The Belleville City Council met in special session on Monday to approve union and individual contracts before July 1, when state law concerning collective bargaining and health care payments takes effect.
New provisions in the contracts spell out that the city employees will pay 10% of their health care cost to the city.
Attorney John Day explained that in light of recent legislation in Lansing, the two public service unions for the city are urging the city to have new contracts in place before July 1.
Day said this is as a result of recent legislation amending the Act controlling public collective bargaining which now requires that where collective bargaining agreements have expired, unions must pick up any and all increases in public health benefits.
Currently the City of Belleville is paying full benefits for its employees. The new 2011-12 budget passed by the council says that effective July 1, employees will be required to pay 10% of their benefits. Now, it is also spelled out in their contracts.
The insurance for the city will be increasing by 13% effective July 1 and the employees would have been required to pay that, if the 10% was not spelled out in the contracts.
In addition, other pieces of legislation are pending in Lansing that could require employees to pay up to 20% or more of their insurance benefits – or under HB 4572, passed Monday night, a “hard cap” would have individuals paying $5,500, couples $11,000 and families $15,000.
Some version of the two is expected to be passed by both houses and signed by the governor.
“In light of the council’s recent budget, it is being proposed that the city [employees] agree to pay 10% of all … healthcare benefits for the next 12 months,” Day said.
“In order to insure that the employees and the city will be able to maintain that agreement, we are suggesting that contracts be entered into with public unions and with all non-union city employees with those provisions,” Day said.
“It’s really a very, very uncertain environment,” Day said, adding, the proposal to pay 10%, instead of higher percentages, is in order “to maintain morale and keep the staff we have.”
He said this should get the city through June 2012, when a new budget will be approved.
After the agenda was completed, the council convened into executive session to discuss pending negotiations with the Police Officers Association of Michigan union.
But, later the council went back into regular session only to adjourn.
City Manager Diana Kollmeyer said this means when the POAM contract expires at midnight on June 30, the members will have to pay the 13% insurance increases as of July 1.
Earlier, during the special session, the council approved the following:
• Governmental Employees Labor Council (GELC) contract extended for a year to June 30, 2012. New provisions give the city the ability to propose change in insurance coverage, have new hires pay 20% of health coverage, and increases the stipend for those opting out of city insurance from $100 to $300 per month for a single person, to $400 for two persons, and $500 for family plans;
• Clerk Lisa Long’s contract with a one-year extension and employee paying 10% of city’s cost of health care coverage;
• Police Chief Gene Taylor’s contract with a one-year extension and employee paying 10% of city’s cost of health care coverage. Chief Taylor said this is the first time he has had a contract;
• Director of Public Works Keith Boc’s contract with a one-year extension and employee paying 10% of city’s cost of health care coverage; and
• City Manager Diana Kollmeyer’s contract, with a one-year extension from Sept. 15, 2011 through September 2012. Although her contract does not provide for her paying anything for health care, she will be contributing 10% of the city’s cost for her coverage. “I wouldn’t ask the employees to do something I wouldn’t,” Kollmeyer explained.
Kollmeyer’s contract also includes the provision that she does not have to live in the city of Belleville, as required by the charter. The residency requirement can be waived by the council.
The non union department heads are covered by the Civil Service Commission, which met earlier Monday to approve the contract extensions and 10% contributions.
Kollmeyer is hired directly by the council and is not under Civil Service.
Training burn
In other business Monday, the board briefly considered a proposal to burn down the old Amerman Lumber office building on the Davenport property on East Columbia Avenue as a training burn for the fire department.
Mayor Pro Tem Rick Dawson, who lives across the street from the property, said he talked to his neighbors and would like to talk to the fire chief before any fire is approved.
He referred to the past training burn of the Amerman house on that property that damaged homes and trees across the street, next door to Dawson.
He said such a fire has a big effect on the neighborhood. He also noted that the Belleville Milling hay barn is nearby.
Ralph Mayer, who owns the old Victorian home next to the site, was present at the meeting.
Kollmeyer said the fire chief has been asked to put this burn request on the agenda. She said Davenport has to have testing, permitting, and permission of the county first and they would like to do the burn in July or August.
Kollmeyer said the city will meter all the water used in the training burn since the city is suffering such great water loss and they want to keep track.
Boc said the property owner will pay for the water used.
The council voted to have the proposed burn put on the July 5 agenda to discuss in depth, with everyone involved present.