HomeMy WebLinkAbout1998-04-01 PACKET 04.H.RE(�UEST OF G(TY COUM1ICIL ACTIt7N GOUFPCIL
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DATE 4!1l98
PREPPR�D BY Administrafion
ORIGINATING DEPARTMENT
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Approve 1998-1999 Bargaining Unit Agreement with Police Sergeants
�UDGET IMPL.ICATION Outline in Memo
BUDGETED AMOUMT ACTIIAL AMOUPdT
SUPPORTING DOCUnAENTS
� NlEMO/LETTER: Memo from Michelle A. Woife dated 3/27/98.
❑ RESOLUTION:
❑ ORDINANCE:
❑ ENGINEERING RECOMMENDATIOfV:
❑ LEG,4L F2ECOMMEPdDATION:
❑ OTHER:
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— City Administrator date
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To: Honorable Mayor and City Council
Ryan R. Schroeder, City Administrator
From: Micheile Woife
Date: 03/27/98
Re: Approval of 1998-1999 Bargaining Unit Agreement with Police Sergeants
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The labor agreement with the police sergeants expired at the end of 1997. We have
been working on a new contract for several months. We had a mediation session on
March 24, and came to agreement on proposals that both sides were willing to
recommend for approval.
RECOMMEND PROPOSALS
Duration:
Wages:
2 years, 1998-1999
3% base wage increases each year
Uniform Allowance: Increase $15 per year, reduce carry-over to 1-year limit
Health Insurance:
Wor1c schedules:
1-1-98 Empioyer contribution $340/month
4-1-98 Empioyer contribution $350/month
1-1-99 Employer contribution $370 per month, and if the
premium increases more than $50, the additional increase is
split 50% employee, 50% employer. If the premium decreases,
the employer contribution will be $360.
Changes in the health plan to include $15 co-pay for office visits
$15 co-pay for outpatient hospital, elimination of out-of-network
coverage.
Add language stating the normai work year wiil be 2080 hours.
\�CG FSt�SYSiGROUPSWER_ECONNAAW�CONTRACTl98sgtWgendattem.doc
Seniority: Memorandum of Understanding stating that if there is a layoff
during the duration of this contract, the reduction of workforce
will be on the basis of seniority within the Department. The
Memorandum wiil also state that the City agrees to meet and
confer with representatives of Local No. 79 and Local No. 138
to develop proposed language addressing seniority. (A draft is
attached. )
DISCUSSION
The three economic issues are wages, health insurance, and uniform ailowance. in
terms of wages, 3% is still very consistent with the metro area increases, and is
consistent with what was agreed with other City bargaining units for 1998. This is the
first agreement which wiil be approved for 1999, but for those in other communities
that have settled for 1999, 3% is stili a consistent fgure.
The uniform allowance increase is reasonable considering that at the current rate of
$505, the sergeants are receiving $20 less per year than the police officers. Further,
the Sergeants have a provide system, and must submit receipts for purchases. They
do not receive this amount as cash. In addition, the current language allows the
sergeants to carry-over unused amounts for use in purchasing a weapon or vest.
This new proposal would limit the ability to carry-over of unused allowance to a
maximum of one-year.
The health insurance was an important issue, as it has been and continues to be with
other contracts. The April 1, 1998 renewal premiums represent a 20% increase. For
family coverage, this equates to an increase of approximately $90 per month. With
the current employer contribution approved at $340 (for other city empioyees per the
budget), a$15 increase over the 1997 contribution, the employee's share of the
incxease becomes $75 per month. This is a very sign�cant amount and empioyees
are very concemed. They are also concemed about future increases.
The proposal we agreed to is that if the employees would agree to some plan design
changes such as increasing the co-pay and eliminating out-of-network coverage, the
City would add an additional $10 to the original offer of $15 per month, for a total
monthiy contributio� of $350 effective April 1, 1998. For 1999, we offered to increase
that amount by $20, to $370, and to pay 50% of any premium increase over $50.
We also required that if premiums decrease, the contribution would decrease to
$360.
Overali, this equates to a$25 per month increase over the 1997 rate, which is higher
than we have recommend in the past. However, with a 12°k premium rate increase
last year and a 20% increase this year, it has become a real issue with the
employees. in addition, other cities have been faced with rising premiums and
several have agreed to higher amounts, which would affect our ability to keep our
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contribution as low as it has been in the past. Based on this information, staff
recommends this proposal.
CONCLUSION
Based on the above description of proposals, approve the Labor Agreement with
LELS locai No. 138 representing Cottage Grove Police Sergeants, for the period
January 1, 1998 through December 31, 1999. Approve the Memorandum of
Understanding between LELS Local No. 138 and the City of Cottage Grove as
attached to this memorandum.
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Between LELS Local No. 138
And
The City of Cottage Grove
Regarding Layoff
The City agrees for the life of this contract 1998 and 1999 in the event of a layoff
within the Police Department the reduction of the work force will be accomp{ished
on the basis of seniority within the Department.
The City further agrees during the life of this contract it will facilitate, meet and
confer sessions between its self and representatives of LELS Local No. 79 and
Local No. 138 to develop proposed contract language addressing seniority.
Terry Herberg, Business Agent
LELS Locai No. 138
Jack Denzer, Mayor
City of Cottage Grove
John A. Mickeison, Sergeant
LELS Local Na 138
Ryan Schroeder, City Administrator
City of Cottage Grove
Dated this day of , 1998.