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Category: OPC
Editorial: OPC mess needs fresh eyes

It’s no surprise that a budget compromise offered by Rochester City Council was rejected by the Older Persons Commission governing board Feb.2. The two sides aren’t getting any closer to resolving the dispute that has dragged on since fall. If anything, the debate seems to become increasingly difficult with each passing week.

OPC Executive Director Marye Miller says lies are being spread by Rochester City Council; Mayor Stuart Bikson calls her comments “inappropriate” and reminds her that she doesn’t run OPC; the board does.  When discussing who is using the right or wrong numbers, Rochester Hills Councilman Michael Webber takes a completely uncharacteristic shot at Bikson; he later apologizes.

The positions of both sides in the budget dispute rest at least partly on principle, making it very difficult to find common ground. Each side feels that to cave in is to set a precedent that bodes ill for the OPC’s future.

In a nutshell, the dispute boils down to this: Rochester City Council feels the OPC board is being too generous with pay and benefits for its staff in a recessionary time. The OPC board and leaders of the two other member communities, Rochester Hills and Oakland Township, say the OPC board’s right to govern must be preserved.

After writing about this and a previous disagreement over OPC pensions for the past year, we have no idea how it is going to be resolved. So may we suggest that cooler heads prevail?

We propose that a committee comprised of the three OPC member communities’ CEOs take a crack at crafting a compromise: Rochester City Manager Jaymes Vettraino, Rochester Hills Mayor Bryan Barnett, and Oakland Township Manager Jim Creech.

Here’s why: None of the three has a vote on the OPC budget at any level. None serves on the OPC governing board. None has a personal stake in the outcome. All have exhibited successful management and political skills. Each can be relied upon to understand what his elected officials would and would not accept.

We have faith in these three men, but if there are any better ideas out there, someone needs to speak up. Perhaps a dozen residents would be willing to take on the task of crafting a compromise. This is a tried-and-true approach to problem solving which, unfortunately, elected officials are often slow to accept.

Let us all agree that no one wants to hurt the OPC and no one is against seniors. No one wants the partnership between the three communities that has worked so well for so many years to dissolve. And let’s end the personal attacks–now.

We all learned in high-school civics that politics is supposed to be the art of compromise. Unfortunately, compromise is unpopular these days in our national discourse, in Michigan and even in our small towns. We need true leaders to step up and seek true solutions.

 
Just the Facts on the OPC- A Residents Opinion

“The mission of the Older Person’s Commission (OPC) is to address the needs of older persons, 60-years and older, regardless of income, race, religion, nationality, physical, or mental ability that live in Rochester Hills, Rochester, and Oakland Township.The OPC’s goal is to provide nutritional meals, services, health and wellness, social and educational activities, transportation, adult day services, and community outreach opportunities.” page 232 Rochester Hills 2012 budget. note: next year I would hope they would add regardless of sexual preference to their list.

How much does the OPC cost “the taxpayer” per year…?
per $100.000 taxable value x .0002403 = $24.03 per year; OPC Operating Millage in Rochester Hills
per $100.000 taxable value x .0000891 = $08.91 per year; OPC Transportation Millage in Rochester Hills
total…If you own a $200.000 house in Rochester Hills OPC cost you “the taxpayer” $32.94 dollars per year in taxes
note: not a bad deal for one of the most highly recognized institutions for senior services nationally, and rated “the best” in Michigan

How much does the OPC “spend” in FY2011 $1,036,160 and how much do they proposed to “spend” in FY2012 $969,640 page 232 Rochester Hills 2012 budget.
note: so OPC is asking the “the taxpayer” for less, and OPC has never run in the “red”

So what’s all the fuss… why will the Rochester City Council not approve their budget for FY2012?
Our Older Person’s Commission (OPC) is asking for a 1% pay increase for their employees. Totally they are asking about an increase of $31,402 for over 100 staff. source: their OPC newsletter.
The OPC Governing Board on May 5, 2011, increased the opt out amount for employees who do not take OPC’s health care from $1,500 to $6,451.56 more. This affects 3 full time staff who do not receive health care benefits. source: their OPC newsletter. note: one of those employees is the director.
These are the two main focal points of contention between OPC and Rochester City Council.
There is also this confusion… fact: City of Rochester keeps bring up that there is a new pension plan? This pension plan went into effect January 1, 2011 and only affects 14 full time employees. source: their OPC newsletter. note: This pension plan then had to have been approved by the Rochester City Council in 2010…why do they keep bringing this up in front of OPC, a pension plan they already approved and now is finally factored into the 2012 OPC budget?

Just the numbers: 2012 Rochester Hills Adopted Budget/Technical Appendix page 201 thru 246
Expenditures: Administration Personnel Services: FY2011 $538,131 FY2012 $668,906 +24.3% department total $1,291,754 or -4.2% for FY2012 +$130.775 Personnel Services
Expenditures: Trips Personnel Services: FY2011 $25,563 FY2012 $25,572 +0.0% department total $186,072 or -36.7% for FY2012 +$9 Personnel Services
Expenditures: Aquatics Personnel Services: FY2011 $125,528 FY2012 132,202 +5.3% department total $157,402 or -9.3% for FY2012 +$6,674 Personnel Services
Expenditures: Adult Activities Personnel Services: FY2011 $63,953 FY2012 $64,517 +0.9% department total $79,217 or +6.3% for FY2012 +$564 Personnel Services
Expenditures: Arts & Crafts Personnel Services: FY2011 $54,102 FY2012 $51,959 -4.0% department total $94,384 or +16.3% for FY2012 -$2,143 Personnel Services
Expenditures: Performing Arts Personnel Services: FY2011 $26,644 FY2012 $30,233 +13.5% department total $45,233 or +7.3% for FY2012 +3,589 Personnel Services
Expenditures: Health & Wellness/Land Personnel Services: FY2011 $138,670 FY2012 $160,108 +15.5% department total $222,208 or +15.9% for FY2012 +2,1438 Personnel Services
Expenditures: Programs & Events Personnel Services: FY2011 $72,453 FY2012 $82,609 +14.0% department total $109,709 or +28.1% for FY2012 +$10,156 Personnel Services
Expenditures: Meals/Nutrition Personnel Services: FY2011 $435,547 FY2012 $484,296 +11.2% department total $775,896 or +3.7% for FY2012 +$48,749 Personnel Services
Expenditures: Transportation Personnel Services: FY2011 $435,358 FY2012 $418,924 -3.8% department total $611,374 or -8.5% for FY2012 -$16,434 Personnel Services
Expenditures: Newsletter Personnel Services: FY2011 $12,733 FY2012 $12,787 +0.4% department total $32,787 or -5.6% for FY2012 +$54 Personnel Services
Expenditures: Senior Resources Personnel Services: FY2011 $39,690 FY2012 $32,493 -18.1% department total $33,693 or -18.6% for FY2012 -$7,197 Personnel Services
Expenditures: Our Town Caf Personnel Services: FY2011 $27,967 FY2012 $37,091 +32.6% department total $59,091 or -18.3% for FY2012 +$9,124 Personnel Services
Expenditures: Volunteer Services Personnel Services: FY2011 $52,898 FY2012 $40,223 -24.0% department total $41,123 or -25.8% for FY2012 -$12,675 Personnel Services
Expenditures: Recreation Programs Personnel Services: FY2011 $66,490 FY2012 $65,469 -1.5% department total $74,969 or +10.3%for FY2012 -$1,021 Personnel Services
Expenditures: Signature Event Personnel Services: FY2011 $20,762 FY2012 $41,872 +101.7% department total $108,472 or +81.2%for FY2012 +$21,110 Personnel Services

Now that we have the facts let’s do the math:
If we add up the plus column we get +$252,232 over last year in personnel costs…but we first must subtract -$39.470 in cost savings from last year to this year…total $212,762.
WOW… that’s a big number $212,762 in Personnel Service increase for 2012 in our OPC budget…one can see why it set off alarm bells in the fiscal conservative Rochester city council.
Who is putting the correct information on the streets; the OPC or the Rochester city council. The OPC newsletter states a $31,402 increase but we just did the math it’s more like $212,762.for FY2012
Why can’t it also be made more clear that a major part of this increase was voted on in 2010?

Now where do we draw the line:
OPC municipal workers have always been on the low end of the municipal totem pole…hourly workers make $7 to $10 bucks an hour. Also until recently have not received the “benefits” other municipal workers have in the area…and still won’t with this budget. Now it’s all coming to a head in this 2012 OPC budget and one of our three towns has said NO! But this is a tough call…they OPC like many of us have not seen a rise for three years…and in all fairness if you pay someone $10 bucks and hour you should pay a part of their Health Insurance…right? Not that one wrong makes another wrong but mayor Bryan Barnett in Rochester Hills got a 1% rise for 2012 and a 40% car allowance increase…so now we pay him on top of his $103,079 salary (page 315 RH 2012 budget)…plus about $28.000 in benefit costs; $7,200 cash per year to drive around on all our streets in disrepair. Why do the “rich” even in the public sector get “richer” and the Rochester city council wants to throw the dishwasher at OPC under the bus? Why is it always the little guy that gets the shaft? Maybe just this one time we should let the little guy get what he wants…if you look a the number $212,762 and were able to reduce the OPC milliage by that number, and lived in a $200.000 house in Rochester Hills it would only save you the “taxpayer” about $3 bucks per year. What’s more important to you $3 extra bucks in your pocket or a nice raise and some health care for the OPC dishwasher and their fellow employees. You decide and please tell the Rochester city council how you feel… thanks

Scot Beaton
655 Bolinger St. Rochester Hills 48307
phone: 24/7 248.650.7862
sbeaton223278@comcast.net
Political Experience former Rochester Hills City Council member 1988 to 1997
President, Rochester Hills City Council (2 Years)
please feel free to forward or post this email… thanks for your continued interest in a better Rochester Area

P.S. Their has been a lot of “negative conversation” about Mary Miller director Older Persons Commission…she is only following her “boards direction” and I agree her compensation should be compared to the same position in the private sector…OPC is a well run award winning institution in senior care and service. I personally feel the”pundits” would be quite surprised…and find Mary to be quite the bargain.

note: I have been back and forth with this decision in the Rochester Patch tonight I’m going to stand tall with the dishwasher and not the Rochester City Council…sorry
sugustion: fiscally responsible politicians are a good thing…a rare find these days…but OPC maybe we should pick our money saving battles elsewhere.

 
Is OPC compromise in view?

There may be a glimmer of hope on the horizon.

When the Rochester Older Persons Commission’s governing board meets Thursday, it appears the members are ready to take another look at one controversial item in the proposed 2012 budget, which has yet to be formally adopted.

After two years in which OPC employees received no increases in compensation, last year the board approved an increase in the payment in lieu of health insurance for full-time employees. The payment was increased from $1,500 to $7,950 per year, approximately the cost of the insurance premium. Also last year, the board voted to begin its first-ever pension plan.

Then, when the proposed 2012 budget came out with a 1-percent raise, Rochester City Council balked. The OPC’s other two municipal members, Rochester Hills and Oakland Township, approved the budget as presented. Under an agreement between the three municipalities, all three must adopt an identical version of the OPC budget.

On Jan. 23, two weeks after a Rochester City Council meeting was packed with seniors who want the stalemate to end, council offered a compromise: Lower the payment in lieu of health insurance to $3,000, provide a 1-percent bonus and defer the step increases. The OPC board will discuss it Thursday at its 4 p.m. meeting in the OPC’s Elliott Conference Room.

Rochester Hills City Councilman Michael Webber, who also serves on the OPC board, said Monday that OPC board Chairman John Dalton “has signaled a few times now” that he is willing to take another look at the item. Webber said the board could consider indexing the payment to that of an independent third party, such as the state of Michigan.

Rochester Mayor Pro Tem Jeff Cuthbertson said the expense must be lowered due to lower tax revenues   brought on by slumping property values. “What was proposed is just too much all at once,” he said. “This is a significant, multifaceted compensation increase. Now is just not the time to do all of it.”

Though Rochester’s city employees receive step raises and payment in lieu of health care, Cuthbertson said the city is moving away from those kinds of benefits for new hires. He said he can live with an OPC payment if they can “put a more reasonable number on it.”

The correct number must save the OPC money, he added. “There was no benefit before,” he said. “It didn’t make sense and save taxpayers money.” Rather, he sees the payment as adding new, fixed costs to the OPC’s bottom line.

“The OPC may have the money this year, but I don’t want it to be the floor for next year,” he said.

Webber said the payment in lieu will save money. “I still think that wherever it shakes out, it does save us money instead of having to pay for health care for that employee,” he said. “If all the full-time employees took health care, this wouldn’t really be discussed.”

Webber noted that the proposed 2012 budget’s bottom line is actually smaller than last year.

“This has always been a bottom-line budget,” he said. “When the board has made changes, they did not come back to us.”

Though Cuthbertson agrees that has been the case, he doesn’t think it’s right. “There is a requirement that amendments come back to each community,” he said.

OPC Executive Director Marye Miller said the whole brouhaha has been hurtful. If the payment in lieu of health insurance is rolled back, “They’d be taking away last year’s benefit,” she said.

“I think everybody is missing what this whole thing is about. This whole thing is about (Rochester City Council) having more power on the governing board. That’s what they want.” More about the OPC