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CR 11-033 Approve 2010/2011 Police Officers' Contract• • n U April 19, 2011 Council Report 2011-033 APPROVE 2010/2011 POLICE OFFICERS' CONTRACT Proposed Action Staff recommends that the Council approve the following motion: Move approval of the 2010/2011 Contract for the Police Officers' Association. This action will ratify the 2010/2011 contract with the Police Officers' Association. Overview The contract calls for a I% wage increase effective January 1, 2010 and a 2% wage increase effective January 1, 2011. The contract also provides for an increase in the City's contribution for insurance of $98.00/month for 2010. The increase will apply for employees with family, Single + 1, or Single + Children group health insurance. There is a $90.00 increase for employees with the most expensive single coverage. The contract provides for an increase in the City's contribution for insurance of $86.00/month for 2011. The increase will apply for employees with family, Single + 1, or Single + Children group health insurance. There is a $57.00 increase for employees with the most expensive single coverage. Primary Issues to Consider • Why is this contract being brought forward now? • How does this agreement fit in with the 2010/11 budget? "/Z. zr James . Genellie Assistant City Manager Financial Impact: $ $21,670 in 2010 Budgeted: Y/N Not Source: General Fund $37,570 in 2011 entirely Related Documents (CIP, ERP, etc.): Notes: Council Report 2011-033 Page 2 Analysis of the Issues Why is this contract being brought forward now? The Police Officers' Association and the City were unable to come to agreement regarding the amount of money that the Officers should receive for insurance. Because the Officers are an essential unit under state law, they are not allowed to strike. Therefore, when the parties are not able to come to agreement through negotiation, there is a mandatory mediation followed by an arbitration assuming the mediator is unable to get the parties to agree. The arbitration was held on March 15. The arbitrator's decision was delivered on March 31. The City had offered wage and insurance benefits identical to those given to the Sergeants' union. The arbitrator granted the Officers a 1 % wage increase in 2010 and gave extra money to those employees with single insurance. How does this agreement fit in the budget? The City budgeted 0% for wage increases in 2010. The cost of the arbitrator's award for 2010 is approximately $21,000 above what is budgeted. • The City budgeted 2% for wage increases in 2010. The arbitrator awarded a 2% wage increase. The total cost of the settlement for 2011 is approximately $37,000. The wage increase was budgeted as was the City contribution given to employee's with family insurance. The extra money given to employees with single insurance was not budgeted. This amounts to about $3,300.00. 0