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HomeMy WebLinkAbout5J - 2009-2011 Police Sergeants Collective Bargaining Agreement /~ '/OCG PRIO'lt I.... ,~ f [... (. 4646 Dakota Street S.E. I..... or IU ;;:: Prior Lake, MN 55372-1714 \ '" \~ MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: CITY COUNCIL AGENDA REPORT December 7,2009 5J Kelly Meyer, Assistant City Manager CONSIDER APPROVAL OF A RESOLUTION RATIFYING THE 2009-2011 COLLECTIVE BARGAINING AGREEMENT BETWEEN THE CITY OF PRIOR LAKE AND MINNESOTA TEAMSTERS PUBLIC AND LAW ENFORCEMENT EMPLOYEES' UNION, LOCAL NO. 100, REPRESENTING POLICE SERGEANTS. Historv: The City has four employee groups, three of which are represented by labor unions. #of Employee Group Employees labor Union Contract Term Maintenance, Clerical 45 American Federation of State, January 1, 2008 through & Technical Staff County and Municipal December 31,2010. Employees (AFSCME) Police Officers (patrol) 18 law Enforcement Labor January 1, 2009 through Services (LELS) December 31,2009 Police Sergeants 3 Minnesota Teamsters January 1, 2006 through December 31, 2008 I ManaQers/Supervisors 19 Unrepresented N/A The contract before the Council for consideration tonight is with Police Sergeants. The bargaining unit has been in existence at the City for many years. The current labor agreement became eligible for re-negotiation on December 31, 2008. The negotiation process began in July of this year when Teamsters submitted their demands. The bargaining team for Teamsters included all three Sergeants and their Business Agent Mike Golen. I negotiated on behalf of the City in consultation with City Attorney Joe Schmitt and City Manager Boyles. We held two bargaining sessions, and one session with an outside mediator. The contract before the Council represents the agreement between the parties with respect to wages and conditions of employment in accordance with the Public Employee Labor Relations Act (PELRA). Current Circumstances: Negotiations with labor unions have been particularly difficult for both sides of the bargaining table this year. This is wholly attributable to the current state of the economy, the City's revenue shortfalls in 2008, 2009 and projected for 2010, and the unpredictability of the future. The City has the following primary objectives in its labor negotiation: (1) achieve wage agreements that are reasonable given the economic climate within the City, and that are consistent with the market in the context of total compensation; (2) develop a long-term agreement in order to provide some level of ongoing labor peace; (3) eliminate inconsistencies between the contract language and the practical procedures for implementation of the contract; and www.cityofpriorlake.com RICouncil\2009 Agenda Reportsl12 07 0912009-20~Iw~t~~I:fYUA~~Nium9l.~ 952.447.4245 (4) maintain as much consistency as possible between employee groups. Following is a summary of the proposed labor agreement with Teamsters. A complete copy of the agreement, executed by the union, is attached to the agenda report. ProDosed Amendments to the Aareement: Duration: Three year term (Jan. 1, 2009- Dec. 31, 2011). This is the first contract to be settled with any employee group beyond 2010, and will set the parameters for negotiations with AFSCME and LELS. 2009 - +3.00% subject to a reduction in education benefits identical to the contract settlement with patrol officers for 2009. 2010 - +0% 2011 - +2.5% 2009 - +$33 per month ($850) consistent with all other employee groups 2010 - +$25 per month ($875) consistent with AFSCME and unrepresented employees. 2011 - reopen for health insurance only. *Premiums for Single Coverage are 100% paid by the City. Increase from 1 day to 2 days per member per year. Effective December 31, 2009, the City will no longer be responsible for paying for Masters degree or higher level courses for this bargaining group. This is identical to the changes achieved with LELS. Members may still achieve their Masters degrees and be eligible for education incentive pay, but they will be responsible for the funding the tuition themselves. This will eliminate the double incentive for education in the previous contracts. Adds language that eliminates education incentive pay for new members to the bargaining unit beginning January 1, 2009. This lanQuaQe is consistent with the chanQes achieved with LELS. Clothing Allowance changed to $861 per year based on CPI adjustments. This is a housekeeping changed based upon the current contract language. Wage Adjustments: Health Insurance Increase for Family Coverage*: (Article 22) Personal Days (Article 20.1) Tuition Reimbursement (Article 29.3) Education Incentive Pay (Article 29.1) Clothing Allowance (Article 16) Conclusion: There were a number of additional items brought to the table by both parties that were eventually dropped in order to achieve the agreement outlined above. Staff believes that Teamsters and the City have negotiated the terms of this contract in good faith, and that the proposed labor agreement meets the primary objectives of the City. Waces: In determining wage increases for any employee group, the City collects data from a number of sources including the League of Minnesota Cities Salary Survey and surveys to other metro area cities of similar size. This has historically been a comparison of base wages. This can be a deceptive comparison, however, as many contracts typically have a variety of ways in which compensation is calculated (for items such as longevity, education incentive, tuition reimbursement, liaison pay, and working out of classification pay) as well as differing in the benefit packages they provide. So, several years ago at the suggestion of the City Council, we began to compare the cities contracts on the basis of total wages and benefits, or total compensation. ISSUES: True comparisons are particularly difficult for 2009 and 2010. Most cities are in budget situations similar to Prior Lake, and are having similar conversations R\Council\2009 Agenda Reports\12 07 09\2009-2011 Teamsters Labor Contract - FINAL.DOC related to 0% increases, furloughs, early retirement incentives, or imposing layoffs. While keeping an eye on what other cities are doing, most cities are proposing wage and benefit packages based on their impact on the city's particular budget and ability to pay. At the time that our 2009 budget was developed, the AFSCME bargaining group had already settled for 2.5% for 2009. In order to achieve equity across employee groups, the City had budgeted for a 2.5% cost of living increase for both LELS and Teamsters as well even though the contracts would be open for negotiation. By the time that the unions commenced negotiations, the City's financial picture had significantly changed, and we were in the midst of identifying nearly $475,000 in additional general fund budget reductions for 2009, as well as projecting a $1,022,000 shortfall for 2010. Thus, as we approached negotiations, the City's perspective had been forced to change significantly from the previously estimated 2.5%. Our position became that the City should not offer any cost of living increases for 2009 or 2010 unless we could otherwise reduce benefits that were putting the eligible total compensation for police and sergeant positions well above the market. The contract proposes a 3% wage adjustment for 2009 in exchange for concessions in both tuition reimbursement and education incentive pay discussed below. For 2010, the contract proposes a 0% adjustment. This is directly related to the budget strategy the City has sought to achieve to address its $1,022,000 shortfall in 2010. It is also consistent with the 0% budgeted for the managers/supervisors group, and the 96-hour per employee furlough outlined for AFSCME and LELS employees. For 2011, a 2.5% increase is proposed. The 3rd year of a contract is always a bit of a wild card, but particularly so in this case. The City agreed to a 2.5% increase for 2011 partly to demonstrate that wage freezes for employees are not a regular practice we believe is reasonably over an extended period of time, but rather a necessary result of the slow market. This does not guarantee that the City won't have to go and ask the group for concessions in 2011, but it does give the Union a measure of control. Education Incentive Pav I Tuition Reimbursement: Under the current contract, sergeants are eligible to earn up to an additional 12% as incentive pay for achieving higher education (3% for each year completed). The City also pays the cost of the tuition for officers to go back to school. These provisions have been in place for well over 20 years. Management views these provisions as a double incentive for acquiring education, and makes our maximum eligible total compensation much higher than other cities. When added to maximum eligible pay for longevity, officers can achieve up to 21 % above their base pay. Of the other cities surveyed, virtually none provide education incentive pay, or if education incentive pay is paid, it is significantly less than 12%. With respect to tuition reimbursement, other cities typically offer reimbursement if budgets permit and at the discretion of management, or with an annual cap. The language in the sergeant's contract (and LELS) provided no such limitations to tuition reimbursement. In order to get better control of the City's costs for additional education, the proposed contract provides that education incentive pay be eliminated for new members of the bargaining unit. Current members may continue to receive and earn education incentive pay. This is a phased approach to eliminating education incentive pay over time through attrition. Related to tuition reimbursement, the proposed contract provides that the City will no longer RICouncill2009 Agenda Reportsl12 07 0912009-2011 Teamsters Labor Contract - FINALDOC provide tuition reimbursement for Masters degree or higher level course work. Current sergeants may earn Masters level education and be eligible for education incentive pay, but they must pay for the cost of the tuition on their own. Health Insurance: For City contributions to employee family health insurance premiums, the 2008-2010 AFSCME Labor Agreement has set the standard for insurance benefit for year 2009 and year 2010 ($850 per month for 2009, $875 per month for 2010). Because the City's objective is to maintain as much equity as possible across employee groups, these same increases are proposed in the Teamsters labor agreement. Over the past five years, the City has experience an average increase of 5.42% in its health insurance premiums annually, significantly lower than many other metro cities. Over the past two years, the increases have actually trended below the average at 3% and 3.6% respectively. We are hopefully that this trend will continue, but are unable to rely on it. Over the last decade, the City has experienced spikes in its rates anywhere between 14% in 2005 and 3% in 2009. We will re-open to negotiate health insurance contributions for 2011 when we have better data available and can reasonably attempt to project our increases. FISCAL IMPACT: The 2009 increase is 0.5% above our budgeted increase. However, because there are only 3 people in this bargaining unit, we believe the costs can be absorbed through expenditure reductions already incorporated into the budget. For 2010, a zero increase is consistent with wage freezes and/or furlough days in other employee groups and is reflected in the 2010 budget the Council will consider on December 21, 2009. Funds for 2011 will need to be budgeted according to wage and benefit terms set out in the agreement. Since all employee groups will have taken unpaid leave or wage freezes in 2010, there will be significant increases to the 2011 budget to return to full staffing levels and fund the cost of wage and benefit increases. CONCLUSION: Labor agreements typically do not provide complete satisfaction to either party. There were additional provisions proposed by both parties where we did not reach agreement. This agreement represents an equitable conclusion of bargaining to meet 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. Teamsters Local No. 320 executed the proposed agreement on December 1, 2009 and it is now presented for Council action. ALTERNATIVES: The City Council has the following alternatives: 1. Approve the Resolution ratifying the Labor Agreement for January 1, 2009 - December 31, 2011. 2. Deny the resolution. 3. Adjourn into closed session to discuss the proposed ~hanges. RECOMMENDED MOTION: Alternative #1 - Motion and Second to Approve the Resolution Ratifying the 2009 - 2011 Labor Agreement between the City of Prior Lake and Minnesota Te~sters Public and Law Enforcement Employees' Union., Local 320, and (' aUtOrizing the Mayor and City Manager to execute the Labor Agreement. . ,.~J ~~ Reviewed by: Fr1~)~ ,s, City Manager RICouncil12009 Agenda ~12 07 0912009-2011 Teamsters Labor Contract - FINAL.DOC j/:O.~ PR~ i [... 1Ii~ 4646 Dakota Street S.E. \U ~ Prior Lake, MN 55372-1714 \~ RESOLUTION 09-XX A RESOLUTION RATIFYING THE 2009-2011 LABOR AGREEMENT BETWEEN THE CITY OF PRIOR LAKE AND TEAMSTERS PUBLIC AND LAW ENFORCEMENT UNION LOCAL 320 REPRESENTING SERGEANTS. 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, Teamsters Public and Law Enforcement Union represents Prior Lake Police Sergeants; and WHEREAS, the parties have negotiated in good faith, which negotiations have resulted in an Agreement for 2009, 2010 and 2011; and WHEREAS, the employees who make up the Teamsters Local 320 bargaining unit ratified said Agreement on December 1, 2009; and WHEREAS, the Agreement becomes effective on January 1, 2009. Now THEREFORE, be it resolved by the City Council of the City of Prior Lake that: 1. The above recitals are incorporated herein by reference. 2. The Agreement between the City of Prior Lake and Teamsters Public and Law Enforcement Union Local 320 effective January 1, 2009 through December 31, 2011, is hereby ratified. 3. The Mayor and City Manager are hereby authorized to execute the above referenced Agreement on behalf of the City. PASSED AND ADOPTED THIS 7TH DAY OF DECEMBER 2009. YES NO Haugen Erickson I Hedberg LeMair Millar Haugen Erickson Hedberg LeMair Millar City Manager, City of Prior Lake www.cityofpriorlake.com Phone 952.447.9800 / Fax 952.447.4245 Liabor Agre,eilDe:llt between CITY OF PRIOR LAKE AND MINNESOTA TEAMSTERS PUBLIC AND LAW ENFORCEMENT EMPLOYEES' UNION, LOCAL NO. 320 REPRESENTING: POLICE SERGEANTS January 1, 2009 to December 31, 2011 TABLE OF CONTENTS ARTICLE 1: PURPOSE OF AGREEMENT ARTICLE 2: RECOGNITION ARTICLE 3: DEFINITIONS ARTICLE 4: EMPLOYER SECURITY ARTICLE 5: EMPLOYER AUTHORITY ARTICLE 6: UNION SECURITY ARTICLE 7: EMPLOYEE RIGHTS - GRIEVANCE PROCEDURE ARTICLE 8: SAVINGS CLAUSE ARTICLE 9: SENIORITY ARTICLE 10: PROBATION ARTICLE 11: DISCIPLINE ARTICLE 12: WORK SCHEDULE AND HOURS OF WORK ARTICLE 13: OVERTIME ARTICLE 14: COURT TIME ARTICLE 15: CALL BACK TIME ARTICLE 16: CLOTHING ALLOWANCE ARTICLE 17: HOLIDAYS ARTICLE 18: BASE RATE OF PAY ARTICLE 19: LONGEVITY PAY PLAN 1 1 1 2 2 3 4 6 6 7 7 8 8 9 9 9 10 10; APPENDIX A 11 ARTICLE 20: VACATION LEAVE 11 ARTICLE 21: SICK LEAVE AND SEVERANCE PAY 12 ARTICLE 22: HEALTH AND WELFARE 13 ARTICLE 23: FUNERAL LEAVE 14 ARTICLE 24: STANDBY PAY 14 ARTICLE 25: P.O.S.T. TRAINING 14 ARTICLE 26: VACATION COVERAGE 14 ARTICLE 27: LEGAL SERVICES 15 ARTICLE 28: JURY DUTY PROVISION 15 ARTICLE 29: EDUCATION INCENTIVE PAY PLAN 15 ARTICLE 30: WORKING OUT OF CLASSIFICATION 16 ARTICLE 31: DURATION 16 SIGNATURES 16 APPENDIX A: BASE RATE OF PAY 17 II LABOR AGREEMENT BETWEEN THE CITY OF PRIOR LAKE AND MINNESOTA TEAMSTERS PUBLIC AND LAW ENFORCEMENT EMPLOYEES' UNION, LOCAL #320 ARTICLE I. PURPOSE OF AGREEMENT This Agreement is entered into as of January 1, 2009, between the City of Prior Lake, hereinafter called the Employer, and the Minnesota Teamsters Public and Law Enforcement Employees' Union, Local No. 320 hereinafter called the Union. It is the intent and purpose of this Agreement to: 1.1 Establish procedures for the resolution of disputes concerning this Agreements' interpretation and/or application; and 1.2 Place in written form the parties' entire agreement upon terms and conditions of employment contained herein for the duration of this Agreement. ARTICLE II. RECOGNITION 2.1 The Employer recognizes the Union as the exclusive representative, under Minnesota Statutes, Section 179A.03, Subdivision 14, for all police personnel in the following job classification: POLICE SERGEANT 2.2 In the event the Employer and the Union are unable to agree as to the inclusion or exclusion of a new or modified job class, the issue shall be submitted to the Bureau of Mediation Services for determination. ARTICLE III. DEFINITIONS 3.1 UNION: The Minnesota Teamsters Public and Law Enforcement Employees' Union, Local No. 320. 3.2 UNION MEMBER: A member of the Minnesota Teamsters Public and Law Enforcement Employees' Union, Local No. 320. 3.3 EMPLOYEE: A member of the exclusively recognized bargaining unit. 3.4 DEPARTMENT: The Prior Lake Police Department. 1 3.5 EMPLOYER: The City of Prior Lake. 3.6 CHIEF: The Chief of the Prior Lake Police Department or designee. 3.7 OVERTIME: Work performed at the express authorization of the Employer in excess of the employee's scheduled shift. 3.8 SCHEDULED SHIFT: A consecutive work period including rest breaks and a lunch break. 3.9 REST BREAK: Periods of time for rest purposes during the Scheduled Shift. The employee remains on continual duty and is responsible for all job duties. 3.10 LUNCH BREAK: A period of time designated for the employee to eat during the Scheduled Shift. The employee remains on continual duty and is responsible for all job duties. 3.11 STRIKE: Failing to report for duty, the willful absence from one's position, the stoppage of work, slow-down or abstinence in whole or in part from the full, faithful and proper performance of the duties of the employee for the purpose of inducing, influencing or coercing a change in the conditions or compensation or the rights, privileges or obligations of employment. 3.12 UNION OFFICER: Officer elected or appointed by Minnesota Teamsters Public and Law Enforcement Employees' Union, Local No. 320 to act as Union Officer. 3.13 BASE PAY: Base Pay shall mean the rate of pay negotiated under Article 18. 3.14 BASE SALARY OR SALARY: The cumulative of base pay plus any additional percentage pay received including longevity and/or education incentive. ARTICLE IV. EMPLOYER SECURITY The Union agrees that while this Agreement is in effect, the Union will not cause, encourage, participate in or support any strike, slow down or other interruption of or interference with the normal functions of the Employer. ARTICLE V. EMPLOYER AUTHORITY 5.1 The Employer retains the sole right to operate and manage all manpower, facilities, and equipment in accordance with applicable laws and regulations of appropriate authorities, including, but not limited to, the following: establishing functions and programs; setting and amending budgets; determining the utilization of technology; 2 establishing and modifying the organizational structure; planning, directing, and controlling the operations and services of the department; selecting, directing and determining the number of personnel; assigning and transferring employees; establishing work schedules and assigning overtime; hiring, promoting, or relieving employees; establishing and enforcing rules and regulations except as limited by this Agreement. 5.2 Any term and condition of employment not specifically established or modified by this Agreement shall remain solely within the discretion of the Employer to modify, establish or eliminate. ARTICLE VI. UNION SECURITY 6.1 The Employer shall deduct from the wages of employees who authorize such a deduction in writing an amount necessary to cover monthly Union dues. Such monies shall be remitted as directed by the Union. 6.2 The Union agrees to indemnify and hold the Employer harmless against any and all claims, suits, orders or judgments brought or issued against the Employer as a result of any action taken or not taken by the Employer under the provisions of this Article. 6.3 The Union may designate an employee from the bargaining unit to act as a steward and an alternate and shall inform the Employer in writing of such choice and changes in the position of steward within two weeks of signing the contract, or any change in designated personnel. 6.4 The Employer shall make space available on the employee bulletin board for posting Union notice(s) and announcement(s). 6.5 The Employer agrees to allow the officers and representatives of the bargaining unit reasonable time off and leaves of absence, without pay and with prior approval forthe purpose of conducting Union business when such time will not interfere with the operations of the department. 6.6 The Employer agrees to post all promotional opportunities within the department; to publish the method by which promotions shall be made within the department and to make copies of all work rules and regulations available to employees. 6.7 The Business Agent of the Union, previously accredited to the City in writing by the Union, shall be permitted to come on the premises of the City for the purpose of investigating and discussing grievances in a responsible and reasonable manner. 3 ARTICLE VII - EMPLOYEE RIGHTS - GRIEVANCE PROCEDURE 7.1 Definition of a Grievance: A grievance is defined as a dispute or disagreement as to the application or interpretation of the specific terms and conditions of this Agreement. 7.2 Union Representatives: The Employer shall recognize representatives designated by the Union as the grievance representatives of the bargaining unit having the duties and responsibilities established by this Article. 7.3 The Union shall notify the Employer in writing of the names of such Union Representatives and their successors when so designated as provided by Article 6.3 of this Agreement. 7.4 Processing of a Grievance: It is recognized and accepted by the Union and the Employer that the processing of grievances as hereinafter provided is limited by the job duties and responsibilities of the Employees and shall therefore be accomplished during normal working hours only when consistent with such Employee duties and responsibilities. The aggrieved Employee and a Union representative shall be allowed a reasonable amount of time without loss in pay when a grievance is investigated and presented to the Employer during normal working hours provided that the Employee and the Union Representative have notified and received the approval of the designated supervisor who has determined that such absence is reasonable and would not be detrimental to their work for the Employer. 7.4 Procedure: Grievances, as defined by Section 7.1 shall be resolved in conformance with the following procedure: Step 1: Step 2: An employee claiming a violation concerning the interpretation or application of this Agreement shall, within twenty-one (21) days after such alleged violation has occurred, present such grievance to the Employee's supervisor as designated by the Employer. The Employer- designated representative will discuss and give an answer to such Step 1 grievance within ten (10) days after receipt. A grievance not resolved in Step 1 and appealed to in Step 2 shall be placed in writing setting forth the nature of the grievance, the facts on which it is based, the provision or provisions of the Agreement allegedly violated, the remedy requested and shall be appealed to Step 2 within ten (10) days after the Employer-designated representatives' final answer in Step 1. Any grievance not appealed in writing to Step 2 by the Union within ten (10) days shall be considered waived. If appealed, the written grievance shall be presented by the Union and discussed with the Employer designated Step 2 representative. The Employer designated representative shall give the Union the Employer's Step 2 answer in writing within ten (10) days after receipt of such grievance. A grievance not resolved in Step 2 may be appealed to Step 4 Step 3: Step 4: 3 within ten (10) calendar days following the Employer designated final Step 2 answer. Any grievance not appealed in writing to Step 3 by the Union within ten (10) days shall be considered waived. If appealed, the written grievance shall be presented by the Union and discussed with the Employer designated Step 3 representative. The Employer designated representative shall give the Union the Employer's answer in writing within ten (10) calendar days after receipt of such Step 3 grievance. A grievance not resolved in Step 3 may be appealed to Step 4 within ten (10) calendar days following the Employer designated representative's final answer. If Step 4 is not appealed by the Union within ten (10) calendar days it shall be considered waived. A grievance unresolved in Step 3 and appealed to Step 4 by the Union shall be submitted to arbitration subject to the provisions of the Public Employment Labor Relations Act of 1971 as amended. The selection of an Arbitrator shall be made from a list of five (5) arbitrators provided by the Director of the Bureau of Mediation Services, tossing a coin to decide who strikes first, and alternately striking names off of the list. 7.6 ARBITRATOR'S AUTHORITY A. The arbitrator shall have no right to amend, modify, nullify, ignore, add to, or subtract from the terms and conditions of this Agreement. The arbitrator shall consider and decide only the specific issue(s) submitted in writing by the Employer and the Union, and shall have no authority to make a decision on any other issue not so submitted. B. The arbitrator shall be without power to make decisions contrary to, or inconsistent with, or modifying or varying in any way the application of laws, rules, or regulations having the force and effect of law. The arbitrator's decision shall be submitted in writing within thirty (30) days following the close of the hearing or the submission of briefs, by the parties whichever is later, unless the parties agree to an extension. The decision shall be binding on both the Employer and the Union and shall be based solely on the arbitrator's interpretation or application of the express terms of this Agreement and to the facts of the grievance presented. C. The fees and expenses for the arbitrator's services and proceedings shall be borne equally by the Employer and the Union provided that each party shall be responsible for compensating its own representatives and witnesses. If either party desires a verbatim record of the proceedings, it may cause such a record to be made, providing it pays for the record. If both parties desire a verbatim record of the proceedings the cost shall be shared equally. 5 7.7 Waiver: If a grievance is not presented within the time limits set forth above it shall be considered waived. If a grievance is not appealed to the next step within the specified time limit or any agreed extension thereof, it shall be considered settled on the basis of the Employer's last answer. If the Employer does not answer a grievance or an appeal thereof within the specified time limits, the Union may elect to treat the grievance as denied at that Step and immediately appeal the grievance to the next Step. The time limit in each step may be extended by mutual written agreement of the Employer and the Union in each step. 7.8 Choice of Remedy: If, as a result of the written Employer's response in Step 3, the grievance remains unresolved, and the grievance involves the suspension, demotion, or discharge of an Employee who has completed the required probationary period, the grievance may be appealed either to Step 4 of Article 7 or a procedure such as Civil Service, Veteran's Preference, or the Fair Employment Act. If appealed to any procedure other than Step 4 of Article 7 the grievance is not subject to the arbitration procedure as provided in Step 4 of Article 7. The aggrieved employee shall indicate in writing which procedure is to be utilized, Step 4 of Article 7 or another appeal procedure, and sign a statement to the effect that the choice of any other hearing precludes the aggrieved employee from making a subsequent appeal through Step 4 of Article 7. ARTICLE VIII - SAVINGS CLAUSE This Agreement is subject to the laws of the United States, the State of Minnesota and the City of Prior Lake. I n the event any provision of this Agreement shall be held to be contrary to law by a court of competent jurisdiction from whose final judgment or decree no appeal has been taken within the time provided, such provisions shall be voided. All other provisions of this Agreement shall continue in full force and effect. The voided provision may be renegotiated at the written request of either party. ARTICLE IX. SENIORITY 9.1 City Seniority shall be determined by the employee's length of continuous employment with the City of Prior Lake. 9.2 Departmental Seniority shall be determined by the employee's length of continued employment with the Prior Lake Police Department as a licensed Police Officer. 9.3 Job Classification Seniority shall be determined by the employee's length of continuous employment within the specific job classification. 9.4 A reduction in the work force in a specific classification shall be accomplished on the basis of seniority, with the least senior employee in the classification being laid offfirst, second senior employee being laid off next, etc. 9.5 Employees being laid off from a specific job classification shall retain the right, if any, to bump back into any previously held lower position in the Prior Lake Police 6 Department. 9.6 Employees shall be recalled from layoff on the basis of seniority. An employee on layoff shall have the right to return to work within two years of the time his/her layoff, provided the employee has maintained all license requirements as established by the P.O.S.T. Board or is eligible for license. Notification shall be by certified letter, and upon receipt of, employee shall have twelve (12) days to return to work. 9.7 One continuous vacation period shall be selected on the basis of seniority until March 15 of each calendar year. 9.8 In-class seniority shall prevail. Senior Employees shall have preference for shift bids, transfer, and job classification assignments. ARTICLE X. PROBATION 10.1 A promoted or new employee shall be granted a one (1) year probation period to determine: 1. The employee's ability to perform the job; 2. The employee's desire to remain on the job; and 3. During the probationary period, a newly hired or rehired employee may be discharged at the sole discretion of the Employer. During the probationary period, a promoted or reassigned employee may be returned to the previous position at the sole discretion of the Employer. The employee may elect to return to the previous position during the probationary period. ARTICLE XI. DISCIPLINE 11.1 The Employer will discipline employees for just cause only in a form including but not limited to the following: A. Oral reprimand; B. Written reprimand; C. Suspension; D. Demotion; E. Discharge. 11.2 Suspension, demotions or discharges will be in written form. 11.3 Discipline shall become part of the Employee's personnel file and shall be acknowledged by signature of the employee. Employee and the Union will receive a copy of such documents. 11.4 Employees may examine their own individual personnel files at reasonable times under the direct supervision of the Employer. 7 11.5 Employees shall not be questioned concerning an investigation of disciplinary action unless the employee has been given an opportunity to have a Union Representative present at such questioning. 11.6 The Employer will not discipline an employee in the presence of citizens or other employees, other than the Union steward, the employee's designated Union representative, or supervisory personnel, or a designee. This shall not be deemed to apply to the issuance of work instructions or discussions held during departmental meetings. 11.7 Grievances relating to this Article may be initiated by the Union in Step 3 of the grievance procedure under Article VII. ARTICLE XII. WORK SCHEDULE AND HOURS OF WORK 12.1 The normal work year is two thousand and eighty hours (2,080) to be accounted for by each employee through: A. Hours worked of assigned shifts; B. Holidays; C. Assigned Training; D. Authorized Leave Time. 12.2 Holidays and authorized leave time is to be calculated on the basis of the actual length of time of the assigned shifts. 12.3 Nothing contained in this or any other Article shall be interpreted to be a guarantee of a minimum or maximum number of hours the Employer may assign employees. ARTICLE XIII. OVERTIME 13.1 Employees shall be compensated at one and one-half (1 %) times the employee's regular salary rate for all hours worked in excess of the employee's regularly scheduled shift. Changes of shift do not qualify an employee for overtime under this Article. 13.2 The Police Chief shall have sole discretion in the availability of overtime. When the Chief declares that overtime is available, it shall be distributed on a volunteer basis, by seniority, to the Sergeants first. If no Sergeant wants to work it, the overtime may be assigned to the junior Sergeant or offered to a patrol officer. This provision shall not apply if the employee has not had at least twelve (12) hours off duty. 13.3 Overtime refused by employees, shall be considered as unpaid overtime worked. 13.4 Overtime will be calculated to the nearest fifteen (15) minutes. 8 13.5 For the purpose of computing overtime compensation, overtime hours worked shall not be pyramided, compounded or paid twice for the same hours worked. 13.6 The EMPLOYER shall provide a minimum of twelve (12) hours off between scheduled shifts. If an employee is required to work with less than twelve (12) hours off between shifts, then he/she shall be paid at the time of one and one-half (1~) salary rate for all hours that are worked within the twelve (12) hour period, except when it is mutually agreed by the EMPLOYER and the employee to waive this requirement. 13.7 When prior approval has been obtained from the Employer, an employee may elect to receive overtime as compensatory time off to be utilized within the same calendar year during which overtime has accrued. Any unused compensatory time will be paid out in the second paycheck in December. Maximum compensatory time accumulated shall not exceed thirty (30) hours. ARTICLE XIV. COURT TIME 14.1 An employee who is required to appear in Court during his scheduled off-duty time shall receive a minimum of three (3) hours pay at one and one-half (1~) times the employee's salary rate. An extension or early report to a regularly scheduled shift for Court appearance does not qualify the employee for the three (3) hour minimum. Cancellation with less than twenty-four (24) hours notice shall result in the minimum being paid. 14.2 In the event an employee is subpoenaed to testify in private party litigation in a capacity other than that of an expert witness regarding an incident that has occurred within the scope of employment for the City of Prior Lake involving facts which the employee came to know while on duty as a police officer, then the employee shall receive court time pay in accordance with the requirements as set forth in 14.1. In addition, if the employee uses a personal vehicle, then the employee may keep the mileage fee served with the subpoena. ARTICLE XV. CALL BACK TIME 15.1 An employee who is called back to duty during his scheduled off-duty time shall receive a minimum of two (2) hours pay at one and one-half (1~) times the employee's salary rate. An extension or early report to a regularly scheduled shift for duty does not qualify the employee for the two (2) hour minimum. ARTICLE XVI. CLOTHING ALLOWANCE 16.1 Employees shall receive eight hundred sixty-one dollars ($861.00) per year for clothing 9 and maintenance allowance. This amount shall be adjusted each year by the percentage increase in the January to January, Minneapolis-St. Paul Consumer Price Index as reported by the U.S. Department of Labor Bureau of Labor Statistics for the preceding year. 16.2 Fifty percent (50%) of the clothing allowance is to be paid in the first paycheck in June and the other fifty percent (50%) shall be paid in the first paycheck in December. 16.3 Probationary employees in their first year of employment can draw up to six hundred fifty dollars ($650) from the EMPLOYER for uniforms, leather and equipment. In addition, after they have passed their probationary period, they may draw against their uniform allowance. 16.4 The EMPLOYER shall provide a list of approved uniform items. Any items that are different, or are in addition to the list of items that are currently required for present and new employees, shall be paid for by the EMPLOYER, without deduction from the uniform allowance. 16.5 The EMPLOYER shall provide each employee with a Level 2 ballistic vest, either side panel vest or their extended coverage T-shirt style, and two covers every five years. ARTICLE XVII. HOLIDAYS 17.1 The EMPLOYER shall designate twelve (12) paid holidays at a maximum of eight (8) hours per day or ninety-six (96) hours per year. 17.2 Any holidays not taken by the employee shall be resold to the EMPLOYER at the employee's salary rate during the first payroll in December. 17.3 Any employee required to work on a holiday as designated In Article 17.1. shall be credited with an additional one-half (%) times his/her regular salary rate for all hours worked except any hours which would be regular overtime hours per Article XIII, Overtime, which shall be paid as per Article XIII provides. Holiday premium pay shall be given for all hours of the shift, including ten (10) hour shifts. 17.4 In instances where Christmas Day, the 4th of July, and New Year's Day fall on a Saturday or Sunday, shift employees scheduled to work the actual holiday will be paid at 1 % times their salary rate of pay for the shift worked. No shift employee will be paid at the 1 % times rate for the City-recognized holiday. ARTICLE XVIII. BASE RATE OF PAY See Attached Appendix A 10 ARTICLE XIX. LONGEVITY PAY PLAN 19.1 Each employee shall receive longevity pay in addition to regular base rate of pay as per the following schedule: Three percent (3%) after four (4) years of service. Five percent (5%) after eight (8) years of service. Seven percent (7%) after twelve (12) years of service. Nine percent (9%) after sixteen (16) years of service. ARTICLE XX. VACATION LEAVE 20.1 Each employee shall accrue paid vacation on a monthly basis as per the following schedule:Start until three (3) full years of service - ten (10) eight hour days per year or eighty (80) hours. Start of the fourth (4th) through the ninth (9th) year- fifteen (15) eight hour days per year or one hundred twenty (120) hours. Start of the tenth (10th) through the fourteenth (14th) year - twenty (20) eight hour days per year or one hundred sixty (160) hours. Start of the fifteenth (15th) year - twenty-one (21) eight hour days per year or one hundred sixty-eight (168) hours. Start of the sixteenth (16th) year - twenty-two (22) eight hour days per year or one hundred seventy-six (176) hours. Start of the seventeenth (17th) year - twenty-three (23) eight hour days per year or one hundred eighty-four (184) hours. Start of the eighteenth (18th) year - twenty-four (24) eight hour days per year or one hundred ninety-two (192) hours. Start of the nineteenth (19th) year and thereafter - twenty-five (25) eight hour days per year or two hundred (200) hours. 20.2 Newly hired probationary employees shall earn but cannot use vacation until after twelve (12) months of service. 20.3 The days that an employee has scheduled off prior to, during, and preceding the employee's vacation leave are included in the employee's vacation "Windows". During this time period, the EMPLOYER will not schedule the employee for work. This section 11 does not prevent the EMPLOYER from scheduling employees to work predetermined events in which all employees in the department would be required to work. 20.4 A regular full time employee who has completed a minimum of three (3) years of continuous service shall be allowed to carry over from one calendar year to the next one and one-half (1 %) times their accrued vacation at the rate of accrual specified in 20.1. 20.5 Personal Leave: Employees will be eligible for two (2) personal days per year. The employee must provide two (2) days written notice to EMPLOYER prior to taking the personal day. The personal day can be taken at the officer's discretion, however, no accumulation or carry over of days can occur. No more than one (1) employee can take personal leave during the week. ARTICLE XXI. SICK LEAVE AND SEVERANCE PAY 21.1 Each full-time employee shall earn eight hours of paid sick leave for each month of service. 21.2 Each employee shall be allowed to accrue paid sick leave up to a maximum of nine hundred sixty (960) hours). At their option employees who have accumulated at least seven hundred twenty (720) hours of sick leave may buy back the sick leave days in excess of seven hundred twenty (720) hours, at the current salary rate of pay. This option once exercised by an employee, shall continue until termination of employment. Such buy back of sick leave shall be subject to the following limitations: A. Any sick leave earned and accrued shall be paid off at fifty percent (50%). 21.3 If an employee uses more than two (2) consecutive days of sick leave, the Employer may require a doctor's slip as to the nature of the illness. 21.4 The Employer agrees to pay upon honorable termination of any employee afterfive (5) years of service fifty percent (50%) of the employee's accumulated unused sick leave at the employee's current salary pay rate. 21.5 In addition to the monthly accumulation of sick leave mentioned above, each employee shall accumulate immediately upon employment, ninety (90) scheduled shifts (e.g., up to 900 hours for a ten-hour shift or 720 hours for an eight-hour shift) of sick leave to be used only for injuries incurred during the performance of assigned duties. Such leave with pay shall be granted for any period of disability, provided that a doctor's certificate is filed with the City Manager stating that the employee is not able to return to work. Such leave with pay shall not exceed ninety (90) working days per injury. If the employee is receiving Worker's Compensation benefits for the disability, the City will pay the difference between the employee's Worker's Compensation benefits and the employee's full salary out of any accumulated and unused ninety (90) scheduled shifts 12 of injury on-duty sick leave. Such sick leave shall not be used in computing severance benefits. 21.6 At the employee's request the Employer shall grant to the employee up to ninety (90) scheduled shifts (e.g. 900 hours for ten-hour shifts or 720 hours for eight-hour shifts) of unpaid medical leave after sick leave and vacation have been exhausted. 21.7 Any employee that claims an absence from work due to an injury sustained on the job is subject to an examination to be made in behalf of and paid for by the Employer by a person competent to perform the same and is designated by the Employer. ARTICLE XXII. HEALTH AND WELFARE 22.1 The Employer will select and provide group health insurance with benefits atthe same level as presently exists. The Employer will pay a sum not to exceed the monthly premium for individual and dependent coverage as follows: $850 per month for 2009 $875 per month for 2010 Reopen contract for insurance only for 2011 In the event premiums are increased beyond the maximum contribution paid by the Employer, then such increases shall be paid by the employee through payroll deduction. 22.2 The Employerwill select and provide group dental insurance with benefits substantially the same as presently exist. The Employer will pay a sum not to exceed forty dollars ($40) per month the monthly premium for individual and dependent coverage. In the event that premiums are increased beyond the maximum contributions paid by the Employer, such increases shall be paid by the employee through payroll deduction. 22.3 Effective January 1, 2003, the Employer will select and provide term life insurance in the total face amount of $50,000. The Employer will pay a sum not to exceed $11.30 per month for the foregoing coverage. In the event the premiums are increased beyond the maximum contribution provided by the Employer, such increase shall be paid by the employee through payroll deduction. 22.4 Retirement Health Savinqs Plan. Retirement Health Savings Plan is a health benefit savings vehicle that allows employees to accumulate assets to pay for medical expenses (e.g. health insurance, co-pays, prescription expenses, etc.) on a tax-free basis. The terms of the plan are governed by the Internal Revenue Code. To be eligible to participate in the plan, union members must (1) complete 12 months of full-time service to the City, and (2) make mandatory employee contributions in the amount of $12.50 per pay period. The employer will contribute $12.50 per pay period per participating employee. This 13 contribution is a reallocation of the City's funds programmed for long-term disability insurance. Paid long-term disability will no longer be an available benefit paid by the City regardless of the employees' choice whether or not to participate in Retirement Health Savings. Once an employee elects to participate in Retirement Health Savings, he/she will not be able to discontinue participation. ARTICLE XXIII. FUNERAL LEAVE The Employer authorizes each employee funeral leave of three (3) days, should any member of his immediate family pass away. Such funeral leave shall not be deducted from accumulated sick leave. For the purpose of this Article immediate family shall mean the spouse, parents, children, brother, sister, brother-in-law, sister-in-law, grandparents, grandchildren of the employee and employee's spouse. The Employer may grant additional time off if the City Manager deems it necessary. ARTICLE XXIV. STANDBY PAY If the Employer requires any employee to be on standby, the employee shall receive one (1) hour pay for each two (2) the employee is on standby. It shall be the responsibility of the Employer to notify the employee of the actual hours they are to be on standby. ARTICLE XXV. P.O.S.T. TRAINING The Employer agrees to pay for all training required by the City at straight time pay for the hours of class time. The Employer also agrees to pay license fees, meals, lodging, mileage, all reasonable expenses incurred in maintaining the employee's P.O.S.T. license. Additional schools, etc., upon mutual agreement may be attended by the employee on his/her own time, the Employer reimbursing for other costs. ARTICLE XXVI. VACATION COVERAGE The parties agree that when employees fill in for other employees on vacation, the Employer will take into consideration the shift that the employee is currently on, the shift he/she is filling in for, and the effect on the employee's health and sleep schedule resulting from a shift change. For example, an employee would not be expected to change shifts in the middle of the week and back again to cover for an employee on vacation. This does not prevent the Employer from making shift changes in such cases due to an emergency, or an unscheduled absence. 14 ARTICLE XXVII. LEGAL SERVICES 27.1 The Employer shall provide and pay for legal defense for any employee who is charged with any alleged wrongdoing within the scope of his/her employment. 27.2 Except in cases of malfeasance in office or willful or wanton neglect of duty, Employer shall defend, save harmless and indemnify an employee and/or his/her estate against any claim or demand, whether groundless or otherwise, arising out of an alleged act or omission occurring in the performance and scope of employee's duties to the fullest extent permitted by Minnesota Law. 27.3 For the provisions of this Article, the meaning of words, "malfeasance", willful", and "wantonll shall be described in the most recent Blacks Law Dictionary. ARTICLE XXVIII. JURY DUTY PROVISION When an employee has been absent from work because of jury service, he/she shall be paid the regular salary by the City, with the understanding that upon the completion of the jury service, he/she shall provide a copy of the jury check to the head of the department and that the amount of such check, less the amount including for traveling expenses, shall be deducted from the next regular pay check. ARTICLE XXIX. EDUCATION INCENTIVE PAY PLAN 29.1 The Employer agrees to pay each Employee an additional percentage of his/her base pay rate plus longevity payor working out of classification pay, if any, for each year of college level education as part of the following schedule after starting with the department: Three percent (3%) for one (1) year Six percent (6%) for two (2) years Nine percent (9%) for three (3) years Twelve percent (12%) for four (4) years New members of the bargaining unit hired after January 1, 2009 are not eligible for education incentive pay. 29.2 The Employer agrees for the purpose of definition of college level education in Article 29.1 above, to recognize a grade of C or Pass from any institution of higher learning approved by the North Central Bureau of Accreditation. In addition, the employee shall provide the Employer written notice of the employee's intent to enroll in a course by June 30th the year preceding enrollment. 29.3 The Employer agrees to provide reimbursement for the cost of books and tuition for any successfully completed college level course provided that the course is associated 15 with law enforcement (to include the social sciences and required electives). Effective December 31, 2009, this provision shall not apply to Masters or higher level course work. ARTICLE XXX. WORKING OUT OF CLASSIFICATION Employees assigned all of the responsibilities of a higher position shall receive the differential for each full shift assigned to that position by the Employer. Employees assigned to the position of Sergeant Investigations shall receive an additional five percent (5%) of their base pay plus longevity pay. ARTICLE XXXI. DURATION 31.1 This Agreement shall be effective as of January 1,2009, and shall remain in full force and effect until December 31, 2011 and thereafter as provided in the PELRA. 31.2 This Agreement shall represent the complete agreement between the Employer and the Union. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on this day of ,2009. FOR THE CITY OF PRIOR LAKE FOR MINNESOTA TEAMSTERS PUBLIC AND LAW ENFORCEMENT EMPLOYEES' UNION, LOCAL NO. 320 Jack Haugen, Mayor at..-J&- Tom Kahlert, Union Steward Dated: Dated: /()- /- D? Dated: J1~~ Michael J. Gole~usiness Agent - Dated: I :J- - I - oq Frank F. Boyles, Manager 16 APPENDIX A Base Rate of Pay 3% increase effective January 1, 2009 0% increase effective January 1, 2010 2.5% increase effective January 1, 2011 Start After Probation Effective Date Monthly Monthly January 1, 2009 5,884 6,268 January 1, 2010 5,884 6,268 January 1, 2011 6,031 6,425 17