PEABODY — A new police contract that makes Sept. 11 a paid holiday for officers won the support of the City Council last night.

The provision was sharply criticized by some councilors but defended and praised by others.

"It just doesn't sit right," said Ward 2 Councilor Arthur Athas, who voted against funding the contract.

Peabody officers will be paid time-and-a-quarter on the anniversary of the 2001 terrorist attacks in New York City and Washington, D.C. When the police union and city agreed on a new contract last October, the holiday sparked a public outcry that accused police of exploiting a national tragedy to increase their pay. The union said they wanted the holiday to honor emergency responders who performed bravely on Sept. 11.

"I was hoping that more rational minds would come to their senses and scratch that particular issue out of the contract," Athas said.

Councilor-at-large Jim Liacos said the provision "embarrasses the city." He also had hoped the city and union would have returned to the bargaining table to amend the contract.

"It's a mistake by both sides," he said. "I honestly thought that this would be taken care of before it arrived before the council."

Liacos suggested officers donate the extra holiday pay to a fund for those widowed or orphaned by the attacks.

But Councilor-at-large Mike Garabedian said the provision was not a "black eye."

"I'm proud of this department," he said. "I don't see it as an embarrassment whatsoever."

Ward 1 Councilor Barry Osborne pointed out that public safety unions in New York City supported the efforts of their counterparts in Peabody.

"The intent was to remember 9/11 in their own way," he said.

The council voted 7-4 to fund the contract. Councilors Ted Bettencourt, Dave Gravel, Robert Driscoll, Dave Gamache, Osborne, Garabedian, and Liacos voted in favor. Councilors Barry Sinewitz, Rico Mello, Athas and Anne Manning voted in opposition.

Though they had reservations, Liacos and Gravel said they respected the collective bargaining process and the mayor's authority to negotiate contracts on the city's behalf.

"What is agreed is agreed," Gravel said.

The council, first in its finance subcommittee and then as a whole, last night also reviewed requests to fund recently settled city contracts with the firefighters union; the American Federation of State, County and Municipal Employees; and Peabody's nonunion workers. Councilors endorsed appropriation requests submitted by Mayor Michael Bonfanti that asked for $575,000 for police, $625,000 for firefighters, $459,940 for AFSCME and $343,295 for nonunion personnel. The money will cover pay increases for last year and this year.

The police union will receive 13 percent in raises over four years, the fire union 12.5 percent over four years and AFSCME 12 percent over four years. Nonunion personnel will take in 9 percent over three years.

The raises in each case will be partly offset by unions agreeing to pay 15 percent of their health insurance premiums, up from 10 percent, and contributing more for doctor's office visits, emergency room visits and prescription drugs. The police union will also have to submit to random, hair follicle drug testing.

Bonfanti said he deserves any blame for including the Sept. 11 provision.

"For those who might be offended, I apologize," he said. "I saw (union leadership) come in with honor in their hearts. They wanted to do something that they thought was correct."

Ward 5 Councilor Dave Gamache commended the police for being the first among Peabody's unions to agree to health care concessions.

Osborne highlighted base salaries for patrol officers that range between $44,000 and $50,000.

"No one is getting rich here," he said.

The council approved a total of $2 million for the three contracts and the nonunion raises. The city will be able to pay for it with money it set aside the last two years in a reserve account, Finance Director Patti Schaffer said.

What the future costs of the contracts and raises could mean for the city is harder to predict, she said.

Gravel reminded councilors that the city could see a 10 percent reduction in state aid next year.

"This is like driving down the road, knowing you're going to hit a wall and putting your foot on the gas not the brake," he said.

How they voted

For contract

Ted Bettencourt

Robert Driscoll

Dave Gamache

Mike Garabedian

Dave Gravel

Jim Liacos

Barry Osborne

Against contract

Arthur Athas

Anne Manning

Rico Mello

Barry Sinewitz