CR 06-013 Approve 2006-2007 Sergeants Contract
January 17,2006
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Council Report 2006-013
APPROVE 2006/2007 SERGEANT'S CONTRACT
Proposed Action
Staff recommends that the Council approve the following motion: Move approval of the 2006/2007
Contract for the Sergeant's Union.
This action will ratify the 2006/2007 contract with the Sergeants Association, LELS Local 171.
Overview
The contract calls for a 2.5% wage increase effective January 1,2006, a 1% wage increase effective June
25,2006 and a 2.5% wage increase effective January 1,2007 and a 1% wage increase effective July 1,
2007. The contract also provides for an increase in the City's contribution for insurance of$86.00/month for
2006. The increase will apply for employees with family, Single +1, or Single + Children group health
insurance. There is no increase for employees with single coverage. These employees will continue to
receive $535.00 per month. For 2007 the increase in the City's contribution for health insurance will equal
1/2 of the average increase in family insurance. Again, there will be no increase for employees with single
coverage.
Primarv Issues to Consider
. What other economic issues are included in the new contract?
. How does this agreement fit in with the 2006/07 budget?
. How does this agreement compare to other contract settlements for 2006/07 in terms of wage and
benefit increases?
A. Genellie
istant City Manager
Financiallmpact: $ $14,600 in 2006 Budgeted: YIN Yes
Related Documents (CIP, ERP, etc.):
Notes:
Source: GeneralFund
Council Report 2006-011
Page 2
Analvsis of the Issues
What other economic issues are included in the new contract?
. Employees will receive a $50 increase in their uniform allowance for 2006 and a $25 increase in 2007.
How does this agreement fit in the budget?
The City budgeted approximately 3% for wage increases in 2006. The cost of the split increase between
January 1 and June 25 is approximately the same as a straight 3% effective January 1. The cost of the
insurance increase is within the budget. Unfortunately the City experienced a 20% increase in insurance
premiums in 2006. .
The City Council has not approved a budget for 2007. The proposed increase in wages, however, is
approximately what the finance department has been using for planning purposes.
How does this agreement compare to other contract settlements for 2006/07 in terms of wage and benefit
increases?
2006 settlements for other cities have generally been coming in at 3% or above. There are not
enough 2007 settlements to determine a trend.
Alternatives
1. Approve the contract. Retroactive 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.