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Home My WebLink About9C - Law Enforcement Labor Svcs MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: CITY COUNCIL AGENDA REPORT MAY 15, 2000 9C SUSAN WALSH, ASSISTANT CITY MANAGER 4/ CONSIDER APPROVAL OF RESOLUTION OO-~ RATIFYING THE 2000-2002 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 fourteen employees 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 1997 - 1999. The negotiation process for 2000 and beyond began in February, and we have held five negotiation sessions to negotiate a Labor Agreement to address wages and conditions of employment in accordance with the Public Employee Labor Relations Act (PELRA). Current Circumstances: The primary objective in the negotiations has been twofold: (1) to develop a long term agreement which will provide some level of ongoing labor peace; and (2) to achieve an agreement which is reasonable economically and prudent from a language perspective. The labor agreement for which Council ratification is requested under this agenda item meets both criteria. Shown below is a summary of the proposed three year agreement with LELS covering the year 2000,2001, and 2002. Proposed Amendments to the Agreement: Duration: Three years (2000 - 2002) Wage Adjustments: 2000 - 3.00% 2001 - 2.75% on January 1 .75% on September 1 2002 - 3.00% Health Insurance Increase for Family Coverage: 2000 - $10 per month ($435) 2001 - $35 per month ($470) 2002 - $50 per month ($520) Article 12 - Overtime, amended to include a new Subsection 12.8 Employees will be paid at the rate of one and one-half (1-1/2) times their base pay for hours worked outside of their normal shift with less than 14 days' notice. 16200 Eagle Creek Ave. S.E., Prior Lake. Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 I :\ASSTCM\UN I ONS\U N I ONS\LELS\OOAGRdr~iOO'C\L OPPORTl '~IT" t::VIPLOYER ISSUES: Article 20 - Vacation, amended: Subsection 20.3 amended to clarify definition of "vacation window" and to eliminate management from having to notify employees for possible overtime if employees are in their "vacation window". Subsection 20.6 amended to provide that a personal leave day can be taken provided that no more than two employees are on paid leave (sick, vacation, floating holidays and training) at the same time. With regard to wages, the City of Prior Lake has historically paid around the average for similar sized cities within the metro area. A 3% wage adjustment for 2000 would place the City at the average wage paid by Stanton Group Six cities. The 2001 proposed two-step increase provides a 3% wage increase to employees for that year and adjusts their base pay by an overall 3.5%. The union and city also agreed to a 3% increase for 2002. For the next three years, we project that cities in the metropolitan area will settle contracts with a general increase of 3%. For health insurance, LELS agreed to a $10/month increase or $435 a month for' health insurance for family coverage. This is the same insurance contribution that AFSCME and nonunion employees have received for the year 2000. With this $10 a month increase, employees' contribution will more than double. Since we are anticipating double digit increases for 2001 and 2002, we felt that a $35 a month increase to the City's contribution for the year 2001 and $50 a month increase for the year 2002 were equitable and economically feasible for the City and the employees. Management and the union agreed to language changes in Articles 12 and 20. The union requested overtime pay for shift changes, and we agreed to this since we felt it was manageable and overtime pay would be minimal. Management wanted limitations placed on use of personal leave time and notifying employees for overtime when they are on vacation, and the union agreed to this request. FISCAL IMP CT: The two items of the proposed contract that will have the most fiscal impact are wages and employer contributions towards health insurance. Attached for City Council information is a copy of the Bureau of Mediation Services Uniform Settlement Form, which portrays the actual cost increase associated with the Agreement for each of the three years. The City is required to submit this form to the State upon approval and ratification of complete labor agreements. This form does not need to be formally approved by the City Council. The total package percentage increase for the proposed changes when compared to a baseline of each previous year is 6.72% for 2000, 5.01% increase for 2001 and 4.85% increase for 2002. The main reason the baseline percentage increase is higher than the actual wage increase (i.e. 6.72% vs. 3% for 2000) is because two employees are still moving through their steps and have not reached top patrol wage. I:\ASSTCM\UNI NS\UNIONS\LELS\OOAGROT.DOC The 2000 operating budget has adequate funds to administer the contract including both wage increases as well as the health insurance contribution increase. CONCLUSION: Labor agreements typically do not provide complete 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 labor negotiations. ALTERNATIVES: The City Council has the following alternatives: 1. Approve Resolution OO-XX ratifying the three year agreement. 2. Deny the Resolution. 3. Adjourn into closed session to discuss the proposed changes. RECOMMENDED MOTION: Alternative #1 - Approve Resolution OO-XX Ratifying the 2000 - 2002 Labor Agreement between the City of Prior Lake and Law Enforcement Labor Services, Inc., Local 1000 and authorizing the Mayor and City manager to execute the agreement. I :\ASSTCM\UN IONS\UN I ONS\LELS\OOAGROT. DOC RESOLUTION 00-;6< 1/ RESOLUTION RATIFYING THE 2000-2002 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 Agreement for 2000, 2001 and 2002; and WHEREAS, the employees who make up the Law Enforcement Labor Services bargaining unit have ratified said Agreement; and WHEREAS, the Agreement becomes effective on January 1, 2000. Now THEREFORE, be it resolved by the City Council of the City of Prior Lake that it hereby ratifies the Agreement between the City of Prior Lake and Law Enforcement Labor Services, Inc., January 1, 2000 through December 31,2002. BE IT FURTHER RESOLVED, that the Mayor and City Manager are hereby authorized to execute the above referenced Agreement. PASSED AND ADOPTED THIS 15TH DAY OF MAY, 2000. Mader Mader Ericson Ericson Gundlach Gundlach Petersen Petersen Schenck Schenck YES NO {Seal} 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 X\ EQl-'.L. CFPOETl.",ITY E\,!Fl.OYER 0\ N 0\ \0 N r-- Oi- r-- M r-- 0\ 0\ 0 - - \0 0\ 00 - \0. V) M 7. 0\ 00: r--. \0. 0\. 00 ..q:- V) -, 0\ 00 \0 V) V) r-- \0 00 .:: 10 '.- ....... , ;:l ; ..0 I't: : 1:5'.:: ,0 0 V jU '.c g i.o2 ro 1.- I''''''' ~ ; 5 t: ~ IUI':: t:: I V 0 ...... ,e/) IU i'"a 1G i"@ i~ .~ bDl.......! 1"0 ro ,U ' V > 10 I~ '", ;;>,r:/JI~I~ ~'~i~,~ rolrorro ro ~ ~I~--'~ ~I 'v) 10 '7M '-0\ 1010 :00 ro ....... ro o E' 01 ~ ....... .:: V 8 ~ ....... ....... v, r:/J i E c.8 V 'S ~ ~O I I '.:: :.8 ,....... I ;:l I~ '.- , I-< ....... 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