A Hermosa Beach "meter maid" cost story

Better to outsource than bankrupt the city. 

The Orange County Register/Opinion column/Brian Calle, 8/10/12.  "Hermosa Beach meter maids make nearly $100K?"

"When contemplating the many reasons cities in California and elsewhere are venturing closer to bankruptcy, look no further than the relatively lucrative and often-unjustifiable salaries bestowed on municipal employees – and the lofty pension benefits attached to the high pay.

Picture from the article

.... There are 10 parking enforcement employees for the 1.3-square-mile beach city southwest of downtown Los Angeles, and they pull down some disproportionate compensation, considering their job functions. In fact, the two highest-earning employees for fiscal year 2011-12 are estimated to have made more than $92,000 and $93,000, respectively, according to city documents provided by Patrick “Kit” Bobko, one of five council members and who also serves as mayor pro tem. Those two have supervisory roles. The other eight parking-enforcement employees make from $67,367 to $84,267 in total compensation.

....  Bobko also wrote in a memo that the retirement costs for these 10 employees “from [fiscal year 2011-12] through their retirement age at 62 was nearly $1.6 million, and the medical costs for these employees from this fiscal year to their retirement at age 62 would be $1,353,827.” Excluding salaries, the [retirement] contributions and medical costs for the 10 employees performing parking enforcement will cost, on average, nearly $300,000 apiece.

.... Since Newport made the move, the city “has seen a 24.4 percent increase in parking-meter revenues over last year and salary savings of approximately $500,000 from outsourcing parking meter operations,” according to Tara Finnigan, a spokeswoman for the city."  Read Article.   

Submitted by Jim Alex

Posted by Kathy Meeh