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HomeMy WebLinkAboutOrd2010-003 Sponsored by: Oates Introduction: September 27, 2010 Public Hearing: October 11, 2010 Enactment: October 11, 2010 CITY OF SEWARD, ALASKA NON -CODE ORDINANCE 2010 -003 A NON -CODE ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A REVISED . CONTRACT WITH THE INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS (IBEW) EFFECTIVE JULY 1, 2010 AND ENDING JUNE 30, 2013 WHEREAS, the City of Seward and the IBEW have negotiated and agreed upon a new contract governing the wages and working conditions for electrical linemen and operators employed by the City; and WHEREAS, the City and the Union agree to the terms and conditions as outlined in the attached contract which expires June 30, 2013; and WHEREAS, this non -code ordinance overrides the prohibition on retroactive changes in tr wages or working conditions set forth in SCC 3.65.020. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, HEREBY ORDAINS that: Section 1. The City Manager is authorized to enter into an agreement, in substantially the form presented at this meeting, with the International Brotherhood of Electrical Workers effective July 1, 2010 and continuing until June 30, 2013. Section 2. Notwithstanding SCC 3.65.020, a retroactive payment for salary and benefits under the agreement covering the period of July 1, 2010 to the effective date of this resolution is approved. Section 3. This ordinance shall take effect ten days following its enactment. ENACTED by the City Council of the City of Seward, Alaska, this 1 1 `h day of October, 2010. THE CITY OF .WARD, ALASKA s 4 4111 ikwur 4 rd E. Dunham, Mayor CITY OF SEWARD, ALASKA ORDINANCE 2010 -003 J AYES: Valdatta, Keil, Smith, Dunham NOES: None ABSENT: Amberg, Bardarson, Shafer ABSTAIN: None ATTEST: _tA� J -4,J ewis, C Ci Clerk (City Seal) 4..0 .... . . /lo g? •P 4t OF r . � : r - 1;9 r � W es �1 k a • t t e • • %NJ 4 4 r • r Y� Council Agenda Statement Meeting Date: September 27 2010 r of sew 4•C III414 ' Through: Phillip Oates, City Manage From: John Foutz, Manager, Electric Utility gcASKP Agenda Item: Approval of 2010 -2013 IBEW Contract BACKGROUND & JUSTIFICATION The attached contract is the result of several months of negotiations between the City of Seward and representatives of the IBEW. John Foutz, Manager of the electric utility, represented the City with the assistance of Rob Johnson, attorney with Wohlforth, Johnson, Brecht, Cartledge & Brooking and Kim Kowalski- Rogers, Accounting Supervisor; Julius Matthew, Business Representative for the local IBEW, represented the Union with the assistance of Dave Reeves Business Representative, Ben Luna Journeyman Lineman and Charlie Forrest Operator/Mechanic. The discussions were cordial and for the most part, very productive. The new contract has an effective date of July 1, 2010 and will extend to June 30, 2013. Certain wages and benefits will need to be retroactively compensated to July 1, 2010. A total of six meetings were required to reach the final agreement with the first meeting on June 15th and 16th. Many items were discussed during the negotiations and the attached tentative agreement represents the terms as agreed upon, subject to union notification and council approval. The Union has now ratified the agreement. The main changes in the contract are: 1. An increase of ten percent for the two operator /mechanic positions bringing the incumbents into one - hundred percent of the base wage rate. 2. A freeze on wages (other than the operator /mechanic positions) for the first year, with an increase to all crew member's salaries based on the CPI from a minimum of one -half percent to a maximum of three percent in each of the next two contract years effective July 1, 2011 and July 1, 2012. 3. The retirement contribution for each crew member was changed from a monthly fixed contribution of eight hundred dollars to a compensable hour contribution of four and 96/100 dollars ($4.96/hour) with a cap of nine hundred dollars ($900) per month. Effective July 1, 2011 the hourly rate increases to five and 35/100 dollars ($5.35/hour) with a cap of nine hundred twenty -five dollars ($925) per month. Effective July 1, 2012 the hourly rate increases to five and 49/100 dollars ($5.49/hour) with a cap of nine hundred twenty -five dollars ($925) per month. Effective July 1, 2010, monthly payment into the AEWMPP retirement fund increases from two- hundred dollars ($200) to two- hundred twenty -five dollars ($225) per crew member. 4. An increase in the probationary period from one - hundred eighty days to two - hundred seventy days. Please refer to the attached document for the complete wording and all the changes that were agreed to in the negotiations. The strikethrough wording is the deleted language and the underlined wording is the added language. CONSISTENCY CHECKLIST: Where applicable, this resolution is consistent with the Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures. INTENT: Authorizing the City Manager to join into a revised agreement with International Brotherhood of Electric Workers, to conclude the contract negotiations entered into by the City of Seward and the International Brotherhood of Electric Workers in 2010 without further action or expense. FISCAL NOTE: For the remainder of 2010 there is a potential increase in retirement costs of $5,400. This amount can be absorbed by the Electric Fund's approved budget. The operator /mechanic positions were budgeted at 100% of the base rate of the linemen's wage, therefore the increase to these two employee's salary will have zero impact on the Electric Fund's approved FY2010 budget. For the year 2011, the additional cost for retirement could be a maximum of $9,900. This amount may be less due to the fact that the retirement is capped at $925 /month but is based on hours worked. This amount can be absorbed by the Electric Fund's approved budget. The operator /mechanic positions were budgeted at 100% of the base rate of the linemen's wage, therefore the increase to these two salaries will have zero impact on the Electric Fund's approved FY2011 budget. For the year 2012, the retirement increase from FY2011 will cap at $1,800. The wage increase will be based on the Consumer Price Index (CPI) to a maximum of 3 %. The FY2012 budget has not been formulated therefore these changes will be incorporated into the next budget process. Approved by Finance Department Jk t4. ATTORNEY REVIEW: Yes X No RECOMMENDATION: City Council approves Ordinance 2010- a)3 authorizing the City Manager to enter into a revised contract with the International Brotherhood of Electrical Workers effective July 1, 2010 and continuing until June 30, 2010, with a retroactive award of some wages and benefits for the period between July 1, 2010 and date of this Ordinance.