City manager outlines cost savings, and avoidance of litigation as reason for settlement

The City of Batavia has just released a memo detailing the settlement agreement between the City and the firefighters union.

It will be the subject of a meeting in about 5 minutes at City Hall.

The City Council will hold a closed-door executive session before the standard public comment opportunity. This is always provided prior to council business and public comments are not allowed afterward.

Under terms of the settlement, according to City Manager Jason Molino's memo, the city would:

• Be out of the ambulance business, "a long-term losing operation."
• Eliminate 24 medic positions, saving an estimated $1.8 million in wages and benefits annually. This includes those entitled to retiree health care until age 65, a $1.5 million to $2 million annual savings.
• Avoid litigation and risk, including subsequent applications for injunctive relief, PERB hearings, etc. The case, according to Molino, could drag on for two years at a cost of at least $200,000. If the city lost, a judgment of more than $2.5 million could be imposed.
• Decrease workers comp and liability expenses by $35,000 to $45,000.
• No longer manage 23 intermunicipale ambulance agreements.
• Receive revenue from disposal of ambulances of $50,000 to $100,000.

The proposed settlement will:

• Maintain staffing at 36 firefighters, with each platoon receiving one additional firefighter (the four firefighter/paramedics previously slated for dismissal), and a significant reduction in overtime (according to Molino). The additional revenue available in next year's general fund could be $175,000 to $275,000.
• Extend the existing contract two years, expiring in March 2013, with a salary increase in each of the additional years of 2.5 percent. This is an estimated cost of $50,000 per year.
• Provide severance for the 17 medics being laid off, including 50-percent of sick leave and 30 days additional health benefits. A one-time cost of $70,000.
• Give each retained firefighter a $1,000 bonus, a cost of $36,000.

The one-time costs of the last two items above, a total of $106,000, will be paid out of the ambulance fund.

"In closing," Molino writes, "it should be noted that regardless of the City's confidence with respect to defending the City's unilateral right to eliminate the ambulance service, there is a financial risk. Should this issue progress further to litigation, it must be understood that there is always an element of risk with regard to litigation. ... Should these decisions be adverse to the City, our responsibility for reinstatement and back wages and benefits could exceed $2.5 million, in addition to having no resolution to the current issue and no alternative but to continue to provide ambulance service or negotiate the service away.

"Both parties, the City and the union, have a vested interest to not take this issue to litigation as the financial risk is high."