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CR 2013-026 Approve 2012-2014 Police Officers' ContractMarch 19, 2013 Council Report 2013-026 APPROVE 2012-2014 POLICE OFFICERS' CONTRACT Proposed Action Staff recommends that the Council approve the following motion: Move approval of the 2012-2014 Contract for the Police Officers' Association. This action will ratify the 2012-2014 contract with the Police Officers' Association. Overview The contract calls for a 1% wage increase effective January 1, 2012, a 1% increase effective January 1, 2013, a 1% increase effective July 1, 2013, a 2% wage increase effective January 1, 2014, and a I% increase effective July 1, 2014. There is no change to the City's contribution for insurance through 2014. A new lower starting wage is also part of the contract. The new wage structure should save approximately $6,000 per hire. Primary Issues to Consider • How does this agreement fit in with the 2012-2014 budget? ,/z. a zt A Jam A. Genellie Assistant City Manager Financial Impact: $ $17,945 in 2012 $23,364 in 2013 $40, 000 in 2014 Related Documents (CIP, ERP, etc.): Notes: Budgeted: Y/N Not Source: General Fund entirely Council Report 2013-026 Page 2 Analysis of the Issues How does this agreement fit in the budget? The City budgeted 0% for wage increases in 2012. The cost of the proposed 1% market adjustment is about $18,000 in 2012. An analysis of metro area wages for police officers indicated that a 1% increase in 2012 would keep the City's top salary in line with other metro cities. However the same analysis indicated that the City's starting wage was above the market. A new salary structure was negotiated which will bring the City's starting wage more in line with other metro cities. This new salary structure will result in a savings of approximately $6,000 for each new officer. In addition, a split increase was negotiated for 2013 instead of the budgeted 2% increase on January 1, 2013. This will save a little over $8,000 in 2013. In summary, the police officers received an increase in 2012 which will keep their top salary in line with other metro cities. The City, in turn, was able to get an agreement, without going to arbitration, which locked in insurance contributions for three years at 2011 rates. The City also was able to establish a new wage structure for future hires which, while still being competitive in the market, will reduce costs for all future hires.