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Regular City Council Meeting Monday, February 11, 2013 Page 7 Councilmember McGehee questioned if a three (3) year, 2% cost of living ad- justment (COLA) would provide parity for all employees not in a bargaining unit. Councilmember McGehee noted that that results remained pending from the com- pensation study, and questioned why those results, originally anticipated in De- cember of 2012, had not yet been seen. In terms of a general parity policy, Coun- cilmember McGehee questioned if a three (3) year contract was appropriate. City Manager Malinen advised that this bargaining unit, this one the Police Ser- geant's unit with five (5) employees as at 100% of the market now. For 2013, Mr. Malinen noted that the budget allowed for all employees to receive a 2% in- crease, providing parity with the first year of the contract; and COLA was trend- ing at 2% for 2014 in the marketplace as well. Mr. Malinen noted that only dif- ference was with the third year. Councilmember Laliberte concurred that locking into a contract for three (3) years at 2%, while not yet having determined what all employees will be receiving dur- ing those three years, didn't seem prudent. City Manager Malinen cautioned that this unit has arbitration rights and associat- ed costs for such mediation, and if that should occur, those negotiations will be focused externally versus internally in regard to equity. Mr. Malinen advised that arbitrators typically lean toward bargaining units versus municipalities; and noted that an advantage of the third year to the City also provided a known budget amount moving forward. Regarding the compensation study, Mr. Malinen advised that Human Resources Director Eldona Bacon was in communication with Springsted, and the study was expected within the next month; and advised that unfortunately the study had been delayed some, as well as deferred for a new City Council coming on board. Mayor Roe noted that staff's recommendation appeared to get the three years locked in to avoid risks associated through arbitration. After those further details were provided by City Manager Malinen, Coun- cilmember Laliberte spoke in support of staff's recommendation to avoid risking arbitration; however, she didn't want the City Council to be forced by five em- ployees in a bargaining unit to be bound at 2% for three years for all employees. Laliberte moved, McGehee seconded, approval of the proposed terms and condi- tions for the 2013 — 2015 collective bargaining agreement with the Teamsters as detailed in the Request for Council Action (RCA) dated February 11, 2013; and directing City staff to prepare the necessary documents for executive, subject to City Attorney approval as to legal form. Roll Call