CR 06-013 Approve 06/07 Local 49 Contract
January 17,2006
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Council Report 2006-013
APPROVE 2006/2007 LOCAL 49 CONTRACT
Pro Dosed Action
Staff recommends that the Council approve the following motion: Move approval of the 2006/2007
Contract Local 49.
This action will ratify the 2006/2007 contract with Local 49, representing the public works employees.
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 $81.00/month for
2006. The increase will apply for employees with family, Single +1, or Single + Children group health
insurance. There is small increase, $20/month, for employees with single coverage to keep pace with the
increased cost of single health insurance. For 2007 the increase in the City's contribution for health
insurance will equal 1/2 of the average increase in family insurance. 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?
Financial Impact: $ $53,500 in 2006 Budgeted: Y/N Yes
Related Documents (CIP, ERP, etc.):
Notes:
Source: Various city funds
Council Report 2006-011
Page 2
Ana1vsis of the Issues
What other economic issues are included in the new contract?
. Extra money for a pesticide/herbicide, water, or sewer license.
. Upgrading a MW II position to a MW III position in forestry.
. Increasing the pay of the refuse driver and the mechanics.
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 p1arming 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.