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Tuesday, 21 November 2006 23:35

Sutter Creek City Council Discusses The Knight’s Foundry And Hears Concerns Over Employee Benefits

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At this week’s Sutter Creek City Council meeting the discussion turned to the city’s budget as City Treasurer Cathy Castillo reported on the city’s fiscal health.

slide23Citing budgetary constraints, Castillo stated that the city needed to be cautious in its spending habits. This prompted one citizen to ask about the city’s overhead for employee salaries and benefits- a major draw on the city’s general fund. Currently, through the city’s negotiated contract with its employees, the city provides non police department employees, as part of their benefit package, a contribution into the Public Employees' Retirement System in the amount of 15 percent of their salary.

This goes toward the employees’ retirement through the public employee system. Concerns were expressed that the city should only be paying half of this amount or 7.5 percent and that the employee should be making up the other half of the 15 percent. It was pointed out that this 15 percent amount is in addition to Social Security amounts that are paid by the employee and the city in equal amounts of 7.5 percent. According to City Manager Rob Duke the City of Sutter Creek establishes their pay scale and benefit packages by using a comparative study that surveys surrounding municipalities. The survey looks at job titles and descriptions and the corresponding pay and benefits for each position as well. The City last conducted this survey in 2005.

slide24The comparative study is then used in negotiations with employee bargaining groups. In a countywide comparison conducted by TSPN, Sutter Creek’s PERS benefit is comparable with other municipalities in the county. The City of Jackson pays 16 percent for their non law enforcement employees, the City of Ione pays 14.5 percent, and Amador City pays 16.62 percent. At one time, according to Amador County Officials, the county shared this percentage payment in a division with an employee share. The division was 9.62 percent employee and 7 percent paid by the county. This provision, however, was renegotiated through the employees’ union contract some years ago and currently the county pays the entire 16.62 percent.

slide26The City of Plymouth currently is not involved in the PERS system but outgoing City Manager Gene Albaugh has ordered an actuary study on the issue to look at providing the employees of the City of Plymouth with this retirement option. Also the City Council discussed the acquisition of the Knight Foundry. The President of the Knight Foundry, Andy Fahrenwald, asked the Sutter Creek City Council to approve their suggested appraiser and to reaffirm the non-binding letter of intent to buy the Foundry which was initiated several months ago. The council at first had doubts about the appraiser because the individual "had not appraised anything in the state of California," but Fahrenwald stated that appraisers for such a unique property, such as the Knight Foundry, are few and far between. Fahrenwald also reassured the council that the appraiser is well experienced throughout the east coast. The city then reaffirmed the letter of intent, which has the Knight Foundry's sales tag at $1.6 Million.

Tracy Towner Yep also approached the council with the Amador County Recreation Agency's newly printed regional recreational plan. Towner Yep stated that, "the plan looks at the county's cities as little neighborhoods." The plan shows a total of over $44,000,000 to be provided for Sutter Creek parks and recreation improvements over the long term. Also, Towner Yep had two proposals for the council; one, to hold a public hearing to discuss adding an extra $4,300 fee, per dwelling unit, to the permit prices of incoming homes. This fee would go to parks and recreation. Currently, the City of Sutter Creek does not require any fee for recreation, although the City of Jackson has a $1,200 per dwelling unit fee, and Ione has a $3,200 per dwelling fee.  The second of Towner Yep's requests was that the city adopt the new regional recreational plan as the recreational element of their new general plan. Mayor Bill Hepworth said that they would have those items on the council's agenda in January.

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