Tuesday, Jan. 06, 2009

Layoff payouts before Modesto City Council

3 severance deals up for OK today

Three city employees with pink slips should find out this evening whether Mo- desto City Council members approve negotiated payouts.

Two janitors and a senior housing rehabilitation specialist will be laid off this month to help the city bridge its general fund budget gap of about $1.2 million.

Their proposed severance packages, hammered out with union help, provide four to eight weeks' pay, depending on how long they've worked for City Hall. They also would get health insurance for the same time and up to 15 hours of paid leave if they can line up interviews with other prospective employers.

The housing specialist found out his job was on the line months ago when city leaders wrestled with the current budget. Five custodians pleaded for their jobs in late November before council members outsourced the service to save about $461,000.

Four of the five might have been spared by moving to openings in the city's parks division. But the deepening financial crisis since has prompted management to freeze a position, meaning three should remain employed and two janitors would be let go. The city eliminated two additional janitor jobs that were vacant.

The council also erased two street sweeper positions, but those workers filled openings in the city's street repair division. And a custodian supervisor facing the ax took a demotion and now works in parking garage maintenance.

Modesto City Manager Greg Nyhoff has warned all city workers that he will impose a one-day, nonpaid furlough by April 27, and he said this year will bring more layoffs, multiple forced furloughs or both.

Also today, the council is expected to approve a new hangar at the Modesto Airport and hire a consultant to develop a plan that could bring a new passenger terminal.

Demand for protected aircraft parking has dropped during the recession. The good news: Building a hangar now, when contractors are competing for work, will save a bit of money.

Council members will mull paying Applegate Johnston Inc., a Modesto company, $611,011 from accumulated "aircraft possessory interest taxes" to construct the 10-bay hangar. With contingency and administrative expense, the project could cost $813,500.

The council will consider paying an additional $237,500, all but $11,875 from federal grants, to Arizona-based Coffman Associates to draw up a plan for airport layout, including the terminal. The airport was built in 1946 with expansions in 1971 and 1991.

The Modesto City Council will meet at 5:30 p.m. in the basement chamber of Tenth Street Place, 1010 10th St.

Bee staff writer Garth Stapley can be reached at gstapley@modbee.com or 578-2390.