08-07-2017 Council Packet - Laserfiche WebLink

Home Search

WS – Item 8 WORK SESSION STAFF REPORT Work Session Item No. 8 Date: August 7, 2017 To: City Council From: Jeff Karlson Re: CFD Unemployment Case Update Background On January 4, 2017, the City of Lino Lakes was notified by the Minnesota Department of Employment that former CFD firefighter, Michael Schweigert, had filed for unemployment benefits. Schweigert’s last day of employment with the Centennial Fire District was December 14, 2016. The base period, used to determine Schweigert’s unemployment benefits, was 07/01/2015 through 06/30/2016, his four highest earning quarters. Based on this determination, the City would have been responsible for a maximum charge of $8,260. The City appealed the determination on the basis that applicant was not a City of Lino Lakes employee. Following the first hearing, the initial decision by the unemployment judge was that Schweigert was employed by the City of Lino Lakes because Schweigert’s pay and benefits were administered by the City from November 17, 2012, to January 30, 2016. The City filed a Request of Reconsideration by citing nine instances where the judge’s decision was factually inaccurate. The City was granted a second hearing with another judge, who ruled that Schweigert’s wage credits during his base period were all from employment with CFD. Subsequently, the Centennial Fire District appealed the second judge’s decision and lost. Since Lino Lakes was still in the District for two quarters of the base period, CFD still expects Lino Lakes to contribute at least $3,646.40, based on Schweigert’s actual benefit of $10,600. CFD’s attorney and City Attorney Joe Langel disagree as to the application of the Joint Powers Agreement. Mr. Langel argued that Schweigert’s unemployment occurred long after Lino Lakes withdrew from the District, and unless this was addressed before Lino Lakes’ separation, the City cannot be held responsible for Schweigert’s unemployment when it had no say in the matter. Mr. Langel also pointed out that CFD is seeking to insert language in the JPA that does not exist. Circle Pines City Administrator Patrick Antonen indicated the CFD Steering Committee will move forward with a lawsuit if the Lino Lakes City Council elects not to pay its “fair share.” Requested Council Direction Staff is looking for direction as to how to respond to Centennial Fire District. Attachments July 24, 2017, Email from Circle Pines Administrator Patrick Antonen