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Home My WebLink About10D - LELS Labor Agreement MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: CITY COUNCIL AGENDA REPORT FEBRUARY 3, 2003 10-D Susan Walsh, Assistant City Manager CONSIDER APPROVAL OF A RESOLUTION RATIFYING THE 2003-2005 LABOR AGREEMENT BETWEEN THE CITY OF PRIOR LAKE AND LAW ENFORCEMENT LABOR SERVICES (LELS) History: The Law Enforcement Labor Services, Inc. (LELS) bargaining unit representing 15 ernployees has been in existence for many years here at the City of Prior Lake. The existing labor agreement was a three-year agreement covering the years 2000-2002. The negotiation process for 2003 and beyond began in October 2002, and we have held four negotiation sessions to negotiate a Labor Agreement to address wages and conditions of employrnent in accordance with the Public Ernployee Labor Relations Act (PELRA). Current Circumstances: The prirnary objective in the negotiations has been twofold: (1) to develop a long-terrn agreement which will provide some level of ongoing labor peace; and (2) to achieve an agreement which is reasonable econornically and prudent from a language perspective. The labor agreernent for which Council ratification is requested under this agenda itern meets both criteria. Shown below is a summary of the proposed three-year agreernent with LELS covering the years 2003, 2004 and 2005. A complete copy of the Labor Agreement and Drug and Alcohol Testing Policy is available in my office for your review. Neither docurnent is included because of the volume of the documents. Proposed Amendments to the Agreement: Duration: Three years (2003-2005) Wage Adjustments: 2003 - 3.00% 2004 - 3.25% 2005 - 3.25% Health Insurance Increase for 2003 - $25 per month ($545) Family Coverage: 2004 - $40 per month ($585) 2005 - $65 per month ($650) Term Life Insurance Term life insurance in the amount of $50,000 with a cap of $11.30/month 16200 Eagle Creek Ave, S.L Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 H:IPERSONNELIUNIONSILELSICOUNCIL ~lffi!jf'CilR'{jrliiOR:!<mro.ma CONTRACT.DOC Article 2.1 - Recognition - Amended to Housekeeping measure to include include notation, M.S. 179A.03, Subd. 7 entire Minnesota Statutes subdivision notation (MS 179A.03, Subd 7) which defines "essential employees" Article 7.8 - Choice of Remedy - Arnended This change will have little impact to add a sentence, The election set forth on the City because the EEOC has above shall not apply to claims subject to insisted that it has jurisdiction over the jurisdiction of the United States Equal such charges regardless of the Employment Opportunity Commission existence of an arbitration agreement. Article 10 - Work Schedule Language This language clarifies expectations regarding hours, but does not bind the City to provide a maximum or rninimum amount of work for any particular employee. The City reserves its right as an employer to alter work hours, assign overtime or reduce work schedules. Article 13.2 - Overtime Assignments, For purposes of assigning contract Subsection B - Amended to include the overtime work, the word, "qualified", following sentence: shall include all sergeants/supervisors. Article 13.7 - Overtime - Arnended to Any unused compensatory time will include the following sentence: be paid out in the second paycheck in December. Article 17.1 - Clothing Allowance - The Clothing Allowance changed frorn base amount was adjusted to reflect the $679 per year to $728 per year Consumer Price Index adjustrnent from based on CPI adjustments. 2000 to 2002. Article 30 - Accumulated Sick Leave and This article was applicable to Cash - Deleted from the agreernent employees hired prior to 1979. There are no employees that this is applicable to anyrnore. Article 33 - Policy on Drug and Alcohol New policy setting out requirements Testing applicable to LELS represented for drug and alcohol testing. The employees policy sets out the conditions for drug and alcohol testing for applicants offered a police officer position, reasonable suspicion and post accident. ISSUES: With regards to wages, the City of Prior Lake has historically paid around the average for sirnilar sized cities within the metro area. A 3% wage adjustrnent for 2003 and a 3.25% wage adjustment for 2004 and for 2005 will place the City at the average wage paid by Stanton Group Six cities over the next three years. H:IPERSONNELIUNIONSILELSICOUNCIL AGENDA REPORT FOR 2003-05 CONTRACT.DOC The average wage settlement for 12 cities in the Stanton Group Six is 3.5% for 2003. I was unable to obtain any data for 2004 and 2005, but feel that the proposed settlernent that represents an average of 3% over the next three years will maintain a marketable salary and keep Prior Lake police officers' salaries close to the average salary for Stanton Group Six cities. For health insurance, LELS will receive the same rnonthly increase represented in the 2002-2004 AFSCME Labor Agreement for year 2003 and 2004. Since we received an 11.1 % prernium increase for 2003, and staff anticipates double digit increases for 2004 and 2005, we believe that a $65 a rnonth increase for the year 2005 is equitable and economically feasible for the City and the employees. Since it is the City's position on health insurance to have equal benefits, the $65 a month increase for the year 2005 will set the standard for negotiations with the City's two other bargaining units and for nonunion employees. Staff's recomrnendation to increase the face value of term life insurance frorn $40,000 to $50,000 has an $11.30 a rnonth cap for the City's contribution. This benefit is already in place with nonunion ernployees and the sergeants union. Amendrnents to Article 2.1, Article 10, Article 13.2, Article 13.7, Article 17.1 and Article 30 will provide clarification to the new contract. Amendment to Article 7.8 - Choice of Remedy, will allow an ernployee to file a claim directly with the Equal Employrnent Opportunity Comrnission instead of following the grievance procedure set out in the labor agreement. The city attorney has reviewed or drafted these modifications, and staff recornrnends the new labor agreement reflect the new language as set out above. Also, the new Drug and Alcohol Testing Policy was drafted and finalized by the city attorney after negotiated with the union. FISCAL IMPACT: The 2003 operating budget has adequate funds to administer the contract including wage increase and health insurance and life insurance contribution increases. Funds for 2004 and 2005 will be budgeted according to wage and benefit terms set out in the agreements. CONCLUSION: Labor agreements typically do not provide cornplete satisfaction to either party. However, this agreement represents an equitable conclusion of bargaining as a result of good faith efforts by both groups to reach an agreement that meets the needs of both parties. Perhaps, most significant, the settlement allows both parties to focus on delivering services to our customers for the next three years rather than on labor negotiations. ALTERNATIVES: The City Council has the following alternatives: 1. Approve the Resolution ratifying the three-year agreement. 2. Deny the Resolution 3. Adjourn into closed session to discuss the proposed changes. H:IPERSONNELIUNIONSILELSICOUNCIL AGENDA REPORT FOR 2003-05 CONTRACT. DOC RECOMMENDED MOTION: Alternative #1 _ Approve the Resolution Ratifying the 2003 - 2005 Labor Agreement between the City of Prior Lake and Law Enforcement labor Services, Inc., Local 100, and authorizing the Mayor and City Manager to execute the Labor Agreernent. H:IPERSONNELIUNIONSILELSICOUNCIL AGENDA REPORT FOR 2003-05 CONTRACT.DOC RESOLUTION 03 ~ lO RESOLUTION RATIFYING THE 2003-2005 LABOR AGREEMENT BETWEEN THE CITY OF PRIOR LAKE AND LAW ENFORCEMENT LABOR SERVICES, INC. LOCAL 100. Motion By: Second By: WHEREAS, the Public Employees Labor Relations Act as amended requires that the City negotiate with the exclusive bargaining representative for groups of essential and non-essential employees; and WHEREAS, Law Enforcement Labor Services, Inc. represents Prior lake Patrol Officers and Detectives; and WHEREAS, negotiations have taken place which have resulted in an Agreernent for 2003, 2004 and 2005; and WHEREAS, the employees who rnake up the Law Enforcement Labor Services bargaining unit have ratified said Agreernent; and WHEREAS, the Agreement becomes effective on January 1, 2003. Now THEREFORE, be it resolved by the City Council of the City of Prior Lake that it hereby ratifies the Agreernent between the City of Prior Lake and Law Enforcernent Labor Services, Inc., January 1, 2003 through December 31, 2005. BE IT FURTHER RESOLVED, that the Mayor and City Manager are hereby authorized to execute the above referenced Agreement. PASSED AND ADOPTED THIS 3RD DAY OF FEBRUARY, 2003. YES NO {Seal} Haugen Haugen Blomberg Blomberg LeMair LeMair Petersen Petersen Zieska Zieska City Manager, City of Prior Lake 16200 Eagle Creek Ave, S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER