Teamsters whack city with a $250,000 bill

Hungry Horse News

Everyone knows health insurance costs are rising, but the city was stunned to receive a bill from the Teamsters for $250,000-equivalent to half the city's annual take from property taxes.

The Teamsters claim the city is delinquent on about 10 years worth of insurance premiums and is seeking missing payments for the past three years with damages, said City Manager Bill Shaw.

The Teamsters, which represent most city workers, except for clerical positions and the police, conducted an audit in October and then sent the city a letter in November requesting the back payments, said deputy city clerk Leslie Bales.

The city couldn't find a copy of a contract explaining the reason behind the bill and requested a copy, which the Teamsters faxed to the city.

The 1994 contract, signed by former-City Manager Roger Hopkins, changed the city's previous arrangement with the Teamsters and required the city to pay premiums on all its employees. Somehow that arrangement was not followed, and some city employees continued to opt out of Teamsters insurance.

Shaw cautioned the city council members to remain calm and not overreact to the enormous bill.

"I don't expect to hear back from them for a long time - 12 to 18 months," he said.

In other city council news:

* Dan Smith was appointed the city's volunteer fire marshal retroactive to Oct. 1. He will be paid $250 per month for conducting ordinary safety inspections and additional pay for work beyond that.

* The city agreed to spread plant investment fees for the Teakettle Vista Phase 2 project over four more years. The senior housing project has already paid $27,500 on its $83,885 fee. It will pay interest on the balance of the payments.

* The council authorized Shaw to proceed with a $70,250 water and sewer facilities study by HDR Engineering. The last facilities study was completed in 1996. This study must be completed in time for the 2007 Legislature in order to secure funding.

Water and sewer superintendent Gary Root said the city is considering the possibility of upgrading the existing aeration tank at the sewage treatment plant. A new tank is estimated to cost about $1.8 million. The city also wants to improve electrical efficiency at the plant and find a more cost-effective way to remove phosphorus from waste water, he said.

* Developer Randy Jones offered the city $600 for a small piece of city land at the corner of Diane Road and 13th Street, in the Hilltop subdivision.