07-0732R                                                          REPLACEMENT



     RESOLVED, that the city approves and the proper city officials are authorized to execute and implement a collective bargaining agreement with Local 66 of AFSCME, containing the same terms and conditions, and being in the same form (except for typographic or insubstantial corrections) as the contract on file with the city clerk as Public Document No. ______________, covering the years 2007-2009.

STATEMENT OF PURPOSE:  For over a year, the city has been in negotiations with AFSCME for the 2007-2009 contract. With the assistance of a mediator, a tentative agreement was reached in September. The union has not taken the agreement to its members for a vote. This resolutions seeks city council approval of the agreement. Negotiations with all other bargaining units have ended and their contracts are approved.

The significant changes to the contract include:

     1.   A three year contract with wage increases of: 2007 - 1%, 2008 - 3%, 2009 - 3%. This is a 7% increase over three years or 2.333% per year.

     2.   The amount contributed by the city to employees’ deferred compensation has increased by $5 for a total amount of $229 per month.

     3.   There will no longer be four hospital-medical benefit plans available to active employees. All active employees will have coverage under Plan 3A. This plan requires the employee to pay deductibles and co-pays. The city will continue to contribute 80% of the cost of family coverage and 100% of the cost for single coverage. For those employees with single coverage, the city has increased its contribution to the employees’ flex benefits account by $25 for a total of $75 per month.

     4.   Retired employee health coverage now contains language that:

           (a)  All employees retire under Plan 3A and are subject to a sliding scale that determines the percentage of cost borne by the city and the retirees. After 20 years of service, the city pays 100% of the premium. Effective January 1, 2008, the city contributes 1% of an employee’s basic monthly pay into a post employment health care savings plan account;

           (b)  The city will deposit $6,000 into a health care savings plan account for all full-time employees hired on or after January 1, 2007, who complete 60 months of employment. These new hires are not eligible for a defined retiree health care benefit and may enroll in the city’s health care plan only at their own expense; and

           (c)  Allows the city, at its option, to implement a supplemental health insurance plan for all retirees over the age of 65.

     5.   Eligible employees hired on or before December 31, 2006, who retire under the contract, may receive, based on years of service, up to $6,000 deposited into a health care savings plan account.

     6.   New article defining seasonal and part-time employees. Seasonal employees are not eligible for employee benefits, while part-time employees are eligible for limited benefits. Options for the city during a financial crisis were included such as a voluntary reduction of hours, temporary transfers, and an involuntary reduction of hours for a limited time. Standby duty for certain full-time employees was also changed to achieve operational efficiency.