Mayor scraps plan to settle ex-sergeant's stress claim

Portland Mayor Tom Potter has removed a proposed settlement for a former Central Precinct sergeant from the City Council agenda, recognizing he doesn't have the votes to pass it.

When the proposed settlement for former Sgt. Rocky Balada first went before the City Council, on Oct. 22, Commissioners Nick Fish, Randy Leonard and Sam Adams expressed concern about setting a bad precedent and asked for more data about Balada's claims.

Linda Jefferson, director of the Portland Fire and Police Disability and Retirement Fund, and Stephanie Harper, a deputy city attorney, said the case could cost taxpayers half a million dollars or more if an administrative law judge approves Balada's job-related stress claim, pending for nine years.

Balada, then a supervisory sergeant, filed a disability claim for job-related stress as he was about to be demoted in July 1999 in connection with a Central Precinct overtime abuse scandal.

The disability fund never held a hearing, and granted Balada a non-job-related stress claim from 2000 until 2006, equivalent to 50 percent of pay.

In 2006, the fund terminated Balada's benefits, finding he was able to return to work. His doctor disagreed, and he has remained off with no pay or benefits. He hasn't worked in more than eight years.

Under the fund's proposed settlement, the city would have paid Balada $92,300.

-- Maxine Bernstein