CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Adopt the resolution authorizing execution of a collective bargaining agreement between the City of Naperville and F.O.P. Lodge No. 42.
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DEPARTMENT: Legal Department
SUBMITTED BY: Dwight Pancottine, Labor and Employment Attorney
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The Police Department has 139 employees in the position of police officer. They are represented for purposes of collective bargaining by F.O.P. Lodge No. 42 (“Union”). The collective bargaining agreement (“CBA”) between the City of Naperville and Union expired on December 31, 2019. An agreement on a successor CBA, consistent with City Council authority, has been reached and ratified by the bargaining unit employees. It is attached to the resolution as Exhibit A.
DISCUSSION:
The attached CBA contains the following economic terms:
Term
The agreement has a five-year term retroactive to January 1, 2020 and terminates on December 31, 2024.
Wage Rates Increases
Annual percentage wage increases for all employees covered under the CBA are as follows: 4.25% effective January 1, 2020; 1.50% effective January 1, 2021; 1.75% effective January 1, 2022; 2.50% effective January 1, 2023; and 2.50% effective January 1, 2024.
Starting Pay Freeze
The Step 1 starting pay rate is reduced by freezing the current (2019) rate in place through 2021 for all officers hired on or after January 1, 2021. This freeze will result in a savings of $105,300 through the term of the contract.
Experience Pay
A lump sum payment of $3,750 for officers with 20 or more years of service is established. This increases the current experience pay rate for these officers by $500. The cost of this increase is wholly offset by the savings realized through the starting pay freeze referenced above.
Medical Insurance
Plan design changes were included that are projected to reduce the amount paid by the City and its insured employees through the self-insured premium rates and increase the share of expenses for participants for out-of-network services.
Physical Fitness Program
A new physical fitness program has been added to replace the prior program. The program is now required to be completed annually instead of bi-annually and some of the exercises have been updated to be more job specific. There is no fiscal impact associated with the changes to the program.
All other economic terms of the agreement are consistent with the terms in the expired collective bargaining agreement.
FISCAL IMPACT:
The total cost of this agreement, not including the insurance plan design cost savings, for the five-year term of the agreement $1,834,648.