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IV.9. Approve 2015-2016 HMEA Contract December 16, 2014 Council Report 2014-138 APPROVE 2015-2016 HMEA CONTRACT Proposed Action Staff recommends that the Council approve the following motion: Move approval of the 2015-2016 Contract with the Hopkins Municipal Employees Association. This action will ratify a two year contract with HMEA, which represents the clerical and technical employees. Overview The contract calls for a 2% wage increase effective January 1, 2015 and a 2.5% wage increase in 2016. There are increases in the City contribution towards insurance in both years. The City’s insurance premiums are increasing by 10.5% in 2015. The City’s contribution will increase by an average of 6.6%. The City’s insurance premiums are expected to increase by 11.5% in 2016. The contract calls for an increase in the City’s contribution of 5.4% Primary Issues to Consider How does this agreement fit in with the 2015 budget? The cost of the contract is within the 2015 budget. Alternatives 1.Approve the contract. 2.Do not approve the contract. Staff would have to renegotiate the contract. Staff recommends Alternative #1. ______________________________________ James A. Genellie Assistant City Manager Financial Impact: $ Budgeted: Y/N 2015 - $56,000 2016 - $63,000 Yes for 2015 Source:General Fund