Council seals deal with cops, cuts costs; $300M in savings expected

CONTRACT: Health, pension concessions help ease city budget woes.

Looking to bolster Los Angeles' coffers while taking care of its police force, the City Council on Friday approved a labor contract that contains historic concessions on health costs and pensions.

The 11-1 vote, with Councilman Bernard Parks opposed, sealed a contract that will save taxpayers an estimated $300 million over the next three years. And concessions on benefits made by the LAPD force will help give rank-and-file officers their first pay raises since 2008.

"I have been hearing from the credit union that more and more officers are in danger of losing their homes, and we need to make sure they are compensated," said Councilman Dennis Zine, a retired police sergeant.

"They have continued to make us safe as their costs have gone up. Assaults on officers are up and we are looking at 30,000 inmates being released from state prison. We need to make sure we keep officers on the streets."

But Parks, who once served as police chief, said he does not believe the contract will provide the expected savings.

"If you use the Bernard Parks math, it doesn't work out," Parks said. "We are not giving paid overtime, but officers are allowed to bank it and take the time off. That, to me, is not a saving."

Under the contract, officers will not receive a salary increase in the

fiscal year that began Friday. However, they'll get a 1 percent hike on July 1, 2012; 2 percent on Jan. 1, 2013; followed by 1 percent increases on July 1 and Nov. 1, 2013, and a 2 percent increase on March 1, 2014.

The contract also allows officers to contribute more toward their retiree health care costs. Those who decline will have their retirement health care subsidy frozen at the current level.

Los Angeles was among the first of the major U.S. cities to convince workers to pay higher pension and health costs rather than lay off workers, said Council President Eric Garcetti.

He said labor agreements have been one of the big factors helping the city whittle down the structural deficit in its budget.

"By focusing on pension reform, we are saving taxpayers $254 million and increasing the city services they receive," Garcetti said. "This is unprecedented and it sets Los Angeles apart."

Assistant City Manager Ray Ciranna said the banking of overtime has also resulted in real savings for the city in the past.

Also, officials said the delay in pay increases into the last two years of the contract will result in a savings to the city of some $24 million.

Protective League President Paul Weber said the contract proposal received support from 96 percent of the officers.

"This contract recognizes the outstanding work of our officers and our recognition of the city's financial problems," Weber said. "It also reflects our desire for a stable labor agreement."

Officials said they hope to have an agreement in place next week for the firefighters, leaving only deputy city attorneys and members of the Engineers and Architects Association without contracts.

Mayor Antonio Villaraigosa, who has fought to mostly exempt the Police Department from the steep cuts that other city agencies have endured in recent years, said keeping the LAPD at its strength of 9,963 officers has helped the city keep crime levels down. The new agreement, he said, will help keep more officers on the streets, rather than requiring them to take more time off.

"Cities across the country, and our leaders in Sacramento, are struggling to balance budgets while maintaining services," Villaraigosa said in a written statement. "This is not an easy task. Our workers deserve a steady paycheck and reliable health care while our city's residents deserve to know their hard-earned money is being well invested in keeping communities safe.

"This deal closes the budget deficit, saves the city $116 million in the upcoming fiscal year and keeps hundreds of police officers on the streets."

Officials said the new agreement provides the city with more flexibility in assigning officers.

At the start of negotiations, Villaraigosa warned that workers could face up to 36 furlough days unless concessions were approved.

Voters also sent a message when they approved a measure last March that increased the amount newly hired police officers and firefighters must contribute to their pensions.

The City Council had imposed the higher pension costs on civilian workers in an administrative action this year.

City News Service contributed to this report.

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