City of Oak Creek

Common Council Report

Meeting Date: 08/15/06

Item No.:        

Recommendation: That the Common Council adopt Ordinance No. 2422, An Ordinance Confirming Adoption of the Settlement Agreement Between the City of Oak Creek and the Oak Creek Professional Police Officers’ Association and Fixing the Salary for Members of the Bargaining Unit of the Oak Creek Police Department from January 1, 2006 through December 31, 2008

Background: Labor negotiations between the City and the Police union reached a tentative agreement, and the contract was subsequently ratified by the Police Union on August 2, 2006.  A comprehensive summary of the settlement, with additions underlined and deletions shown as line outs, is attached and incorporated into this Council Report.  Also included is a Side Letter of Agreement  addressing the resolution of health insurance issues that were part of the negotiation process, and a one-page description of the Health Risk Assessment process.

This contract follows the pattern of contracts settled with Local 133 and the Fire Union.  Specifically, the settlement, consistent with the other Union settlements, calls for wage increases as follows:

January 1, 2006 – 3.25%

January 1, 2007 – 3.25%

January 1, 2008 – 3.00%

In addition, the summary of tentative agreement includes the following substantive items:

· 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 01/01/06

· Stricter definition of retirement requiring retiree to immediately receive pension benefits; if hired on or after 01/01/06, retiree must have fifteen (15) years of service

· Elimination of longevity payments; approximately equivalent payments will be placed in a Voluntary Employee Benefit Association (VEBA) trust instrument, which allows contributions to grow tax-free, and may be used to offset retirement insurance costs.

· Adds preventative colonoscopy to medical plan

· Adds Fair Share/Dues Deduction language and procedures

· Adds clarification language to the grievance procedure

The Personnel Committee recommends this settlement to the Council for their support and ratification.

Fiscal Impact: 

Sufficient funds have been budgeted for 2006 within the Police 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 and fiscal review by:                         Respectfully submitted,

Beverly A. Buretta, CMC Patrick DeGrave

City Clerk/Comptroller                                         City Administrator