HomeMy WebLinkAbout05(F) - Resolution Ratifying the 2026-2027 Collective Bargaining Agreement Between the City of Prior Lake and AFSCME Report
ITEM: 5F
CITY COUNCIL AGENDA REPORT
MEETING DATE: February 10, 2026
PREPARED BY: Lori Olson, Assistant City Manager
PRESENTED BY: Jason Wedel, City Manager
AGENDA ITEM: Adopt a Resolution Ratifying the 2026-2027 Collective Bargaining
Agreement Between the City of Prior Lake and AFSCME
RECOMMENDED ACTION:
Adopt a resolution approving the 2026-2027 Collective Bargaining Agreement between the City
of Prior Lake and AFSCME represented employees.
BACKGROUND:
The purpose of this agenda item is to request City Council approval of a collective bargaining
agreement (CBA) between the American Federation of State, County and Municipal Employees
(AFSCME), Council #5, Local 3884 and the City of Prior Lake from January 1, 2026 - December
31, 2027.
The Public Employees Relations Act (PELRA) requires the City to meet and negotiate with labor
organizations over the terms and conditions of employment for represented employees. The
AFSCME bargaining unit is the City’s largest group of represented employees, comprised of 48
full-time and 3 part-time employees in a variety of departments and job classes, most in the Public
Works Department. The current AFSCME agreement expired on December 31, 2025.
The negotiation process with AFSCME took place over six meetings from December 2025 through
January 2026. City staff met with the City Council in closed sessions on September 9, 2025 and
January 13, 2026 to receive direction on the negotiation parameters, including wages and
benefits.
Negotiating on behalf of the City were:
Jason Wedel, City Manager
Lori Olson, Assistant City Manager
Cassie Olson, Human Resources Coordinator
Chris Amundsen, Attorney with Nilan Johnson Lewis
The bargaining team representing AFSCME included:
Jacinta Heinzmann, Records Specialist II
Alex Breeggemann, Public Works Operator
Steve Korbel, Maintenance Worker
Dan Wolf, Maintenance Worker
Dale Stefanisko, Code Compliance Officer
Gretchen Haupt, AFSCME Field Representative
Kyle Smith, AFSCME Field Representative
City of Prior Lake | 4646 Dakota Street SE | Prior Lake MN 55372
Item 5F
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Below is a summary of the primary contract amendments agreed upon by both parties. A copy of
the AFSCME CBA is attached.
Article 31 – Health and Welfare
Premiums: The City and AFSCME employees with family and single +1 health coverage will
equally divide premium increases in 2026 and 2027. Employees with single coverage will continue
to pay $10/mo toward the cost of their health premiums. Should the City transition to a self-funded
insurance pool during the term of this agreement, the CBA may be reopened to bargain over this
change and impact.
Health Savings Account (HSA): A new provision of this agreement includes an HSA payment by
the City of $100/month for employees on the family and single +1 plans. Currently, only
employees on the single plan receive an HSA payment, which will continue under this agreement.
Insurance Deductible: The current Memorandum of Understanding (MOU) regarding health
deductible increases will remain intact through 2027.
Retirement Health Savings Plan (RHS): The City will increase its RHS contribution amount per
employee from $12.50/pay period to $15.00/pay period. Employees elected to increase their own
contribution amount from $17.50/pay period to $25.00/pay period.
Article 32 – Minnesota Paid Leave (MPL)
In 2023, the Minnesota Legislature approved a new state law called the Minnesota Paid Family
and Medical Leave Act that went into effect on January 1, 2026. This law provides eligible
Minnesota employees with up to twenty (20) weeks of paid leave for qualifying situations. The
program is paid for by premiums set annually by the state. Employers must pay at least 50% of
the premium and may charge employees the remainder through payroll deduction. Per state
statute, the employee premium share must be negotiated through the collective bargaining
process. Article 32 establishes that the City and AFSCME represented employees will each
contribute 50% of the premium cost through 2027. This Article also requires employees to use
their accrued paid leave hours to receive full income replacement for time away from work while
on MPL.
Article 34 – Base Rate of Pay
AFSCME represented employees will receive a 3.5% cost of living adjustment (COLA) effective
January 1 for 2026 and 2027. As part of the 2025 CBA, the City agreed to conduct a compensation
study and job analysis for all AFSCME positions. The City completed the study and implemented
the results in September 2025. The union disagreed with the compensation study findings and
subsequently filed grievances, which they intended to bring to arbitration. During negotiations, the
City and the Union agreed to wage increases sufficient to satisfy the Union's concerns; in
exchange, the Union withdrew the grievances and agreed to refrain from filing any further
grievances or any unfair labor practice charges related to the compensation study negotiations.
Neither the City nor the Union conceded their positions, but the parties are now positioned to
move forward without the dispute between them.
Article 36 – Duration
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The duration of this agreement is for two years, effective January 1, 2026 through December 31,
2027.
Finally, minor edits were made to Articles 6, 7, 17, and 25 to reflect current practice for job
postings, seniority, holiday snowplow pay, and sick leave balance severance.
The terms of the proposed labor agreement are within the parameters set forth by the City Council
in September 2025 and January 2026 and were negotiated in good faith by the City and AFSCME.
FINANCIAL IMPACT:
The 2026 adopted budget includes appropriate funding to administer the terms of the AFSCME
collective barganing agreement.
ALTERNATIVES:
1. Motion and second as part of the consent agenda to adopt a resolution ratifying the
AFSCME Council #5, Local 3884 Collective Bargaining Agreement with the City of Prior
Lake for 2026-2027.
2. Remove this item from the Consent Agenda for additional discussion.
ATTACHMENTS:
1. AFSCME 2026-2027 RESOLUTION
2. 2026-2027 AFSCME Collective Bargaining Agreement
4646 Dakota Street SE
Prior Lake, MN 55372
RESOLUTION 26 -___
ADOPT A RESOLUTION RATIFYING THE 2026-2027 COLLECTIVE BARGAINING AGREEMENT BETWEEN
THE CITY OF PRIOR LAKE AND AMERICAN FEDERATION OF STATE, COUNTY AND MUNICIPAL
EMPLOYEES (AFSCME), COUNCIL #5, LOCAL 3884
Motion By: Second By:
WHEREAS, the Public Employees Relations Act (PELRA) requires the City to meet and negotiate with
labor organization agents over the terms and conditions of employment for represented
employees; and
WHEREAS, the American Federation of State, County and Municipal Employees (AFSCME), Council
#5, Local 3884 represents City of Prior Lake employees in a variety of job classes across
several City departments; and
WHEREAS, the current AFSCME labor agreement expired on December 31, 2025; and
WHEREAS, recent negotiations between the City and AFSCME representatives resulted in an
agreement on the terms and conditions of employment for January 1, 2026 through
December 31, 2027; and
WHEREAS, AFSCME represented employees voted to approve the terms of the agreement; and
WHEREAS, the new AFSCME collective bargainin agreement becomes effective retroactive to January
1, 2026 upon approval by the City Council.
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as
follows:
1. The recitals set forth above are incorporated herein.
2. The collective bargaining agreement between the City of Prior Lake and the American Federation of State,
County and Municipal Employees (AFSCME), Council #5, Local 3884 effective January 1, 2026 through
December 31, 2027 is hereby ratified.
3. The Mayor and City Manager are hereby authorized to execute the above referenced Agreement.
Passed and adopted by the Prior Lake City Council this 10th day of February 2026.
VOTE Briggs Braid Churchill Lake Hellier
Aye
☐ ☐
☐ ☐ ☐
Nay
☐ ☐ ☐ ☐ ☐
Abstain
☐ ☐ ☐ ☐ ☐
Absent
☐ ☐ ☐ ☐ ☐
______________________________
Jason Wedel, City Manager