Contract 'reaffirms' agencies' relationship

The Jefferson County Agricultural Development Corp. board of directors approved a contract Tuesday morning that "reaffirms" its relationship as a subagency of the Jefferson County Industrial Development Agency, a move that is expected to help the group's chief executive officer remain enrolled in the state's retirement system.

In recent weeks, the state comptroller's office has raised questions about the arrangements the JCIDA made with several Jefferson County economic development agencies to enroll their employees in the state retirement system.

"The contract basically reaffirms that I am an employee of the JCIDA and that the industrial development agency provides my services to the agriculture development corporation to help with the IDA's mission," said Jay M. Matteson, CEO of the JCADC.

Mr. Matteson said the contract approved Tuesday also clarifies the JCIDA's relationship with a part-time administrative assistant working at the agriculture development agency. The assistant, however, is not enrolled in the state retirement system.

The comptroller's office has raised questions about the arrangements made with the umbrella groups of the JCIDA, asserting that employees of those groups are not employees of the JCIDA, because they're not under the JCIDA's control. If the comptroller finds those employees not to be under the JCIDA's control, it could strip them of their pension benefits.

"It's part of the comptroller's effort to ensure that only those who deserve a pension will get a pension," state comptroller spokesman William P. Reynolds said earlier this month.

Donald C. Alexander, JCIDA chief executive officer, said seven employees are affected by the review: two from the Watertown Local Development Corp., three from the Watertown Industrial Center Local Development Corp. and one from the Carthage Local Development Corp.

The employees affected by the comptroller's review are paid by the IDA and not the sub-agencies, Mr. Alexander said.

"All we are trying to do, in the last several months, is tighten up language so that if anybody asks, yes, these are employees of the IDA," Mr. Alexander said. "There's nothing insidious about it. We're just trying to protect these employees if indeed their employment is in question."

The county economic agencies, which consider themselves to be under the JCIDA umbrella, already have taken various steps to retain their employees' pension benefits.

The WLDC, also known as Watertown Trust, voted at its December meeting to apply for separate enrollment in the state's retirement system. Other corporations clarified their relationship with JCIDA, stating directly that their staffs are employees of JCIDA.

The WLDC is expected to receive a report and recommendation this afternoon from attorney Robert J. Slye on its relationship with the JCIDA and an update on its application to the state retirement system. The Watertown Trust will meet at 2:30 p.m. at its office in the Buck Building, 82 Public Square.