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IV.10. Approval Of Local 49ers Contract December 16, 2014 Council Report 2014-139 APPROVE 2015-2016 LOCAL 49 CONTRACT Proposed Action Staff recommends that the Council approve the following motion: Move approval of the 2015-2016 Contract with Local #49 representing Hopkins' Public Works Employees. This action will ratify a two year contract with the Public Works 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 What other economic issues are included in the new contract? How does this agreement fit in with the 2015 budget? The cost of the contract is within the 2015 budget. ______________________________________ James A. Genellie Assistant City Manager Financial Impact: $ Budgeted: Y/N 2015 - $42,800 2016 - $47,300 Yes for 2015 Source: General Fund and Utility Funds Notes: Council Report 2014-139 Page 2 Analysis of the Issues What other economic issues are included in the new contract? There are small increases in 2015 for the additional amounts employees receive who have special licenses such as water & sewer, pesticide applicator, and Class A CDL. How does this agreement fit in the 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.