Agenda - Council - 12/10/2013 - Laserfiche WebLink

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staff was aware that there was a chance the increase would be slightly higher due to healthcare reform fees and the unions were given (and have requested) to have a re -opener to negotiate for the added fees, which came in at 3.3% or 13.3% all together. Staff recommends the City Council consider authorizing the sharing of the premium increases with non -union employees as per one of the attached spreadsheets, limited to the Single, Employee + Spouse, and Employee + Children plans. These spreadsheet options represent the amounts previously negotiated with the unions, or, an option to include a portion of the remaining 3.3 percent that was added to the premiums due to healthcare reform fees. Staff recommends holding the City's contribution on the Family plan at the level that was previously negotiated with the unions in order to reduce costs and work toward more equitable contributions amongst the tiers. Staff recommends option C. Option C falls within the 2014 preliminary budget while 1) maintaining 100% coverage by the City on the least expensive single premium (consistent past with practice and recommended by the City's benefits broker), and 2) offers $130.00 toward the single VEBA contribution (but not $155 as was the case last year). Wages Staff originally accounted for a 2.5% non -union cost -of -living -adjustment (COLA) in the preliminary 2014 budget. A review of market settlements, plus the need to reduce the 2014 preliminary budget, caused the percentage to be reduced to 2%. Concurrently, staff has reviewed the most recent COLA data and found that most City's are coming in at a average COLA of 2%. Staff recommends a 2% COLA be authorized for the non -union employee group. Market Study Staff was asked to conduct a non -union market study. A study was completed on every non -union position in the City. The market area included similarly sized cities in the Metro Area, as well as Elk River (which is considered Central MN) and Andover (which is larger in population) but is very close in proximately. Non -union staff Staff was asked about the make-up of the non -union group; the following list shows the city's non -union positions and F.L.S.A. status (Fair Labor Standards Act): Eligible for Title Overtime / Covered by the F.L.S.A. 1 City Administrator (KU) NO 2 Police Chief (JW) NO 3 Finance Director (DL) NO 4 Fire Chief (DK) NO 5 City Engineer (BW) NO 6 Public Works Superintendent (GR) NO 7 Economic Development Manager (TL) NO 8 Parks and Asst PW Superintendent (MR) NO 9 Police Captain (JK) and (TF) NO 10 Asst. Finance Officer (DM) NO 11 Human Resources Manager (CL) NO 12 Development Services Manager (TG) NO 13 Building Official (RJ) NO 14 Assistant to the City Administrator (PB) NO