<!--Rick Forgione--><table width="234" border="0" cellspacing="0" cellpadding="0" background="http://static.cnhi.zope.net/flashpromo/niagaragazette/images/byline_234x60.jpg" height="60"><tr><td><div align="center"><font size="3" face="Arial, Helvetica, sans-serif">By Rick Forgione</font><font face="Arial, Helvetica, sans-serif"><br /></font><font size="1" face="Arial, Helvetica, sans-serif"><a href="mailto:rick.forgione@niagara-gazette.com">rick.forgione@niagara-gazette.com</a></font></div></td></tr></table>
The “guillotine” fell hard Thursday on two of the city’s highest paid employees.
Economic Development Director Peter Kay’s position will be eliminated and City Administrator Donna Owens will see her salary reduced by $40,000 under budget amendments approved by the City Council. Those actions will stick unless Mayor Paul Dyster can convince at least two councilmembers to flop on a future vote.
The mayor believes he’s up to that challenge.
“There are things I feel I can reach a compromise with the council on but with regard to these two actions, it’s important for me to make a strong case for them to reconsider,” Dyster said after Thursday’s council budget meeting. “There appears to be a lack of confidence in the people I’ve brought in to city government, who I know have played a large part in our progress.”
In two separate votes, the five councilmembers moved to eliminate Kay’s $100,000 annual position from the 2010 budget, which would leave him without a job. Less than a minute later, they agreed to cut $40,000 from Owens’ salary, which represents more than one-third of her $110,000 annual pay.
Councilmembers said the decisions were based on what they perceive to be a lack of performance by the two administrators, both of whom were hired last year by Dyster and identified in a national recruitment search.
“We are saying we want to see more from these two positions,” Councilman Charles Walker said. “This gives the mayor the opportunity to prove that more is coming.”
During the month-long budget review, councilmembers repeatedly hinted cuts would be directed at members of the mayor’s administration, including jokes from Councilman Robert Anderson about ordering a guillotine.
The actions against Kay and Owens were among 81 amendments approved by the council that slashed $282,391 out of Dyster’s proposed $79.2 million budget. The elimination of Kay’s position is not included in those savings because it is funded through casino revenue.
Once the amended budget is sent back to Dyster by Dec. 1, the mayor will have five days to veto any of the actions. However, the council can override a veto with a super majority vote of at least four members in favor.
Judging by Thursday’s unanimous votes, Dyster will have a tough time saving Kay’s job and keeping Owens’ salary intact, but it appears at least Walker and Council Chairman Chris Robins are open to changing their stance.
“We wouldn’t vote 5-0 today if we didn’t feel confident that’s the direction we are going to go,” Robins said. “But the mayor will have a chance to tell us what progress has been made.”
Dyster said he plans on making a “very strong case” for both Owens and Kay and stress the importance of retaining continuity and positive momentum. He pointed out both out-of-state hires came to the city with vast experience and achievements in their fields — and argues they have already played a major role in moving Niagara Falls forward.
“If you look at 40 years of failed economic development, and one year of trying to correct that, I think it’s too early to judge,” Dyster said about Kay’s job performance. “I think Mr. Kay’s experience speaks for itself. He has a track record of proven success in other municipalities.”
Councilman Samuel Fruscione wasn’t nearly as supportive of Kay’s efforts.
“In one year, he hasn’t even opened up a hot-dog cart in the City of Niagara Falls,” Fruscione said, noting there are a handful of other employees in the economic and planning department that can take over Kay’s duties. “We can survive without that position.”
Dyster pointed out the need for an economic development director was among the recommendations in a recent audit of the city’s development contracts performed by State Comptroller Thomas P. DiNapoli. The position was also included in a plan of action approved by councilmembers in response to that audit.
As for Owens, Dyster said she came highly recommended and left a high-profile administrative job in Atlanta to come to the Falls. He said a pay cut is unwarranted and added there’s been plenty of positives Owens has played a part in, including the recent settlement of the racial discrimination case involving six African-American Department of Public Works employees.
“I think it is a mistake to underestimate the role the city administrator has had,” Dyster said.
Despite the mayor’s assessment, Fruscione said he believes Owens has brought “nothing to the table that’s worthwhile” and has spent too much time away from City Hall and traveling since being hired. He added the pay cut is a direct message that her services are no longer welcome.
“We’re telling her the time is up and it’s time to go,” Fruscione said.
Fruscione has been among the most vocal critics since Dyster took over as mayor in 2008. However, he has softened his stance in recent months and has commended Dyster on progress the city has made. That praise does not extend to Kay and Owens.
“We have confidence in Dyster but you live and you die by your decisions,” Fruscione said, “and the decisions he made in the city administrator and economic development director were not good decisions.”
While the council can eliminate positions and reduce salaries in the budget, only the mayor can hire and fire. Dyster noted that it’s his job to evaluate employee performance.
“I have shown in the past that if I believe someone isn’t doing their job appropriately, I act decisively,” Dyster said, referring to the recent termination of City Engineer Ali Marzban and suspension of Building Commissioner Guy Bax. “But that’s not the case with these two individuals.”
Neither Owens nor Kay attended Thursday’s budget worksession. Dyster said he spoke briefly with both of them before the meeting and told them not to be discouraged.
“I have told them this is not the last word on this, there are a lot of politics that are going to go on between now and when this is finalized,” Dyster said.
In the meantime, the mayor said he hopes the council’s actions will not hurt the city’s search for a new city engineer and equal employment opportunity officer.
“Hopefully this will not have a chilling effect on our efforts to attract qualified individuals,” he said.
