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Councilors press staff on MOU that corrected a "Scribner's error" in fire union tentative agreement, affecting sick-leave payout and OPEB contributions
Summary
Councilors questioned an MOU that restored language in a fire union tentative agreement, raising payout-at-retirement from 100 to 112.5 days (half of a 225-day accrual cap); staff and finance officials discussed who is affected and the fire district's roughly $26.97 million unfunded OPEB liability.
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Council members used the Oct. 7 questions-to-directors workshop to scrutinize a memorandum of understanding (MOU) the administration negotiated to correct a drafting mistake in a tentative agreement with the fire union.
Councilwoman Jeanette Blackwell called the change a "Scribner's error" and questioned why correcting the language would add what she calculated as 12.5 extra payout days at retirement for members. Deputy General Counsel Corey Wisniewski said the tentative agreement had been signed and ratified by the union and the MOU reinstated the intended language; to make the math consistent the payout cap was adjusted from 100 days to 112.5 days, which Wisniewski characterized as 50% of the 225-day accrual limit.
Wisniewski told council members that only a small number of employees — he said there are "only 4 people" who would actually be in a position to cash out up to the new 112.5-day cap — would see the enlarged payout, though other council members emphasized that accrual-limit changes would apply to larger groups. In discussion, staff also confirmed the proposed contract would change accrual rules so that 41 employees hired before 11/07/2016 (previously with unlimited accrual) would be limited to 225 days and 26 others would see a change from 150 to 225 days; the packet showed all 67 current members were hired before 07/01/2024 and thus would be subject to the 225-day maximum under the proposed language.
Council members pressed staff for financial context. A finance official called 'Carl' said the city's most recent valuation showed a total OPEB liability around $171,000,000 with $23,000,000 funded; the fire portion had a $31,000,000 liability with $4,300,000 funded, leaving an unfunded liability of approximately $26,966,000 for the fire district. Blackwell said she had estimated the additional payout exposure (12.5 days × 67 members) as roughly 837 hours of payout and asked why such a change resulted from a drafting error; Wisniewski said the MOU outcome was the negotiated remedy and that the larger payout would actually apply to very few members based on current accrual balances.
No contractual ratification vote was taken at the workshop; councilors asked for documentation and staff said materials (including the MOU) were in the meeting packet and online. The workshop concluded with an adjournment and the council planned to reconvene for its regular meeting at 7:00 p.m.
