Mayor wants to restore health care, safety forces items in recovery plan

July 18, 2016 at 12:05a.m.

NILES

Mayor Thomas Scarnecchia wants to restore two items to the city’s Financial Recovery Plan that he removed earlier this year: eliminating minimum manning in the safety forces and requiring employee contributions for health care premiums.

Both items, however, are contingent upon the outcome of contract negotiations, which remain unsettled. A three-year contract negotiated with the public-employee union late last year before Scarnecchia took office does not contain employee health care contributions.

Currently, the city pays the entire health care premiums for 165 employees, a benefit that one of its state-appointed fiscal supervisors referred to earlier this year as “a dinosaur.”

By contrast, nearly every area municipality requires its employees to pay a portion of their premiums. In Warren, Brian Massucci, director of human resources, said the employees’ contribution is $50 monthly for single coverage and $100 for family coverage.

City council has to approve the amended plan as does the Financial Planning and Supervision Commission, which was created after the state auditor declared Niles in fiscal emergency in October 2014.

The two provisions had been included in the initial plan submitted in the final year of his term by Mayor Ralph Infante, who forecast annual savings of $265,000 should the city and unions reach agreement on contributions. Scarnecchia, however, excised both earlier this year when he amended the plan that was later accepted by council and the commission.

At the time, the mayor had expressed concerns about including the two provisions because of collective-bargaining issues. Last week, however, he changed his mind.

“My administration and our bargaining representatives are determining what percentage we will ask the unions to contribute,” the mayor told The Vindicator. He declined to reveal the amount the city is seeking. The Columbus-based firm of Clemans Nelson and Associates is representing the administration at the bargaining table.

Niles, which is self-insured, pays the entire employee monthly premiums of $930 for single coverage and $2,024 for family coverage. Its cost for health care coverage skyrocketed to $5.1 million in 2015, but changes in the plan worked out among the city, unions and its new health care broker are on pace to save the city more than $2 million.

“We’re looking at a cost of between $3.1 and $3.3 million,” said Giovanne Merlo, city auditor.

Scarnecchia said the AFSCME contract negotiated by Infante was waiting for him his first week in office when he signed it.

“Knowing what I know now, I wish I hadn’t,” he said. “There are parts of that contract that I totally disagree with, especially health care.”

Merlo said a provision in the contract states that if insurance premiums go up next year, employees must pay 50 percent of the difference.

“We’ll have a better idea where things stand when we see a new plan in August,” the auditor said.

The mayor’s proposal to eliminate minimum manning is not expected to sit well with police and firefighters concerned about safety issues with less staffing. Acting Police Chief Jay Holland said that current patrol and supervisor contracts require a minimum of four uniformed officers on duty.

“Those are sufficient resources to handle two situations at the same time,” Holland said. “The question I would ask [if minimum manning is eliminated] is who decides what number is sufficient?”

Holland said police are brought in on overtime when the number falls below four due to vacations or illness.

Scarnecchia said he expects to submit his amended plan to council for a vote at its meeting Wednesday.

“It’s something I think we have to do to help get us out of fiscal emergency,” he said.