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CR 01-14 Approve 2001 HMEA Contract February 6, 2001 ~ Council Report 2001-14 APPROVE 2001 HMEA CONTRACT Proposed Action Staff recommends that the Council approve the following motion: Move approval of the 2001 Contract for the Hopkins Municipal Employees Association. This action will ratify a two-year contract with the Hopkins Municipal Employees Association, HMEA. Overview We have completed negotiations with HMEA for 2001. The contract calls for a 3.25% wage increase effective January 1,2001. There is an increase of $40.00 per month for health, life, and dental insurance in 2001. Primary Issues to Consider How does this agreement fit in with the 2001 budget? How does this agreement compare to other contract settlements for 2001 in terms of wage and benefit increases? What is the Uniform Settlement Form? Supportine Information A copy of the contract is available from the Assistant City Manager. A copy of the state Uniform Settlement Form. ~ c:; es A. Genellie ssistant City Manager Financial Impact: $ $55,600 Budgeted: Y/N Yes Source: General Fund Related Documents (CIP, ERP, etc.): Notes: Amount in excess of budget will come from contingency Council Report 2001-14 Page 2 Analysis of the Issues How does this agreement fit in with the 2001 budget? The City budgeted 3% for cost of living adjustments and $10.00 per month for benefit increases in 2001. The total cost of the proposed settlement is approximately $6,800 more than what was budgeted for 2001. How does this agreement compare to other contract settlements for 2001 in terms of wage and benefit increases? The average settlement in the metro area was 3.0%. The insurance increase is in line with what other bargaining units have settled for. What is the Uniform Settlement Form? The Uniform Settlement Form is a form mandated by the state of Minnesota, which must be presented to the City Council which each contract settlement. The increase shown on this form may differ from the percentage increase listed above because the settlement form contains such items as benefit increases, the increase in state pension due to the wage increases, and any. step increases, which individual union members may receive during the course of the contract. It is presented for your information. Alternatives 1. Approve the contract. Retroactive pay and benefit increases will be included in the next payroll. 2. Do not approve the contract. Staffwould have to renegotiate the contract. Staff recommends Alternative #1. ~ z ::> u o VI ~ VI 11J ~ o 0.. E, w ro 0.. 'u '2 ::J ~ VI w > ~ ~ w l/) ~ a.. ~ w > In 3 u ~ VI c: 32 0.. o J: \I- o ?; U w >- 9 a.. :E w u ::l co ::> a.. ~ ~ !z w :E ~ l/) ~ ~ Z ::> '@' :a Iti .!d 0.. 0.. n:s "- ;::.. ti n:s g 8 "- o L.. n:s Q) >- "E ~ Q) VI n:s al L.. n:s ~ "E M ,..... 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