What’s the price tag for navigating two pension deals? About $103,000, with a little more than 40 percent coming from taxpayers.
Former state Sen. Rod Smith’s firm received $103,373 for his mediation efforts in two deals reached between the city and Police and Fire Pension Fund leadership. The shareholder at Avera & Smith in Gainesville billed almost 270 hours the past two years for his work on the hot-button issue.
Last year, Smith had just over 137 billable hours at $400 per hour for discussions on a first deal reached behind closed doors in Gainesville. In all, the firm received $55,823 for Smith’s work that spanned mid-March to late May. That tab was equally divided among the city, the fund and public safety unions, each picking up $18,607.
City Council in its first July meeting rejected that deal, which followed weeks of criticism from local organizations.
A judge later determined the negotiations that resulted in the deal violated Sunshine Laws.
In May, the two sides came back to the table — this time in the public — with Smith back in the lead to craft an agreement.
He spent almost 132 hours from early April to early June with an hourly rate that averaged $354.46 per hour. The $400 per hour fee was still in place, but the groups were billed $200 for travel time.
In all, $47,550 was split between the city and fund for this year, each contributing $23,775.
“We would not be where we are without Rod Smith’s involvement,” Mayor Alvin Brown’s Chief of Staff Chris Hand said.
Fund administrator John Keane said Smith was able to move a deal forward after being stalled for a couple of years. He called Smith “very skillful” in listening, handling emotional points and having both sides reach conclusions they could agree upon.
Hand offered similar praise, saying Smith often used humor to defuse tense situations and pushed forward a deal that will save $1.5 billion over 35 years. He said Smith had the trust and respect from both sides of the table and he was “perfectly well-suited” to be the point person, given his legal and public official experience.
Fund Administrator John Keane said last week that while $103,000 “is certainly a healthy sum of money,” Smith efforts were worth the value.
Hand said Smith’s time was “worth every penny.”
Keane said the question, though, is whether others would see it — which he said could be determined by City Council’s upcoming actions. Regardless of that decision, Keane said it was worth the price.
“If not enacted, people will say the money wasn’t well spent,” he said. “We disagree with that. It was money well spent to get to where we wanted to get.”
Council will take its first opportunity to review the deal during a special meeting at 3:30 p.m. Wednesday. Council President Clay Yarborough has asked the members via email to familiarize themselves with the deal before the meeting.
He also has requested Mayor Alvin Brown attend and said he’d afford the administration time for a presentation followed by questions and comments from council members.
Hand said he and members of the city’s finance team have met with members and the Council Auditor’s Office to help answer any early concerns.
“We hope for the benefit of taxpayers to move it along as quickly as possible,” Hand said.
Keane also will be there, saying he’d be “an interested observer and potential participant.”
He will have to take any approved deal back to the fund board for final approval.
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