Adopt Resolution #14-12-257 to Approve a 2-Year Labor Agreement with the American Federation of State, County, and Municipal Employees (AFSCME)

The purpose of this case is to settle a new 2-year labor agreement with AFSCME.

The most recent labor agreement with AFSCME expires on December 31, 2014. Staff met with the City Council in a closed session on November 25, 2014, to discuss contract negotiations specific to wages and health insurance and to address the other outstanding negotiations items.  As a result of the meeting, staff is prepared to present a tentative agreement between AFSCME and the City of Ramsey to settle a 2-year labor agreement effective January 1, 2015 through December 31, 2016.
 
Staff recommends that the City Council approve the 2015-2016 labor agreement with AFSCME, based on the consensus of the City Council at the November 25, 2014 work-sessiion, as follows:
 
Background Information -- COLA/Wage Adjustment History
2014 Wages 2013 1% COLA for all groups
2012 2% for all employee groups, with the exception of Department Heads at 1%
2011 Zero % for all employee groups
2010 Zero % for all employee groups
2003 to 2009 3% each year for all employee groups
 
Health Insurance
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; currently administered by BCBS. The City is benefiting by five years of rate caps; 2015 will mark the 4^th year with rates capped at a maximum increase of 10.6%; which was the increase the City received for 2015.

Employees may choose a health plan that best meets their needs by selecting one of four tiers and choosing between two networks; or they may choose to waive the City’s health insurance.  Note: The following 2015 and 2016 health insurance contributions are the same contributions proposed for all other employee groups; which has proven to be an effective way to maintain internal equity, minimize the complexity of the budget, keep the payroll process streamlined, and to mirror other city's business practices.

2015 Health Insurance Recommendation
1) Staff recommends the City Council authorize the following 2015 health insurance contributions (premium and VEBA) as follows:

Employee Only.............................$871.74
Employee + Spouse......................$1142.00
Employee + Children....................$1226.00
Family...........................................$1358.00
Credit in Lieu of Coverage...........$345.00

*The City's 2015 VEBA contribution includes the $4.30 monthly claims fee.
**Employees that elect to waive health insurance 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.
***All of the above listed amounts are equal to the amounts offered to all three bargaining units.

Amount of Increase over 2014 for 2015
Single Premium increased by $71.74
Employee + Spouse increased by $50.00
Employee + Children increased by $50.00
Family not increased over 2014 amounts
Waiver/Credit in lieu of Coverage increased by $50.00
 
2016 Health Insurance Recommendation
2) Staff recommends the City Council authorize the following 2016 health insurance contributions (premium and VEBA) as follows:

Employee Only..............................$871.74 plus a maximum of the capped rate increase for 2016 (estimated at 11.6%)
Employee + Spouse ......................$1167.00
Employee + Children……………$1251.00
Family...........................................$1358.00
Credit in Lieu of Coverage...........$370.00

Amount of Increase over 2015 for 2016
Single Premium increased by the amount of premium increase (t.b.d.) but not more than an increase of approximately 11.6%
Employee + Spouse increased by $25.00
Employee + Children increased by $25.00
Family not increased over 2015 amounts
Waiver/Credit in lieu of Coverage increased by $25.00

*The City's 2016 VEBA contribution includes the $4.30 monthly claims fee.
**Employees that elect to waive health insurance 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.
***All of the above listed amounts are equal to the amounts offered to all three bargaining units.

Staff recommends the above listed City contributions This contributions approach works to: 1) maintain 100% coverage by the City on the least expensive single premium (consistent with past practice and contributions recommended by the City's benefits broker), 2) limit the City’s costs on the two middle tiers, 3) holds the City's contribution on the Family plan at the 2014/2016 amounts, reducing the City’s costs and working toward more equitable contributions amongst the tiers, and 4) allows employees the flexibility to waive coverage if waiving is the best option for their individual circumstances.

The City will continue to purchase $20,000 of basic life insurance for full-time regular employees working 30 hours per week or more. 

Wages
Staff recommends, and has accounted for, a 2% cost of living-adjustment (COLA) in the 2015 budget and will account for a 2% COLA in 2016.  Staff has reviewed the most recent COLA data and found that cities are coming in at an average COLA of 2%. Staff recommends a 2% COLA be authorized for the AFSCME employee group in 2015 and 2016 in order to maintain a completive compensation package and proactively retain the city's talent. The 2% COLA in 2015 and 2016 is the same amount offered to the other employee groups.
 
Uniforms:
Staff recommends the following changes to the previous Memorandum of Understanding (MOU) which allowed for a maximum of a $525.00 stipend annually.  The current proposal is to continue the MOU as follows:
 

• The City will include the Building Inspections Technician position and Building Inspectors with the MOU at the amount paid to the Police Department clerical staff.   Police Department clerical staff will receive $140.00 via a payroll stipend - annually; new hires will be fronted their stipend upon hire.
• City will provide OSHA approved boots for Public Works Maintenance Workers, Engineering Technicians, Building Inspections Technicians, and Building Inspectors- all meeting OSHA standards and Department policy.
• City will provide OSHA approved coats for Public Works Maintenance Workers, Engineering Technicians, Building Inspections Technicians, and Building Inspectors.

Seasonal Employees
Upon proposal by the employer, each division (Parks, Streets, and Utilities), may employ up to two temporary seasonals in each area per calendar year -- (no more than 6 in total) hirable at 80% of step one Public Works Maintenance Worker wage scale, as AFSCME members, with no benefits, no recall rights, and -- if hired as a regular employee, no time credited toward probation. 
 

The City will address the following housekeeping items:  1) The City will provide clarifying / updated language throughout the contract for purposes of increasing readability, including, but not limited to, clarifying the current on-call policy language, 2) the City will research specific AFSCME positions to identify potential gaps in comparable pay, and 3) The City will continue working with the Labor Management Committee to improve the current Sick Leave for Wellness policy and will bring any changes forward to the City Council for their consideration at a futuare meeting.

The funding required to settle the first year of a 2-year contract with AFSMCE is included in the 2015 budget. The funding required to settle the second year of the 2-year contract will be accounted for in the 2016 budgeting process.

Adopt resolution #14-12-257 to settle a 2-year labor agreement with AFSCME.

Motion to adopt resolution #14-12-257 to settle a 2-year labor agreement with AFSCME.