Potsdam Village Board agrees to contract with police department

POTSDAM – Village officials have agreed to a new contract with the union representing police officers with the Potsdam Police Department, ending months of negotiations and changing the way healthcare is offered.

The village board unanimously approved a four-year labor contract Tuesday with Teamsters Local 687. The deal will provide a boost to village coffers over the years, Mayor Steven W. Yurgartis said.

“I think this settlement will save us tens of thousands of dollars over the next few years and hundreds of thousands of dollars over the next decade or so,” he told Trustees.

After the village’s labor contract with its police department expired nearly a year ago, the department was left working without a new contract in place.

Contract negotiations broke down last year after disputes over health insurance contributions and negotiations looked to be headed toward arbitration, the mayor said.

But when he took his seat as mayor in late December, Mr. Yurgartis said he scheduled a meeting with the entire police staff in an effort to relay how important the department was to the village but also explain how expensive it was.

“I think it came down to having an honest face-to-face dialogue and understanding each other’s point of view,” he said.

Mr. Yurgartis said police were very cooperative and contract negotiations resumed. Less than two months later, the two sides reached a deal.

That agreement includes a 2 percent raise for union members, but dramatically changes the way health insurance is offered.

“There are some longevity and retirement options we’ve added that will increase the likelihood that police officers will stay beyond the required 20 years of service,” he said.

Included is a requirement that retirees whose spouses have healthcare available through their job use that insurance as opposed to the village’s plan.

There is also an option for retirees to buy out of the village’s healthcare if they get another job which offers insurance, Mr. Yurgartis said.

“That will save us a considerable amount of money and still provide healthcare for our retirees,” he said.

According to figures in Mr. Yurgartis’ study, the amount Potsdam spends annually on post-retirement benefits, primarily health insurance, has risen more than $70,000 since 2007.

That number could more than double in the next 10 years, topping $600,000 annually, based on a projected rise in costs. First as trustee and later as mayor, Mr. Yurgartis has emphasized the need for the village to cut down on those costs.

But the contract addresses pre-retirement benefits as well.

The average health insurance cost for an officer is roughly $1,200 per month, according to Village Administrator David H. Fenton.

Under the contract, new hires will pay 10 percent of their health insurance costs or $120 per month.

The old contract required officers hired after July 2001 to contribute 5 percent, or $60, to that cost. And four officers will continue to pay nothing for health care because they were hired when the village fully paid health care costs.

That won’t change, the mayor said, as those rates are locked under the Teamsters’ health program.