CR 08-114 Approve 2009 HMEA ContractDecember 16, 2008 Council Report 2008 -114
APPROVE 2009 HMEA CONTRACT
Proposed Action
Staff recommends that the Council approve the following motion: Move approval of the 2009 Contract
with the Hopkins Municipal Employee's Association.
This action will ratify the 2009 contract with HMEA, which represents the clerical and technical
employees.
Overview
The contract calls for a 3% wage increase effective January 1, 2009. The contract also provides for an
increase in the City's contribution for group health insurance.
Primary Issues to Consider
• How does this agreement fit in with the 2009 budget?
• How does this agreement compare to other contract settlements for 2009 in terms of wage and benefit
increases?
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A. Genellie
ssistant City Manager
Financial Impact: $ $57,780 Budgeted: Y{N Yes Source: General Fund & other funds
Related Documents (CIP, ERP, etc.): "
Notes:
Council Report 2009 -114
Page 2
Analysis of the Issues
How does this agreement fit in the budget?
HMEA is the only bargaining unit which did not agree to a multi -year contract in 2008. The 3% wage
increase is identical to that agreed to with other City unions.
Unfortunately, the City's insurance rates increased 16% for 2009. The negotiated increase in the City's
insurance contribution means both the City and the employees will pick up part of this increase.
The City budgeted 3% for wage increases in 2009. The cost of the insurance increase is within the
budget.
How does this agreement compare to other contract settlements for 2008 in terms of wage increases?
2009 settlements for other cities have been coming in at 3% or above.
Alternatives
1. Approve the contract. Pay and benefit increases will be included in the next payroll.
2. Do not approve the contract. Staff would have to renegotiate the contract.
Staff recommends Alternative #1.