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CR 10-080 Approve 2010-2011 HMEA ContractAugust 17, 2010 Council Report 2010-080 • APPROVE 2010-2011 HMEA CONTRACT Proposed Action Staff recommends that the Council approve the following motion: Move approval of the 2010-2011 Contract with the Hopkins Municipal Employee's Association. This action will ratify the 2010-2011 contract with HMEA, which represents the clerical and technical employees. Overview The contract calls. for a 0%wage increase for 2010 and a 2% wage increase effective January 1, 2011. The contract also provides for an increase in the City's contribution for group health insurance. Primary Issues to Consider • • What other economic issues are included in the new contract? • How does this agreement fit in with the 2010-2011 budget? • How does this agreement compare to other contract settlements for 2010-2011 in terms of wage and benefit increases? ,4-d,xA Ja `es A. Genellie Assistant City Manager Financial Impact: $ 2010-$9,000 Budgeted: Y/N Yes Source: General Fund & other funds Related Documents (CIP, ERP, etc.): Notes: Estimated costfor 2011 - $56,300 0 Council Report 2010-080 Page 2 Analysis of the Issues What other economic issues are included in the new contract? The only other economic issue was an increase in the amount of money paid to employees who opt out of the City's insurance. There are four employees in HMEA who opt out of the City's insurance. They currently receive $325.00 per month. This is being increased to $360.00 per month which matches the amount in the Local 49 contract. This does not effect any employee hired after 2004 who are limited to $100.00 per month should they opt out. How does this agreement fit in the budget? The wage and insurance amounts agreed to for 2010 are within the budget. The 2011 budget has not been approved yet but staff expects that the proposed settlement will fit in the 2011 budget. How does this agreement compare to other contract settlements for 2010 in terms of wage increases? 2010 settlements for other cities have generally been at 0%. There are only a few 2011 settlements. • 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. 0