Adopt Resolution #13-03-065 To Approve A 2-Year Labor Agreement with the American Federation of State, County, and Municipal Employees (AFSCME)

The most recent labor agreement with AFSCME expired on December 31, 2012. Staff met with the City Council and the Personnel Committee in February and March, to discuss contract negotiations specific to wages and health insurance; as well as with the Personnel Committee, to address the other outstanding negotiations items. In addition, staff held discussions with AFSCME representatives beginning in December, 2012, and have met several times since then to negotiate the next labor agreement.

As a result of these meetings, staff has reached a tentative agreement with AFSCME to settle a 2-year labor agreement effective January 1, 2013 through December 31, 2014.

It may be of interest to note, at the direction of the City Council, staff reached a tentative labor agreement with all three labor groups (AFSCME, LELS-Patrol & LELS-Sergeants) for a 2-year agreement covering the same time period. Aligning these contracts is a cost-effective and efficient strategy; reducing staff time and related costs.

Staff recommends that the City Council approve the 2013-2014 labor agreement with AFSCME, negotiated based on the City Council’s direction, as follows:

Wages:
2013: 1% Increase to the 2012 wage scale, effective on 01-01-13, for a Cost of Living Adjustment.

2014: 2% increase to the 2013 wage schedule, effective on 01-01-14 for Cost of Living Adjustment and 1% increase effective on 07-01-14, for a Market Rate Adjustment.

Insurance:
Note: The following 2013 health insurance contributions are the same as the contributions previously approved for non-union employees.

2013: Memorandum of Understanding -- January 1, 2013 to December 31, 2013 as described below.
2014: Memorandum of Understanding -- January 1, 2014 to December 31, 2014 as described below.

The employer will make the following contributions toward group health insurance coverage for employees enrolled in the City’s plan during 2013 and 2014. In addition, the City will purchase $20,000 of basic life insurance for full-time regular employees.

1) Increase city contributions for 2013 health insurance, as follows:

From $1200 to $1293 Family
From $1050 to $1095 Employee/Children
From $950 to $1017 Employee/Spouse
From $700 to $730-746.50 Single

Or

Provide cash in lieu of City’s insurance contribution of $295 per month; employees receiving the waiving benefit prior to 2013 will continue to be grandfathered in and will receive an increase from $290 to $295 per month; employees new to the program are subject to the following:

• Employee shows proof of other coverage, and
• Employee agrees to the terms of the waiving benefit as described within the City’s policy and signs the acknowledgment form, and
• Employee experiences a qualifying family status change (for mid-year changes)

2) *Increase city contributions for 2014 health insurance, as follows:

From $1293 to $1358 Family
From $1095 to $1150 Employee/Children
From $1017 to $1068 Employee/Spouse
From $730-746.50 to $767–784 Single

Or

Provide cash in lieu of City’s insurance contribution of $295 per month; employees receiving the waiving benefit prior to 2013 will continue to be grandfathered in and will receive an increase from $290 to $295 per month; employees new to the program are subject to the following:

• Employee shows proof of other coverage, and
• Employee agrees to the terms of the waiving benefit as described within the City’s policy and signs the acknowledgment form, and
• Employee experiences a qualifying family status change (for mid-year changes)

*In the event that the 2014 health insurance renewal comes in at a rate increase of greater than 10%; as may be the case due the Health Care Reform Act, at the request of the bargaining unit, there will be a re-opener to negotiate the City’s contributions. In any case, the City will contribute no less than the 2014 amounts listed above.

Uniforms:
The employer agrees to reimburse eligible employees up to the following:

A) Work boots up to $150 annually (includes 1 or more boots)
B) Work clothes up to $350 annually
C) Embroidery up to $25.00 annually

The previous contract allowed for a maximum of $350 reimbursement.

Public Works Maintenance Workers, Engineering Technicians, Building Maintenance Workers and Building Inspectors may submit an original store receipt to the EMPLOYER for a one time reimbursement once every year for the purchase of work boots for the cost of the boots $100, or $150, whichever is less.

Employees who opt out of contract uniform service may be reimbursed up to $250 $350 annually for any combination of City-approved work pants, work shirts, and jackets. Employees may be reimbursed for up to $25.00 for appropriate City of Ramsey embroidery. All Reimbursements must be accompanied by a store receipt.

Compensatory Time Off:
The employer agrees to raise the maximum compensatory time off accrual from 80 hours to 120 hours. The employer reserves the right to payout any compensatory time off hours in excess of 80 hours, as deemed necessary by the employer.

The employer agrees to allow employees to cash out up to a maximum 40 hours of compensatory time off annually; to be paid out up to twice annually, January 1 through January 15, and November 1 through November 15 of each year, to total a maximum payout of 40 hours of compensatory time off. Note: upon terminating employment with the City, all compensatory time off will be paid out at 100% of the accrued balance.

Overtime:
For the purposes of calculating overtime, an employee using paid holidays, vacation leave, sick leave, or compensatory time off is considered to be working.

On-Call Pay:
The employer agrees to raise holiday pay only from 2 hours to 3 hours; no change to regular Saturday and Sunday pay.

The employer agrees that on Saturdays, Sundays and approved holidays, on-call employees will not be are required to perform lift station and well checks; unless on-call employees receive an alert/alarm/page indicating that a response is required or the Public Works Superintendent or his/her designee states a lift station and well check is necessary.

The funding required for the first year of this contract is included in the 2013 budget and is estimated at approximately $17,000 (wages & benefits).  The funding required for the second year of this contract is estimated to be approximately $58,000 (wages & benefits) and will be included in the 2014 budgeting process which the City Council will approve later this year.

Motion to adopt resolution #13-03-065, confirming the direction given to settle a 2-year labor agreement, including the following negotiated items:

Wages:
2013: 1% Increase to the 2012 wage scale, effective on 01-01-13, for a Cost of Living Adjustment.

2014: 2% increase to the 2013 wage schedule, effective on 01-01-14 for Cost of Living Adjustment and 1% increase effective on 07-01-14, for a Market Rate Adjustment.

Insurance:
Note: The following 2013 health insurance contributions are the same as the contributions previously approved for non-union employees.

2013: Memorandum of Understanding -- January 1, 2013 to December 31, 2013 as described below.
2014: Memorandum of Understanding -- January 1, 2014 to December 31, 2014 as described below.

The employer will make the following contributions toward group health insurance coverage for employees enrolled in the City’s plan during 2013 and 2014. In addition, the City will purchase $20,000 of basic life insurance for full-time regular employees.

1) Increase city contributions for 2013 health insurance, as follows:

From $1200 to $1293 Family
From $1050 to $1095 Employee/Children
From $950 to $1017 Employee/Spouse
From $700 to $730-746.50 Single

Or

Provide cash in lieu of City’s insurance contribution of $295 per month; employees receiving the waiving benefit prior to 2013 will continue to be grandfathered in and will receive an increase from $290 to $295 per month; employees new to the program are subject to the following:

• Employee shows proof of other coverage, and
• Employee agrees to the terms of the waiving benefit as described within the City’s policy and signs the acknowledgment form, and
• Employee experiences a qualifying family status change (for mid-year changes)

2) *Increase city contributions for 2014 health insurance, as follows:

From $1293 to $1358 Family
From $1095 to $1150 Employee/Children
From $1017 to $1068 Employee/Spouse
From $730-746.50 to $767–784 Single

Or

Provide cash in lieu of City’s insurance contribution of $295 per month; employees receiving the waiving benefit prior to 2013 will continue to be grandfathered in and will receive an increase from $290 to $295 per month; employees new to the program are subject to the following:

• Employee shows proof of other coverage, and
• Employee agrees to the terms of the waiving benefit as described within the City’s policy and signs the acknowledgment form, and
• Employee experiences a qualifying family status change (for mid-year changes)

*In the event that the 2014 health insurance renewal comes in at a rate increase of greater than 10%; as may be the case due the Health Care Reform Act, at the request of the bargaining unit, there will be a re-opener to negotiate the City’s contributions. In any case, the City will contribute no less than the 2014 amounts listed above.


Compensatory Time Off:
The employer agrees to raise the maximum compensatory time off accrual from 80 hours to 120 hours. The employer reserves the right to payout any compensatory time off hours in excess of 80 hours, as deemed necessary by the employer.

The employer agrees to allow employees to cash out up to a maximum 40 hours of compensatory time off annually; to be paid out up to twice annually, January 1 through January 15, and November 1 through November 15 of each year, to total a maximum payout of 40 hours of compensatory time off. Note: upon terminating employment with the City, all compensatory time off will be paid out at 100% of the accrued balance.

Overtime:
For the purposes of calculating overtime, an employee using paid holidays, vacation leave, sick leave, or compensatory time off is considered to be working.

On-Call Pay:
The employer agrees to raise holiday pay only from 2 hours to 3 hours; no change to regular Saturday and Sunday pay.

The employer agrees that on Saturdays, Sundays and approved holidays, on-call employees will not be are required to perform lift station and well checks; unless on-call employees receive an alert/alarm/page indicating that a response is required or the Public Works Superintendent or his/her designee states a lift station and well check is necessary.