HomeMy WebLinkAbout5B Labor Agreement Between Prior Lake and Law Enforcement Laborrte, pRlO
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4646 Dakota Street SE
Prior Lake_ MN 55372
CITY COUNCIL AGENDA REPORT
MEETING DATE: December 5, 2011
AGENDA #: 56
PREPARED BY: Kelly Meyer, Asst. City Manager
PRESENTED BY: Kelly Meyer
AGENDA ITEM: CONSIDER APPROVAL OF AN ADDENDUM TO LABOR AGREEMENT BE-
TWEEN THE CITY OF PRIOR LAKE AND LAW ENFORCEMENT LABOR SER-
VICES RELATED TO INSURANCE CONTRIBUTION FOR 2011.
DISCUSSION: Introduction
The purpose of this agenda item is to consider approval of an addendum to the
existing labor agreement with patrol officers for insurance contributions for calen-
dar year 2011.
History
The City and Law Enforcement Labor Services, Inc., Local 100 representing the
City's 18 patrol officers (LELS) have an existing labor agreement in place covering
the period 2010 and 2011. The agreement covers wages and language agree-
ments for both years, but only addresses insurance for 2010. Due to the unpre-
dictability of the economy and the potential impact on the health insurance indus-
try, the parties agreed to a "reopener" for insurance only for 2011 when the parties
had more information. The same agreement was reached with Teamsters who
represent police sergeants. At the time, the labor agreement with AFSCME was
open for full negotiation for 2011.
Current Circumstances
In December 2010, the City was notified by our insurance carrier that it would re-
ceive a 19% increase in premiums. As a result, the City made two commitments:
1. Adjusted the VEBA plan within plan guidelines to apply as much of the
City's contribution as possible to premium costs and thereby provide em-
ployees on family insurance a lower premium option; and
2. Established a Health Insurance Task Force representative of all employee
groups to address insurance plan options /changes for 2012.
The VEBA plan adjustments have been in place since the beginning of 2011. The
Health Insurance Task Force, with the assistance of a consultant, has been
through a process to audit our existing plan usage, compare it to the market, sur-
vey employees on their insurance needs, and recommend an alternate plan option
for 2012.
The City settled its contract with AFSCME in February 2011. The insurance rate
was $940 /mo. toward family coverage (up from $875 in 2010). The City's unre-
presented managers /supervisors received the same $940 /mo. Similar offers were
made by the City to Teamsters and LELS. In April, after the City and Teamsters
had met in two meetings and a mediation session, the parties were unable to
reach agreement and submitted the issue to binding arbitration. At the time, the
same issue was outstanding with LELS. Rather than proceeding to mediation,
LELS and the City agreed to suspend the mediation until an arbitration decision
was made on the Teamsters issue. That decision, supporting the City's $940 /mo.
rate, was issued on December 9, 2011. Subsequently, now that the large majority
of the City's employees have settled at $940 /mo., LELS has elected to settle at
$940 /mo. as contribution to family coverage as well.
Conclusion
In order to formalize the settlement, LELS has executed the attached Addendum
and it is presented for approval by the Council.
ISSUES: No issues. The City contribution amount is consistent with the rates reached with
all other employee groups. Reimbursement for those affected would be retroac-
tive to January 1, 2011.
FINANCIAL Although the $940 /mo. contribution toward family coverage is $3 higher than orig-
IMPACT: inally budgeted, it is consistent with all other employee groups, and there are ade-
quate funds for the expenditure within the police department operating budget.
The total cost for the adjustment is approximately $4,000.
ALTERNATIVES: 1. Motion and second to authorize the Mayor and City Manager to execute the
Addendum to Labor Agreement as presented as part of the Consent Agenda.
2. Remove this item from the Consent Agenda for further discussion.
RECOMMENDED
MOTION: Alternative 1.
This AGREEMENT is entered into this 6th day of December, 2011, by and between CITY OF PRIOR LAKE,
a Minnesota municipal corporation (hereinafter referred to as "EMPLOYER"), and LAW ENFORCEMENT LABOR
SERVICES, INC., LOCAL NO. 100 (hereinafter referred to as "UNION ").
WHEREAS, in April 2010, the EMPLOYER and UNION negotiated a two -year collective bargaining agreement
covering the calendar years 2010 and 2011 (hereinafter referred to as the "CBA "); -and
WHEREAS, Article 23.1 of the CBA designated a dollar cap for the EMPLOYER'S contribution to health
insurance premiums for calendar year 2010; and
WHEREAS, due to the unpredictability of the economy and the health insurance industry, it was mutually
determined that the a "re- opener" be included in the CBA to address the EMPLOYER contribution
level to health insurance premiums for 2011; and
WHEREAS, the EMPLOYER and UNION have met on several occasions and reached final agreement.
NOW THEREFORE, the parties agree as follows:
1. The CBA is hereby amended to incorporate this AGREEMENT.
2. Article 23.1 of the CBA is hereby amended to read as follows:
The EMPLOYER will select and provide group health insurance with benefits at the same level as
presently exists. The EMPLOYER will pay a sum not to exceed the monthly premium for individual
and dependent coverage as follows:
2010. $875 per month
2011: Reopen for insuranoe on $940 per month
In the event premiums are increased beyond the maximum contribution paid by the EMPLOYER,
such increases shall be paid by the employee through payroll deduction.
3. The EMPLOYER shall make affected employees whole retroactive to January 1, 2011.
IN WITNESS WHEREOF, the EMPLOYER and UNION signed and agreed to be bound by this AGREEMENT on
the dates indicated.
EMPLOYER:
CITY OF PRIOR LAKE
Mike Myser, Mayor
Frank Boyles, City Manager
Date
UNION:
LAW ENFORCEMENT LABOR SERVICES, INC.
7 LOC L N0.100
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'qteward
Jack Chambers, Business Agent
Date
Phone 952.447.9800 / Fax 952.447.4245/w�v%v.cityofpriorlake.com