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of regular duty time. Any employee participating in the program will partake in semi-annual fitness testing. The standards for testing will be set by the fitness coordinator and approved by the Chief of Police. All participants will adhere to the department Physical Fitness Program policy and testing standards. For Patrol Officers Only: Continue the current Memorandum of Understanding for Holiday Buy Back as follows: Section 17.4: Each employee shall have the option to sell a maximum of 54 of his/her holiday hours back to the employer at his/her current rate of pay. This holiday buy back option may be taken during two times annually: January 1 through January 15, and November 1 through November 15. In any event, no holiday hours shall carry over to the next year. All other provisions of Article Seventeen (17) shall apply normally. This Memorandum of Understanding will sunset on December 31, 2014 Notification: It is evident that Ramsey Patrol Officers and Sergeants have lost ground compared to the market average; as cost -of -living adjustments and market rate adjustments were restricted due to recent economic circumstances. In an effort to rectify the situation and ensure stability within the Police Department, staff recently conducted a salary survey with similarly situated cities (via on-line resources and by calling individual cities) and found that officer' wages continue to be below the market. The data was crossed checked with the data available through the LELS offices and the results were consistent. A 1% COLA on January 1, 2013 and a 2% COLA on January 1, 2014 does not offer a remedy to the situation; therefore, in order to correct the disparity, a July 1, 2014 market rate adjustment is recommended, which would be included in the budgeting process later this year. Observations/Alternatives: Alternative #1: Revise the terms of the tentative agreement based on discussion with the Personnel Committee. Not recommended. Pros: Unknown. Cons: Takes valuable time away from staff, delays reconciling payroll, and risks going to binding arbitration. Recommendation: To make a motion, which upon City Council approval, will authorize settling the 2013 - 2014 labor agreement, as described above, between the City of Ramsey and LELS-Patrol and LELS-Sergeants. Funding Source: The funding required for a 1% COLA and the 2013 health insurance contributions were approved as part of the 2013 General Fund Budget. The Cost of Living Adjustment and Market Rate Adjustment for 2014 will be included in the 2014 General Fund Budget which will be presented to the City Council for consideration later this year. Council Action: Motion to approve a resolution, which confirms the recommendation of the Personnel Committee to settle the 2013 - 2014 Labor Agreement between the City of Ramsey and LELS-Patrol and LELS-Sergeants. Form Review