Vallejo unions say their plan can avert bankruptcy; Council to discuss Tuesday

Overpaid Government Worker reports on a Times-Herald story:

Unionized Vallejo city employees have given the city a new $10.6 million salary reduction proposal which representatives said Monday would avert bankruptcy and even build city reserves.

"We (city officials and union representatives) had a marathon session on Friday ... and ultimately, what came out of it was this," said Det. Mat Mustard, vice president of the Vallejo Police Officers Association at a press conference attended by nearly 75 rank-and-file union members.

Three city public safety unions - International Association of Fire Fighters Local 1186, Vallejo Police Officers Association and International Brotherhood of Electrical Workers - said their fiscal strategy will solve Vallejo's crisis using city figures, provide the city some reserves, and, thereby, make filing for bankruptcy unnecessary.

"We do not believe the city is bankrupt, and that filing for bankruptcy is like a big ship aimed at an iceberg. Bankruptcy is not cheap," Mustard said.

The unions expect the City Council to mull their contract proposal during a closed session scheduled Tuesday night, before the council's regular meeting.

The City Council last week unanimously voted to take the historic action of authorizing staff to file for bankruptcy
under Chapter 9 to keep the city solvent. Elected officials said with the city projected to run out of money by the end of June, they had no other choice.

It is unclear when the city would actually file for bankruptcy. The council has been advised that the city should seek Chapter 9 protection within 30 to 60 days of authorizing it.

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