Chelan extends union contract with 3.5% raise, new health plan and standby rule

CHELAN — Chelan city employees covered by a union contract will receive a 3.5% wage increase next year and a new health insurance option under a one-year agreement approved by the City Council on Sept. 22.

The extension carries the city’s agreement with Washington State Council of County and City Employees Local 846-CC through the end of 2027. It also keeps a pilot standby-duty rule requiring employees on call to reach their assigned city facility within 75 minutes of a callout.

HR and Communications Director Chad Coltman said the shorter contract gives the city and union time to monitor economic conditions and study how Chelan’s wages compare with those of similar cities before negotiating a longer agreement. The wage increase takes effect Jan. 1 and is projected to cost $143,813. That amount is already included in the city’s 2027 personnel projections.

Councilmember Brad Chitty asked Coltman to explain the health insurance changes. Employees currently have one medical option, a plan with a $250 deductible. The city pays the full premium for an employee and 75% of the premium for covered dependents. That option will remain available.

Employees will also be able to choose a plan with a $1,700 individual deductible or a $3,400 family deductible. Its premiums are lower, and the city will pay the full premium for both the employee and covered dependents. Under the agreement, the city will also contribute $1,750 annually to a health savings account for an employee enrolled alone, or $3,500 for an employee with covered dependents.

Coltman estimated the city could save $50,000 to $150,000 a year in premiums if employees choose the new plan. The actual savings will depend on enrollment; the city will incorporate final benefit costs into its 2027 budget after employees make their selections.

The agreement also extends a standby-duty memorandum adopted earlier this year. The 75-minute reporting requirement applies to employees assigned to standby duty, including those responding to calls at the city’s water and wastewater facilities. It will remain in effect through Dec. 31, 2027.

Council approved the extension unanimously.

Andrew Simpson: 509-433-7626 or andrew@ward.media