Dowagiac City Council Monday night ratified a three-year contract by which police receive no wage increase the first year, but provides 1.5-percent raises in each of the last two years of the 47-page collective bargaining agreements.

Council concluded its Sept. 12 meeting in closed session to discuss collective bargaining between the city and IBEW Local 876.

The three-year agreement runs Oct. 1 through Sept. 30, 2014. Police Officers Labor Council, or POLC, represents both sergeant and patrol officer units.

Negotiations have been going on since July.

The current agreement expires Sept. 30.

Retirement for new hires will be capped at a maximum of 10 percent employer contribution. A new MERS plan is under development to address this new requirement.

On health insurance, beginning Jan. 1, 2012, the city’s contribution to plans will be capped at $5,000 for an individual plan, $11,000 for two persons and $15,000 for a family plan.

These amounts will rise at a rate of inflation determined annually by the Michigan Department of Treasury, meaning employees can expect to pay a greater share of premium costs while the increase for which the employer is responsible will become more predictable and stable.

“In many ways, it’s difficult for employees,” CIty Manager Kevin Anderson commented, “but it addresses the fiscal condition that we’re in while keeping our officers in place and the public safe.”

In January, most employees will begin paying an additional $400 to $600 per year for their health insurance premiums.

Additionally, under the contract new hires will be responsible for paying 20 percent of the health insurance premium cost.

Police unions ratified terms of the proposed agreement on Sept. 7.

Sergeants’ starting wages of $48,508.13, or $23.32 an hour Oct. 1, rise to $49,974.29, or $24.03 an hour, by Oct. 1, 2013.

Officers’ starting pay of $35,682.33, or $17.15 an hour Oct. 1, increases to $36,760.83, or $17.67 an hour, by the end of the contract.

Council also adopted a dead tree removal policy, received no public comments on the 2011 biennial energy optimization plan, gave the Chamber of Commerce permission to introduce the Harvest Moon Festival Oct. 8, scheduled trick-or-treating for Saturday, Oct. 29, set a public hearing for 7 p .m. Sept. 26 to declare fire-damaged property at 210 Grand Blvd. a public nuisance, agreed to spend up to $3,000 over two years to participate in the Cass County master plan process and removed from the agenda Union High School Student Senate’s Homecoming parade pending further review of a proposed new route and a time it would transpire on Sept. 30.

Anderson recommended trick-or-treating again be coordinated with ACTION Ministries’ church trunk-or-treating on the Saturday evening before Halloween, from 6 to 7 p.m. Optimists’ children’s costume parade takes place earlier in the day.

“Trick-or-treating, through the course of a year, tends to get more phone calls to City Hall than anything else — whether inquiries about time or comments about what the time should or shouldn’t be,” Anderson said.

Anderson reviewed the history of energy optimization plans, which the Michigan Legislature requires for every electric or gas utility under the Clean, Renewable and Efficient Energy Act of 2008, or Public Act 295.

”They allowed us to establish rates, which we did in 2009, and they’ve held steady ever since,” Anderson said. ”The purpose is to reduce the amount of electric used. We have to target monies toward low-income areas, residential, industrial and commercial accounts. We’ve written some large checks for some high-profile industries that did some major work. Residential, a couple of neighborhood projects have been done with the Housing Authority, as well as with the CFL light giveaway and the refrigerator and appliance pickup program.”

The legislation requires updates every two years, making it time for the biennial review.

“The PSC (state Public Service Commission) has been pleased with our plan because we’ve had enough projects to show reduced consumption and be deemed successful. We’re calling to carry forward in a very similar way for two years. We’re not looking for rate adjustments,” but that determination would take place at the beginning of the year.

Anderson added, “We’ve been raising between $60,000 and $70,000 a year, of which all but about $10,000 goes directly back into the program. The $10,000 goes  to consultants helping us review projects and administer the program.”

The EO plan is available on the city’s Web site, www.cityofdowagiac.com.

On the master plan, Anderson commented that it is expected to cost $30,000, of which the county would pay half and participating municipalities would divide the balance.

“Master plans are important to develop how we cooperate and work together in the future and identify areas where we could have the highest return,” the city manager stated. ”Mayor Pro Tem (Leon) Laylin and Councilman (James) Dodd have been involved.”

“They hope to use this as a selling tool to increase the probability to bring new business or industry to the county,” Laylin said. ”It would be a worthwhile tool to have in our basket.”

Anderson answered Third Ward Councilman Dr. Charles Burling’s inquiry about whether the city master plan would be updated in conjunction by saying, ”I would expect the planning commission and county to look at all of them as part of this. At that point, we’ll take a hard look at whether ours still meets overall objectives of the community and whether it’s still consistent.”

The citywide dead tree removal policy calls for a three-year program and incentives of up to $200.

Mayor Donald Lyons said an average tree removal costs $1,000, which “can be a pretty big load.”

On the Homecoming parade, DUHS Student Senate President Sarah Hassle wrote that students hoped to expand the parade to more involve the community.

She suggested a route from the high school east on Prairie Ronde, but continuing to Front Street (M-51 North, necessitating state Department of Transportation approval) before turning toward downtown, rather than traveling Orchard Street through a residential neighborhood.

Council directed Treasurer Robin Coffey to pay out $487,282.57, including $356,435.53 for payroll and $130,847.04 for bills.