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Home My WebLink About5F - 2010-2011 LELS Collective Bargaining Agreement o~ PRI01> t ~ ~ 4646 Dakota Street S.E. U ~ r;; Prior Lake, MN 5S3~2-1714 ~INN o~~ ES CITY COUNCIL AGENDA REPORT MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: RICouncil12010 May 3, 2010 SF Kelly Meyer, Assistant City Manager CONSIDER APPROVAL OF A RESOLUTION RATIFYING THE 2010 - 2011 COLLECTIVE BARGAINING AGREEMENT BETWEEN THE CITY OF PRIOR LAKE AND LAW ENFORCEMENT LABOR SERVICES, INC. (LELS), LOCAL NO. 100, REPRESENTING PRIOR LAKE POLICE OFFICERS. Introduction: The purpose of this agenda item is to request that the city council consider ratification of a 2010-2011 Labor Agreement with Law Enforcement Labor Relations Inc, Local 100 representing Prior Lake Police Officers. Historv: The Law Enforcement Labor Services, Inc. (LELS) bargaining unit representing 18 employees (patrol officers) has been in existence at the City for over 20 years. The existing labor agreement was a one-year contract reached in September 2009 and expiring December 31, 2009, The negotiation process for 2010 and beyond began in January this year. The bargaining team representing LELS included Jon McHaney, Duane Goldammer, and Business Agent Jack Chambers. Negotiating on behalf of the City was Asst. City Manager Kelly Meyer. Like 2009, the 2010 negotiations were complicated by the challenges of the current economy and its impact on the City's budget. Current Circumstances: The Council will recall that the 2010 budget called for wage freezes or corresponding furloughs or layoffs in order to achieve its 2010 budget and tax levy goals. Accordingly, managers and supervisors who are unrepresented were given wage freezes at 2009 rates for 2010. The City also reached agreement with the police sergeants for a zero cost of living increase for 2010. For groups that either had existing contracts in place (AFSCME) or who were unsettled for 2010 (LELS), the City imposed furloughs (unpaid hours) of 96 hours per employee. This further complicated the negotiation process. From the City's perspective, the primary objectives in the negotiations were to (1) achieve a zero cost of living increase or equivalent for 2010 to address budget and tax levy goals; (2) enter into as long a contract as possible in order to promote labor and management stability, and (3) maintain as much consistency as possible between employee groups. Conclusion: With these objectives in mind, staff believes that LELS and the City have negotiated the terms of this contract in good faith, and that the proposed labor agreement achieves the City's objectives listed above. www.cityofpriorlake.com C1311(,"~a&204lllOCt~OO- J()11fai€~~ .4245 ISSUES: R\Councii\20i 0 Shown below is a summary of the proposed labor agreement with LELS. A complete copy of the Labor Agreement is available in my office for your review. ProDosed Amendments to the Aareement: Duration: Two year term (Jan. 1, 2010- Dec, 31, 2011). Wage Adjustments: 2010 - 0% (previous furloughs implemented 1/1/10 through 3/31/10 would be reinstated) 2011 - 2.5% 2010 - $875 pm month toward family coverage 2011 - Reopen to negotiate for insurance only, 'Premiums for Single Coverage are 100% paid by the City. $875 per month is consistent with other employee groups who are settled for 2010. +1 personal day per employee (total of 2 per year). Language change that not more than one officer can be on personal leave per day. Health Insurance Increase for Family Coverage: Personal Days (Article 21.6) Term: The contract before the Council is for a 2 year term for 2010 and 2011 rather than a 3 year term which is typically sought. Given the economic climate, neither the City nor the union seemed willing to attempt to forecast into 2012. At this time, because many cities are facing some of the same budgetary issues, there isn't consistent market data available on which to base wage increases for future years. This same challenge will likely face both the City and the union in upcoming negotiations with AFSCME for 2011 and beyond. Waaes: Like other businesses, public and private, the impact of the current economic downturn has affected Prior Lake as well. Over the last two years, the City has implemented expenditure reductions, eliminated personnel by layoff, and eliminated overtime. In reviewing comparison data based upon total compensation in other metro area police departments, the staff (as in 2009) continues to believe that Prior Lake patrol officers compare very favorably to similarly sized cities, and that future negotiations must continue to make patrol officer pay more transparent. However, in a year when our primary goal was to achieve wage freezes, staff did not feel there was an opportunity to negotiate additional changes in types of pay, The goal provided by the Council for this negotiation was to see a wage adjustment that was reflective of what the taxpayer could bear in a stressed economy and provided direction that the City should seek a wage freeze for all groups for 2010. At the same time, Council believed this to be a one- time concession, and authorized staff to offer reasonable increases for future years. The agreement reached achieves a zero cost of living increase for 2010, and a 2.5% increase for 2011, This is identical to the settlement with the police sergeants. Any furloughs that were implemented pending contract settlement will be reimbursed. 03 1 O\LELS Contract 2010 - 201 i FISCAL IMPACT: CONCLUSION: ALTERNATIVES: RECOMMENDED MOTION: R\Council\2010 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 2010. Because the City's objective is to maintain as much equity as possible across employee groups with respect to benefits and their administration, the same health insurance benefit is proposed in the LELS Labor Agreement for 2010. Unrepresented and Teamsters employees received the same as well. We will reopen the contract to negotiate 2011 wage rates when the City has better data available in order to reasonably predict our increases. The 2010 General Fund Operating budget contemplated a 2.5% increase based upon the community of interest at the time the 2010 budget was prepared, with a reduction in hours of 96 hours per employee. Reaching a zero increase will actually incur a slight increase in the General Fund budget for 2010. Due to some additional savings related to current vacancies, funding is available to administer the contract. Labor agreements typically do not provide complete satisfaction to either party. Negotiations have been particularly difficult over the past two years and both the union and City look forward to labor peace through 2011. This agreement represents an equitable conclusion of bargaining. LELS Local 100 has voted and executed the 2010 labor agreement and it is presented for Council action. The City Council has the following alternatives: 1. Approve the Resolution ratifying the Labor Agreement for January 1, 2010 - December 31,2011, 2. Deny the Resolution 3. Adjourn into closed session to discuss the proposed changes. Alternative #1 - Motion and Second to Approve the Resolution Ratifying the 2010 - 2011 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 Agreement. ~JtJ- Reviewed U t ......... 03 10\LELS Contract 2010 - 2011 3 O~ PRI01> ~ ~ f.... )- U ~ t'2y ~INNESO~~ 4646 Dakota Street S.E. Prior Lake, MN 55372-1714 RESOLUTION 10-XX A RESOLUTION RATIFYING THE 2010-2011 LABOR AGREEMENT BETWEEN THE CITY OF PRIOR LAKE AND LAW ENFORCEMENT LABOR SERVICES UNION LOCAL 100 REPRESENTING PATROL OFFICERS. 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 Police Officers; and WHEREAS, the parties have negotiated in good faith, which negotiations have resulted In an Agreement for 2010 and 2011; and WHEREAS, the employees who make up the Law Enforcement Labor Services Local 100 bargaining unit ratified said Agreement and executed the new contract; and WHEREAS, the Agreement becomes effective on January 1, 2010. 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 Law Enforcement Labor Services, Inc., Local 100 effective January 1, 2010 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 3rd DAY OF MAY, 2010. YES NO I Myser I Erickson Hedberg Keeney Millar Myser Erickson Hedberg Keeney Millar City Manager, City of Prior Lake www.cityofpriorlake.com Phone 952.447.9800 / Fax 952.447.4245