HomeMy WebLinkAbout05(B) - Approval of Memorandum of Understanding with AFSCME regarding “Appendix A - 2025 AFSCME Pay Ranges” of the current collective bargaining agreement Report
ITEM: 5B
CITY COUNCIL AGENDA REPORT
MEETING DATE: September 09, 2025
PREPARED BY: Lori Olson, Assistant City Manager
PRESENTED BY: Jason Wedel, City Manager
AGENDA ITEM: Approval of Memorandum of Understanding with AFSCME
regarding “Appendix A - 2025 AFSCME Pay Ranges” of the
current collective bargaining agreement
RECOMMENDED ACTION:
Approve a Memorandum of Understanding with AFSCME Council 5, Local 3884 to implement the
findings of the 2025 compensation market analysis and job study.
BACKGROUND:
The purpose of this agenda item is to request approval of a Memorandum of Understanding to
implement the findings of a compensation analysis as agreed to under the terms of the current
AFSCME collective bargaining agreement (CBA).
The City and AFSCME, representing Prior Lake non-exempt employees (excluding sworn peace
officers), are under a CBA through December 31, 2025. One of the terms of the CBA included a
4% cost-of-living adjustment and completion of a compensation market analysis. Specifically,
Article 34 of the CBA states:
EMPLOYER will conduct a compensation study in 2025. Upon completion of the wage study,
wages will be adjusted to bring the group to 100% of the 2025 mean/average of the compensation
study group retroactive to 1/1/2025.
As part of the study, the City also agreed to conduct a job description evaluation to confirm the
appropriate grade level for each position based upon current duties, minimum requirements and
other factors.
The AFSCME union is comprised of twenty-two (22) job titles for a total of 44 full-time and 3 part-
time employees, which is the largest union group in the City. Job titles in AFSCME range from
Public Works Maintenance Workers to Utility Billing Clerks, Police Records Specialists to
Recreation Programmers.
On 3/11/2025, the City Council approved an agreement with the Keystone Compensation Group
to conduct this compensation analysis and job study. Keystone interviewed employees from each
job title to confirm their duties and reviewed changes, if any, to the job descriptions based upon
the supervisor’s review and edits. Keystone then evaluated the City’s pay scale with those of
sixteen (16) comparable cities with populations between 25,000 - 40,000, as well as the cities of
Champlin and Shakopee.
The findings from the study concluded that the pay range minimum, or starting pay rate, for all
but one job grade were at or above market minimums and that the pay range maximum for most
City of Prior Lake | 4646 Dakota Street SE | Prior Lake MN 55372
Item 5B
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AFSCME jobs were at or slightly above market maximums. Overall, City of Prior Lake pay range
maximums lag the market slightly for jobs below grade 140 and lead the market for jobs higher
than grade 150. As such, the maximum pay rate has been adjusted to 100% of the market for
jobs in grades 140 and 130. Grade 120 was found to be below both the market minimum and
maximum, so adjustments have been made accordingly.
As for the job description evaluation and related market analysis, Keystone recommended the
following grade changes:
Planner: Assign to Grade 180
Senior Public Works Operator-Water & Utilities: Assign to Grade 170
Investigative Aide/Evidence Tech (new position as a result of police staffing study): Assign
to Grade 150
Utility Billing Clerk: Assign to Grade 140
To implement the study’s findings, Appendix A – Pay Ranges of the AFSCME CBA needs to be
adjusted through a Memorandum of Understanding. Through this action, all AFSCME grade
wages will be brought to at least 100% of the market maximum average, thereby fulfilling the
City’s obligation under the terms of the CBA. Wages for positions eligible for an adjustment will
be retroactive to 1/1/2025.
FINANCIAL IMPACT:
Pay adjustments, including retroactive pay, will be funded through savings from unfilled positions
and other budgeted payroll items in 2025. There is adequate budget planned for wage increases
as part of the 2026 preliminary budget.
ALTERNATIVES:
1. As part of the consent agenda, approve a Memorandum of Understanding with AFSCME
Council 5, Local 3884 to implement the findings of the 2025 compensation market
analysis and job study.
2. Take no action and provide further direction to staff regarding this item.
ATTACHMENTS:
1. MOU AFSCME Pay Ranges Amendment_2025
2. AFSCME Pay Ranges 2025 Amended
Grade Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8
180 Planner $42.31 $43.68 $45.09 $46.55 $48.05 $49.61 $51.23 $52.89
170 Building Inspector $38.94 $40.20 $41.51 $42.84 $44.24 $45.67 $47.16 $48.67
Code Enforcement Officer
Engineering Technician 4
GIS Coordinator
Planner
Senior PW Operator - Water/Utilities
160 Mechanic II $35.47 $36.62 $37.81 $39.03 $40.30 $41.61 $42.96 $44.34
PW Operator
150 Investigative Aide/Evidence Tech $31.87 $32.91 $33.97 $35.07 $36.20 $37.38 $38.59 $39.84
Facilities Maintenance Worker
Mechanic I
PW Maintenance Worker
140 Evidence Tech $29.26 $30.21 $31.18 $32.20 $33.25 $34.31 $35.42 $37.06
Public Works Specialist $36.58
Records Specialist II
Recreation Programmer
Utility Billing Clerk
130 Deputy City Clerk $27.42 $27.89 $28.80 $29.73 $30.70 $31.69 $32.71 $34.27
Development Services Assistant $33.91
Utility Billing Clerk
Records Specialist
120 Administrative Assistant $25.08 $25.81 $26.56 $27.33 $28.12 $28.93 $29.77 $30.66
Community Service Officer $23.37 $24.13 $24.90 $25.73 $26.54 $27.41 $28.28 $29.20
2025 AFSCME Pay Ranges - Amended
AFSCME MOU – 2025 Rate of Pay
Page 1
MEMORANDUM OF UNDERSTANDING
2025 AFSCME PAY RANGES
This Memorandum of Understanding (“MOU”) is entered into by the City of Prior Lake (“City”) and
the American Federation of State, County and Municipal Employees, Council #5, Local 3884 (“Union”)
for the purpose of implementing the results of the 2025 compensation study and job classification
analysis.
WHEREAS, the City and the Union are parties to a collective bargaining agreement in effect from
January 1, 2025, through December 31, 2025 (“CBA”); and
WHEREAS, pursuant to Article 34, Rate of Pay of the CBA, an independent consultant conducted
a professional compensation analysis and job classification review; and
WHEREAS, the analysis found that the 2025 AFSCME group salary ranges are at 103% of the
market minimum and at 100% of the market maximum; and
WHEREAS, the job classification review identified the appropriate grade level for four (4) job
titles; and
WHEREAS, the City and Union shall amend and replace Appendix A, AFSCME Pay Ranges of the
CBA to include the job grade and related wage adjustments effective 01/01/2025.
NOW THEREFORE, all parties hereto agree to the following:
Article 1. Market Maximum
Step 8 for job titles in grades 120, 130, and 140 shall be amended to at least 100% of the market
maximum.
Article 2. Job Classification, Grade
• The Planner position shall be classified at Grade 180.
• The Senior Public Works Operator-Water/Utilities position shall be classified at Grade 170.
• The Investigative Aide/Evidence Technician position shall be classified at Grade 150.
• The Utility Billing Clerk position shall be classified at Grade 140.
Article 3. Wage Adjustments
Wages for employees in job titles impacted by the amended market maximums and job classification
review shall be adjusted and retroactive to 01/01/2025.
Article 4. Duration
This MOU shall be in effect henceforth and into subsequent years.
AFSCME MOU – 2025 Rate of Pay
Page 2
Article 5. Entire Agreement
This MOU constitutes the entire agreement between the parties.
IN WITNESS HEREOF, the parties have caused this Memorandum of Understanding to be
executed on the latest date affixed to their signatures below.
CITY OF PRIOR LAKE, MINNESOTA
AMERICAN FEDERATION OF STATE, COUNTY AND
MUNICIPAL EMPLOYEES, COUNCIL 5, LOCAL 3884
Kirt Briggs, Mayor/Date Paul Schwarz, Business Agent/Date
Jason Wedel, City Manager/Date Jacinta Heinzmann, Union Steward/Date