ARTIFICIAL INTELLIGENCE IS NOT USED, IN WHOLE OR IN PART, IN THE SUMMARIES OF JUDICIAL AND QUASI-JUDICIAL DECISIONS PREPARED BY NYPPL

October 23, 2017

Administrative due process must be provided the accused employee in a disciplinary arbitration proceeding


Administrative due process must be provided the accused employee in a disciplinary arbitration proceeding
2017 NY Slip Op 03853, Appellate Division, First Department

Petitioner, a tenured educator, initiated a CPLR Article 75 action seeking a court order vacating an arbitration award in which Petitioner was found guilty of multiple disciplinary charges and was terminated.

The Appellate Division sustained the arbitration award, noting that the following administrative due process requirements were satisfied:

1. Petitioner's right to administrative due process was not violated as Petitioner [a] was provided with appropriate notice, [b] was represented by counsel at a 13-day hearing and [c] had the opportunity to present evidence and cross-examine witnesses;

2. The hearing officer issued a detailed decision in which she [a] thoroughly analyzed the facts, [b] evaluated the credibility of witnesses and evidence presented and [c] arrived at a reasoned conclusion; and

3. Petitioner's claim that the arbitrator was bias was speculative and unsupported by the evidence.

As to the penalty imposed by the arbitrator, dismissal from the position, the Appellate Division opined that considering "Petitioner's teaching deficiencies over the course of three years, the absence of any improvement despite assistance offered by the appointing authority," and Petitioner's "refusal to acknowledge her shortcomings," imposing the penalty of termination "does not shock the court's sense of fairness," citing the so-called Pell standard [Pell v Board of Education,  34 NY2d 222.


Click here to Read a FREE excerpt from The Discipline Book concerning the due process rights of public employees in New York State.

The decision is posted on the Internet at:

Failure to comply with contractual grievance procedures may not always serve as a basis a for a court's issuing a stay of arbitration where such issues are to be resolved by the arbitrator


Failure to comply with contractual grievance procedures may not always serve as a basis a for a court's issuing a stay of arbitration where such issues are to be resolved by the arbitrator
Matter of Arbitration Between Town of Greece and Civil Service Employees Association, Inc., Local 828, AFSCME, AFL-CIO, 2017 NY Slip Op 06785, Appellate Division, Fourth Department

The Town of Greece [Greece] initiated a CPLR Article 75 action seeking a permanent stay of the arbitration of a grievance arising from its termination of one of the Civil Service Employees Association, Inc., Local 828 [Local 828] members. Supreme Court denied Greece's application for a permanent stay of arbitration and directed it to hold a hearing pursuant to step two of the three-step grievance procedure set out in the collective bargaining agreement [CBA] between the parties "within 30 days."

Greece appealed and although the Appellate Division affirmed the Supreme Court's denial of the permanent stay of arbitration sought by Greece, it vacated that part of the Supreme Court's order that directed Greece "to hold a step two hearing."

The Appellate Division explained that Supreme Court erred in directing Greece to hold a step two hearing. Contrary to the court's determination, the Appellate Division said that "a step two hearing is not a condition precedent to arbitration under the terms of the CBA."

As the CBA contained "a broad arbitration clause and does not expressly identify any conditions precedent to arbitration," the Appellate Division said that any alleged failure of a party to comply strictly with the contractual grievance procedures or time limits is not a proper ground for a stay of arbitration because such issues are to be resolved by the arbitrator.

With respect to CBA between Greece and Local 828,  Appellate Division held that  "... as a step two hearing is a permissive and not a mandatory part of the CBA's grievance and arbitration procedure, strict compliance with each step in the procedure is not a condition precedent to arbitration."

The decision is posted on the Internet at:


October 21, 2017

New York State Comptroller Thomas P. DiNapoli announced the following audits and reports were issued during the week ending October 21, 2017


New York State Comptroller Thomas P. DiNapoli announced the following audits and reports were issued during the week ending October 21, 2017
Source: Office of the State Comptroller

Click on text highlighted in color  to access the full report


New York StateComptroller Thomas P. DiNapoli issued the following audits and examinations:


Auditors identified vulnerabilities in DOH’s provider enrollment and revalidating procedures that undermine its ability to ensure that only qualified providers participate in the Medicaid program and prevent improper payments for services. As a result of these weaknesses, six eye care professionals who did not fully comply with the DOH’s Medicaid policies for provider enrollment and revalidation were able to obtain Medicaid eligibility under questionable circumstances.  


Department of Health: Medicaid Program, Managed Long Term Care Premium Rate Setting (2015-S-30)

Two managed care organizations reported medical costs for services procured through a corporate affiliate that would have been more accurately classified as administrative costs. These costs, which should have been subject to an administrative cap, were included in the medical costs component of the premium rate, which is not capped. Based on an analysis of the corresponding impact on the 2013-14 Managed Long Term Care premium rates, auditors estimated the misclassification of costs led to questionable payments of at least $82.3 million.

An initial audit released in June 2015 determined DOH did not implement adequate controls to enforce Ambulatory Patient Groups (APG) policy and payment rules. As a result, Medicaid made $32.1 million in actual and potential overpayments. Additionally, DOH did not have controls in place to prevent duplicate claims, resulting in $7.5 million in overpayments. In a follow-up, auditors found DOH officials made some progress in addressing the problems identified in the initial audit report. About $800,000 of the identified overpayments were recovered and DOH updated policy manuals to give clearer billing guidance to providers.


Metropolitan Transportation Authority: New York City Transit Subway Wait Assessment (Follow-up) (2017-F-7)

A prior audit determined that wait assessment performance did not improve during the audit period and that New York City Transit had not developed a full and comprehensive plan to deal with the long-term causes of service disruptions, including matters related to major structural and technology improvements. In a follow-up, auditors found the MTA made some progress in addressing the problems identified in the prior report. However, additional actions are warranted.  


State Education Department (SED): Brookville Center for Children’s Services Inc., Compliance with the Reimbursable Cost Manual (2016-S-75)

Brookville is a Nassau County-based not-for-profit organization providing preschool special education services to children with disabilities between the ages of three and five years. For the three fiscal years ended June 30, 2014, auditors identified $1,089,215 in reported costs that did not comply with requirements for reimbursement and recommended these costs be disallowed. The costs included: $305,207 in duplicative administrative costs; $240,673 in ineligible lease expenses; $273,100 in ineligible management fees; $234,291 in ineligible and/or insufficiently documented fringe benefit expenses; and $35,944 in over-allocated compensation, ineligible tuition reimbursements, and other insufficiently documented expenses.


State Education Department: Building Blocks Developmental Preschool Inc., Compliance With the Reimbursable Cost Manual (2017-S-1)

 
Building Blocks is a not-for-profit special education provider located in Commack. Building Blocks provides preschool special education services to children with disabilities who are between three and five years of age. For the three fiscal years ended June 30, 2015, auditors identified $56,966 in ineligible costs that Building Blocks reported for reimbursement. These ineligible costs included: $53,073 in non-reimbursable lease costs, $3,497 in non-reimbursable consultant costs, and $396 in non-reimbursable food costs.


State Education Department: Hawthorne Foundation Inc., Compliance With the Reimbursable Cost Manual (2017-S-3)

Hawthorne is a not-for-profit special education provider located in Westchester County. Hawthorne provides preschool special education services to children with disabilities who are between three and five years of age. For the fiscal year ended June 30, 2015, auditors identified $75,189 in ineligible costs that Hawthorne reported for reimbursement for the rate-based preschool special education program that it operated. The ineligible costs included: $56,619 in personal service costs for insufficiently documented staff time; and $18,570 in other than personal service costs. Auditors also determined Hawthorne did not disclose related-party transactions with three entities.


CSC, a not-for-profit organization located in Jericho, is authorized by SED to provide preschool special education services to children with disabilities who are between three and five years of age. For the fiscal year ended June 30, 2014, auditors identified $127,101 in ineligible costs CSC reported for reimbursement. The ineligible costs included $121,255 in employee fringe benefit costs that were incorrectly allocated and $5,846 in ineligible costs for food, personal travel, gifts, and other non-reimbursable expenses.

The department has not established policies and systems to sufficiently ensure that wireless telecommunication service providers comply with the tax law and that the state receives all monies to which it is entitled. In particular, the department does not have adequate controls to ensure that all eligible providers supplying services in the state collect, report, and remit the surcharges for all eligible devices to the department.


Comptroller's audits reveals local water systems losing millions in revenue

Audits of municipal water systems estimate local governments are losing millions of dollars in revenue due to water loss, inaccurate meters or improper billing, according to a report issued today by State Comptroller Thomas P. DiNapoli. The report analyzed the results of audits conducted by DiNapoli’s office of 161 local government and seven public authority water systems from January 2012 through May 2017.

“Water leaks, broken pipes and aging infrastructure are costing local governments millions of dollars annually,” said DiNapoli. “Across New York, my audits have revealed infrastructure problems, poor budget practices and a lack of long-term planning are straining municipal finances and increasing costs for taxpayers. If these problems aren’t addressed, the issues plaguing water systems will only get worse.”

Of the audits, 22 pointed to water loss as an issue and estimated that fixes could yield as much as $2.2 million in savings.

More often than not, water loss is caused by leaks from broken or aging underground pipes.  In some cases, however, auditors found inaccurate meters or improper billing to be the problem. As a result, some customers are paying too much and others too little. Efficient operations would require that officials upgrade meters or improve the accuracy of the billing process.

Auditors also found that several local governments had insufficient revenues to operate their water systems, which was aggravated by incorrect billing. As with water loss, these practices negatively affected water system operating budgets and overall municipal finances. During the five-year period, a review of 16 municipalities with revenue or billing deficiencies revealed that corrective action could increase revenues by more than $400,000.

DiNapoli’s report also noted:

1.
Several municipalities were routinely transferring money into the water fund from other funds, which continued to mask revenue shortfalls;

2.
Water fund surpluses were being improperly used to subsidize general operating costs for municipalities;

3.
The lack of adequate monitoring of system finances left local officials unaware of ongoing deficits and the dangers of depleting fund balances; and

4. 
Some local officials had no strategies to eliminate long-term deficits, improve infrastructure or replace aging equipment, or spend down significant surpluses.

The Comptroller’s office has expanded its audit focus to include issues regarding local water supplies. Recently, DiNapoli’s staff conducted an audit of a county’s oversight of water testing, identifying opportunities for improvement. In addition, upcoming audits are planned that will examine the cybersecurity of computer-based systems used to monitor, modify, regulate or manage municipal water facilities. In the wake of recent cyberattacks that have disrupted a number of local governments, including a municipal-owned dam in the Hudson Valley, these systems have come to the forefront as a critical risk area.

The U.S. House of Representatives’ Energy and Commerce Committee recently advanced a bill that would reauthorize the Drinking Water State Revolving Fund, which provides grants for water systems. This financial assistance helps local governments address critical drinking water issues, including protecting water quality, repairing infrastructure, and modernizing water meters.

This report is the second in a series examining various aspects of municipal water systems, including infrastructure, finances and organization.

The first report, Drinking Water Systems in New York: The Challenges of Aging Infrastructure, was issued in February 2017. To view the report, visit:



October 20, 2017

Pension Plan limitations for "Tax year 2018


Pension Plan limitations for "Tax year  2018
Source: The Internal Revenue Service

The Internal Revenue Service has issued information concerning cost of living adjustments affecting dollar limits for pension plans and other retirement-related items for tax year 2018. 

Go to 2018 cost of living adjustments for information concerning Pension Plan Limitations and 401(k) Contribution Limits.

October 19, 2017

Determining the scope of a grievance/arbitration clause set out in a collective bargaining agreement


Determining the scope of a grievance/arbitration clause set out in a collective bargaining agreement
Thousand Is. Cent. Sch. Dist. v Thousand Is. Educ. Assn., 2017 NY Slip Op 06759, Appellate Division, Fourth Department

The Thousand Island Central School District [District] and the Thousand Island Education Association [Association] entered into a collective bargaining agreement [CBA] that provided for the arbitration of "any alleged violation of this agreement or any dispute with respect to its meaning or application."

The Association filed a grievance on behalf of one of its members [Teacher] alleging that the District had violated the provisions of the CBA that require the District to maintain salary schedules in an ethical manner, to adjust teacher salaries based on graduate credits earned, and to abide by the salary schedules.

The Association alleged that when Teacher was hired the District mistakenly placed her on the salary schedule without properly taking into account the graduate credits that she had earned and, as a result of that error, Teacher had been underpaid since the effective date of Teacher's employment by the District.

In response to the Association's demand for arbitration of the grievance the District commenced a CPLR Article 75 proceeding seeking a permanent stay of arbitration. In response to the District's action, the Association cross-moved to compel arbitration.

Supreme Court denied the Association's cross motion to compel arbitration. The Association appealed and the Appellate Division reversed and directed the parties to proceed to arbitration.

The Appellate Division again applied the two-part test used by the courts to determine whether a matter is subject to arbitration under a CBA, finding, first, that there was no statutory, constitutional or public policy prohibition against arbitration of the grievance.*

Turning to the second test, the Appellate Division decided that "the parties in fact agreed to arbitrate the particular dispute" as there is a reasonable relationship between the subject matter of the dispute and the general subject matter of the CBA.

With respect to second prong of the test, the court said "[t]he dispute concerns whether [the District] placed Teacher at the correct step of the salary schedule and paid her properly based on the graduate credits that she earned, and thus it is reasonably related to the general subject matter of the CBA." In view of this, "it is the role of the arbitrator, and not the court, to make a more exacting interpretation of the precise scope of the substantive provisions of the CBA, e.g. does the scope of the CBA's grievance provisions encompass "the initial placement of a new employee on the salary schedule, as opposed to the proper payment of an existing employee, and whether the subject matter of the dispute fits within them?"

* The District conceded that arbitrating grievance concerning salaries to be paid to individuals is not proscribed by law or public policy and thus only the second prong test was at issue.

The decision is posted on the Internet at:


October 17, 2017

Negotiating disciplinary procedures for City of Schenectady police officers held a prohibited subject of collective bargaining


Negotiating disciplinary procedures for City of Schenectady police officers held a prohibited subject of collective bargaining
City of Schenectady v New York State Pub. Empl. Relations Bd., 2017 NY Slip Op 07210, Court of Appeals

The City of Schenectady [Schenectady], under color of §133 of Article 9 of Second Class Cities Law, had announced that it would no longer be bound by negotiated police disciplinary procedures then set out in a collective bargaining agreement between Schenectady and the Schenectady Police Benevolent Association [PBA]. Schenectady advised PBA that was replacing the contract disciplinary procedure, under which an employee upon whom disciplinary charges had been served had the right of appeal to an arbitrator, and, instead, unilaterally adopted disciplinary procedures that substituted the Public Safety Commissioner for the arbitrator as the ultimate administrative disciplinary decision maker.

PBA challenged the City's action, obtained a favorable ruling from the Public Employment Relations Board and ultimately the matter was considered by the Appellate Division.

The Appellate Division opined that the Taylor Law mandates that disciplinary procedures for all public employees be the subject of good faith collective bargaining, commenting that “courts have long recognized the 'strong and sweeping policy of the State to support collective bargaining under the Taylor Law." The Appellate Division then ruled that "the presumption is that all terms and conditions of employment are subject to mandatory bargaining" [City of Schenectady v New York State Pub. Empl. Relations Bd., 136 AD3d 108].

Schenectady challenged the Appellate Division ruling and appealed the matter to the Court of Appeals. NYPPL summarized* the issue presented in Schenectady's appeal of the Appellate Division's decision to the Court of Appeals.

The Court of Appeals framed the issue before it as "Schenectady asks us to reverse the holding of the Appellate Division that the relevant provisions of the Second Class Cities Law were superseded by the enactment of the Taylor Law and thus collective bargaining applies to police discipline in Schenectady."

Noting that this was not the first time it had addressed the impact of the Taylor Law with respect to the issue of police discipline, the Court of Appeals said that its rulings in Matter of Patrolmen's Benevolent Assn., 6 NY3d 563, and Matter of Town of Wallkill, 19 NY3d 1066, resolved the question at issue here: "Is there a public policy strong enough to justify excluding police discipline from collective bargaining?"

In Patrolmen's Benevolent Association the Court of Appeals held that the New York City Charter and Administrative Code gave the police commissioner "cognizance and control over the . . . discipline of the department" and the authority "to punish [an] offending party." In Town of Wallkill, the Court of Appeals pointed out that Patrolmen's Benevolent Assn. was "dispositive where Wallkill had enacted a local law vesting disciplinary power with the Town Board.

In Schenectady the Court of Appeals concluded that the Second Class Cities Law, enacted prior to Civil Service Law §§75 and 76, specifically "commits police discipline to the police commissioner" and sets out the relevant disciplinary  procedures.

Finding that the Taylor Law's general command regarding collective bargaining was not sufficient to displace the more specific authority granted by the Second Class Cities Law, the Court of Appeals ruled that its decisions in Matter of Patrolmen's Benevolent Assn.and Matter of Town of Wallkillcontrol and police discipline is a prohibited subject of collective bargaining with respect to the City of Schenectady.

The Court of Appeals then reversed, with costs, the Appellate Division's ruling and annulled the determination of the Public Employment Relations Board challenged by Schenectady.

* NYPPL's analysis of the issues before the Court of Appeals are posted on the Internet at: https://publicpersonnellaw.blogspot.com/2017/09/court-of-appeal-to-determine-whether.html

The Court of Appeals' decision is posted on the Internet at:
http://www.nycourts.gov/reporter/3dseries/2017/2017_07210.htm

_______________

The Discipline Book - A concise guide to disciplinary actions involving public officers and employees in New York State set out as an e-book. For more information click on http://booklocker.com/books/5215.html
___________________



Removing a judge from his or her office


Removing a judge from his or her office
Matter of Ayres, 2017 NY Slip Op 07207, Court of Appeals

J. Marshall Ayres [Petitioner], a non-lawyer Justice of the Conklin Town Court, sought the Court of Appeals' review of a determination of the New York State Commission on Judicial Conduct sustaining certain charges of misconduct and removing Petitioner from office.  The Court of Appeals, after a plenary review of the record, sustained the Commission's findings and concluded that Petitioner's removal was warranted.

The decision sets out the details of the events that resulted in the Commission's removing Petitioner from his office and describes a number of applicable judicial standards of ethics that a judge must be guided by so as to act "in such a manner as to inspire public confidence in the integrity, fair-mindedness and impartiality of the judiciary." The Court of Appeals said the Petitioner "persisted in ... serious misconduct even after County Court informed" him as to his "proper role" as a judge. The court said that Petitioner's "misconduct is compounded by his failure to recognize these breaches of our ethical standards and the public trust" and that "[j]udges are held to 'standards of conduct more stringent than those acceptable for others.'"

In the words of the court, Petitioner "misses the essential point: that, as a judge, his conduct had to both be and appear to be impartial." This is a particularly high standard  and the misconduct with "which [Petitioner] is charged and which he does not deny — fails to meet it."

The decision is posted on the Internet at:


A statute designating that certain public employees shall become members of the State and Local Employees' Retirement System preempts enrolling such employees in a different public retirement system


A statute designating that certain public employees shall  become members of the State and Local Employees' Retirement System preempts enrolling such employees in a different public retirement system
2017 NY Slip Op 07025, Appellate Division, Third Department


Petitioner, a Suffolk County Park Police Officer, applied for performance of duty and accidental disability retirement benefits with the New York State and Local Police and Fire Retirement System [PFRS] alleging that he was permanently incapacitated from performing his job duties as the result of a work-related injury. The application was denied because Petitioner was not a member of PFRS but, in fact, was a member of the New York State and Local Employees' Retirement System [ERS].

Petitioner requested a re-determination and, following a hearing, the Hearing Officer upheld the Department's decision. The Comptroller adopted the Hearing Officer's decision that Petitioner was a member of ERS and not a member of PFRS and Petitioner appealed the Comptroller's ruling.

Petitioner argued that the Comptroller should have found that he was a member of PFRS because his job duties satisfied the definition of a police officer within the meaning of Civil Service Law §58 and he was a member of an organized police force.

The Appellate Division's sustained the Controller's determination explaining that:

1. §89-r of the Retirement and Social Security Law [RSSL] was enacted for the purpose of establishing a 25-year retirement plan for individuals employed as Suffolk County Park Police Officers as Chapter 605 of the Law of 1966;*and

2. Petitioner had enrolled as a member of ERS when he began his employment as a Suffolk County Park Police Officer in 2003.

PFRS is "a separate retirement system for police and fire[fighters]" that includes a 20-year retirement plan for members of the Suffolk County police departments in accordance with RSSL §387-a.** Although eligibility for this plan also includes other Suffolk County law enforcement personnel, Suffolk County Park Police Officers are not included in the list of RSSL §387-a eligible Suffolk County law enforcement personnel and are instead provided for by RSSL §89-r.

In view of this statutory prescription with respect to membership set out in the RSSL, the Appellate Division held that the Comptroller's determination that Petitioner was a member of ERS rather than PFRS was not "irrational, unreasonable or contrary to the statutory language." 

* "Retirement of county park police officers in Suffolk county."

** "Retirement of members of the Suffolk county police force; new plan."

The decision is posted on the Internet at: 
http://www.nycourts.gov/reporter/3dseries/2017/2017_07025.htm

October 16, 2017

Guidelines followed by courts in reviewing a challenge to a disciplinary decision made after a hearing held pursuant to compulsory arbitration



Guidelines followed by courts in reviewing a challenge to a disciplinary decision made after a hearing held pursuant to compulsory arbitration
2017 NY Slip Op 07122, Appellate Division, Second Department

Education Law §3020-a mandates compulsory arbitration in the event an educator challenges disciplinary charges that have been filed against him or her by the appointing authority.

Petitioner was found guilty of charges of misconduct filed pursuant to Education Law §3020-a after a hearing. The penalty imposed: termination from the position. Petitioner then initiated an action in Supreme Court pursuant to CPLR Article 75 seeking a court order vacating the arbitrator's determination. Supreme Court, however, confirmed the arbitration award and Petitioner appealed that court's ruling to the Appellate Division.

The Appellate Division affirmed the lower court's decision explaining:

1. Where the obligation to arbitrate arises through a statutory mandate such as Education Law §3020-a, the determination of the arbitrator is subject to closer judicial scrutiny than it would otherwise receive.

2. An award resulting from a compulsory arbitration proceeding must have evidentiary support and cannot be arbitrary and capricious.

3. The arbitrator's decision must be rational or have a plausible basis.

4. The reviewing court "should accept the arbitrators' credibility determinations, even where there is conflicting evidence and room for choice exists."

The Appellate Division held that the arbitrator's determination had evidentiary support and was not arbitrary or capricious. Further, the court found that the arbitrator's determination "was in a form sufficient to enable [Petitioner] to understand its basis so as to permit an intelligent challenge and adequate judicial review."

The decision also notes that Petitioner "failed to present evidentiary proof of actual bias or the appearance of bias on the part of the arbitrator and thus failed to establish entitlement to vacatur of the arbitrator's award  on the ground of partiality."

As to the penalty imposed by the Arbitrator, termination, the Appellate Division, citing Pell v Board of Education of Union Free School District No. 1, 34 NY2d 222, said that the penalty "does not shock the conscience" and sustained it.

* §3020-a(2)(a) of the Education Law requires the appointing authority to provide the individual against whom disciplinary charges are served with a written statement specifying (i) the charges in detail and (ii) the maximum penalty which will be imposed by the board if the employee does not request a hearing while §3020-a(2)(f) provides that "The unexcused failure of the employee to notify the clerk or secretary of his or her desire for a hearing within ten days of the receipt of charges shall be deemed a waiver of the right to a hearing."

The decision is posted on the Internet at:

October 14, 2017

New York State Comptroller Thomas P. DiNapoli announced the following audits and reports were issued during the week ending October 14, 2017


New York State Comptroller Thomas P. DiNapoli announced the following audits and reports were issued during the week ending October 14, 2017 
Source: Office of the State Comptroller

Click on text highlighted in color  to access the full report 

Some NY Schools Not Reporting Bullying or Harassment 
Many New York schools fall short when it comes to protecting students from harassment and discrimination based on gender, race, religion, sexual orientation or gender identity, according to an auditby New York State Comptroller Thomas P. DiNapoli. 

Former Ontario Water Superintendent Rodney Peets was arraigned in Wayne County on charges of offering a false instrument for filing, tampering with a public record and official misconduct after a year-long investigation by the State Comptroller’s Office, the New York State Police, and Acting Wayne County District Attorney Christopher Bokelman.



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