameron Benson indicated pension, health benefits and wages need to be revisited with the unions.

Commission members are routinely briefed about the ongoing, closed-door negotiations with the unions, and are not allowed to discuss the details.

A number of commission members, including Mayor Peter Bober, have publicly bemoaned the costs, but it remains unclear how many of Furr's colleagues are actually backing his ideas.

A list of the highest-paid employees, supplied at the request of the South Florida Sun-Sentinel, shows at least 300 received $120,000 or more in compensation packages during the last fiscal year. The sums included contributions to pensions, overtime pay, unused sick and vacation pay and allowances for cars, phones and even shoes.

Most of the top 300 are with the Police or Fire-Rescue departments, and include patrol officers as well as high-ranking officers.

The city paid the majority on the list a combined $12.3 million toward their pensions and about $1.5 million in overtime payments.

The amount the city is obligated to contribute to the pension funds changes every year based on complex calculations that factor in market changes and average life expectancy, as well as the amount employees collect for each year of service.

Based on those calculations, the city last year put about $87,000 into a pension fund belonging to Fire Capt. John Bridenburg, a 22-year veteran, the top pension-getter on the list. That is on top of his $116,265 salary.

Police Officer Richard Eadie received the most overtime money (about $37,000) on the list, bringing his total compensation to $142,000.

Eadie retired earlier this year after 26 years on the force.

Union leaders say they need to offer the benefits to retain quality workers.

"If the compensations are so wonderful, then why do we have a hard time getting people to apply?" asked police union representative Lt. Jeff Marano. "People just don't want to do this job of working nights and weekends and putting up with criminals all day."

Benson had the city's highest salary at about $201,115. With benefits, his compensation came to about $298,000 last year.

But Public Works Director Gregory Turek eclipsed him. Turek received $303,646 in salary, pension costs and other benefits.

Turek, whose annual salary is $157,000, catapulted to the top once he entered the city's Deferred Retirement Option Program, or DROP, as it is commonly known. It allows employees to work past retirement age, with their monthly retirement benefit deposited into an account they receive as a lump sum upon actually retiring.

When he entered DROP last year, Turek was paid about $74,000 for all his unused sick time, and an additional $19,000 for his unused vacation time. The city also contributed $42,000 toward his pension.

"Twenty-two years of never using a single sick day has to amount to something," Turek said.

Not making the list: Mayor Peter Bober or any of the commissioners. The mayor's job pays $38,000 a year, while commissioners earn $28,000.

Ihosvani Rodriguez can be reached at ijrodriguez@sun-sentinel.com or 954-385-7908.

http://www.sun-sentinel.com/news/local/broward/sfl-flbsalaries0707sbjul07,0,3665747.story

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Hollywood wants to negotiate benefits package with unions