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File #: 09-0405    Version: 1 Name: 5/4/09 AAPOA Agreement 2006-2009
Type: Resolution Status: Passed
File created: 5/4/2009 In control: City Council
On agenda: 5/4/2009 Final action: 5/4/2009
Enactment date: 5/4/2009 Enactment #: R-09-162
Title: Resolution to Approve the 2006-2009 Ann Arbor Police Officers Association Collective Bargaining Agreement (8 Votes Required)
Sponsors: Leigh Greden, John Hieftje, Marcia Higgins, Stephen Rapundalo, Margie Teall
Title
Resolution to Approve the 2006-2009 Ann Arbor Police Officers Association Collective Bargaining Agreement (8 Votes Required)
Memorandum
Human Resources Services recommends approval of the attached Resolution to approve the 2006-2009 Ann Arbor Police Officers Association (AAPOA) Collective Bargaining Agreement.
 
The City and the AAPOA, through negotiation and state-mandated binding arbitration pursuant to Act 312 have reached a new collective bargaining agreement for the July 1, 2006-June 30, 2009 period.  Highlights of the new agreement include:
 
      Effective April 1, 2009, a redesigned health care plan which adds deductibles of $250.00 single and $500.00 family per year with increased co-payments for office visits and chiropractic services and cost differentiation between brand and generic drugs with mandatory mail order for maintenance drugs and a pro-rated $500.00 HRA deposit for the 2008-2009 contract year for each active employee, as well as a $500.00 per member health care bonus for low health care utilization for the July 1, 2006-June 30, 2007 period;
 
      A  2.5% wage increase, effective July 1, 2006;
 
      A 1.75% wage increase effective July 1, 2007;
 
      A 1.25% wage increase effective January 1, 2008;
 
      A 3.0% wage increase effective July 1, 2008;
 
      Effective February 24, 2009, a wage structure change will be made to increase the educational bonus for members who have obtained an associate's degree;
 
      A reduction in certain double time overtime payments to time and one half;
 
The cost of the contract settlement for the three year period is expected not to exceed $1.6 million, however, the City has included only $927,000 in the fiscal 2009 General Fund budget for pay contingencies and therefore, an additional $673,000 will need to be appropriated from the General Fund fund balance to increase the Safety Services expenditure budget from fiscal year 2009.
Staff
Prepared and Reviewed by:  Robyn Wilkerson, Director, Human Resources and Labor Relations
Approved by:       Roger Fraser, City Administrator
Body
Whereas, The current collective bargaining agreement between the City and the Ann Arbor Police Officers Association expired June 30, 2006;
 
Whereas, The parties, via state-mandated binding arbitration pursuant to Act 312, have reached a settlement on a new agreement, which provides a redesigned health care plan effective April 1, 2009, which adds deductibles of $250.00 single and $500.00 family per year with increased co-payments for office visits and chiropractic services and cost differentiation between brand and generic drugs with mandatory mail order for maintenance drugs and a pro-rated $500.00 HRA deposit for the 2008-2009 contract year for each active employee effective February 24, 2009, as well as a $500.00 per member health care bonus for low health care utilization for the July 1, 2006-June 30, 2007 period;
 
Whereas, the new agreement includes a 2.5% wage increase, effective July 1, 2006;
 
Whereas, the new agreement includes a 1.75% wage increase effective July 1, 2007;
 
Whereas, the new agreement includes a 1.25% wage increase effective January 1, 2008;
 
Whereas, the new agreement includes a 3% wage increase effective July 1, 2008;
 
Whereas, effective February 24, 2009, a wage structure change will be made to increase the educational bonus for members who have obtained an associate's degree;
 
Whereas, the new agreement contains a reduction in certain double time overtime payments to time and one half;
 
Whereas, the cost of the contract settlement for the three year period is expected not to exceed $1.6 million;
 
Whereas, the City has included $927,000 in the fiscal 2009 General Fund budget for pay contingencies; and
 
Whereas, the City Administrator recommends approval of the contract settlement reached through binding arbitration;
 
RESOLVED, That the City Council approve the 2006-2009 Collective Bargaining Agreement providing for a redesigned health care plan effective February 24, 2009, with a 2.5% wage increase effective July 1, 2006, a 1.75% wage increase effective July 1, 2007, a 1.25% wage increase effective January 1, 2008, a 3.0% wage increase effective July 1, 2008 and a reduction of certain double time payments;
 
RESOLVED, That the City Council appropriate the additional $673,000 from the General Fund fund balance to increase the Safety Services expenditure budget from fiscal year 2009; and
 
RESOLVED, That the Mayor and City Clerk are hereby authorized to sign the collective bargaining agreement on behalf of the City, after approval as to substance by the City Administrator and approval as to form by the City Attorney.  
 
Sponsored by: Councilmembers Greden, Hieftje, Higgins, Rapundalo, Teall