Adopt Resolution #16-12-245 to Approve the City's 2017-2018 Union Contracts

The most recent labor agreements with the American Federation of State, County and Municipal Employees (AFSCME), Law Enforcement Labor Services Patrol and Sergeants (LELS-Patrol) and (LELS-Sergeants) expire on December 31, 2016. Staff met with the City Council in several closed sessions to discuss contract negotiations specific to wages and health insurance and to address the other outstanding negotiations items. As a result of the meetings, staff reached a tentative agreement between the City of Ramsey and all three unions to settle the 2-year labor agreements effective January 1, 2017 through December 31, 2018.

Staff recommends that the City Council approve the 2017-2018 labor agreement with AFSCME, LELS-Patrol and LELS-Sergeants, as follows:

Duration - All Unions
2 Years -- January 1, 2017 to December 31, 2108

Wages / Cost of Living Adjustment - All Unions
Effective January 1, 2017 -- 2% wage increase.
Effective January 1, 2018 -- 2 1/2% wage increase.
Effective July 1, 2018 -- 1/2% wage increase.
 
Staff has accounted for the 2017 wage increases listed above in the 2017 budget process.   The 2018 changes will be accounted for during the next budgeting cycle.  Staff has reviewed the most recent COLA data and found these amounts to be on the conservative side compared to other similar sized cities. Staff recommends the COLA in order to maintain a competitive compensation package and proactively retain the city's talent.

Health Insurance - All Unions
The City is members with LOGIS (Local Government Information Systems) which is a consortium of Minnesota local government units. This consortium has many benefits including coverage by the group’s health plan. Employees may choose a health plan that best meets their needs by selecting one of four tiers and choosing between three networks; or they may choose to waive the City’s health insurance.

Staff recommends approving the following 2017 / 2018 Memorandum of Understanding (MOU) for City contributions to health Insurance.

2017 -- The City's monthly contribution to health insurance in 2017 is as follows: Employee only contribution is from $700.00 to $723.50, Employee and Children contribution is $871.60, Employee and Spouse contribution is $907.30 and Family contribution is $1116.90.

Employees that elect to waive health insurance in 2017 and/or 2018 will receive credit in lieu of coverage in the amount of $370.00 and must agree to providing proof of other coverage; as well as agree to come back on the City's health plan if the City requires them to do so.
 
Note: See attachment for additional health plan details, including premiums. Employees are responsible for paying the difference between the premium and the City’s contribution.

2018 -- Amount of Increase for 2018 (over 2017 amounts) - Not to Exceed

Single contribution increased by up to $53.42
Employee + Spouse contribution increased by up to $67.26
Employee + Children contribution increased by up to $64.04
Family contribution  increased by up to $83.24
Waiver/Credit in lieu of Coverage -- No Change
 
The City will continue to purchase $20,000 of basic life insurance for full-time regular employees working 30 hours per week or more.
 
Dental Insurance - All Unions
The second year of the union contracts, if approved, will include a City contribution to single dental insurance. It anticipated that the cost of a single dental plan in 2018 will be approximately $34.22 per month.

Field Training Pay - LELS-Patrol & Sergeants
Increase field training pay (FTO) by .50 cents per hour, paying $3.00 per hour rather than $2.50 per hour.

Longevity Pay - LELS-Patrol
Patrol wages, in the most recent contract and earlier, includes longevity pay for Officers.  Longevity pay is granted after 5, 8, 12 and 16 years of service.  However, the format of the longevity pay has been simplified to increase the pay scale by specific percentages over “Top Patrol”, as follows:  2% after 5 years, 4% after 8 years, 6% after 12 years and 8% after 16 years of service. This change caused some of the wage brackets to be reduced slightly and some to be increased slightly.   See attached.

Longevity Pay - LELS-Sergeants
The current LELS - Sergeants contract does not include longevity pay.  Staff researched the comparable market and found the majority of comparable cities have longevity pay for their sergeants.  The second year of the Sergeants contract, if approved, will include longevity pay, over step 6, at 1% after 5 years, 2% after 8 years, and 3% after 12 years in the bargaining unit. .   See attached.
 
Holiday Buy-back - LELS-Patrol 
Holiday buy-back will be capped at a maximum of 54 hours; currently there is no cap on the holiday buy-back. See attached.
 
On-Call Pay - AFSCME
When an employee is on-call and called in to work, the employee will no longer forfeit the 1 hour of pay for being on-call.

Uniforms - AFSCME
Staff recommends continuing the current Uniforms Memorandum of Understanding (MOU) with no changes -- as shown on the attachment.

Seasonal Employees - AFSCME
Staff recommends continuing the current Seasonal Employee Memorandum of Understanding (MOU) with one change. The MOU will now allow for up to a full seven (7) months of employment versus the previous time of six (6) months. See attachment for additional detail.

Agreement to Meet and Confer - AFSCME
The City and the Union agree to meet and confer during the course of the agreement to discuss (and potentially develop) a Maintenance Worker Career Ladder and PTO structure for future employees.
 

The funding required to settle the first year of the 2-year contracts is included in the 2017 budget. The funding required to settle the second year of the 2-year contracts will be accounted for in the 2018 budgeting process.

To adopt resolution #16-12-245 to settle the 2-year labor agreements with AFSCME, LELS-Patrol and LELS-Sergeants subject to review and approval of contract language by the City Attorney.

Motion to adopt resolution #16-12-245 to settle the 2-year labor agreements with AFSCME, LELS-Patrol and LELS-Sergeants subject to review and approval of contract language by the City Attorney.