Wes Gullett to call for an end to automatic pay increases

FOR IMMEDIATE RELEASE: November 1, 2011
CONTACT: Daniel Scarpinato

PHOENIX — Mayoral candidate Wes Gullett will announce plans on Wednesday to end automatic annual pay increases for city employees, part of a compensation and benefit reform plan designed to save taxpayer dollars. Gullett will be joined at a 1:30 p.m. press conference outside the Historic City Hall by City Councilmen Sal DiCiccio and Jim Waring.

The 2011-2012 budget included pay increases for 89 percent of city employees, at a cost of $28 million. In some years (for example, 2009-10) almost 100 percent of employees received a pay increase.

Gullett’s plan would treat pay raises as an incentive for performance, rather than an entitlement.

When: Wednesday, Oct. 2, 2011; 1:30 p.m.

Where: West side of Historic City Hall, 200 W. Jefferson

Contact: Daniel Scarpinato

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Councilman Sal DiCiccio endorses Wes Gullett

FOR IMMEDIATE RELEASE: September 14, 2011
CONTACT: Daniel Scarpinato

DiCiccio praises Gullett for pledging to repeal the food tax, cut spending

PHOENIX – Wes Gullett is proud to announce that he has been endorsed by Phoenix City Councilman Sal DiCiccio in his campaign for Mayor.

“We need Wes Gullett in order to stand up to the unions and stop the out-of-control tax and spend policies coming out of City Hall,” DiCiccio said. “Wes will cut spending, cut fees, reform government and give us the vote to finally repeal the food tax. Phoenix taxpayers need jobs and tax relief, and Wes is the leader with the plan to do that.”

“I’m thrilled to have Councilman DiCiccio’s support,” Gullett said. “Sal has been a friend for years, and he’s been a voice of sanity, fighting on behalf of Phoenix taxpayers. As Mayor, I will lead the effort to repeal the food tax and cut spending.”

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Sal DiCiccio: Food Tax for Pay Raise Scandal – Ultimatum

“If there was no food tax, there would be no pay raises,” DiCiccio said. “It’s as simple as that.” – The Arizona Republic, June 14, 2011

Yesterday, I issued City Manager David Cavazos an ultimatum directing that any and all information regarding the food tax for pay scandal be given to my office (see memo below). I have in my possession documentation that shows that the AMOUNT of the employees’ pay raise was not given to the Council or public until the food tax passed, all public hearings were held and all Council votes had occurred.

We have requested repeatedly over the past several months if the April 21, 2010 memo was the first time that the public was told the actual amount of the pay raises. In a letter to City Attorney Gary Verburg, we asked if this was the first time the public was made aware of the total amount. He wrote that the city could find no other documentation.

I have contended that City Manager Cavazos purposely withheld this information from the public, and the memo dated April 21 will prove that assertion if no other documents are produced from the city manager. Almost all these pay raises go directly to government union workers.

For the past two years, the public was never told of government employee pay raises until they were approved. Here is a recap:

  • In 2010, Council passes a food tax with barely 24 hours’ notice — no mention of pay raises.
  • 15 public hearings held — major cuts to seniors and children in budget — no mention of the pay raises and amount budgeted for pay raises.
  • Council passes the budget on a 7-2 vote. No mention of pay raises in presentation. City manager acknowledges pay raises in budget only during questioning by me. No AMOUNT given to the public.
  • Council passes on a 9-0 vote MOUs for labor — no mention by management of amount of pay raises.
  • About 2½ months after the food tax passed, all public hearings are held and all votes taken by Council, city management releases the actual amount of the first year of pay raises: $29 million. 

Remember, the Council was facing a $270 million shortfall in 2010, the worst in city history. Pools were closed, library hours cut, senior programs and after school programs were dramatically reduced.

Had the city manager given the public the actual dollar amount of the pay raises, the public would have ousted everyone.

In 2011, essentially the same game was played on the public. I started asking for the exact amount of the second round of pay raises in January. It wasn’t until all 15 public hearings were completed and AFTER the Arizona Republic asked for the amount did staff finally release that information. Worse yet, two hours before the Council voted on the budget, the city manager released the two year total cost of the pay raises: $33.8 million.

If the April 10 is the first documented time that you and elected officials were given the true value of the pay raises – and the city manager has presented no evidence otherwise — then your government, your city, purposely kept information that would have been critical to your decision on the food tax and the budget.

Some have called it “phony math” to lump two years of pay raises together. But a second year of a pay raises on top of a first year all cost the taxpayers more money, and are hardly “sacrifice.” What’s phony is threatening critical core services, passing a huge new tax and NEVER telling the public about pay raises. 

Letter to City Manager David Cavazos:

Dear David,

This letter will serve as my final request for you to provide any and all documentation showing the first time the public was given the full amount of the pay raises other than the April 21, 2010 memo to me. Please provide that documentation prior to 12 noon on Wednesday August 10, 2011. If no documentation is provided, then I and the public will conclude that the public was given the information about the $29 million in pay raises only after the food tax was passed, all public hearings held and the Council voted on all budget matters.

Thank you for your cooperation in this public request.

Sincerely,

Sal DiCiccio
Phoenix City Council, District 6

Sheriff Babeu to endorse Waring, Gates for Phoenix City Council and Oppose DiCiccio Recall

FOR IMMEDIATE RELEASE: July 28, 2011
CONTACT: Chris DeRose

Supports bringing fiscal sanity and transparency to City Hall

Sheriff Paul Babeu announced today that he will endorse Jim Waring in Council District 2 and the re-election of Councilman Bill Gates in Council District 3. “I’ve been privileged to know these two exemplary public officials for years. Bill Gates has been a tireless voice on the council for fiscal sanity and public safety. Jim Waring has an unmatched record as a taxpayer watchdog and supporter of tough laws that have reduced drunk driving and domestic violence. As a veteran, I know that we’ve seldom had a better friend in public office than Jim Waring.”

Sheriff Babeu will also announce his opposition to the recall of Councilman Sal Diciccio. “Nobody has done more than Sal Diciccio to shine a spotlight on the practices at City Hall. He has been targeted for favoring a government of, by, and for the people — not of, by, and for the insiders. All Arizonans have a vested interest in keeping him right where he is — asking the tough questions and demanding the public get answers.”

“Phoenix is by far the biggest city in Arizona. For our state to work, we desperately need Phoenix to work. I have worked hard to bring transparency and honest government to Pinal County, and wherever good candidates like Diciccio, Gates, and Waring seek to do the same, they will have my support.”

The endorsement will take place on Thursday, July 28th, at the Arizona State Capitol at noon. Press and members of the public are welcome.

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DiCiccio Endorses Peggy Neely

FOR IMMEDIATE RELEASE: July 19, 2011
CONTACT: Paul Bentz

Neely for Mayor continues to build governing coalition 

Phoenix – Today, Councilmember Sal DiCiccio joined the growing chorus of supporters for Peggy Neely and “The Phoenix We Want.”

“I am so pleased to have my former colleague Councilmember DiCiccio join Councilmember Johnson in support of my bid for mayor,” said Peggy Neely, “I am proud that the people who have worked with me in the trenches to support our quality city and begin the process of reform are giving me their vote of confidence to help preserve what is best about Phoenix. I am looking forward to working with them to build a coalition dedicated to improving our city.”

Councilmember Sal DiCiccio, representing District 6, stated, “Peggy Neely has a strong track record standing up for the taxpayers of Phoenix – not the unions and city hall special interests. I fully endorse Peggy. She is the right person who will make reforms that put taxpayers first and create more transparency; and Peggy will repeal the food tax – the same tax used for pay raises and bonuses to government employees. Phoenix gave huge pay raises and cut services to kids and seniors and we both believe that is wrong. Peggy and I don’t see eye to eye on every issue, but we both care about the people of Phoenix and believe we can be much better.”

“As Mayor, you must build a solid governing coalition based on working well with your fellow councilmembers,” concluded former Mayor Skip Rimsza, “Peggy Neely is proving she can bring people together to find solutions. She is building a strong coalition for the City of Phoenix dedicated to serving the taxpayers.”

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Phoenix Councilman Sal DiCiccio discusses requests for info tying food tax to city employee raises

Phoenix City Councilman Sal DiCiccio was on with KFYI-550′s Jim Sharpe this morning to discuss his recent request to obtain information linking the food tax to city employee salaries.

Here is that interview.

And in case you missed Sal DiCiccio’s presentation on the budget and government employee salaries, here is the video:

Sal DiCiccio vs. Phil Gordon on food tax money used for employee raises, bonuses

Watch this exchange as Democratic Mayor Phil Gordon calls Republican Phoenix City Councilman Sal DiCiccio a “child” as DiCiccio attempted to answer a question posed by Mayor Gordon.

This came as Sal DiCiccio was drawing attention to the fact that the City of Phoenix imposed a tax on food and then used that money to reward city employees with raises and bonuses!

Here is that exchange:

Mayor Gordon and Councilman DiCiccio Spar in Budget Meeting: MyFoxPHOENIX.com

This is all the more reason why Phoenix residents need to elect new council members this year!

Grassroots leaders push to reform city government

March 8, 2011
          
Hon. Russell Pearce
President
Arizona Senate
1700 W. Washington Street
Phoenix, AZ 85007

Hon. Kirk Adams
Speaker
Arizona House of Representatives
1700 W. Washington Street
Phoenix, AZ 85007

Re:  Municipal managed competition reform (SB 1322)

Dear President Pearce and Speaker Adams:

We are writing to you and to the members of your chambers to ask for your support in passing Senate Bill 1322, the municipal managed competition reform. 

SB 1322 would require Arizona cities with populations of 500,000 or more to open up city services to competition from the private sector.  The bill has three main policy objectives:

• Create jobs.  By requiring an open and competitive bidding process, SB 1322 will allow private businesses, public-private partnerships, and city employees to compete to provide services to city residents at the lowest prices compatible with the highest quality and most reliable performance.  Competitive bidding will help to moderate the costs of all productive factors, including labor, thus allowing thousands of new workers to be hired.  (For example, in Fiscal Year 2010, the City of Phoenix paid its average worker a salary, benefit, and overhead package of $97,707.  That was up from $83,231 in FY 2007—a 17-percent increase in just three short years, at a time when private-sector workers were suffering pay cuts and layoffs.  Even if we take out police officers and firefighters—who would be exempt from SB 1322—competitive labor costs could allow the Phoenix economy to employ one and a half times the current number of city workers, at the average private-sector salary-and-benefit level.) 

• Save money for city governments and city taxpayers.  By saving money on maintenance and operations costs, SB 1322 would free up scarce budget resources at a time when cities are facing tough budget constraints.  The combined savings in Phoenix and Tucson could soon be over $500 million a year—savings that could be passed on to taxpayers through rollback and repeal of recent tax and fee hikes.     

• Create opportunities for small business.  SB 1322 will help to inject hundreds of millions of dollars a year into the local economies in Phoenix and Tucson.  By requiring those cities to bid out services costing above $75,000, SB 1322 would create opportunities for dozens of small businesses to win contracts to perform city services. 

SB 1322 gives city councils opportunities to disapprove statements of work presented to those councils by city managers, and allows city councils to award longer-term contracts to independent contractors and public-private contractors that provide significant capital investments to the cities. 

SB 1322 includes several key protections for taxpayers and several provisions designed to ensure that contractors serve as faithful stewards of public resources:

• Transparency in bidding and performance.  SB 1322 stipulates that all bid-related communications and supporting materials submitted for consideration by the affected cities shall be public records, and mandates that the city managers and all city departments of affected cities shall conduct annual performance audits for contracted services, the cost of which must be accounted for and incorporated into all bids.  SB 1322 requires city managers of affected cities to seek independent performance audits every five years to evaluate the accuracy and completeness of the municipalities’ performance audits, and stipulates that all performance audits shall be public records.

• Protection of city resources.  SB 1322 requires that all bidders, public or private, must be able to provide bonding or other forms of security to adequately protect cities, and requires that all bidders maintain an adequate level of liability insurance consistent with the city risk management requirements.

• Public safety provisions.  SB 1322 requires that independent contractors have appropriate safety policies and procedures in place to protect the public and its employees, and requires that independent contractors perform background checks on employees performing any service for which the affected cities require background checks of municipal employees.

• Breach-of-contract protections.  SB 1322 mandates that independent contractors acknowledge that the affected cities may rightfully terminate and rescind contracts awarded to independent contractors in the event of material breaches of those contracts.

• Term limits for service contracts.  SB 1322 provides that service contracts may not have terms longer than five years, with three one-year renewals, before the related services must be submitted again to open and competitive bidding.

• Term limits for capitalization projects.  To address policy concerns voiced in committee, the proposed floor amendment to SB 1322 allows for longer terms to be awarded for contracts with independent contractors or public-private partnerships that involve significant capital investments.  But the proposed amendment also limits the terms of those contracts to the length of the amortization schedules prevailing in those industries.

Given the wide latitude allowed to city councils and city managers in designing service contracts, SB 1322 includes a taxpayer standing clause that allows taxpayers residing in the affected cities to bring special actions in court to enforce the protections afforded in the legislation.

Once the success of this managed competition reform has been demonstrated in Phoenix and Tucson, it is our firm hope that future Legislatures will expand the reform to include all of the municipalities and counties in Arizona, thus providing its protections to all Arizona taxpayers. 

Upon request, we will provide you with a copy of the draft floor amendment which incorporates changes suggested during the Senate committee hearings and changes suggested by stakeholders. 

Signed,

Sal DiCiccio     
Phoenix City Council     

Tom Jenney    
Americans for Prosperity – Arizona    

Lee Earle
Arizona 2012 Project

Steve Voeller    
Arizona Free Enterprise Club   

Vera Anderson   
Daisy Mountain Tea Party Patriots

Michael Davis
Deer Valley Tea Party

Farrell Quinlan       
National Federation of Independent Business – Arizona     

Wesley Harris
North Phoenix Tea Party

Honey Marques   
Tea Party Patriots of Scottsdale  

Marcus Huey    
Tea Party Patriots of Glendale

Shawnna L.M. Bolick
Grassroots Organizer