Board of Aldermen 11-24-2020 Page 24
President Wilshire
Anyone else? Alderwoman Lu?
Alderwoman Lu
| just want to, thank you, Madam President. | just want to point out there has to be, you know what, | am
hearing that it’s not a good idea to compare to different places and it’s not a good idea to compare to
different functions. But! think when we evaluate a contract it is natural to try to get an idea of the market, |
mean that’s a natural — and | don’t understand how, | don’t personally understand how to do it any other
way, from my background in business, other than looking at market, looking at comparing it to something
else. And | think possibly we need to try to come up with a format of reporting that will help us make these
decisions better. So it sounds as though we are saying there’s too many, you know, you can’t compare
oranges to oranges or just to apples rather. But just going forward and not to minimize the work that our
CFO does to provide us back with some documentation to help us make the decisions. But! think that
going forward, we need to have some way to make or to interpret the differences. Because | do think that,
for me, the only way | can evaluate a contract is by somehow getting a sense of how it compares to others
in a market. You know, that’s how you pay people. That’s all, thank you.
President Wilshire
Thank you. Anyone else?
John Griffin, CFO
Excuse me, Madam President, John Griffin, CFO, can | just clarify some things?
President Wilshire
Mr. Griffin?
Mr. Griffin
| appreciate that very much, thank you. So Alderman Jette as he indicated last night, he sent me the work
that was done by the union and that information is actually correct. The issue that | want to bring to your
attention is that that’s the contract without the financial and medical incentive. I’m not sure if your Board is
aware of that. But by adding the medical incentive you can kind of picture the costing, it adds a 72% in year
3, same %2% in year four; so it’s a 1% increase in total but it compounds. Furthermore, that affects other
salary cost and affects pension, doesn’t affect medical but what’s in that — information that’s in your costing
sheets that has medical incentive. It creates a difference between the savings that | witness today from the
union of $420,000.00 as rounded off, down to $250,000.00. So the delta that Mayor Donchess that Mayor
Donchess is speaking of is about $170,000.00.
So | just wanted to make sure that you actually had those costings in your packets and that the Union,
maybe at the time was trying to compare the prior TA to the current TA without medical incentives. Medical
incentive actually costs more, therefore, the costing as Alderman Jette mentioned was roughly $3.7 million
in total versus the prior submittal of $4.02 million. So | just want to — | hope that helps. | just wanted to clear
that information to the best of my ability. Thank you.
