APPRO-2024-17 : An Appropriation from Free Cash to the Contract Stabilization Fund(#8404) in the amount of $500,000.

Transcript (~7 min @ 17:48)

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▶ 17:46 Maya Jamaleddine: Um, any, uh, other question on discussion?

▶ 17:50 Maya Jamaleddine: Okay. We have motion

▶ 17:57 Speaker 3: Vice Chair Williams. Yes. Councillor Repe. Yes. Councillor Stewart? Yes. Councillor Chetty? Yes. Councillor Hamilton? Yes. Councilor Vandiver. Yes. Councillor Roal. Yes. Councillor naca. Yes. President Elli? Yes. Chair Jamal? Yes. That's of 10. Yes.

▶ 18:15 Maya Jamaleddine: Thank you. And this motion also passes. Uh, next we have appropriation 2024 dash 17 and appropriation from free cash to the contract stabilization fund, uh, number 84 0 4 in the amount of, uh, 500,

▶ 18:32 Speaker 6: um, thousand dollars.

▶ 18:34 Jen Grigoraitis: Thank you, Madam Chair. So this is a request to transfer 500,000 from certified free cash into our contract stabilization fund. The fund currently has a balance of just over a million dollars. Um, the purpose of this fund is for wage and salary adjustments for both union and non-Union staff. For those of you who've served on the council for the past couple years, it has been used to both cover, um, back pay when we do settle a contract negotiation for union employees, as well as to provide retro raises for non-Union employees. It can also be used to fund regular city contracts. I believe it was in FY 23. It was used to fund a lease with St. Mary's for some parking spaces. Um, and we could also use it under the guidance of the stabilization fund for uncompensated absences or retirements. When we have an unexpected personnel matter that comes with significant cost to the city, um, we'd like to have this fund have the healthy balance as I think we've previously discussed. Um, the city is currently in negotiations with our fire union and that, um, agreement has been expired since June 30th, 2023. So while I'm hoping that we will have a finalized agreement soon, I anticipate we'd be looking at likely a year's worth of retro payments when that contract is settled to our members of that union. And we are in negotiations now with police superiors, um, and we'll be doing negotiations with police patrol soon as well. And both of those current contracts expire on June 30th of this year. So we are anticipating that will, there will be some need for retro payments from this fund in the coming months.

▶ 20:06 Maya Jamaleddine: Thank you. Uh, Madam Mayor, anyone, uh, from my colleague have a question?

▶ 20:13 Speaker 6: Vice Chair. William. Thank

▶ 20:14 Ryan Williams: You. Um, I was, I was looking back to refresh my memory through the past couple of contract stabilization, um, requests. And I noted that a lot of the time when we do this, we do it after a contract has been confirmed because then we know what kind of money we're gonna need in there. And I know you said that you've got a bunch coming up and kind of good practice proactive. Um, but I'm just wondering if, if there is any kind of, um, information that you can share with regard to why the number was chosen? Why now? Why not after the contracts are settled? I mean, just, you know,

▶ 20:48 Jen Grigoraitis: To put the money to request that you put the money in the fund. Yeah. Um, my approach to free cash this year has been to first pay off our existing debts, which was the school shortfall, and to then make sure that our savings accounts are adequately funded for the issues that we know are coming like this. Um, and to then go forward with capital projects. So that was sort of the order in which we tried to put these down.

▶ 21:09 Ryan Williams: And when you're thinking about what adequate funding means for the stabilization accounts, what do you, where are you, um, pulling the information from that you use to, to determine what adequate is? Is it a million, is it 2 million is, you know,

▶ 21:23 Speaker 7: I think it's a combination of looking at how many, um,

▶ 21:27 Jen Grigoraitis: folks we would be, we anticipate we would have with retros. Obviously the largest union in the city is the schools that's, you know, that's handled on the school side. Um, fire is one of our larger unions in terms of the mem number of members. Um, and also recognizing that the longer these contracts are out, the larger the payments are. And so we're, you know, we're closing in on a year worth of retros.

▶ 21:47 Ryan Williams: Right. Got it. Okay. Appreciate that. Thank you.

▶ 21:50 Maya Jamaleddine: Thank you. Thank you. Um, counselor. Thanks.

▶ 21:53 Kimberly Vandiver: Um, just for my understanding, when we talk about retro payments, does are the, are these, um, people still being paid under their previous contract and the retro payment would be for the difference under the new prob presumably more generous contract? Correct.

▶ 22:11 Jen Grigoraitis: So everyone is still being paid under the contract that expired, and then once we pass the retro, we would then calculate the difference in pay that's owed, and that would be what we'd be looking to make as a retro payment. Great. Thank

▶ 22:21 Speaker 5: You.

▶ 22:24 Speaker 9: Councilor gpe. Thank you. Uh, Madam

▶ 22:26 Speaker 6: Chair. Chair. Sorry,

▶ 22:29 Speaker 9: Madam Mayor. Um, uh, the, I'm a big proponent

▶ 22:34 Mark Garipay: of stabilization funds. Um, I think this is very, um, prudent to, to be doing this this year, especially where we know we have the money in hand right now. We don't know what we're gonna, where we're gonna be next year. So, um, I'm happy to see this and I, I'm happy to support this. That's

▶ 22:56 Speaker 6: It. Thank you. Um, councilor Fe,

▶ 22:58 Cal Finocchiaro: I just wanted ask, um, like historically, what is the balance of this fund typically? Is it around this amount? Oh,

▶ 23:04 Jen Grigoraitis: You're asking questions. I don't have the answer to. Sorry. Um, no, I think it's typically we've tried to keep it close around between a million and 1,000,005. I think it's di below a million after we made some, um, adjustments on the non-union side for city hall staff. Okay. But I can get you those numbers definitively.

▶ 23:19 Cal Finocchiaro: That's okay. I just was wondering if we were around that amount. And I agree. I like having that cushion there, um, instead of like last minute, like kinda looking for it. So

▶ 23:33 Maya Jamaleddine: Any, um, c Kara Shedi?

▶ 23:36 Speaker 1: Did I see you? I was just gonna make a motion to recommend, But second. Second.

▶ 23:40 Maya Jamaleddine: We have a motion to recommend made by counselor Kara Shedi, seconded by councilor Ro Mr.

▶ 23:50 Maya Jamaleddine: On discussion. Okay. Seeing none. Clerk

▶ 23:53 Speaker 3: Vice Chair Williams? Yes. Councillor Gerade. Yes. Councillor Stewart? Yes. Councilor Karara Shetty? Yes. Councillor Hamilton? Yes. Councilor Vandiver? Yes. Councillor Romanul? Yes. Councillor for naca? Yes. President Elli? Yes. And Chair Jamal? Yes. That is 10. Yes. Unanimous.

▶ 24:12 Maya Jamaleddine: Thank you. And, uh, motion passes. Um, and, uh, um, and just, um,

▶ 24:18 Speaker 8: before we move to our, um, next order,

▶ 24:20 Maya Jamaleddine: I just wanted to, uh, clarify. I probably, uh, have read, um, uh, by mistake the number of, uh, order appropriation 2024 dash 15, um, wrong. So I just wanted to, uh, make it clear and correct that is, um, is 101,540 and 94 cents. So just to correct that.