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HomeMy WebLinkAbout08968 City Clerk’s Office Item # R-2 Background Paper for Proposed Ordinance COUNCIL MEETING DATE: February 08, 2016 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 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, 2017, THROUGH DECEMBER 31, 2017 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 2017. 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. The Agreement was extended for the first one-year term pursuant to Ordinance 8854. Pursuant to the current Agreement, Article 32, Term of Agreement, provides that the decision to extend the th term of the Agreement shall be made by the City Council on or before the 15 day of March 2016. The extended term for 2017 would be upon the same terms and conditions, except that 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 and wages during the extended term would be as provided pursuant to Section 15.1, Wages and Other Payments. It should be understood that under Section 15.1, wages shall either increase by $60.00 a month, or based upon the fact that there has been a greater than 2.5% increase in sales tax revenue, the Union may elect to open wages only for negotiations and notice of such election must be made on or before April 1, 2016. FINANCIAL IMPLICATIONS: The cost to the City for the salary increase of $60.00 per month in 2017 will be approximately $190,382. A $60.00 per month salary increase is equivalent to a 1.43% increase over 2016 salary levels. The cost of the 1% increase in employer contribution to medical insurance is anticipated to be approximately $35,201. BOARD/COMMISSION RECOMMENDATION: Not applicable. STAKEHOLDER PROCESS: Not applicable. ALTERNATIVES: If the City Council shall fail 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: Approval of the Ordinance. ORDINANCE NO. 8968 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, 2017, THROUGH DECEMBER 31, 2017 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, 2017 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 City for health insurance shall be as provided in Section 25.1 of the Agreement. SECTION 2. 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 3. This Ordinance shall become effective upon final passage and approval. INTRODUCED February 8, 2016 BY: Ed Brown PASSED AND APPROVED: February 22, 2016