DeMaio to Give State of the District Speech, Talk Reform

San Diego City Councilman Carl DeMaio, who represents Rancho Bernardo in District 5,  is scheduled to give a State of the District speech at 7 p.m. Tuesday at Marshall Middle School touching on roads, retirement and water bill reduction.

DeMaio also said he will discuss community accomplishments and projects. The crux of the speech, however, appears to be a continuation of the councilman's call for pension reform, this time with an eye toward police and firefighters. DeMaio said he will officially announce a proposal to switch all new police and firefighters to a 401(k) retirement plan.

"The lifelong taxpayer funded pension model is not sustainable anymore. We have to make this change, and the sooner we do it, the better," DeMaio said. "The defined benefit pensions are exceedingly high and out of line with the local labor market and providing 401(k)s, I believe the city of San Diego not only will become in line with the local labor market but will actually have a better chance of winning the war for talent."

The 401(k)s will be more attractive to an increasingly mobile workforce, DeMaio said, and will help increase take-home pay for police and firefighters and retain death and disability benefits.

Though some workers may not like the idea of a 401(k) instead of a defined benefit plan, in light of the recent economic crisis, DeMaio said the latter model just isn't sustainable anymore.

Aside from pension issues, DeMaio also plans to address one of the key issues for RB community members: the rocky roads.

DeMaio said he hopes to have in place by July 1 an iPhone app that will enable residents to report potholes and other problems, as well as access other city services. Another announcement will center around a volunteer-led effort to identify and address needed road repairs.

DeMaio also plans to discuss creating a task force to reduce water bills by 15 percent, and increasing San Diego's use of renewable energy.

The speech is scheduled for 7 p.m. Tuesday at Marshall Middle School, 9700 Avenue of Nations.

DeMaio also held a "Twitter forum" on Friday where he answered a number of questons related to his upcoming propsals and actions over the past year. Here is a sample of some of the questions and his responses.

Q: Are you OK with the low quality of police candidates you will get being the only agency with 401(k)?

• DeMaio: I don't agree at all that we'll get low quality candidates. I challenge your assumption. Let's see the data.

Q: Why did you advocate citizens of San Diego footing the $3.1 million annual in state fees for parking citations instead of violators?

• DeMaio: I opposed adding a "state surcharge" on to parking tickets for three reasons. First, parking fines should be about managing parking availability, not generating revenues. Second, we had already included state fees in the base fine when we established fine rates. Third, why do city leaders keep "sticking it to" taxpayers who are already struggling financially? If you want to save money in parking tickets, we should look at labor costs of meter maids.

Q: Why are you proposing to include police/fire in the new 401(k) retirement plan and how will it be structured?

• DeMaio: Defined benefit plans are simply not sustainable given the high risks to taxpayers. We must make the change across the board. A 401(k) plan will provide taxpayer savings and save city employees money too! They will see take-home pay from it. New labor market emphasizes mobility and retirement portability. If city doesn't offer this, we may lose out on talent pool. Police and fire I talk to focus more on "take-home" pay. They like the pensions, but love the spending power of take-home pay. Police and fire would receive death and disability benefits under my plan. Another interesting fact I found out in putting the 401(k) plan together: our SDMSE paramedics only have 401(k), not DB plan. Kinda raises the question of "equal pay for equal work" which unions usually tout. Should be interesting to hear their explanation.