City of Oak Creek

Common Council Report

Meeting Date:  04/03/06

Item No.:

Recommendation:  That the Common Council adopt Ordinance No. 2400, confirming adoption of the settlement agreement between the City and Local 1848 of the International Association of Firefighters, and fixing the salary for members of the bargaining unit from 1/1/06 through 12/31/08.

Background:  The summary of tentative agreement dated 03/22/06 is attached to this report and includes the following substantive items:

· 3.25% increase in 2006

· 3.25% increase in 2007

· 3.00% increase in 2008

· Modifies approval authority for compelling sick leave

· 5% employee contribution to health insurance provided employees/spouses participate in health risk assessment or annual physical; if not, then a 10% contribution is required

· Elimination of Medicare reimbursement for employees retiring after 12/31/05

· 5% retiree contribution to health insurance provided retirees/spouses participate in health risk assessment or annual physical; if not, then a 10% contribution is required

· Stricter definition of retirement requiring retiree to immediately receive pension benefits

· Adds preventative colonoscopy to medical plan

· Increases Educational Incentive Program funding to $16,000, but limits tuition reimbursement to no degree greater than a Bachelor’s degree

· Health risk assessment guidelines, while not part of the contract document, were agreed upon.

Fiscal Impact:  Sufficient funds have been budgeted for 2006 within the Fire department budget to cover additional salary costs; although unlikely to occur, if any amounts are found to be insufficient, the contingency account will make up the difference.

Prepared by: Beverly A. Buretta, CMC City Clerk/Comptroller

Submitted by: Patrick A. DeGrave, PhD City Administrator