Council To Save Money On Police Arbitration Payout
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The Jamestown City Council discussed how the city will save some money because of accrued liability that was booked to pay retroactive pay increases to Jamestown Police Department employees. P-J photo by Dennis Phillips
The city of Jamestown won’t be paying as much for losing the police arbitration case as once projected.
On Monday during the Jamestown City Council work session meeting, Ryan Thompson, city comptroller, told the council that because the previous administration, lead by former mayor Sam Teresi, had booked accrued liability to cover retropay increases through 2019 to police union employees, the city won’t be paying an estimated $1.1 million. He said because of the accrued liability, the 2% pay increase to the police employees for 2016-17 will impact the city only $220,000 for both 2020 and 2021, for a total of $440,000.
“Because the previous administration had accrued liability, 2016-19 retro raises didn’t have an impact,” Thompson said.
Thompson said the retroactive pay increases, which compounded is 4.04% for 2017-2021, were paid Jan. 22. He said the salary increases totaled $932,460, with the overall total including state retirement, Medicare and Social Security being $1,229,335. He added that the city received about $138,706 back because of health care contributions increases, which had the total cost to the city being $1,090,629.
Kim Ecklund, At-Large councilwoman, said the reason the previous administration accrued liability wasn’t because they were expecting to lose the case, but because that is what all municipalities do when there is a possibility of paying retroactive pay increases.
In December 2020, it was announced the New York State Court of Appeals in Albany decided to not hear the city’s motion to appeal the 2018 arbitration panel’s ruling to award Kendall Club Police Benevolent union members a 2% pay increase. The highest court in the state made the ruling that it would not hear the case, which was an option because the New York State Supreme Court Fourth Judicial Department Appellate Division’s decision was unanimous in favor of the police union.
In July 2020, city officials decided to appeal the Appellate’s Division’s ruling to the highest court in the state. In July, Elliot Raimondo, city corporation counsel, told The Post-Journal the appeal wouldn’t cost the city any additional money because their lawyers — Bond, Schoeneck and King — haven’t allocated all of the $25,000 the Jamestown City Council approved to pay for the appeal to the Appellate Division.
In April 2019, the council approved appealing the arbitration panel’s decision following the ruling by state Supreme Court in Mayville in March 2019 upholding the pay increase. In November 2018, a three-member arbitration panel released its split decision, 2-1, on the issue of a 2% pay increase, with independent arbitrator Howard Foster and John Crotty, police union representative, siding with the police and Todd Thomas, former city clerk and administrative services director who represented the city, provided the dissenting opinion.
The last contract agreement between the city and police union expired at the end of 2015.
In other business, the council heard from Keith Venezie, Eric Ryan Corp. CEO, who discussed a proposal to assist the city with telecommunication audit services for the period March 1 to Feb. 28, 2022. Venezie said his company has done auditing work to help save Chautauqua County money and is currently working with the Jamestown Public Schools District as well. He said there is no upfront cost for the company’s auditing services. However, he said if the city enters into a contract with the company, Eric Ryan Corp. will receive 18% of any savings the city realizes.
Thompson also presented a report to the council on 2020 revenues for the city’s three parking ramps, Cherry, Spring and North Main streets, and two surface lots, Prendergast Avenue and Lafayette Street. He said the net profit was only $6,115, which was a $48,035 decrease from 2019.
“The profit this year went down significantly,” Thompson said.