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REQUEST FOR COUNCIL ACTION / 6f98 ITEM NO NP -2 Department Approval: Manager Reviewed: Agenda Section: Organizational Business Item Description; 1998 International Union of Operating Engineers Contract. BACKGROUND Contract negotiations with WOE, Local 49 have resulted in an offer consisting of the following: 1. Contrast duration of one (1) year (January 1, 1 998 to December 31, 1 998), 2. Increase enrages by 3 percent effective 1/01198i 3. Increase City contribution for single insurance to 180/month effective 1/01/98, 4. Increase city contribution for family insurance to $310/month effective 5/01/98T 5. Provide a maximum contribution of 4.45/month towards LTD coverage, 6. Provide a maximum contribution of 11.70lmonth towards life insurance effective 5101198, 7. Eliminate contract language that requires on-call payment for Parrs and Recreation to be deducted from additional hours worked, 8. Add contract language to reflect current practice of providing Mechanics' uniforms, 9. Add 75/month stipend for individual required to maintain and use boiler license, and 10. Increase maximum severance payout from 30 to 40 days. ALTERNATIV The Council may choose to approve or reject the offer. If approved, the City Manager is authorized to sign the 1998 contract. POLICY OBJECTIVES The total cast of the 1 998 I UO E contract is consistent with other Bargaining and non- bargaining unit groups. FINANCIAL IMPLICATIONS There are twenty-eight (28) employees in the IUof Bargaining Unit. The 1998 proposal totals $111164,391. The total dollar increase of the package is $38,924. This is a 3.46 percent increase. STAFF RE QIIi MENDATIONs The staff recommends approval of the 1 998 contract offer as described bed above. COUNCIL REQUES T Motion approving the 1 998 I U O E} Local 49 contract settlement and authorizing the City Manager to execute a contract incorporation the settlement terms, subject to approval by the City Attorney.