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HomeMy WebLinkAbout08854ORDINANCE NO. 8854 AN ORDINANCE EXTENDING THE TERM OF THE CURRENT COLLECTIVE BARGAINING AGREEMENT BETWEEN THE CITY OF PUEBLO AND PUEBLO ASSOCIATION OF GOVERNMENT EMPLOYEES FOR A ONE-YEAR PERIOD COMMENCING JANUARY 1, 2016, THROUGH DECEMBER 31, 2016 WHEREAS, the corporate authorities of the City of Pueblo and the sole and exclusive bargaining agent of Pueblo Association of Government Employees negotiated a collective bargaining agreement commencing January 1, 2015 (the “Agreement”); and WHEREAS, the Agreement was reduced to writing, signed by the parties, and enacted by Ordinance No. 8744 on June 23, 2014, pursuant to the requirements of Section 8-14(l) of the Charter of the City of Pueblo, Colorado; and WHEREAS, the Agreement includes a provision that allows the City to extend the contract for two successive one-year terms; and WHEREAS, Section 3-17 of the City Charter requires that every Council act fixing compensation shall be by Ordinance; and WHEREAS, Article 10, Section 20 of the Constitution of Colorado (the TABOR Amendment) could be interpreted to require that compensation for each year of the Pueblo Association of Government Employees collective bargaining agreement be authorized by separate Ordinance. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that SECTION 1. The term of the current collective bargaining agreement by and between the City of Pueblo and the Pueblo Association of Government Employees is hereby extended through December 31, 2016, on the same terms and conditions contained therein, except that wages during the extended term shall be as provided or otherwise determined pursuant to Section 15.1 of the Agreement and the premium contribution rate and maximum contribution amount paid by the City for health insurance shall be as provided in Section 25.1 of the Agreement. SECTION 2. Commencing January 1, 2016, and ending December 31, 2016, the monthly pay rate for each class, grade, step, or position of employees covered by said Agreement shall be increased by Fifty Dollars ($50.00) over the amount set by Ordinance establishing the 2015 pay levels. SECTION 3. Commencing January 1, 2016, and ending December 31, 2016, the City shall pay 77% of the actual cost of a premium toward the cost of a single plus spouse, single plus child or children, or family policy per month for employees but not to exceed $1,312.64 with respect to a single plus spouse plan or $1,193.30 with respect to a single plus child or children plan or $1,538.74 with respect to a single plus family plan. SECTION 4. The officers and staff of the City are directed and authorized to perform any and all acts consistent with the intent of this Ordinance to effectuate the policies and procedures described herein. SECTION 5. This Ordinance shall become effective upon final passage and approval. INTRODUCED: _ February 23, 2015 BY: Chris Nicoll PASSED AND APPROVED: March 9, 2015 City Clerk’s Office Item # R-8 Background Paper for Proposed Ordinance COUNCIL MEETING DATE: February 23, 2015 TO: President Stephen G. Nawrocki and Members of City Council CC: Sam Azad, City Manager VIA: Gina Dutcher, City Clerk FROM: Sam Azad, City Manager Jenny M. Eickelman, Interim Deputy City Manager SUBJECT: AN ORDINANCE EXTENDING THE TERM OF THE CURRENT COLLECTIVE BARGAINING AGREEMENT BETWEEN THE CITY OF PUEBLO AND PUEBLO ASSOCIATION OF GOVERNMENT EMPLOYEES FOR A ONE-YEAR PERIOD COMMENCING JANUARY 1, 2016, THROUGH DECEMBER 31, 2016 SUMMARY: Attached is a proposed Ordinance which would extend the current negotiated collective bargaining agreement between the City of Pueblo and Pueblo Association of Government Employees for the calendar year 2016. PREVIOUS COUNCIL ACTION: Pursuant to §8-14(l) of the City Charter, any collective bargaining agreement negotiated between the sole and exclusive bargaining agent of the classified employees in a bargaining unit and the City shall be reduced to writing, signed by the parties, and enacted by Ordinance. BACKGROUND: In 2014, the City of Pueblo and Pueblo Association of Government Employees negotiated a Collective Bargaining Agreement (the “Agreement”). The Agreement was reduced to writing, signed by the parties, and enacted by Ordinance No. 8744 on June 23, 2014. The Agreement includes a provision that allows the City to extend the contract for two successive one-year terms. Article 32, Term of Agreement, provides that the decision to extend the term of the Agreement shall be made by the City Council th on or before the 15 day of March 2015. The extended term for 2016 would be upon the same terms and conditions, except that wages during the extended term would be as provided pursuant to Section 15.1, Wages and Other Payments, and the premium contribution rate and maximum contribution amount paid by the City for health insurance would be as provided in Section 25.1, Health, Hospitalization, and Dental Insurance. FINANCIAL IMPLICATIONS: The effect of extending the term of the Agreement through 2016 is estimated to be approximately $184,489, which includes an across the board wage increase of $50 per month (approximately $158,652, including associated benefits) and an increase in the City’s share of health insurance premiums from 76% to 77% (approximately $25,837 using 2015 as a base for calculating). In addition, step increases in 2016 are estimated to cost approximately $80,480. At this time, insurance premium rates for 2016 are not available, so it is premature to estimate the City’s total share of 2016 health insurance premiums for this bargaining unit; however, the cost for 2015 was approximately $2,480,155. BOARD/COMMISSION RECOMMENDATION: Not applicable. STAKEHOLDER PROCESS: Not applicable. ALTERNATIVES: If the City Council fails to extend the term of the Agreement, the parties would commence negotiations for a successor agreement and all provisions would be subject to negotiations. RECOMMENDATION: City Administration recommends approval of this Ordinance. Attachments: A copy of the negotiated Collective Bargaining Agreement between the City of Pueblo and the Pueblo Association of Government Employees commencing January 1, 2015, is attached.