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Opinion: Finding the truth to myths circulating in S. Tahoe


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Publisher’s note: The following letter was submitted by South Lake Tahoe resident Mary Ann Klein to the City Council prior to the Oct. 18 budget hearing. Lake Tahoe News is publishing it with her permission.

To all those sharing my concern about the proposed layoffs and privatization initiatives by the South Lake Tahoe City Council:

I met in person with our city manager, Tony O’Rourke and our mayor pro tem, Claire Fortier. I have been corresponding daily with Tony since Oct. 10. Claire has been on vacation for 10 days and was just now responding to my letters. I asked my husband to accompany me as well. We attempted to clarify several issues for over two hours. I do not have political acumen; I was nervous and had lost a night of sleep. Despite this, Tony and Claire were attentive. They put me at ease and heard me out completely. The discussion took a few bunny trails, but overall the discussion was very focused.

1) There were questions about Tony O’Rourke’s background, motives and his hiring process. For the record:

• Tony O’Rourke has absolutely no affiliation with any type of mega-enterprise such as “CNL Financial Group”, CNL Lifestyle properties, or ski resort conglomerates. He had no clue what I was talking about.

• Tony has shown acceptable tenure with all his city manager jobs, including 14 years in Beaver Creek, seven in Coral Springs, five in Richardson, Texas, three in Dallas and one in Tallahassee. Note the average tenure for city mangers is four years nationally.

• Tony was selected by all nine members of the Beaver Creek Resort Co. He was selected by all four [South Lake Tahoe] council members, with Bill Crawford choosing to abstain from the entire process.

• He did have a few litigation issues in his previous jobs that were summarily dismissed.

I wasted a lot of time checking out an unsigned link which implied Tony had some sort of criminal intent, researching the actual facts and then wasting more time questioning Tony, to confirm he has no agenda but to do what the City Council hired him to do. This “link” also contained a very twisted analysis of the city budget reserves. Both Tony and Claire explained the erroneous figures. I suspect a certain person authored this slanderous document; who no longer lives in this state.

2) For the record, the city is not considering a $4.25 million property purchase. Claire explained there has been a plan in place for a long time to improve public access to the lake on the California side from the casino corridor westward. The California Tahoe Conservancy was approached about an existing beachfront Stateline Avenue property on the California side, but the Conservancy had no money. The Conservancy has in the past bought property and then given it to the city for the environmental and capital improvement projects. There is no funding for operational expenses with this venue. It was a no go because there were no dollars. In general, the city owns property, but did not try to buy this property with city funds.

3) A very legitimate suggestion was submitted to end future retiree benefits, offer early retirement incentives, limit frivolous spending (Christmas trees, signage improvements, etc.), reduce training and conference expenses, consider salary cuts and wage adjustments to preserve positions scheduled to be terminated, and have a regard for old-fashioned, committed, public service. This writer asked a very profound question: Where does the entitlement “give me more” end? Claire discussed what she calls, “The corruption of the attitude of service” in this country. There are cities which owe employee entitlements which exceed their budgets; no manner of drastic wage adjustments can prevent them from going bankrupt since the entire budget is owed to retirees. It gave me pause.

Tony O’Rourke updated what is already being done by the city: “First, we are requesting our employees to contribute to their pension and health care plans. These contributions represent $1.5 million in savings to the city. To date all senior managers have committed to do this, as well as all fire personnel. The other city employees covered by collective bargaining units are also on the verge of making this commitment. Second, lifetime health care benefits for retirees cost the city $2 million a year. The city has already eliminated this benefit for anyone hired after 2008. Third, the city has over the last several years offered early retiree incentives. The key to them is to vacate the retiree position to create long-term savings. We will continue to offer this program. Fourth, expenditures like a decorated holiday tree are easy to criticize unless you forget we are a tourist-based destination and economy and guests want to see these kinds of entry statements and amenities. Believe me, $7,000 is not the reason for our $5.2 million projected deficit. Fifth, we have significantly reduced training and conference expenses. For example, I have not gone anywhere over the past year. Nonetheless, some training is vital to enhance staff or City Council skills and knowledge. Can you image teachers never upgrading their abilities? Finally, the funds earmarked for signage improvements ranks with infrastructure improvements has the number public priority based on the December 2010 Citizens Survey. People in this community are tired of crumbling roads, no sidewalks, insufficient bikeways, no streetlights and a blighted aesthetic appearance. Hence, the City Council’s $5 million commitment to roads and capital improvements this fiscal year and funds to assist businesses clean up of our cluttered aesthetic environment. These are the priorities of the community and the city is committed to address them. Thank you for your ideas and interest in the community.”

4) Suggestions about increasing motel/hotel TOT are being implemented. A 2 percent increase to the city, as opposed to the visitors’ bureau, is planned for 2013.

5) The redevelopment litigation, when settled “would not have any affect on budget balancing” (Tony O’Rourke) It is my understanding if the litigation went in the city’s favor, the monies would be applied to the city’s projected $5.2 million deficit.

6) I, Mary Ann Klein, implored the city manager and the mayor pro tem to once more, give careful consideration to the proposed layoffs. The concept of a “community family” being torn asunder was received thoughtfully by Claire. It is the graceful interface our present staff provides between a warm family community (where many have no other family) and social destitution. Apparently of the 21 jobs being considered for termination, four have been saved. Which jobs were not discussed.

The discussion at this point felt painful for everybody at the table. The analogy given was something like: If there is a sinking ship with 500 people and only enough life boats for 40, who is to say which go and which do not? The point is, the ship is sinking. There are many hard questions and no easy answers.

6) Several people were skeptical about the public “survey” on which the council is relying to set priorities. The methodology involved a random sampling, statistically based. Apparently 1,200 people were queried in this random sample. The survey can be answered online on the South Lake Tahoe website.

7) A question was asked by several writers about why the original attempt to privatize the golf course failed? Claire Fortier could not remember the details from 10 plus years ago, but it involved Knox Johnson being concerned that the community was not being served appropriately, or something like that. The ice rink is faring well, financially, thus far. It is reasonable for the public to be skeptical about privatization when we have only 60 days so far by which to judge the asset of the ice rink. Other cities have employed very creative ideas which involve variations on privatization. I think Claire referenced Half Moon Bay, but I can’t remember how they problem solved.

Claire Fortier, our mayor pro tem, encouraged me to read an article in the current issue of Vanity Fair entitled Will California Sink the US? I have only had a chance to scan it, but already I feel I have a broader perspective of what we must face in our city. She commended our “state of the art high school,” despite the negative economic vortex, and other amazing community initiatives. Tony crunched the numbers with experience and is steadfast about what has to be done else we go broke, but I feel Claire lent compassion for the individual suffering and faltering morale down here at the grass roots.

Respectfully submitted and with gratitude for our dedicated city employees.

Thanks and God bless you,

Mary Ann Klein, South Lake Tahoe

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Comments

Comments (17)
  1. Carolyn Meiers says - Posted: October 19, 2011

    Very enlightening commentary and information.

    Thank you.
    Carolyn Meiers

  2. 30yrlocal says - Posted: October 19, 2011

    I applaud your efforts to find out the truth! It is always so easy for people to jump on a bandwagon and go by rumor (or start it).

    Cuts are tough, whether its at your grocery store, your casino or your city. When a business or non-profit agency (such as the city) provides service the majority of their budget is for salaries. The only thing they can cut that makes a budget work is money for wages. Because people are at the end of the cut it hurts, and I’m sorry for those that are facing termination. The resulting passion will cause people to react and lash out so I’m sure opinions and comments are going to continue for awhile.

    Thank you Mrs. Klein for researching and investigating. I would hope everyone else would do the same.

  3. sam venhuizen says - Posted: October 19, 2011

    You keep forgetting these cuts are coming due to past thievery by council members. Putting money where it did not belong and misusing it for their own agendas. These people could care less about anyone in that community. If they did they would of got rid of the injustice done in their justice system when they force people into plea bargains due to threats. I will never go away until they do what is right and clear my name.

  4. Mike Bradford says - Posted: October 19, 2011

    Thank you, Mrs. Klien. Your understanding is enlightening.

  5. Dan Murray says - Posted: October 19, 2011

    In reference to Half Moon Bay: they recently outsourced their police department to the San Mateo County Sheriff’s office. Additionally, the administration of the Parks and Recreation Dept. is slated to be outsourced ( might have already been done). Some talk of outsourcing the administration of Fire Services is being bandied about as well.

    This has not solved HMB’s financial woes as consideration is now being given to the installation of parking meters along Main Street.

    Half Moon Bay’s woes are not so much due to employee costs ( entitlements?), but due to a $30 million judgment against the City. These many millions were awarded to a developer who was denied the right to build a fair number of houses (56, I believe) because the City had declared his property a “wetlands.” He was able to prove in court that the “wetlands” was caused by the City’s diversion of storm waters onto his property. This was shortly after he purchased the property from another developer who had been given tentative approval to build a similar number of houses, but could not finance the construction.

  6. dryclean says - Posted: October 19, 2011

    Thank you Ms. Klein, its always nice to hear an objective take on the state of our city. Appreciate your efforts and taking the time.

  7. Beverly Sass says - Posted: October 19, 2011

    Thank you. This was very enlightening. After reading your remarks, I think we can all feel good that compassionate and intelligent individuals are present in our city government. Being saddled with obligations from previous city leadership does make their jobs trying to say the least.

  8. Carl Ribaudo says - Posted: October 19, 2011

    The article in Vanity Fair is excellent and provides an overview of landscape we are now in. California is in scary deep trouble. The simple fact is over the past decade’s most local, county, state and federal levels of government let pay, benefits and services grow to unsustainable levels and rates of growth creating a bubble. As with other bubbles including technology, the housing market and Wall Street there is a point where the bottom falls out. This is what has now happened in the public sector. Tax revenues have fallen due to the recession and bad public policy and we now find ourselves in a very unsustainable situation. Typically the private sector makes its cuts going into the recession and the public sector often waits too long oftentimes compounding the challenge. Simply asking for more tax dollars is probably not going to be successful. More creative thinking is necessary. Like the article in Vanity Fair illustrates smart communities and administrators will ask how do we do more with less. One thing is sure all involved need to deal with the change that is here and will continue, it’s doubtful it will ever get back to the way it was. Thanks to Ms. Klein for efforts to get some answers.

  9. Ike Marr says - Posted: October 19, 2011

    Thank you for your time and effort, Ms. Klein.

  10. Citizen Kane says - Posted: October 19, 2011

    Was this article serious? It’s not even grammatically correct or understandable, with “opposed to” being written when it’s clear the writer must mean “opposed by”. There are a number of other internal inconsistences:
    “Apparently 1,200 people were queried in this random sample. The survey can be answered online on the South Lake Tahoe website.”
    This implies you can go to the city website and take the survey? Well then it clearly is not random!
    The are many others comments that are lengthy but do not reflect using logic to make conclusions:
    “Tony O’Rourke has absolutely no affiliation with any type of mega-enterprise such as “CNL Financial Group”, CNL Lifestyle properties, or ski resort conglomerates. He had no clue what I was talking about.”
    Now I dont know if he does or doesnt, but because he replies: “I dont know what you are talking about” that makes it so?
    Another example –
    “The redevelopment litigation, when settled “would not have any affect on budget balancing” (Tony O’Rourke) It is my understanding if the litigation went in the city’s favor, the monies would be applied to the city’s projected $5.2 million deficit.”
    Either the writer meant “It was my understanding” or this doesnt make any sense?
    Come on folks – judging by how many folks quickly responsed what a great letter this was, I guess as a city we are getting what we deserve!
    My last comment is going to be about the fiscal plight of the city – when are we going to stop making believe that government budgets are like household budgets. This is total BS. The role of government is to create and/or maintain the infrastructure that allows our society to flourish according to certain constiutional principles, which are generally there to balance private gain against public good. The analogy to household budgets sounds great, except households are not responsible for infrastructure used by unrelated non-family members on which a modern society depends and individual families have no way to provide for themselves (like roads, sewage treatment, and parks). Such expenditures are called investment, and the debate should be about what is the return and does the return benefit the community as a whole, or only selected interests. Trying to balance government budgets on an annual or other short term basis is ludicrous. It’s about can you make your structural and employment investments pay off in the long run? This is where the city administration has failed. And the hole in the ground certainly isnt there because of any classified city employee.
    On the flip side, when we have a Parks and Rec department that returns 75% of every dollor spent in revenue generated, one has to question whether eliminating four Parks and Recreation positions was the way to may it even more cost effective.
    So the long point here is no one has taken the city administration and its elected opfficials to task for years of fiscal mis-management, and now as a “community” and all that implies, we are going to pay a price that solves some issues in the short term, but is going to hurt us down the road.

  11. David says - Posted: October 19, 2011

    I am no expert on the city politics but I have to agree w/ Citizen Kane. The introduction to the letter talks of “my concern for the proposed layoffs” yet the actual letter praises the city council left and right for everything they’re doing and “I asked them this and they said it’s not true” as irrefutable proof of altruistic intentions. This is simply a cheerleading letter for the city council. Oh, and privatizing doesn’t work, because corporations care about maximum profit, not the community or quality of service.

  12. kelley says - Posted: October 19, 2011

    Have I missed it or has there been absolutly no mention about the costs to run the airport that we have here in SLT? I believe that the city pays a hefty sum of tax dollars to subsidize the users of that facility and that the users pay next to nothing, if nothing at all, for the use of this local tax payer funded facility. So why hasnt this come up in the discussions about how to save dollars or have the users fund their use of the airpost? I personally have no use for the facility except for having it there for CalStar and firefighting efforts.
    Maybe thats where we should install parking meters!!!

  13. Skibum says - Posted: October 19, 2011

    You missed it. Last year I gave them a budget for full time councilmembers as well as na full time Mayor and took the money from the Airport. They still had $275K to work with and if they charged themselves actually have a surplus. As usual it went nowhere with the council.

  14. tahoeadvocate says - Posted: October 19, 2011

    In paragraph 2) the comment was made ” Claire explained there has been a plan in place for a long time to improve public access to the lake on the California side from the casino corridor westward.” Why would the city want to take away privately owned property with is open to the public? This beach already has public access and it isn’t costing the city one dollar to maintain. Even if money was available it shouldn’t be spent to take away private property which is being used by the public at no cost to the city.

  15. Parker says - Posted: October 20, 2011

    They are planning to increase the TOT? If that’s true, the City Council still doesn’t get it and we’re going to be mired in economic turmoil for a long time to come!!

  16. Alex Campbell says - Posted: October 21, 2011

    Still nothing about the Confidential Employees.

    Could they be Coles wife, Davis Wife, Uptons wife?????

  17. Careaboutthecommunity says - Posted: October 21, 2011

    I commend this citizen for taking the time to get some questions answered, and the additional time to condense it and present it to us.

    If we all got involved this much, we would have a much clearer picture of what our local government was doing, we would have much more influence on the direction our city takes, and we could stop shenanigans (when they do arise) in their tracks, instead of dealing with them after the fact.