6.5. SR 01-16-2007
City of Elk River
REQUEST FOR COUNCIL ACTION
Agenda Section Meeting Date
Administration 16, 2007
Item Description
Consider Master Labor Agreement Between City of Elk River
and Law Enforcement Labor Services Local 231 for January 1,
2007 to December 31, 2008
Administrator
Introduction
At the January 8 executive session, the Council discussed the status of negotiations with LELS Local 231
representing the patrol officers and reviewed the proposed setdement for the contract starting January 1,
2007. The union has voted to approve the proposal as discussed and staff recommends that Council
approve the proposal and adopt the Master Labor Agreement Between the City of Elk River and Law
Enforcement Labor Services Local 231 for January 1, 2007 to December 31, 2008.
Discussion
The new contract includes changes in wages, insurance, uniform allowance, court time, and post
retirement health care. The term will be for two years. The changes are summarized below:
Pay: In 2006, the City Council did a study of non-union pay and benchmarked pay to 12 comparable
cities at the sixtieth percentile. The police union requested that pay rates for the patrol officers be
benchmarked against those same 12 cities and be placed at the sixtieth percentile of those cities. The
police union requested a five percent increase in pay in 2007 and a three percent increase in 2008. The
five percent increase is consistent with the sixtieth percentile of the 12 comparable cities. Therefore, the
wage increases included in the contract are five percent in 2007 and three percent in 2008.
Insurance: Union employees will no longer be covered by a separate health insurance policy as they have
been since changes in the Minnesota Care law allowed for small employer groups (less than 50
employees) to be rated differendy than large groups. Rates for the union were better under the small
employer plan so they split from the non-union employees. Small employer rates are age rated and
because of the size of the group, only one insurance plan is offered. The age rated premiums are no
longer beneficial to the union and the employees will benefit from three different plan choices under the
city's plan. The union will join the non-union plan and receive the same insurance benefits and city
contribution as non-union employees. This change will take effect March 1,2007, to accommodate the
30 day cancellation requirement under the union's current health insurance contract.
Uniforms: The uniform allowance is proposed to increase $20 per year to $655 in 2007 and $675 in 2008.
Second, additional language was added addressing issues with employees who do not successfully
complete field training and employees who are terminating employment with the city. This language will
allow the city to retain the uniforms and equipment of employees who do not complete field training and
will not allow employees who have given notice of intent to terminate employment to purchase or be
reimbursed for uniforms or equipment.
S:\Council\Lori\2007\LELS 231 Contract Agmt.doc
Court Time: Minimum court time pay has increased from two hours to three hours.
Post Retirement Health Care: Employees will contribute an additional $10 per year, $35 in 2007 and $45
in 2008, to their account. The city does not contribute to this plan.
Financial Impact
The additional two percent increase to bring union employees to the sixtieth percentile of our benchmark
cities is approximately $27,000. These funds may be allocated from Council Contingency or the 2006
General Fund balance that exceeds the fund balance required by the city's fund balance policy.
Attachments
None
Action Requested
The City Council is asked to approve the Master Labor Agreement between the City of Elk River and
Law Enforcement Labor Services Local 231 for the period of January 1, 2007 through December 31,
2008.
Council Action
Motion by _
Second by _
Vote
Follow Up
S:\Council\Lori\2007\LELS 231 Contract Agmt.doc