The Sunnyvale Sun

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Health perks for council renewed in quiet 6-1 decision

By Stephen Baxter

Buried in a complex plan to limit health benefits for city employees and save the city about $15 million over 20 years, the Sunnyvale City Council voted Jan. 30 to keep lifetime health benefits for council members with slightly less coverage when they retire.

In December, the council was scheduled to receive public comments on the benefits, but it chose not to. Councilmen Dean Chu and John Howe and Vice Mayor Tony Spitaleri said they had enough information to vote on it without public comment The new benefits passed 6-1, with Councilman Chris Moylan dissenting.

"For months we have been reassuring citizens who brought this issue to our attention that it was being studied and would be dealt with in a public hearing at which they could speak," Moylan said. "Instead, we terminated the study issue and took action under circumstances where no one in the public had a chance to find out what we were doing.''

In October 2005, while campaigning for re-election, Howe told the Sunnyvale Sun he would not take lifetime benefits because his job covered him. On Feb. 5, he said he had "no idea" whether he would accept them. "I'm a long way from retirement," he said, adding that the other part of the plan saves the city millions.

The approved plan divides city employees into three categories. Retirees would continue to receive benefits, current employees would receive slightly fewer benefits when they retire, and hires after July 1 will receive fewer benefits overall.

City spokesman John Pilger said decisions on the council's lifetime benefits were always intended to be tied to those given city employees, though it wasn't relevant to schedule it together in December.

"There was no ace up the sleeve,'' Pilger said, adding that it was open and aboveboard.

Four retired council members receive lifetime benefits at a cost of about $40,000 per year. Moylan said that while that total isn't much, symbolically it's excessive.

"I think we have just dealt with the public in bad faith on this issue," Moylan said.