CR 2004-135 Approve 2004/2005 HMEA Contract
September 7, 2004 ~ Conneil Report 2004-\35
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APPROVE 2004/05 HMEA CONTRACT
Proposed Action
Staff recommends that the Council approve the following motion: Move approval of the 2004-2005
Contract for HMEA retroactive to January 1, 2004.
This action will ratify the 2004/05 contract for the clerical and technical employees.
Overview
The contract calls for a 2% wage increase effective January 1, 2004, a 1 % wage increase effective June 27,
2004, and a 2% increase effective January 1, 2005. The contract also provides for an increase in the City's
contribution for insurance of $20.00/month for 2004. The increase will apply to al1 employees in the unit.
Employees hired after August 1, 2004, who have single insurance, will receive single health, dental, and life
insurance at a cost not to exceed $500.00. In 2005 there will be a $40.00/month increase for employees with
family, Single +1, or Single + Children group health insurance and a $15.00/month increase for employees
with single coverage.
Primary Issues to Consider
. . What other economic issues are included in the new contract?
. How does this agreement fit in with the 2004/05 budgets?
. How does this agreement fit the City Council's goals for 2004 and 2005 contracts? I
. How does this agreement compare to other contract settlements for 2004/05 in terms of wage and
benefit increases?
Supportin2 Information
. A copy of the contract is available from the Assistant City Manager.
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James A. Genellie
. .Assistant City Manager
Financial Impact: $ $48,458 in 2004 Budgeted: YIN Yes Source: General & Utility Funds
. Related Documents (CIP, ERP, etc.):
Notes:
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Council Report 2004-135
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Analysis of the Issues
What other economic issues are included in the new contract?
. Employees will receive one additional vacation day per year.
How does this agreement fit in the budget?
The City budgeted 2.5% for wage and benefit increases in 2004. The total cost of the wage and benefit
increase is within the budget.
The City Council has not approved a budget for 2005.
How does this agreement fit the City Council's goals for 2004 and 2005 contracts?
The wage settlement is within the limits of the Council goals of 2.5% for 2004 and 5% for both years.
The contract does not freeze the insurance contributions to employees with single health insurance,
although it does reduce the contribution for any new employees who choose single health insurance.
This was the most contentious issue with the union. 85% of the membership has single coverage so this
was a significant economic issue. The final compromise involved a small increase for all employees for
2004. For 2005 there will be different contributions for members with family insurance and those with
. single insurance. This is the first time in 20 years that the union has agreed to a different amount for
members with family coverage versus members with single coverage.
How does this agreement compare to other contract settlements for 2004/05 in temlS of wage and benefit
increases?
2004 settlements for other cities have generally been in the range of 3%. There are not enough 2005
settlements to determine a trend.
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