MEMORANDUM

TO: Pete Sprague, Assembly President

Assembly Members, Kenai Peninsula Borough

THRU: Mayor Dale Bagley

FROM: Richard Campbell, General Services Director

DATE: March 25, 2004

SUBJECT: Resolution: 2004-035, approving a new collective bargaining agreement

The administration and the Kenai Borough Employees Association (KBEA) have negotiated a new collective bargaining agreement for July 1, 2004 through June 30, 2007. A list of substantive changes, as well as the agreement itself, is attached. The 3% (Anchorage's CPI for 2003 went up 3.1%) general wage increase proposed for July 2004 will result in an increase of approximately $260,000 to the budget. Health plan changes will result in a savings, but cannot be predicted since those are based wholly on usage.

Please note that the agreement is before the assembly for a "yes" or "no" vote for the whole document without amendment.

This resolution is being submitted under the assumption that the KBEA membership will ratify the agreement prior to the April 6 Assembly meeting.