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Having unlimited accruals of sick leave creates a bigger potential liability. This problem actually <br />exists in all of the union contracts the City has in place as well as the institutionalized practice <br />for non-union employees. Getting this language changed in one union contract will help set a <br />precedent for future contract negotiations. Getting this language changed now is a big step <br />towards mitigating this financial liability for the future yet still providing an employee retention <br />program. <br />Explanation: <br />Duration <br />This is a one-year contract that will conclude on December 31, 2009. <br />Warnes and Insurance <br />The contract provides for a 3% cost of living adjustment (COLA) effective January 1, 2009 and <br />1.5% market rate adjustment on December 31, 2009. During the negotiation process it was <br />determined that the City's maintenance workers were slightly underpaid in comparison to the <br />City of New Brighton's nine comparison cities. In order to bring the annually salaries of the <br />maintenance workers into the middle of the pack for our comparison cities, the City offered a <br />1.5% market rate adjustment that would go into effect on December 31, 2009. The City of New <br />Brighton uses the following cities as comparisons when negotiating with its three union groups: <br />1. City of Crystal <br />2. City of Fridley <br />3. City of Golden Valley <br />4. City of Maplewood <br />5. City of New Hope <br />b. City of Richfield <br />7. City of Roseville <br />8. City of Shoreview <br />9. City of White Bear Lake <br />The health insurance contribution in 2009 will remain consistent for all non-union and union <br />employees. In 2009, the employer will contribute $530.00 per month for single health insurance <br />and $740.00 per month for family health insurance coverage. Those employees that opt -out of <br />the City's health insurance coverage will receive $280.00 per month that may be applied to other <br />benefits offered in the cafeteria plan or received as additional compensation. <br />In 2007, the City instituted a High Deductible Health Plan (HDHP) with a Health Savings <br />Account (HSA). The City will contribute 50% of the deductible to a Health Savings Account for <br />all City employees that are enrolled in the High Deductible Health Plan (HDHP). This equates <br />to $575/year for employees that have elected single health insurance coverage and $1,150/year <br />for employees that have elected family health insurance coverage under the City's HDHP. In the <br />proposed contract, the City included a provision that maximizes the City's contribution towards <br />the employee's health savings account deductible at five years. <br />1-\COUNC.IL\REPORTS\2009\Admin\Local 320 Maintenance Workers Contract.doc <br />