In case anyone was wondering if San Diego Mayor Bob Filner would be taking a hands-on governing approach in the wake of the sexual harassment allegations (and now lawsuit) against him, the following may be telling.
Herb Morgan, president of the San Diego City Employee Retirement System, received official notice yesterday that Filner vetoed his recent re-appointment to the board, as well as the appointments of two others.
It’s just that the mayor is the one that re-appointment Morgan and the other members.
Morgan was first appointed to SDCERS in 2009 by then Mayor Jerry Sanders, serving since then as vice president and president. Filner recently put forward the names of Morgan along with other board members to remain in the position until 2017. The City Council ratified the appointments 7-0.
Yet, that was before Morgan voted against what he says was Filner’s plan to underfund the pension system.
Now, the mayor has used his veto power to deny Morgan and the other renewing members a seat on the board. Unless, of course, the City Council overrides Filner’s veto, which would take six votes of the nine members of the council.
We can guess where Myrtle Cole and Marti Emerald will stand on that issue when it is discussed today during the City Council meeting. Whatever Bob says.
How David Alvarez and Sherri Lightner view it may shed some light on whether the City Council has enough votes to no longer stomach the mayor’s crass shenanigans.
Morgan, in the meantime, sent the following…
SAN DIEGO MAYOR BOB FILNER VETOES OWN APPOINTMENT TO SAN DIEGO CITY PENSION BOARD
“Today, I call on Mayor Filner to resign,” said Herb Morgan, board president of the San Diego City Employee Retirement System (SDCERS); founder, CEO and Chief Investment Officer of Efficient Market Advisors; and, resident of the City of San Diego’s Carmel Valley community.
In private discussions with supporters, Morgan discussed his last four years on SDCERS board, and how many San Diegans and he had worked to remedy San Diego’s pension related political malfeasance. He spoke about how those efforts rebuilt San Diego’s financial stability, so vital public safety, library, water, sewer and recreation programs could be restored.
Morgan was first appointed to SDCERS in 2009 by Mayor Jerry Sanders and reappointed just weeks ago by Mayor Bob Filner. Following his reappointment and during the June 28th SDCERS board meeting, Morgan led the Retirement Board in rejecting a plan proposed by Mayor Filner and the city’s labor unions to underfund the pension system. In response, Mayor Filner vetoed the Council approved re-appointment of Morgan that Filner himself had recommended.
Morgan was unanimously re-elected board president in 2012. “I’ve worked hard to make this amalgamation of labor, retiree, and independent trustees function well. We’ve done a great job and the Mayor is trying to interfere with our plenary authority.” said Morgan.
“Mayor Filner’s crass decision to veto his own appointment to this critical board position is an obvious political effort by Mayor Filner to defy sound economic and ethical practices, and to instead return to the days of felony indictments and underfunding city worker pensions that have plagued the City of San Diego during the last ten years.”
“During my more than four years serving the City of San Diego as an unpaid volunteer, I remained optimistic San Diego had finally cleaned itself up, but today, more than ever, I am convinced Mayor Bob Filner is nothing more than another retread political disgrace with no ethical reason to continue leading the city I love.” Morgan went on to say, “The City does not have competent decision-making leadership. As long as Filner is Mayor, his failed decision-making abilities will hobble the proper management of the City’s financial and operational needs critical to the welfare of City residents and businesses. For this reason, I call on Mayor Filner to immediately resign.”
“It is time for both political parties to do serious soul searching and identify candidates for the inevitable election to replace Bob. I encourage the central committees to focus squarely on values and integrity above all else in their recruitment efforts.”
Mayor Filner’s veto is a smack in the face to the city’s nearly 8,500 active and 7,500 retired pension members. “I did my fiduciary duty; I cast a vote that I strongly believe is in the best interest of the members. Had I done otherwise I would have pleased Bob but violated my oath of office.”
Morgan said the focus of the next mayor should be to deliver operational efficiencies to provide more and better services to residents and businesses. Morgan said, “The Mayor’s job is about competent operational and moral leadership, nothing more. It is time for someone to make the trains run on time and then get out of office. Instead, career politicians like Filner perpetuate problems to serve their own self-interests.”
The City of San Diego has over 1.3 million residents, and is served by over 9,800 employees from a $2.72 billion budget. Herb Morgan is a long time resident of the City of San Diego. Morgan graduated from Oceanside’s El Camino High School in 1984 and the University of California, Santa Cruz in 1988. He is married twenty two years with a son in college and a daughter in high school.
Comments 2
On June 28, 2013, the SDCERS Board considered a revised June 30, 2012 actuarial valuation to incorporate the effects (savings) of the multi-year wage agreement anticipated by the voters following the passage of Proposition B.
The lower ARC payment comes about because SDCERS assumes annual increases in workers’ pensionable pay. Long-term agreements between the City and labor allow the System to assume there no increases. The actuarial valuation determines the amount the City pays into the pension system each year.
Both the System’s outside actuary (Cheiron) and fiduciary counsel acknowledged that approving a revised valuation was an actuarially and fiscally sound course of action for the Board. The actuary and fiduciary counsel also said that deferring the recognition of the savings associated with the five year agreement until the June 30, 2013 actuarial valuation was completed was also acceptable.
It’s inaccurate to characterize the outcome of the revised Valuation vote as a failed attempt to improperly fund the pension system.
The Board’s vote now defers the associated pension savings to next year.
-Christina Di Leva, SDCERS
Thanks for your comment and information, Christina. Herb Morgan’s opinion is of course his opinion, so that stands. As I was setting the tone leading into his statement, I should have been clear it was his opinion that the plan was to underfund the system. I’ve revised my sentence as “…Morgan voted against what he says was Filner’s plan to underfund the pension system.” Thanks again.