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REQUEST FOR COUNCIL ACTION DATE: 2/11/91 ITEM Deloartment, Approval: Manager Reviewed,,@, Agenda Sect 0 ion: ilk r (Z:AiQAi RePorts and Recommendationz r Item Descripti oil oni: 1991/1992 Maintenance Contract. Most other metro cities are proposing one year agreements at this tiame. 41 However, several cities have either proposed or settled two year agree- in ments, with 4i percient wage 'increases, in each year. These include the Ci ity of St, Anthony (settled) and the cities of Woodbury and Maple Grove (proposed).i Tihei advantages of the two year settlement are: The maximum insurance increase of $15 per month is low compared tol i I tihe insurance cost increases of recent yearsol, This contribution a Ievel will, be usled 'in, sletting theii contribution levels for all othe employee groups gin 19912,. 1 The two Year siettlemient takes the contract off the work agenda for a ti years, einablingistaff to coin,cientrate on other priorities, I 0 The, disadvantage, of the two year settlement is. With the volatialittly of the economy and the uncertainty concernin • municipal f imances, the salary picture for 1992 is very unclear. I i If thei economy goes i into a deeper recess ion the 4 percent may be too high,, If the economy recovers, the 4. percent may be too low. Reicommendiat, 'loin The recommended Maintenance contract settlement is as follows, 1 'Allages: 1991 4 percent increas 1,992 4 percent increasi Insurance Contribution: 1991 Increase $20/month, to a total of $250/month 19�92 Increase by an amour�t suf f icient to cover 50 percent of the 'insurance cost 'increase, to a maximum -of $15/milonth, C101UNCIL ACTION REQUESTED: 0 V Motion approving the .1991/1992 Maintenance contract set out above, and IN IN i authorizing the City Manager to execute ■ contract incorporating the above, settlemev.t-t-&-livics R