Tentative agreement on a 2-year contract between the City of Billings and the Montana Public Employees Association (MPEA) Billings Police Unit was reached on June 15, 2011.  The Billings Police Unit, which represents all officers below the rank of sergeant, is scheduled to vote on the contract the week of June 20.  The City Council is being asked to approve the contract if the Police Unit vote is successful.

Major changes in the proposed contract include the following:

• 0% cost of living adjustment (COLA);
• $688 of the City-paid monthly health insurance premium to be paid through each employee's salary, increasing pre-tax contributions to retirement by the employee, the City and the state; 
• Creation of a step at year 22 of the Hourly Police Pay Schedule with a 2% increase over year 20, the previous step.  Currently, the Police Department has 12 steps over 20 years;
• Increasing the compensatory time for field training officers from 10 to 20 hours of comp time in phases 1, 2 and 3 of training and from five to 10 hours of compensatory time in phase 4; and
• Clarifying changes in the language involving longevity, use of a clothing/equipment reimbursement allowance and disciplinary investigations.

Year 2 (July 1, 2012-June 30, 2013)

• 2.5 % COLA;
• Health insurance premium paid through each employee's salary increased to $800 per month; and
• Newly hired employees become eligible for longevity in the 6th year of employment, two years later than in the current contract.

A complete copy of the proposed new agreement will be included in the Council's Friday packet.  A simple majority of the Council Members in attendance at the meeting is necessary for approval.

If the Police Unit vote is positive, the City Council may:

• Approve the agreement as presented;
• Postpone action on the agreement; or
• Deny approval, returning the matter to the negotiation table.

The Police Unit has 118 members.  Anticipated cost to the City in the first year of the contract is about $139,200 for retirement on the health insurance premiums and $14,400 for a 2% increase at year 22 in the salary scale, for a total of $153,600.  Anticipated cost in the second year would be an additional $180,430 for the COLA and $7,700 for the increase in the retirement payment on health insurance premiums, for a total of $188,130. 

The exact benefit from the 2-year extension of time before longevity would begin will depend on the number of officers hired in each year, but will benefit the City.  It marks the second contract in a row in which the Billings Police Unit has agreed to extend the entry time for newly hired officers to be eligible for longevity.

Since negotiations were underway while the Fiscal Year 2012 budget was being prepared, the cost of the contract would be taken from General Fund reserves and would be transferred in the first quarter budget amendments.

For the first time in many years, the City is conducting negotiations with all three of its bargaining units at one time, at the Council's request.  Contract negotiations are on-going with Teamsters Local #190 and International Association of Fire Fighters Local 521. 

The Police Unit is cognizant of the City's financial situation, as demonstrated by the proposed agreement; by contrast, the last 2-year agreement cost $345,000 in the first year and $233,000 in the second year.  Because there is a 0% COLA and the officers’ retirement contributions will increase after the health insurance premiums are added to their gross pay, they will have lower net pay in the first year of this contract when compared to last year’s compensation.

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