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Water Department Employees Earn Millions In Bonuses

Assistant Director Says Program Saves Taxpayers Money

POSTED: 6:00 pm PDT May 7, 2009
UPDATED: 9:29 am PDT May 8, 2009

You might not expect city workers to get bonuses. But the 10 News I-Team learned the city’s water department employees have been paid more than $18 million in bonuses in the last three years.

The I-Team began looking into the bonuses after receiving an e-mail from a viewer. The e-mail asked why water department employees were getting bonuses “with the city budget in such a mess?”

Robert Ferrier, assistant director of the Metropolitan Waste Water Department, said the program has saved taxpayers money.

“It’s a long-standing program; it started in the 1990s,” he said.

Through a public records request, the I-Team found that the program paid several employees more than $8,500 in bonuses in 2008. Most employees received between $1,500 and $4,700. The total bonus payout last year was $6.9 million.

Ferrier said that the bonuses make workers more efficient, which means fewer workers.

“We cut 158 positions out of the budget; we took some layers of supervision out,” he said.

Here is how the bonus program works. The city does not get outside bids, so a private company, HDR Engineering, sets a price tag for a proposed water department project. If workers do the project for less, the savings get split 50/50. Half goes to city workers in bonus checks. The other half goes back to the ratepayers.

However, while employees get an actual check, the money that goes to ratepayers goes back to the water department for future projects or to offset future rate increases.

The bonus program won the Golden Watchdog Award from the San Diego County Taxpayers Association in 2002. The I-Team did not find any watchdog group that opposed the bonuses.

On Monday morning, the issue will go before a City Council committee. The water department wants to expand the program to include more employees.

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