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The rush to find a replacement in District 4

Is The Council’s District 4 Replacement Plan The Best Solution?

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On replacement politicians

“We are weary of politicians’ politicians. We want ours.”

—Gerald Stanley Lee, American author

Apponting a replacement in District 4 is a kangaroo court

On Saturday, February 20, 2021, the Ventura City Council will have the opportunity to select a new City Councilmember to join them for the next two years. This situation gives four of six City Councilmembers the power to choose a new Councilmember for the 15,000 residents living in District 4. Of course, none of the six remaining Councilmembers lives in District 4.

An Appointment Disenfranchises Voters

Several citizens emailed the Council claiming that appointing a replacement ‘disenfranchises’ the voters in District 4. If six members living outside District 4 appoint someone, District 4 is disenfranchised according to Webster’s definition, whether the Council believes it or not. Residents and Councilmembers should remember that the Ventura City Council can still function with six members and often does because of illnesses and vacations.

How We Got Here

Erik Nasarenko resigned his post as District 4 Councilmember because he was appointed Ventura County District Attorney. Mr. Nasarenko acknowledged his new role would not give him enough time to represent his district. It’s the first time since 1976 that a Ventura City Councilmember has resigned. Handling Mr. Nasarenko’s resignation has become a challenge, but the options are simple.

The Options To Fill The Vacant City Council Seat

On February 1st, the Councilmembers debated the various options open to them:

March and November are the only months the law allows special elections in 2021. Because the law mandates 88 days between calling for an election and voting, a March election was not an option because it was less than the 88 days.

After deliberating, the Council voted 4-2 to try and appoint District 4’s replacement. Councilmembers Jim Friedman and Doug Halter dissented.

The Argument To Not Appoint A Replacment

The resistance to fill the vacant seat with an appointment was mainly over two issues.

  • There are concerns that the appointment will be a rushed process, influenced by political motivations.
  • Any appointee will now have an advantage in the next general election by being anointed as an incumbent.

The Argument To Appoint Someone By February 25th

If the Council cannot appoint someone to replace Erik Nasarenko by February 25, 2021, the law requires the city to hold a special election.

Concern over leaving the District 4 seat vacant for ten months centers upon two other issues.

  • Leaving the seat open may create a split 3-3 vote, causing a motion to fail.
  • There is a concern that not having a representative for District 4 will leave those residences without a voice on the City Council.

Being Fast Versus Being Thorough With A Replacement

The most practical option available to the Council was to appoint a replacement. Four of the Councilmembers didn’t want to wait for a special election in November 2021. Nobody wanted to wait until November 2022 to fill the vacancy because of the concern about not having a seventh vote to break any tie vote.
Deputy Mayor Joe Schroeder summarized his choice this way. “I thought the best solution on the District 4 issue was an immediate special election; however, that wasn’t an option. I did not have issues with the associated expenses of a special election. I do have issues with running a City Council with an even number of seats. I believe it is a bad model of governance.”

If the Council cannot appoint a replacement by February 25, 2021, the law requires the city to hold a special election. The Registrar’s Office estimates a special election would cost $89,000 plus legal publication costs.

The Shortcomings Of Appointing A Replacement

There are three inadequacies of appointing a successor in District 4. Moving to district voting created the first and most significant of these shortcomings. Six Councilmembers—none of whom live in or have campaigned in the district—will decide who represents D4 for the next two years. These Councilmembers will say they understand the city’s needs at large, even though they represent specific districts. Yet, none of them can confidently say they know District 4’s particular issues or understand the wishes of D4 voters.

Second, the appointment will be based upon a 20-minute interview as opposed to a three-month campaign. All serving Councilmembers endured a lengthy campaigning process, which included appearing at Community Councils, candidate forums and campaign fundraisers. The appointee will do none of these things.

Third, the appointee will have the incumbency advantage in 2022 when he or she runs for re-election. Incumbent candidates are almost impossible to defeat in general elections.

The Process To Appoint District 4’s Replacement

One of these people will be District 4's replacement

As long as there will be an attempt to appoint a replacement for Mr. Nasarenko, the city wanted civic involvement in the selection process. Citizens were encouraged to submit questions for the candidates by February 8, 2021. Councilmembers proposed one question each. The final list of questions will include four questions from the public and six questions from the Council. The candidates to replace Erik Nasarenko will receive the questions in advance.

Selecting an appointee will take place on one grueling day. The Council will interview fifteen residents of District 4. Each will answer three questions from the City Council. The meeting day for choosing an appointee will be Saturday, February 20, 2021, beginning at 9 o’clock. The meetings will last twelve to fourteen hours.

The question-and-answer process will be virtual. The applicants will not be at City Hall, yet the interviews will be public. You’ll be able to see the proceedings over WebEx. (click here to watch on the day of the meeting). So will the candidates.

On that day, the first order of business will be for the City Councilmembers to select three questions to ask each candidate from the list of ten. Councilmembers will rank the candidates, deliberate and select the replacement.

Editors Comments

Because of the rush to interview and appoint, the process to find a successor in District 4 is possibly going to be little more than a beauty contest. An entire three-month election process gets reduced to a 20-minute Q&A session with the remaining Councilmembers.

The logistics of the procedure are grueling for both the applicants and the City Council. Interviewing all fifteen candidates in one sitting will be wearisome. It’s hard to imagine that the Councilmember’s attention will be as sharp at the end of the day as it was in the beginning.

Selecting three questions on the day of the interviews leaves little time for the Council to reflect on what “good” answers from the applicants should be. And, since there will be no objective way of grading or evaluating the responses, it will be hard for the Council to debate one candidate’s relative merits over another.

The process to appoint favors the candidates whose interview is later in the day. All candidates will be able to watch the proceedings via WebEx. After the first interviewee, the remaining candidates will know exactly which of the ten questions the Council will ask. They’ll be able to practice their responses. They’ll see the other candidates’ answers and see how the Council reacts to those answers.

Those who are concerned about a 3-3 split vote should keep this in mind. The consensus is that if you can’t convince one more person to support your position, it was probably not a solid idea from the start.

In the end, the selection will come down to whom the Council likes best based on a 20-minute performance, and it may not be who will best serve District 4.

District Voting Complicates Matters

A lawsuit filed against the city forced Ventura to move to District Voting in the name of “fairness.” We’ve been through one complete cycle of district voting, and we have a Council with a different makeup than we had before.

Then came the opening in District 4. The Council has the opportunity to appoint someone to fill the spot—someone to their liking. They say they will, yet it’s unlikely since none of them live there or know the voters. Instead, they’ll appoint someone “like-minded” that lives in District 4. Now, they’re perpetuating a Council in their likeness.

Have all we’ve done is move from one good ol’ boy network to another?

Tell Your City Councilmember Who You Think The Replacement Should Be

Below you’ll find the photos of our current City Council. Click on any Councilmember’s photo and you’ll open your email program ready to write directly to that Councilmember.

Sofia Rubalcava voted for an appointee replacement in District 4 Doug Halter voted against an appointee replacement in District 4
Mike Johnson voted for an appointee replacement in District 4
Jim Friedman voted against an appointee replacement in District 4 Lorrie Brown voted for an appointee replacement in District 4
Joe Schroeder voted for an appointee replacement in District 4

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step and merit increases were premature

Ventura’s Imperfect Evaluation On Step And Merit Increases

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Confucius on Ventura's step and merit increases

“The man who asks a question is a fool for a minute, the man who does not ask is a fool for life.”

—Confucius

Time will tell if Ventura made a good choice with step and merit increases

No one makes a lifetime commitment based on a single moment in time. Yet, the Ventura City Council made just such a commitment. In November 2020, they awarded step and merit increases to city employees based on revised sales tax figures. This decision is disturbing on several levels:

  1. The city staff led the Council to believe financial conditions were improving based on very short-term statistics.
  2. The people benefiting from the salary increases were the ones making the recommendation.
  3. Our elected officials failed to question the rosy picture the staff presented during the pandemic economic shutdown.

How Did We Get Here?

In the city’s fiscal year 2020-2021, the Ventura City Council faced a $12.0 million budget deficit due to California’s coronavirus shutdown. The city staff recommended a dozen possible solutions to the problem. Among them was the option to ‘defer’ $1 million in employee salary increases for step and merit increases until financial conditions improved.

As a provision of the FY2020-21 budget, former-Mayor Matt LaVere, the City Council and all the bargaining units agreed to freeze employee step and merit increases as a down payment on the massive reductions necessary in the year ahead.

Mid-Course Correction

The City Council receives regular updates on sales tax revenue collected. These reports include recent figures and may also include projections based on current trends. The updates are very short-term, especially in the early part of the fiscal year. Predictions made from these limited data may seem overly optimistic. Any upward trend tempts city staff and the Council to overreact. Past City Councils have been guilty of spending money from these projections because they seemed ‘good.’ The tendency is to see these projections through rose-colored glasses.

Step and merit increases were part of a mid-course correction

What Was The New Projection That Justified The Step And Merit Increases?

To everyone’s surprise, the September sales tax report update was higher than anticipated. The city staff projected that General Fund would be $1.657 million higher than forecasted. The City Council seized this as the ‘green light’ to reinstate the employee step and merit increases.

At the November 9, 2020 meeting, the Council rescinded the suspended step and merit salary increases for city employees. The suspension lasted only eight months, from March to November 2020.

Was The Decision To Grant Step And Merit Increases Logical?

Awarding step and merit increases puts Ventura on thin iceThe Council made its November decision based on data presented on September 23, 2020, a month and a half earlier. The Council received no updated data on which to decide. If they had, the decision might have been different.

In a report prepared by Michael Coon, the Director of Finance & Technology, after the Council’s November 9th decision, the $1.657 million surplus became a $483K deficit.

By the January 2021 Budget Workshop presentation to the new Council, the General Fund was positive again by $264,000. Mr. Coon admitted that $264,000 is a slim margin on a $116 million budget (0.2%).

What’s Happening With The General Fund?

The $1.657 million General Fund surplus presented in September 2020 was misleading. Yes, sales tax revenue was higher, but that didn’t account for the excess. Two unique, one-time events inflated the figures.

The General Fund received $2.0 million from the CARES Act funding. The city also received a donation from the Marion Schwab Trust.

Without these two rare revenue infusions, the city would have had $2.4 million less revenue than the city staff led the Council to believe when deciding to award the step and merit increases.

What’s more, on September 24, 2020, the city staff failed to mention the City Council’s risks to the General Fund. Player’s Casino Card Room sales taxes, parking violations, and Parks & Recreation programming were below budget. Mr. Coon’s November 2020 report shows revenue fell more than $5.2 million below budget in those three areas.

The Result Of Their Actions On Raises

In June, Councilmember Jim Friedman warned of an “absolute financial disaster” in the coming years if the city doesn’t continue to cut spending. Yet, the City Council reversed their earlier spending restraint and awarded over $719,000 in pay increases to city employees.

In June 2020, City Manager Alex McIntyre spoke of “shared sacrifice” when announcing the step and merit increases. Today, thousands of Ventura residents are not working. And those private-sector workers that remain employed may experience outright cuts in their pay and hours. Scores of businesses are closed by the pandemic and face bankruptcy. At City Hall, where jobs and salaries are guaranteed, things look very different, however.

What Can We Do?

Every budget cycle, the city goes through the same experience. The budget process begins in January and ends in June for the following year’s budget. Each year, the city staff presents their best estimate of what next year will bring. Often, those Staff recommended step and merit increases and the Council followed like chickens with their heads cut offestimates are optimistic. “We believe we’re conservative not to paint too bleak a picture,” Mr. Coon told the City Council on January 11, 2021. And, our City Council makes long-term decisions based on the short-term data they receive.

Staff isn’t always right. No one has examined the budgeting process for a long time. Periodically, it would be a good idea to have independent, outside consultants provide an unbiased analysis of Ventura’s budgeting. This evaluation should be different from the accountant’s review of the Comprehensive Annual Financial Report (CAFR), which is always 18 months in arrears.

Editors Comments

We believe the City Council made the November decision to award the step and merit increases on flawed forecasts from staff. The City Council accepted the General Fund revenue would be $1.657 million higher in the middle of a pandemic. The Council decided based on a September bump in the sales tax revenue for the first four months of the fiscal year 2020-21. And, the data didn’t include the all-important Christmas season sales tax revenue. The Council made long-term decisions based primarily on short-term data.

Step and merit increases were justified by improved sales tax revenueIt seems clear that city staff provided fluid, optimistic data to the Council for their decision. Mr. Coon explained the projections, saying, “We are feeling alright with the additional projection of $1.5 million in Sales Tax for the current fiscal year. It is something that we definitely want to keep an eye on, especially if we start to see more businesses close.

“Currently, we are basically projecting that we will receive the same amount of Sales Tax this fiscal year that we received last fiscal year…the city would have received about $30 million in sales tax for FY 20-21 without the pandemic. So, the projections do factor in about a 10% decline from the activity that was seen in Jul-Dec 2019. This decline isn’t on the higher end because online sales tax collection is doing so well and offsetting the losses of some of the brick and mortar stores that are experiencing losses at the higher end of the spectrum.”

At a higher level, citizens should be concerned about this process. The same people who prepare the reports used to decide salary increases are the same people who get the raises.

Our concern isn’t with the exact budget numbers. We question using numbers provided by the very people who enjoy the increases. We also have reservations about the Council relying on unseasoned numbers over time.

And, we’re disappointed by the elected officials that failed to question staff’s rosy projections when we’re in the middle of a pandemic. There were variations in the General Fund projections from September 2020 to November 2020 to January 2021. Two different City Councils spanned that period. One would have hoped that at least one Councilmember would have remarked on the General Fund’s changes from positive to negative and back to slightly positive over that time. Yet, no one did.

Only four Councilmembers remain from the group that awarded the increases. They are Lorrie Brown, Jim Friedman, Erik Nasarenko and Sofia Rubalcava. At the January 2021 budget workshop, two Councilmembers (Ms. Brown and newcomer Mike Johnson) expressed concern about the COVID-19 impact on the city’s finances. One wonders why the other five didn’t share the same anxiety. We hope that the new Council will be more rigorous in asking questions when preparing next year’s budget.

Write Directly To Your City Councilmember To Insist They Ask More Insightful Questions During Budgeting

Below you’ll find the photos of our current City Council. Click on any Councilmember’s photo and you’ll open your email program ready to write directly to that Councilmember.

Sofia Rubalcava voted for step and merit increases Doug Halter wasn't on the Council when they voted for step and merit increases
Mike Johnson wasn't on the Council when they voted for step and merit increases Erik Nasarenko voted for step and merit increases
Jim Friedman voted for step and merit increases Lorrie Brown voted for step and merit increases
Joe Schroeder wasn't on the Council when they voted for step and merit increases

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