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Fire chief appointment under doubt: City council balks at request for insurance subsidy guarantee

By ALI HELGOTH - Staff Writer
Wednesday, July 23, 2008 12:23 PM PDT

ELKO - Deputy Fire Chief Dan Landa was unanimously reaffirmed as the city council's pick to replace outgoing Fire Chief Alan Kightlinger, but in a split vote councilmen disagreed on the terms of his employment, leaving it unclear at the end of the meeting if he would accept the position.

Landa said this morning he will make his decision by Aug. 29.

At Tuesday night's city council meeting, councilmen approved terms of employment with Landa that include a $104,127 starting salary, 280 hours of annual leave and a severance policy.

The sticking point in negotiations was a request that if the city leaves the state's Public Employees Benefits Program before or during his retirement and the city no longer provides him health insurance through the program, the city pay him a $564 per month subsidy until he reaches age 65 and becomes eligible for Medicare.

The city would be required to pay that amount to the program if it remained with PEBP. If Landa decides to retire before Sept. 1 instead of accepting the position as fire chief, the city will be required by state statute to pay the subsidy to the program until Landa dies.

Councilmen Jim Conner and John Rice voted to approve the request and Mayor Mike Franzoia and councilmen Jay Elquist and Chris Johnson voted against it.

“It's a big issue,” Landa said. “By staying beyond Sept. 1, 2008, I will give up a possible benefit of health insurance subsidy for life.”

The decision he's left with, he said, is to retire and have the subsidy for life or stay with the city and lead the department in a time when many experienced firefighters are retiring.

Councilmen wrestled with the decision that could have had an effect on other city employees who are eligible for retirement and are faced with the same possibility of losing post-employment health benefits if they do not choose to retire.

“You've got the pros and the cons to it, and the pros are logical and the cons are, you know, logical and my biggest concern is cons are really a killer because ... we give one we give all,” Franzoia said.

Much of the discussion centered around the council's position to serve in the taxpayers' best interests and their responsibility to city employees.

“As a representative of the taxpayers ... we need to be true and consistent with the compensation package the job provides” not just to Landa, but to all employees, Elquist said.

“Even though it's unique, it's a tough decision for you, but there's tough decisions going on everywhere ... with retirements ... They're easy checks to write now, but you've got to cash them later.”

Conner, a public employee who works for the court system, said the request should be approved because of Landa's service to the community.

“I think years of service should mean something,” he said. “In government, you're not in it to make big bucks, that's certainly not going to happen, and I think there should be some benefit to the years of service.

“I think we need to take care of our people that have been here.”

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