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IV.4. Approval of 2024-2026 Contract with LELS #171; LenzAdministration CITY OF HOPKINS City Council Report 2023-101 To: From: Date: Subject: Honorable Mayor and Council Members Mike Mornson, City Manager Ari Lenz, Assistant City Manager October 10, 2023 Approval of 2024-2026 Contract with LELS #171 RECOMMENDED ACTION MOTION TO Approve 2024-2026 Union Contract with LELS #171 This will ratify a three year contract with the Sergeants. OVERVIEW This item depends on the approval of the MOU regarding 2023 wages being presented tonight, this item should not be adopted if there are issues with the MOU for 2023. The contract calls for a 3.0% wage increase effective January 1, 2024, 2025 and 2026. The wages are within budget for 2024 and the insurance contributions are consistent with past practice and other pending union agreements. Primary issues to consider: •What other economic issues are included in the new contract? •Will the agreement keep the City Market competitive? •How does the agreement fit into the 2024 proposed budget. Analysis of Issues What other economic issues are included in the new contract? The agreement implements a minor adjustment to the uniform allowance, a $50 increase in 2024, an additional $50 increase in 2025 and an additional $50 increase in 2026. Uniform allowances have not been adjusted since 2017 and staff believe a minor increase is warranted given inflationary changes. The agreement adds a fitness incentive of 1.0% starting in January 2025, for those sergeants who are able to meet fitness related goals. The requirements of that program will be adopted by July 1, 2024 by Police Administration. This incentive is consistent with incentives provided by multiple other police agencies and we believe is necessary to stay competitive. Will the agreement keep the City market competitive? The compensation in this agreement is consistent with the Citywide market study results and we believe will put the City of Hopkins at the appropriate spot in the labor market. How does the agreement fit into the 2024 proposed budget. The agreement is within the budgeted amounts in the proposed budget. Estimated budget impact in 2024 is $32,354. SUPPORTING INFORMATION 2024-26 Union Agreement