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Renewed union contracts could cost city $450,000

March 26, 2013

Four union contracts were approved by the East Lansing City Council on Tuesday that could subject the city to more than $450,000 in penalties resulting from the right-to-work legislation.

Communities entering to certain contracts the legislature deems to be objectionable
would be subject to a loss of a third of their Economic Vitality Incentive Program, or EVIP, funding, said Mayor Pro Tem Nathan Triplett.

According to MLive, House subcommittee voted 4-2 on Tuesday to add language to the EVIP legislation that would cut funding if cities pass contracts with labor unions trying to skirt the effects of December’s right-to-work legislation, which makes union membership optional.

“Our contracts would be caught by that provision standing alone because they’re three years in duration and they replace a contract of only one year,” Triplett said.

Triplett said any contracts approved between Dec. 12, 2012 and March 28 would be subjected to the more than $450,000 in penalties.

“If you approve a contract in that time period that is longer than the one it replaces, it assumes it’s being done to circumvent right-to-work,” Triplett.

Triplett said all four of the contracts approved at the City Council work session include a provision, approved by the unions, to prevent funding cuts. In the event Gov. Rick Snyder passes the bill, the city would reopen contracts and negotiate to comply with right-to-work.

“That would probably mean agreeing to only a one-year agreement, which doesn’t offer the stability or the certainty of a three-year agreement,” Triplett said. “Even though these employees would like a long-term contract, and even though they made sacrifices for the last two years, they’ve agreed that it’s in the best interest of the city that we not lose a third of our EVIP funding.”

“We’re going to continue to advocate to the legislature that this penalty is inappropriate and try and get it removed from the budget,” Triplett said.

Council also discussed a plan to allow rental property owners to make changes to their properties, although city officials remain unclear its potential effect if passed.

Tentative plans call to allow rental property owners to make additions and that currently are not allowed in the city code. The plan also calls to make other cosmetic improvements on current housing to open up neighborhoods to a variety of residents — not just students — and improve the overall the quality of housing in the city.

“It’s finding a better balance between owner-occupied and rental-occupied (housing),” Planning and Zoning Administrator Darcy Schmitt said.

A possible test program might go forward in a section of the city, stretching from neighborhoods on Bailey Street to a portion of Milford Street.

Another ordinance discussed by council would change the number of pets a day care would be able to take from six to 12. The original ordinance, which restricted pets to a total of six, passed unanimously at the Jan. 15 meeting.

The ordinance was in response to Judy Schwary’s doggy day care, Just Like Home, LLC, 6347 Gossard Ave., which is being operated in a residential area.

After hearing arguments from both supporters hoping to prevent possible noise nuisances of a large number of dogs and residents who have voiced support of expanding Schwary’s business to more pets, council ultimately decided to not increase the amount of pets for the day care and to leave the number of pets allowed at six.

“Personally, I think six is sufficient,” Councilmember Kevin Beard said. “If we’re going to accommodate the use, it needs to be accommodated somewhere else in the city.”

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