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H.4. AFSCME ContractCity of Kalispell 201 1" Ave E. P.O. Box 1997 Kalispell, Montana 59903-1997 (406) 758-7000 Fax (406)7757 REPORT TO: Mayor Johnson and Kalispell City Council FROM: Doug Russell, City Manager SUBJECT: Adoption of One -Year extension to the Collective Bargaining Agreement with AFSCME Local 256 MEETING DATE: April 3, 2017 BACKGROUND: The current collective bargaining agreement between the City of Kalispell and American Federation of State, County, and Municipal Employees, Local 256 ends on June 30, 2017. In March 2017, the City and AFSCME Local 256 entered into collective bargaining contract negotiations for a new agreement. Discussions with AFSCME Local 256 led to an agreement to do a one-year extension for Fiscal Year 2018, and begin negotiation for the next potential three-year agreement in July of 2017. Attached is the recommended extension between the City and AFSCME Local 256, which outlines those items agreed to in negotiations and which was recently voted for acceptance by the association's membership. In general, this agreement provides for the following: • One-year extension representing fiscal year 2018 • Consistency across labor units in the continuation of the market methodology used in previously negotiated contracts, and in the total compensation of the other labor units of the City of Kalispell • Adjustment in the base salary of 1.517v for Fiscal Year 2018 o Total compensation with longevity for Fiscal Year 2018=2.8% • Agreement to begin negotiations in July of 2017 for the next potential three-year labor agreement. FISCAL IMPACTS: The estimated financial impact for the extension of the Collective Bargaining Agreement is $85,000 for FY2018. RECOMMENDATION: It is recommended that the City Council approve the one-year extension to the Collective Bargaining Agreement between the City of Kalispell and AFSCME Loca1256. ATTACHMENTS: • Proposed contract extension between The City of Kalispell and AFSCME Local 256 One Year Extension to the Collective Bargaining Agreement Between City of Kalispell, Montana f NT4ftiA And AFSCME MT - Council 9, AFL-CIO Local No. 256. We- Mm Jt v .. ra,io r-J ca A-1.-zppwva July 1, 2014 -June 30, 2017 CBA Extension From July 1, 2017 -June 30, 2018 AGREEMENT This Agreement made and entered into this day of April, 2017, by and between the City of Kalispell, Montana, which is hereinafter called the "Employer", and the American Federation of State, County, and Municipal Employees, AFL-CIO, its Montana State Council No. 9, and its Local Union No. 256, which is hereinafter called the "Union". RECITALS: WHEREAS, the current collective bargaining agreement between the Employer and the Union will expire on June 30, 2017; and WHEREAS, the Union, through its authorized representatives, communicated with the Employer and expressed the desire to extend the terms of its current collective bargaining agreement for the period of one year on the condition that wage adjustments for the one-year extension be generally consistent with the annual adjustments contained within the agreements the Employer has made with the other bargaining units; and WHEREAS, the Employer is agreeable to a one-year extension of the current contract on the condition that the parties begin negotiating soon after the beginning of the next fiscal year. In consideration of the mutual covenants herein set forth, the Employer and the Union agree and shall be bound as follows: 1. Contract Extension: The parties agree that the Collective Bargaining Agreement between the parties for the years 2014 to 2017 shall be extended one year to include the fiscal year of 2017-2018. 2. Wage Adjustments: The parties agree that the pay matrix for the subject extended year shall be as set forth in Exhibit "A" attached hereto and incorporated fully herein by this reference. 3. Negotiations to Begin: The parties agree that the Employer and the Union shall begin negotiations for a collective bargaining agreement for a term beyond the extended year contract beginning within sixty (60) days of July 1, 2017. IN WITNESS WHEREOF, the parties hereto, acting by and through their respective and duly authorized officers or representatives, have hereunto set their hands and seals the day and year first above written. 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