MEMORANDUM

TO: Pete Sprague, Assembly President

Assembly Members, Kenai Peninsula Borough

THRU: Mayor Dale Bagley

FROM: Richard Campbell, General Services Director

DATE: June 24, 2004

SUBJECT: Resolution: 2004-069 A RESOLUTION 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 3.1% (Anchorage's CPI for 2003) general wage increase proposed for July 2004 will result in a cost increase of approximately $268,000. Health plan changes will result in a savings, but cannot be predicted since those are based on usage and family demographics.

Department heads will be directed to do their best to absorb the increases within the recently approved budget for FY2005.

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