Friday, February 25, 2011

Costa Mesa To Discuss Outsourcing Nearly EVERY Job

Just after 1:30 p.m. today almost CEO Tom Hatch announced that the Budget Working Group (Gary Monahan and Jim Righeimer) are placing an item on the agenda for Tuesday's council meeting in which they will basically recommend the council to consider outsourcing almost EVERY job within the city. To avoid misinterpretation of the memo I've provided the entire text below.


Sent: Friday, February 25, 2011 1:39 PM

Subject: Organizational Update
Importance: High

Fellow City Staff,

This will be a short update for now but I wanted to immediately inform you of a Report that is being added to the City Council Agenda for Tuesday, March 1, 2011. The title of the report is “Outsourcing of City Services” and the item was requested by the City Council Budget Working Group. At the Study Session of February 8, 2011 the City Attorney provided a report on “Noticing Requirements for Outsourcing or Layoffs.” The report determined that the City Council needs to make a decision about which particular services are going to be outsourced before any six month noticing requirement starts. The Budget Working Group wants the City Council to consider making the decision on outsourcing some services on March 1, 2011 and therefore a report is being presented on Tuesday. Below is the language of the Report and the Report is just being finalized and will be added to the Agenda and posted to the website this afternoon. The leadership of the associations is being informed of this item and the likely impacts from the issues. In short, if this report is approved, then for the services identified below, a process will begin to fully investigate which employees are impacted and how exactly employees will be noticed. Bumping right issues will also need to be addressed. There are important details related to the noticing issues and need further discussion by Department Heads and this will occur on Monday.

Below is the language of the Report and the final Report will be posted to the website this afternoon. As more information is available, we will share it as soon as we can.


Tom Hatch


The City Council Budget Working Group is recommending that the City Council outsource the City services listed in this staff report and direct the Assistant City Manager to begin the process of noticing employees of this action.


At the City Council Study Session of February 8, 2011, the City Attorney presented a staff report (Attachment A) that outlined the requirements for noticing employees for outsourcing or layoffs. This report was requested by the City Council Budget Working Group in an effort to understand the process for appropriately notifying employees of future outsourcing. The report states, “For layoffs which would result from contracting out a specific service, each affected employee would be entitled to at least six months’ notice pursuant to Administrative Regulation 2.26 and the City is also required to meet and consult with the applicable bargaining units (or employees if not part of a bargaining unit) to identify the specific employees/positions which would be subject to layoff as well as the impact of such layoffs/contracting out on the remaining members of the unit.”

The City Council Budget Working Group is concerned that a six month noticing requirement per applicable Memorandum Of Understandings and/or Administrative Regulations will not allow for implementation of changes until several months into the next fiscal year. Any decision to outsource services by the City Council on March 1, 2011, would not become effective until September 1, 2011 or later date. The financial concern is that with the noticing requirements any budgetary savings from a change in the system for delivering services would not be realized at the beginning of the next fiscal year and likely would not be effective until well into the new fiscal year.

Given the constraints identified above for a six month noticing process and given the successful outsourcing of similar services by other cities, the Budget Working Group is recommending that the City Council act now to decide on outsourcing these identified City services:

  • The entire Fire Department operations;
  • Street Sweeping services;
  • Graffiti Abatement services;
  • Park Maintenance services;
  • Parkway and Median Maintenance services;
  • Fleet Maintenance services;
  • Street Maintenance services;
  • Facility Maintenance services;
  • Animal Control services;
  • City Jail services;
  • Special Event Safety services;
  • Information Technology services;
  • Telecommunications services;
  • Building Inspection services;
  • Reprographic services;
  • Graphic Design services;
  • Payroll services; and
  • Employee Benefit Administration services.

Per the City Council’s direction, the City has commenced a complete organizational review of the structure of how municipal services are provided to the community. This process is expected to take up to six months or more to complete. As portions of this comprehensive review are completed, the detailed analysis and alternatives for service delivery will be provided to the public and employees for review and input prior to the City Council deliberating and determining the new structure for service delivery of each identified service. The options for new service delivery could include the following: a private vendor, another public agency or joint powers agreement, a non-profit agency, restructured City staff operations, or another method still to be determined. As this process moves forward, the formation of recommendations about new service delivery systems will be based on the thorough evaluation of the best and most efficient method for delivering a particular service to the community and may likely require formal bidding processes.


The City Council may decide not to outsource all or some of the services identified.


The fiscal impact for outsourcing the identified City services is unknown at this time.


After discussing alternatives and the timing constraints for outsourcing, the Budget Working Group is recommending that the City Council outsource the City services listed in this staff report and direct management staff take the appropriate legal steps to notice employees of this action.

Thomas R. Hatch

Assistant City Manager

City of Costa Mesa

77 Fair Drive, Costa Mesa, 92626

Ph. (714) 754-5288 Fax. 754-5330


clear from Hatch's memo that there are NO jobs that are not on the table for elimination. In a previous entry I postulated that Righeimer and his buddies idea of a "perfect" organization would be one with only the CEO and a bunch of contract analysts to manage the outsources functions. You thought I was being ridiculous... OK, now what?


This is breaking news and I'm sure there will be much, much more to follow - perhaps
later today. I'll let you know when I know. Have a nice weekend!

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Anonymous Sissy Casper said...

The sad news is true. The losers will be the citizens of Costa Mesa. RECALL the City Council before this city sinks further into chaos. THERE IS NO PLAN.. this is stupidity.

2/25/2011 05:19:00 PM  
Blogger Unknown said...

Ah I see we are going to outsource special events planning, another one of the areas of the police department that actually turns a profit. So smart.

2/25/2011 05:31:00 PM  
Anonymous Riggy n Mens are out of their minds said...


Time for legal action. TIME TO START THE RECALL ... Idiot Righeimer knows you have to wait 6 months, so he is attempting to fire everyone before then. Wow.

It about time to make some signs, and storm the Council Meeting.

Just amazed that the city survived and prospered for over 60 yrs and in a matter of 6 weeks these knuckel-heads have dropped a bomb on everything and have the city looking unreckonizable.

2/25/2011 07:04:00 PM  
Anonymous Rob G said...

The problem with this "plan" is that when you outsource, you wont be saving money. Let me explain. We all know that plumbers, mechanics, electricians, etc all cost about $80 per hour. I dont see any of the city worker bee's making that kind of $$$ even with their PERS attached. I am a fire captain and have been with the city for 20 years. I make $39 an hour. The other BIG problem is the city has this genious idea/city policy that they need to always go low bid. Well, that hasn't worked out too well over my last 20 years as an employee because when you go low bid, you get cheap sinks and faucets, poor furniture, parts that dont last, and contractors that are no longer in business when you want it fixed. City Hall roof is the perfect example.
Soooo, in the long run, you wind up paying much more for labor, parts (because you wind up re-doing the job)and damage control.

This is why so many of our city buildings are in poor shape. You wouldnt go low bid on your home or accept substandard work and products...why should the citizens.
If outsourcing is done, it will wind up costing more in the long run.
I say we outsource city council!

2/25/2011 07:09:00 PM  
Anonymous Go Jim Go said...

This is some of the best news I've seen in a long time. One commentor suggested that one of the areas considered for outsourcing is actually turning a profit. Great, with potential improved efficiency maybe it can turn a larger profit.

I'm looking forward to better services, lower costs, and lower taxes.

Hopefully some of these government workers will get pivot sector jobs and see what the real world is like.

These are truly exciting times. I was so burnt out on politics, but what is happening in Wisconsin, Indiana, and now Costa Mesa is truly revolutionary.

2/25/2011 08:26:00 PM  
Anonymous Barry P. said...

This is actually normal. All cities are doing this now. They are required to legally give notice to all employees before cutting down. Just read the papers.

2/25/2011 08:57:00 PM  
Blogger Gericault said...

Outsourcing EVERYTHING is like choosing to "eat out" every night.

What is this city going to do if you can't even wake up in the middle of the night to make yourself a sandwich?

Do people realize that these guys running this scheme have NEVER held public office before?

And the companies they ran are both bankrupt?

Seriously, we want to rip apart sixty years of city governance where a majority of the residents aren't displeased with our city?

This is insane......

2/25/2011 09:08:00 PM  
Blogger ERIC said...

If we outsource the city council, Costa Mesa would save $200,000 / yr.

Yup, each council member get a total package of over $40,000/ year. Not bad for pretending you are king for 5 hrs a week.

2/25/2011 09:54:00 PM  
Anonymous Hell is missing two members- R and M said...

TO ALL CITIZENS OF COSTA MESA....Righeimer does not care about the city. All he wants is a feather in his cap for the GOP.

Proof is that Righeimer is visibly and verbally upset that the city's finances came back better then expected. ( $5 million better by the way). Is that the actions of a person "concerned" with how the city is doing? Nope. Those are the actions of a spineless, snake, with a fork tongue, whose is a GOP koolaid drinker.

Carefull Riggy..... if Scott Baugh stops too soon, you might need a paramedic to pull your head out of his rear-end.

2/25/2011 10:16:00 PM  
Anonymous Max said...

I pledge allegiance to the flag, not a corporation.

Riggy has got to go. He is way out of line. Let him ruin another city, not ours.

2/25/2011 10:42:00 PM  
Anonymous Max said...

Gericault, don't forget Riggy has only lived here for 4 years and Mensigner wasn't even elected. Costa Mesa was a great city before these two clowns came along.

It sounds like Costa Mesa will be the next Bell. The only good thing about that would be to see Riggy in jail for destroying our city.

I don't think he ever liked living here anyway. He seemed like a guy that would drive around with an NB sticker on his car and tell his friends he lives in Newport out of shame.

2/25/2011 10:55:00 PM  
Anonymous Ken said...

So, "Go Jim Go", do you think your taxes will actually ever go down? How bad are our local taxes? Remember Progressives are not just Democrats anymore.

These men are GOP Progressive activists. The problem is that Righeimer is driving all of this. Menses has too much loyalty to his pal (certainly not to any of us regular "little people") to put the brakes on, even if he thought it was wrong. The Beve is too much of a dolt to venture out on his own and actually do any thinking. Monahan is just hanging on to the big guys coat tails (probably in hopes of some promised future reward) and Lecce, well they all just dismiss her, so she is a non-factor.

This city is really starting to suck. Already looking at moving. Probably time to just leave the state. Have fun with your progressive social experiement!

2/25/2011 10:57:00 PM  
Anonymous Max said...

Ken, that's a good point. Look at Reagan, he cut taxes and increased spending and ran up a huge deficit. Same thing with George W. Same thing with Schwarzenegger. They are all neo-cons. The only conservatives that don't believe in running up huge deficits are Republican politicians like Ron Paul.

Judging by Riggy's history with the fairgrounds, it's clear to me he's for corporate welfare. It also seems like he would rather have more out of town corporate restaurants and businesses here than local mom and pop ones.

Don't call Riggy a conservative. Just call him a cab and pay for a one way fare to any other city but ours.

2/25/2011 11:43:00 PM  
Anonymous Sissy Casper said...

Truly those who think Costa Mesa is better off are not educated. Riggy and rongers have no educated plan for success.

"These men are GOP Progressive activists." The problem is that Righeimer is driving all of this." The Brown Act is being violated- can someone please follow these Riggy and Rongers around??

2/26/2011 02:50:00 AM  
Blogger feral390 said...

The title "Costa Mesa To DISCUSS Outsourciing Nearly Every Job" is misleading. We all know the so called discussion has already taken place behind closed doors. Any public comment to the contrary will just draw Stevies eye rolling and another scripted blather by Riggy about pensions, Wendy will protest and another sham vote of 4-1 will happen. I'm curious about the departments NOT listed. Since only outsourced jobs require 6 months notice does that mean layoffs (a mere 30 day notice) are slated for the non listed departments?

2/26/2011 06:35:00 AM  
Anonymous Costa Misery said...

Interesting how City Council is considering to outsource special event services. Is this because Steve was told by the Special Event Detail last year that his Woodbridge cross country meet would have to be moved to a larger facility to accomodate the crowd and not interfere with the OCC cross country meet that has been held at Estancia High School for over 30 years. When the sport's center was suggested Steve's comment was, If you move it there, my program doesn't get the money for parking. Maybe not, but it will be a safer, more enjoyable event for the people who do participate if there is adequate parking and there will be less traffic impact to the citizens who do not wish to attend.

2/26/2011 07:59:00 AM  
Anonymous Gary W. Craig said...

Since services are always performed better, and cheaper by large corporations, it is time for us to elect corporations to city council.

I am pretty sure that this is possible now that corporations have free speech rights under the citizens united decision by the supreme court.

As of today, I officially petition "Chili's" (or the parent corporation Brinker International) to run against Gary Monahan in the next election.

Same basic service, just more corporate and therefore better and more efficient.

2/26/2011 08:42:00 AM  
Anonymous Paul said...

Sissy, these guys are untouchable. You will never get the DA in this county to go after them. There is too much GOP in-breeding in our county. Look what it took to take Carona down.

Looking at Carona, you now have the 6 degrees of separation game. None of these guys is far removed from that bag of dung. After all, remember "Sheriff Steve" and his BS badge at the airport a couple of years ago?

Carona aside, you have Righeimer so tight with Scott Baugh, that he wouldn't need a colonoscopy, because Riggy has been "eyes on".

I have always thought conspiracy theorists were kooks, but some of what these guys have to say makes sense.

I used to be proud to live in this town. I really got into the history of this town. Well, everything that was right about this town is in fact history with these tools. We are losing our legacy in the name of progress. The hell is, it's progress for progress' sake and no other reason. These are unreasonable men.

They will continue to get their egos stroked by the folks in the circles they run in, which will just encourage them to keep on keeping on. Mensinger will continue to be the hero to the pop-warner/booster crowd, and they will feed him the adoration he craves. Not necessarily because they agree with him, but if they tell him they don't agree, he will show his true colors. So, feeling bold by false witness, he will just go along with the sociopath known as Riggy.

In the mean time, the true majority will continue in their apathy and we will get this council's will jammed down our throat. It really is pathetic.

2/26/2011 07:39:00 PM  
Anonymous Businessman said...

Reading this thread, one would think that CM is already dead and buried. If any of you were working for me, you'd be fired or demoted to the mail room where you could not poison the rest of my staff with your negativity. I suggest that all of the hand-wringers do one of two things: 1) Shut up and give these people a chance to fix the mess that Mansoor left or 2) Offer some constructive, viable, above-the-line solutions. (Demanding a recall is not above-the-line. Above-the-line is a solution that can be enacted within the current structure of the particular enterprise.)

2/27/2011 10:39:00 AM  
Anonymous GoatHillGarage said...

Should the little restaurant/bar on 20th and Newport Blvd. change its name to "Not-the-Brown-Act Brews and Puppetmasters"?? Time to move. Gosh darn it! This City was so cool once.

2/27/2011 10:45:00 AM  
Anonymous Sissy Casper said...

Dear Businessman:
AS AN EMPLOYEE these suggestions were given to City Council time and time again.. they ignore them. GET YOUR HEAD OUT-

1. City Council should not ram 6-months slips in a moments notice. Take the time to figure out what departments are viable for the City. What departments actually make money? I.E. Planning, Building.

2. Substantially raise the TOT tax. PERIOD. Even the Costa Mesa Chamber of Commerce condones an increase. If City Council did it's homework (or any work) they would know this.

3. Raise the Business License fee.
AGAIN, Segerstrom/South Coast Plaza is $$$$ in the pocket- why is that fee the "lowest" in the ENTIRE NATION when SCP is the highest retail generating establishment in the U.S.

3. WAIT FOR INDEPENDENT consultants give a review. NO such review has been handed in, as Riggy and the Rongers want to ram the GOP's vision down the throats of CM citizens without a care for the actually money saved or spent.

2/27/2011 11:41:00 AM  
Anonymous ConcernedforCM said...

Businessman.....This council has yet to really ask for viable solutions from the ones they should be asking. When the workers and the prior council created the current contract the workers were fully supportive of putting in there that should the concessions they made not be enough then they would be totally fine with going back to the table to talk more BEFORE it is even time to reassess the contracts again. This new council is just too impulsive and has yet to allow what was voted in to really take effect. I guarantee that if Righeimer and Mensinger really sat down with each department the departments could tell you their ideas of things that could be done to help the city. (lets face it Beaver and Monohan are just puppets. They really have no guts to say anything and we all know Leece is being left out completely which is just plain wrong)

Let me make this perfectly clear...most business people do not care about what is good for the people. They only care about what will make the bank accounts grow. And they will make that growth happen at the expense of the people. Most of the workers of the city have been there for years. They know the ins and the outs and they know what has worked and what hasn't. Tweedle Dumb and Tweedle Dumber haven't got a clue. Their past business and character record has proven that.

Oh and you can take your "If any of you were working for me, you'd be fired or demoted to the mail room where you could not poison the rest of my staff with your negativity." and go pound sand. I have news for you. If you pulled this crap in your business it would be you who is at fault for poisoning your staff. You say that demanding a recall is not an "above the line" solution, well neither is outsourcing practically the whole city.

2/27/2011 12:01:00 PM  
Anonymous Joe said...

One of the most important functions of a leader is to take care of those you lead - to look after their best interests, recognize their talents, qualities and abilities and put those assets to best use and most importantly, lead by example. The method of several of our "elected" leaders (one of whom was not elected) - laying blame for a problem on a group of people, demonizing and criminalizing that group and attempting to turn an entire community against that group; all as a part of master plan to increase political clout so that one individual can move on to higher political aspirations - is not only shameful but wrong. Keep in mind that many of these contracts and pension obligations were made during boom times when only a few had the foresight to see the problems that lay ahead and even then, their opinions were not heard. Pointing a finger at one group and saying "they are why we have a problem" instead of acknowledging the realities of a complicated situation with a long history is wrong. We must all take responsibility for the fiscal problems of the last several years. From the elected (and unelected) officials who approved contracts, to the associations who bargained for those contracts and to the citizens whose ultimate responsibility should be to always keep one eye on the government that is supposed to act in their best interests. Even the business community must take responsibility. Remember the explosion of the economy started in the private sector (partly due to unscrupulous lending practices driven by greed) and the implosion of the economy also had its beginnings in the private sector. Scholars of history will remember that many of history’s darkest figures rose to power (many through the election process) by laying blame for societies woes and demonizing one group of people; effectively amassing as much power as possible in the shortest amount of time possible. I am NOT drawing connections between our elected/unelected officials and evil, but merely pointing out the strategy being used to quickly amass as much power as possible by this group. Except for one, the behavior demonstrated by the council of recent is not leadership. Cutting talented and dedicated employees with rash and quick decisions made with little time for thought, analysis and deliberation and creating an environment within city government analogous to a sinking ship, leading many talented and long serving employees to “abandon ship,” is NOT leadership. Good leaders would have recognized the assets we have in our employees and how hard it is to find and retain qualified individuals in today’s society. Good leaders would have brought all groups who have a vested interest together in cooperation and led everyone together to find a solution that is in the best interest of all. But then again, it is hard to be a good leader and look after the best interests of those you are supposed to lead when you are thinking only of yourself.

2/27/2011 01:49:00 PM  
Anonymous Max said...

GoatHill Garage, You said it! Our city was not only cool, but great! There is only one reason for a shift to not so cool and average, RIGHEIMER!

3/01/2011 02:12:00 AM  

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