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AGENDA RECOMMENDATION |
Consent Calendar 6.C.
City Council Regular Meeting
- Meeting Date:
- 02/10/2025
Agenda Item:
Resolution adopting negotiated changes to the 2025-2026 LELS (Police Officer) Labor Agreement.
Recommendation/Action(s):
Adoption of the attached resolution.
Summary:
The City recently negotiated with the LELS (Officers) union a two-year labor agreement. Police Officers negotiated a wage pay plan that removes themselves from the overall organizational compensation system and establishes their own pay step system. The new wage step system for officers is a positive effort for recruitment and retention purposes and continues to keep their position market competitive. The general wage increase for 2025 is a three percent (3%) increase over their 2024 wages with an additional $1.00 being added to each step in the wage step system. The $1.00 is in recognition of the changes being negotiated towards the 2026 employee/employer premium contribution amounts for health insurance. In addition to wage adjustments to their step system, a realignment of current officer step placement will occur to accommodate a new progression of steps based on years of service. Effective January 1, 2026, wage adjustments include a general increase of four percent (4%).
In order to ensure a higher overall wage increase, changes to the insurance language were negotiated. This includes adjustments to the shared city/employee contribution levels for each insurance plan offered.
Other substantive changes to the conditions and rules of work for the employees in the bargaining unit are as follows:
Article 6. Sick
Article 19. Health Savings Account
In order to ensure a higher overall wage increase, changes to the insurance language were negotiated. This includes adjustments to the shared city/employee contribution levels for each insurance plan offered.
Other substantive changes to the conditions and rules of work for the employees in the bargaining unit are as follows:
Article 6. Sick
- Replace existing language to follow Earned Sick and Safe Time (ESST) State requirements.
- Adjustment to sick leave separation payouts – payout eligibility only after 10 years of services.
- Add Juneteenth to the list of Holidays.
- Effective 2026, a new City/Employee premium contribution level for each plan offered:
| Single | Single | Family | Family | |
Health Plan |
City Contribution | Employee Contribution | City Contribution | Employee Contribution |
| Traditional $100 CMM | 90% | 10% | 85% | 15% |
| $3,300 HDHP | 95% | 5% | 90% | 10% |
| $5,500 HDHP | 100% | 100% | 100% | 100% |
Article 19. Health Savings Account
- Add additional language which allows for a City contribution to an HSA for the employees who elect the $5,000 High Deductible Health Plan that is calculated based on the difference of the monthly City premium contribution between the $3,300 HDHP and the $5,000 HDHP.
- One-time incentives for those who switch from the non-high deductible health plan to a high deductible health plan. The regular monthly City HSA contribution will instead be paid in two lump sums (January and July) in the year they choose to change plans.
- 2025 - 3% cost of living increase over 2024 rates, plus $1.00.
- 2026 – 4% cost of living increase
- Effective January 1, 2026, Employees will contribute 50% of the mandatory payroll tax associated to MN Paid Family Medical Leave. The City will contribute the remaining 50% of the mandatory payroll tax.
Article 24. State of Emergency
- Add Mayor to the list of those to declare a state of emergency.
- The agreement shall be effective as of January 1, 2025, and shall remain in full force and effect until December 31, 2026.