AI-3693       14.            
City Council Agenda
Meeting Date: 05/21/2013  
Subject: Puyallup Police Management Association (PPMA) Collective Bargaining Agreement
Presenter: Debi Christensen
Department: Human Resources

Information
Recommended Action

Authorize the execution of the 2013-2015 City of Puyallup and Puyallup Police Management Association (PPMA) Collective Bargaining Agreement.

Background

The City began negotiations with PPMA on October 25, 2012 and reached a tentative agreement, following facilitated mediation, on April 12, 2013.

Previous Actions (Discussions/Presentations)
In preparation for negotiations, Human Resources staff conducted a compensation study in 2012 which identified that PPMA was under market within the comparable labor market.
Summary of Proposal
The proposed three-year agreement honors Council direction for 0% cost increase in 2013. Additional economic elements include a 3% market parity adjustment delayed until 1/1/14, a 0.4% market parity on 6/1/14, and a 1% health savings employer contribution or similar. Finally, on 6/1/14 and 1/1/15, a Seattle/Tacoma/Bremerton Consumer Price Index - Urban (CPI-U) market adjustment will be granted at 100%, with a 1% minimum and 3% maximum. This is a reduction from past years, as Puyallup's minimum and maximum thresholds were previously set at 2% and 5%.

Bargaining unit members approved the tentative agreement on April 12, 2013.
Alternatives/Options
When an employer and union do not reach contract agreement in mediation, the Public Employment Relations Commission (PERC) mediator can recommend that the unresolved issues be submitted to interest arbitration. The outcome of interest arbitration is determined by an external arbitrator, and is final and binding. The cost of arbitration can reach $25,000 per party.

Fiscal Impact
Amount Budgeted:
Bid Amount:
City Funding Needed for Project:
Funds from Other Sources:
Ongoing Staff Costs:
Fiscal Impacts:
The cost of implementing this contract will be allocated within the City's budget. Depending on where the market adjustment falls within the minimum/maximum range of 1% to 3% in 2014 and 2015, the estimated cost of the contact would be $16,300 to $20,900 in 2014 and $7,700 to $18,900 in 2015. The annualized percentage of increase over the three years of the contract would range between 6.53% and 10.80%, with zero budget increase in 2013 over 2012.