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7. The City and Teamsters will continue to discuss a post employment health care savings plan as a possible addition to the City benefits package. The Law Enforcement Labor Service (LELS) union group of Police Officers will go to mediation over wages on Monday 9/29/03. Policy Implications Each year the City budgets for wage and benefit adjustments for all employees. The adjustments stern from the best information known or anticipated from the metro labor market and labor settlements. The City's compensation policy objectives include: Internal Equity — maintaining a compensation and benefit package that is as consistent as possible between the City's three union and two non -union groups. External Equity- maintaining a compensation and benefit package that is competitive with outside organizations. Focusing on these objectives reinforces the City's ability to pay a gage based upon the duties performed. The objectives also support positive working relationships with employees and support employee morale. The 2003 proposal reflects both policy objectives to the best of the City's ability within the current budgetary restraints and the Council's direction. Financial Implications Funds are available to cover the cost of the proposed Teamsters collective bargaining agreement for 2003. Council Action Requested Motion to approve the proposed terms and conditions for the 2003 collective bargaining agreement with the Teamsters} and directing staff to prepare the necessary documents for execution.