00-0387R

RESOLUTION APPROVING A COLLECTIVE BARGAINING AGREEMENT BETWEEN CITY OF DULUTH AND THE DULUTH POLICE LOCAL FOR YEARS 2000-2002.

BY COUNCILOR HOGG:

BE IT RESOLVED, that the proper city officials are authorized to execute and implement a collective bargaining agreement, containing the same terms and conditions, and being in the same form (except for typographical or insubstantial corrections) as that contract on file with the city clerk as Public Document No. ___________________, covering years 2000, 2001, 2002.


STATEMENT OF PURPOSE: The city management and the police union began collective bargaining on September 23, 1999. The parties reached agreement on March 23, 2000. The union membership has recently voted in support of the contract. After thorough discussion and bargaining, the new contract includes the following major changes.
1. A three year contract with wage increases: 2000 - 3%; 2001 - 3%; 2002 - 3¼%.

2. Employer contribution to family health coverage:

Plan 1: No increase

Plan 2: $40/month increase each year.

Plan 3: $50/month increase each year.

3. Employer contribution to deferred compensation program, single coverage employees only:

Plans 1 and 2: $25/month increase each year

Plan 3: $35/month increase each year.

4. Changes to pay rate for K-9 handlers.

5. Coverage changes in Plan 3 (transplants), plus lifetime medical cap increased to $2,000,000.

6. Future hires retire with Plan 3 coverage only. Employees who retire early get Plan 3 coverage only. Any employee may elect to retire with Plan 3 coverage. Retirees on Plan 3 do not pay $650 deductible.

7. Life insurance coverage increased to $50,000 for active employees, $25,000 for retirees.

8. Reopener for conditions of ride-alongs.

This settlement is financially consistent with the settlement which has already been approved by the city council for the firefighters and is within the current statewide settlement trend. It creates some new features in health care coverage that should lead to long term savings. The administration recommends approval.