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CR 09-010 Approve contract amendment with the dispatchers unionFebruary 3, 2009 Council Report 2009 -010 APPROVE CONTRACT AMENDMENT WITH THE DISPATCHERS UNION Proposed Action Staff recommends that the Council approve the following motion: Move approval of agreement establishing 2009 insurance contributions for the Dispatchers Union This action will set the 2009 City contributions for insurance for the Dispatchers/PSO Union, LELS Local 143. Overview The City and the Union agreed to a two year contract in May of 2008. The contract established wage rates and other compensation for 2008 and 2009. However, the contract did not settle insurance contributions for 2009. 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. 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 benefit increases? Genellie City Manager Financial Impact: $ $ 4,080 Budgeted: YIN Yes Source: General Fund Related Documents (CIP, ERP, etc.): Notes: Council Report 2009 -010 Page 2 Analysis of the Issues How does this agreement fit in the budget? The cost of the insurance increase is within the budget. How does this agreement compare to other contract settlements for 2009 in terms of benefit increases? The agreed upon insurance contributions are identical to those received by Local 49, HMEA, the Police Officers' Association, the Sergeants and non -union employees. The different ways that cities make insurance contributions, and the different insurance rates the individual cities have, make direct comparisons to other cities difficult. The City of Hopkins' insurance benefits are competitive with other jurisdictions. Alternatives 1. Approve the contract amendment. 2. Do not approve the contract amendment. Staff would have to renegotiate the contract. Staff recommends Alternative #1.