HomeMy WebLinkAboutItem 08I<Qx
January 5, 2015 q V Item No.
Labor Agreement Between the City of Lakeville
and Law Enforcement Labor Services, Inc., Local No. 128
Proposed Action
Staff recommends adoption of the following motion: Move to approve the labor agreement
between the City of Lakeville and Law Enforcement Labor Services Inc. Local No. 128 for 2014
and 2015.
Passage of this motion will result in a two-year labor agreement with the Lakeville Police
Officers.
Overview
The City and the union had two main issues for the 2014 and 2015 labor agreements; those
two issues were health insurance and wages. We resolved the health insurance matter but
did not reach final agreement for wages; therefore, the wages were certified to arbitration
and heard by Richard R. Anderson on November 13.
On December 10, the arbitration award was issued, granting the officers a 2% increase for
2014 and a 3% increase in 2015. The tentative settlement and final award have been
reviewed by the Personnel Committee.
Primary Issues to Consider
• What changes were made to the contract?
• How does the wage compare to other cities?
SupRorting Information
• Labor Agreement for 2014-2015
• Arbitration Award
Human Reso es Manager
Financial Impact: $ 89,000_(2015)_Budgeted: Y/N _Y_ Source: _General Fund,
Related Documents (CIP, ERP, etc.):
Notes: Additional 1 % settlement will be financed from the G.F. fund balance.
Council Report
Rage 2
Issues to Consider
What changes were made to the contract?
The tentative settlement established health insurance rates identical to those of all other
eligible employees. Other changes incorporated the sick leave language required by state
statute and added language related to the Affordable Care Act.
How does the wage compare to other cities for 2015?
Lakeville: $26.14 - $36.00
Comparable Cities: $25.62 - $36.36
LABOR AGREEMENT
BETWEEN
CITY OF LAKEVILLE, MINNESOTA
AND
LAW ENFORCEMENT LABOR SERVICES
(LOCAL NO. 128)
POLICE OFFICERS
Effective January 1, 2014 through December 31, 2015
ARTICLE 1
PURPOSE OF AGREEMENT....................................................................................... 2
ARTICLE2
RECOGNITION..........................................................................................................
2
ARTICLE 3
DEFINITIONS............................................................................................................
2
ARTICLE 4
EMPLOYER SECURITY..............................................................................................
4
ARTICLE 5
EMPLOYER AUTHORITY...........................................................................................
4
ARTICLE6
UNION SECURITY.....................................................................................................
5
ARTICLE 7
EMPLOYEE RIGHTS - GRIEVANCE PROCEDURE.......................................................
5
ARTICLE8
SAVINGS CLAUSE.....................................................................................................
8
ARTICLE9
SENIORITY................................................................................................................
8
ARTICLE10
DISCIPLINE............................................................................................................
9
ARTICLE 11
CONSTITUTIONAL PROTECTION........................................................................
10
ARTICLE 12
WORK SCHEDULE...............................................................................................
10
ARTICLE13
OVERTIME...........................................................................................................
10
ARTICLE14
COURT TIME.......................................................................................................
11
ARTICLE 15
CALL BACK TIME.................................................................................................
11
ARTICLE 16
WORKING OUT OF CLASSIFICATION.................................................................
11
ARTICLE17
INSURANCE........................................................................................................
11
ARTICLE 18
FALSE ARREST INSURANCE................................................................................
14
ARTICLE19
STANDBY PAY....................................................................................................
14
ARTICLE20
UNIFORMS..........................................................................................................
14
ARTICLE 21
SALARY SCHEDULE............................................................................................
14
ARTICLE 22
PART-TIME EMPLOYEE'S FRINGE BENEFITS........................................................
15
ARTICLE 23
VACATION SCHEDULE AND USE.......................................................................
15
ARTICLE 24
EDUCATION PAY/TUITION REIMBURSEMENT...................................................
16
ARTICLE25
HOLIDAYS...........................................................................................................
17
ARTICLE26
SICK LEAVE.........................................................................................................
17
ARTICLE 27
INJURY ON DUTY PAY........................................................................................
18
ARTICLE28
LONGEVITY PAY.................................................................................................
19
ARTICLE29
SEVERANCE PAY.................................................................................................
19
ARTICLE 30
PROBATIONARY PERIOD....................................................................................
19
ARTICLE 31
COMPENSATORY TIME ACCUMULATION AND USE ..........................................
20
ARTICLE 32
REIMBURSEMENT FOR DAMAGE TO PERSONAL WRIST WATCH, PRESCRIPTION
GLASSES OR CONTACT LENS WHILE ON DUTY...............................................................
20
ARTICLE 33
LEAVE OF ABSENCE WITHOUT PAY AND JURY DUTY .......................................
21
ARTICLE 34
PREGNANCY RELATED DISABILITY LEAVE AND CHILD CARE LEAVE .................
21
ARTICLE 35
TRAINING OFFICER/COMP PAY.........................................................................
21
ARTICLE 36
TIME CARDS AND REPORTS...............................................................................
22
ARTICLE37
WAIVER...............................................................................................................
22
ARTICLE 38
FUNERAL LEAVE.................................................................................................
22
ARTICLE 39
LONG-TERM DISABILITY INSURANCE................................................................
22
ARTICLE 40
DRUG AND ALCOHOL TESTING POLICY............................................................
23
ARTICLE41
LICENSE PAY.......................................................................................................
23
ARTICLE42
DURATION..........................................................................................................
23
ARTICLE 1 PURPOSE OF AGREEMENT
This Agreement is entered into as of January 1, 2014, between the City of Lakeville,
hereinafter called the Employer, and Law Enforcement Labor Services Local No. 128 for the
Lakeville Police Officers.
It is the intent and purpose of this Agreement to:
1.1 Establish procedures for the resolution of disputes concerning this Agreement's
interpretation and/or application; and
1.2 Place in written form the parties' Agreement upon terms and conditions of
employment for the duration of this Agreement.
ARTICLE 2 RECOGNITION
2.1 The Employer recognizes the Union as the exclusive representative for the purpose of
meeting and negotiating the terms and conditions of employment for all police
personnel in the following job classifications: Investigator, K-9 Officer, Senior Officer
on duty and Police Officer employees who are public employees within the meaning
of Minnesota Statute 179A.03, subd. 14, excluding the Chief of Police, Deputy Chief of
Police, Lieutenant, Sergeant and Sergeant Investigator who are supervisory and
confidential employees, and Community Service Officer and all the non-essential
classified positions in the Department.
2.2 In the event the Employer and the Union are unable to agree as to the inclusion or
exclusion of a new or modified job class, the issue shall be submitted to the Bureau of
Mediation Services for determination.
ARTICLE 3 DEFINITIONS
3.1 UNION: Law Enforcement Labor Services, Local No. 128.
3.2 UNION MEMBER: A member of Law Enforcement Labor Services Local No. 128
(Lakeville Police Officers).
3.3 EMPLOYEE: A member of the exclusively recognized bargaining unit.
3.4 DEPARTMENT: The Lakeville Police Department.
3.5 EMPLOYER: The City of Lakeville, Minnesota.
3.6 CHIEF: The Chief of the Lakeville Police Department.
3.7 UNION OFFICER: Officer elected or appointed by LELS Local No. 128 (Lakeville Police
Officers).
3.8 OVERTIME: Work performed at the express authorization of the Employer in excess of
the Employee's scheduled shift.
3.9 SCHEDULED SHIFT: A consecutive work period including rest breaks and lunch break.
3.10 REST BREAKS: Periods during the scheduled shift when the Employee remains on
continual duty and is responsible for assigned duties.
3.11 LUNCH BREAK: A period during the scheduled shift when the Employee remains on
continual duty and is responsible for assigned duties.
3.12 STRIKE: Concerted action in failing to report for duty, the willful absence from one's
position, the stoppage of work, slow -down, or abstinence in whole or in part from the
full, faithful and proper performance of the duties of employment for the purposes of
inducing, influencing and coercing a change in the conditions or compensation or the
rights, privileges or obligations of employment.
3.13 POLICE OFFICER: An employee specifically assigned or classified by the Employer to
the job classification and/or job position of Police Officer.
3.14 INVESTIGATOR: An employee specifically assigned or classified by the Employer to the
job classification and/or job position of Investigator/Detective.
3.15 SCHOOL RESOURCE OFFICER: An employee specifically assigned or classified by the
Employer to the job classification and/or job position of School Resource Officer.
3.16 K-9 OFFICER: An employee specifically assigned or classified by the Employer to the
job classification and/or job position of K-9 Officer.
3.17 LEAD INVESTIGATOR: An employee specifically assigned or classified to the job
classification and/or job position of Lead Investigator.
3.18 COMMUNITY SERVICE OFFICER: An employee specifically assigned or classified to the
job classification and/or job position of Community Service Officer.
3.19 SENIOR OFFICER ON DUTY: An officer paid under the Police Officer Schedule (Article
21.1) without any compensation for service under Article 21.6, and is the senior officer,
by seniority date, on duty with the exception of Monday through Friday day shift
when a supervisor is on duty, in the City, with current knowledge of Patrol activity and
with the ability to direct patrol officers immediately when required.
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3.20 PROMOTION: Any change in job classification which results in an increase in pay.
3.21 PROBATIONARY PERIOD, NEW EMPLOYEES: A period of time commencing on the date
employment commences and ending one year from that date.
3.22 PROBATIONARY PERIOD, PROMOTED RE-CLASSIFIED EMPLOYEES: A period of time
commencing on the effective date of the promotion -reclassification and ending six
months from that date.
3.23 FULL-TIME EMPLOYMENT: An employee whose hours in a calendar year meet the
2,080 -hour requirements of Article 12.1 of this Agreement.
3.24 PART-TIME EMPLOYMENT: An employee who works more than an average of fourteen
(14) hour work weeks in a calendar year, or portion thereof, but less than the hour
requirement of Article 12.1 of this Agreement is a part-time employee.
3.25 FULL BENEFITS: Employees who work an averaged 36 hour work week or more in a
calendar year shall receive full benefits as listed in this Agreement for full-time
employment.
3.26 PRORATE BENEFITS: Employees who work more than an averaged fourteen (14) hour
work week but less than an averaged thirty-six (36) hour work week shall receive
prorate benefits of full benefits as listed in this Agreement for full-time employment.
3.27 COURT APPEARANCE "MUST APPEAR": Notification to report for court; including most
traffic court trials, implied consent hearings and contested omnibus hearings.
3.28 COURT APPEARANCE "STAND BY": Notification to remain on stand by for court for
most felony level cases and jury trials.
ARTICLE 4 EMPLOYER SECURITY
The Union agrees that during the life of this Agreement the Union will not cause, encourage,
participate in or support any strike, slow -down or other interruption of or interference with
the normal functions of the Employer.
ARTICLE 5 EMPLOYER AUTHORITY
5.1 The Employer retains the full and unrestricted right to operate and manage all
manpower, facilities and equipment, to establish functions and programs; to set and
amend budgets; to determine the utilization of technology; to establish and modify
the organizational structure; to select, direct and determine the number of personnel;
to establish work schedules and to perform any inherent managerial function not
specifically limited by this Agreement.
m
5.2 Any term and condition of employment not specifically established or modified by this
Agreement shall remain solely within the discretion of the Employer to modify,
establish or eliminate.
5.3 Any employee deprived of his/her state license to act as a police officer shall be
suspended without pay during that period.
ARTICLE 6 UNION SECURITY
6.1 The Employer shall deduct from the wages of Employees who authorize such
deduction in writing an amount necessary to cover monthly Union dues. Such monies
shall be remitted as directed by the Union.
6.2 The Union may designate Employees from the bargaining unit to act as a steward and
an alternate and shall inform the Employer in writing of such choice and changes in
the position of steward and/or alternate.
6.3 The Employer shall make space available on the Employee bulletin board for posting
Union notice(s) and announcement(s).
6.4 The Union agrees to indemnify and hold the Employer harmless against any and all
claims, suits, orders or judgments brought or issued against the Employer as a result of
any action taken or not taken by the Employer under the provisions of this Article.
ARTICLE 7 EMPLOYEE RIGHTS - GRIEVANCE PROCEDURE
7.1 DEFINITION OF A GRIEVANCE
A grievance is defined as a dispute or disagreement as to the interpretation or
application of the specific terms and conditions of this Agreement.
7.2 UNION REPRESENTATIVES
The Employer will recognize Representatives designated by the Union as the
grievance representatives of the bargaining unit having the duties and responsibilities
established by this Article. The Union shall notify the Employer in writing of the names
of such Union Representatives and of their successors when so designated as provided
by 6.2 of this Agreement.
7.3 PROCESSING OF A GRIEVANCE
It is recognized and accepted by the Union and the Employer that the processing of
grievances as hereinafter provided is limited by the job duties and responsibilities of
the Employees and shall, therefore, be accomplished during normal working hours
5
only when consistent with such Employee duties and responsibilities. The aggrieved
Employee and Union Representative shall be allowed a reasonable amount of time
without loss in pay when a grievance is investigated and presented to the Employer
during normal working hours provided that the Employee and the Union
Representative have notified and received the approval of the designated supervisor
who has determined that such absence is reasonable and would not be detrimental to
the work programs of the Employer.
7.4 PROCEDURE
Grievances, as defined in Section 7.1, shall be resolved in conformance with the
following procedure:
Step 1. An Employee claiming a violation concerning the interpretation or application
of this Agreement shall, within twenty-one (21) calendar days after such alleged
violation has occurred, present such grievance to the Employee's supervisor, either the
Sergeant or Lieutenant. The Employee's supervisor will discuss and give an answer to
such Step 1 grievance within ten (10) calendar days after receipt. A grievance not
resolved in Step 1 and appealed to Step 2 shall be placed in writing setting forth the
nature of the grievance, the facts on which it is based, the provision or provisions of
the Agreement allegedly violated, the remedy requested, and shall be appealed to
Step 2 within ten (10) calendar days after the Sergeant or Lieutenant's final answer in
Step 1. Any grievance not appealed in writing to Step 2 by the Union within ten (10)
calendar days shall be considered waived.
Step 2. If appealed, the written grievance shall be presented by the Union and
discussed with the Chief of Police. The Chief of Police shall give the Union the
Employer's Step 2 answer in writing within ten (10) calendar days after receipt of such
Step 2 grievance. A grievance not resolved in Step 2 may be appealed to Step 3 within
ten (10) calendar days following the Chief of Police's final Step 2 answer. Any
grievance not appealed in writing to Step 3 by the Union within ten (10) calendar days
shall be considered waived.
Step 3. if appealed, the written grievance shall be presented by the Union and
discussed with the City Administrator. The City Administrator shall give the Union the
Employer's answer in writing within ten (10) calendar days following the City
Administrator's final answer in Step 3. Any grievance not appealed in writing to Step 4
by the Union within ten (10) calendar days shall be considered waived.
Step 4. A grievance unresolved in Step 3 and appealed to Step 4 by the Union shall be
submitted to arbitration subject to the provisions of the Public Employment Labor
Relations Act of 1971 as amended. The Selection of an arbitrator shall be made in
accordance with the "Arbitration Roster Rules" established by the Bureau of Mediation
Services.
Al
7.5 ARBITRATOR'S AUTHORITY
a) The arbitrator shall have no right to amend, modify, nullify, ignore, add to or
subtract from the terms and conditions of this Agreement. The arbitrator shall
consider and decide only the specific issue(s) submitted in writing by the
Employer and the Union, and shall have no authority to make a decision on any
other issue not so submitted.
b) The arbitrator shall be without power to make decisions contrary to, or
inconsistent with, or modifying or varying in any way the application of laws,
rules, or regulations having the force and effect of law. The arbitrator's
decision shall be submitted in writing within thirty (30) days following close of
the hearing or the submission of briefs by the parties, whichever be later,
unless the parties agree to an extension. The decision shall be binding on both
the Employer and the Union and shall be based solely on the arbitrator's
interpretation or application of the express terms of thls Agreement and to the
facts of the grievance presented.
c) The fees and expenses for the arbitrator's services and proceedings shall be
borne equally by the Employer and the Union provided that each party shall be
responsible for compensating its own representatives and witnesses. If either
party desires a verbatim record of the proceedings, it may cause such a record
to be made, providing it pays for the record. If both parties desire a verbatim
record of the proceedings, the cost shall be shared equally.
7.5 WAIVER
If a grievance is not presented within the time limits set forth above, it shall be
considered "waived." If a grievance is not appealed to the next step within the
specified time limit or any agreed extension thereof, it shall be considered settled on
the basis of the Employer's last answer. If the Employer does not answer a grievance
or an appeal thereof within the specified time limits, the Union may elect to take the
grievance to the next step. The time limit in each step may be extended by mutual
written Agreement of the Employer and the Union in each step.
7.7 CHOICE OF REMEDY
If, as a result of the written Employer response in Step 3, the grievance remains
unresolved, and if the grievance involves the suspension, demotion, or discharge of an
employee who has completed the required probationary period, the grievance may be
appealed either to Step 4 of Article 7 or a procedure such as: Civil Service, Veteran's
Preference or Fair Employment. If appealed to any procedure other than Step 4 of
Article 7, the grievance is not subject to the arbitration procedure as provided in Step
7
4 of Article 7. The aggrieved employee shall indicate in writing which procedure is to
be utilized, Step 4 of Article 7 or another appeal procedure, and shall sign a statement
to the effect that the choice of any other hearing precludes the aggrieved employee
from making a subsequent appeal through Step 4 of Article 7. Except that with
respect to statutes under the jurisdiction of the United States Equal Employment
Opportunity Commission an employee pursuing a statutory remedy is not precluded
from also pursuing an appeal under this grievance procedure.
ARTICLE 8 SAVINGS CLAUSE
This Agreement is subject to the laws of the United States, the State of Minnesota and the City
of Lakeville, Minnesota. In the event any provisions of this Agreement shall be held to be
contrary to law by a court of competent jurisdiction or administrative ruling, or is in violation
of legislation or administrative regulations, either party may request that the other party meet
and negotiate over amendments to or a substitution for the invalidated provision. In such
negotiations, the rights and obligations of the Union shall be subject to the provisions of
Minn. Stat. §179A.06, and the rights and obligations of the Employer shall be subject to the
provisions of Minn. Stat. §179A.07.
ARTICLE 9 SENIORITY
9.1 Seniority in any paid position with the Police Department will be established from the
earliest date of employment for the purpose of determining the employee's vacation
accrual. Permanent part-time positions will be credited with vacation accrual on the
percentage of hours worked compared to the regular 40 -hour work week. Seniority
for the purpose of receiving longevity pay as a police officer will be taken from the
earliest date of employment in any sworn police officer position held in the
Department for the time spent in a sworn position. Seniority in the bargaining unit
will be kept by time in all positions covered by the bargaining unit for the purpose of
vacation bidding, shift bidding and reduction of positions and layoff from established
positions of police officer and investigators. If two or more officers start on the same
date, the seniority order will be determined by the employer. Officers must be
informed of the seniority decision. An officer assigned or promoted to a new position
of investigator, will have established a second seniority date from the date of
assignment or promotion to the position. The second date is for the purpose of shift
bidding, vacation bidding and reduction in the number of positions for positions such
as investigator.
9.2 During the probationary period, the newly -hired or rehired employee may be
discharged at the sole discretion of the Employer. During the probationary period, a
promoted or reassigned employee may be replaced in their previous position at the
sole discretion of the Employer.
9.3 A reduction of work force will be accomplished on the basis of seniority. Employees
shall be recalled from layoff on the basis of seniority. An employee on layoff shall have
an opportunity to return to work within two years of the time of their layoff before any
new employee is hired.
9.4 Senior employees will be given preference with regard to transfer, job classification
assignments and promotions when the job relevant qualifications of employees are
equal.
9.5 Senior qualified employees should be given shift assignment preference after 18
months of continuous full-time employment.
9.6 One continuous vacation shall be selected by specific dates on the basis of seniority
until April 1st of each calendar year. An employee not making selection by this date
will be deemed to have waived seniority selection.
ARTICLE 10 DISCIPLINE
10.1 The Employer will discipline Employees for just cause only. Discipline will be in one or
more of the following forms:
a) Oral reprimand
b) Written reprimand
c) Suspension
d) Demotion
e) Discharge
10.2 Suspensions, demotions and discharges will be in written form.
10.3 Written reprimands, notices of suspension, and notices of discharge which are to
become part of an employee's personnel file shall be read and acknowledged by the
signature of the employee. Employees and the Union will receive a copy of such
reprimands and/or notices.
10.4 Employees may examine their own individual personnel files at reasonable times
under the direct supervision of the Employer.
10.5 An employee may request a review of prior written discipline or suspension with the
Chief of Police after a period of three years have passed with no same or similar
incidents. The Chief of Police will have the ultimate discretion to remove the discipline
from the employee's file or require that it remain in the personnel file.
10.6 Discharges will be preceded by a five (5) day suspension without pay.
10.7 Employees will not be questioned concerning an investigation of disciplinary action
unless the employee has been given an opportunity to have a Union representative
present at such questioning.
10.8 Grievances relating to this Article shall be initiated by the Union in Step 3 of the
grievance procedure under Article 7.
ARTICLE 11 CONSTITUTIONAL PROTECTION
11.1 Employees shall have the rights granted to all citizens by the United States and
Minnesota State Constitutions.
ARTICLE 12 WORK SCHEDULE
12.1 The normal work year is two thousand and eighty hours (2,080) to be accounted for by
each employee through:
a) Scheduled hours of work
b) Holidays
c) Authorized sick leave time
d) Training
e) Vacation
f) Authorized compensatory time
12.2 Nothing contained in this or any other article shall be interpreted to be a guarantee of
a minimum or maximum number of hours the Employer may assign employees.
12.3 The Employer shall have the right to change the starting time of the daily work
schedule of the Employee, provided. there is a minimum of ninety-six (96) hours'
advance written notice given to the employee. Written notice may be in text message
format.
ARTICLE 13 OVERTIME
13.1 Employees will be compensated at one and one-half (1-1/2) times the employee's
regular pay rate, all remuneration including longevity, educational incentive pay, K-9
Officer and Investigator pay, for hours worked in excess of the employee's regularly
scheduled shift. Changes in shifts do not qualify for an employee for overtime under
this Article.
13.2 Overtime will be distributed as equally as practicable.
13.3 Overtime refused by employees will, for record purposes under Article 13.2, be
considered as unpaid overtime worked.
13.4 For the purpose of computing overtime compensation, overtime hours worked shall
not be pyramided, compounded or paid twice for the same hours worked.
10
13.5 Overtime will be calculated to the nearest fifteen (15) minutes.
13.6 Employees have the obligation to work overtime or call backs if requested by the
Employer unless unusual circumstances prevent the employee from so working.
13.7 Overtime must be approved in advance by the Chief of Police or his designated
official, except in instances of emergency.
ARTICLE 14 COURT TIME
14.1 Court appearance "must appear": An employee who is required to appear in court
during his scheduled off-duty time shall receive a minimum of three (3) hours pay at
one and one-half (11/2) times the employee's base pay rate unless notified of the
cancellation by 5:00 p.m. on the preceding day. An extension or early report to a
regularly scheduled shift for court appearance does not qualify the employee for the
three (3) hour minimum.
14.2 Court stand by: When an officer is sent notice to "stand by" to appear in court, the
officer shall receive a minimum of two (2) hours at one and one-half (1 1h) times the
employee's base pay rate if s/he is required to stand by to appear in court on the
employee's regularly scheduled off-duty time.
ARTICLE 15 CALL BACKTIME
An employee who is called to duty during his scheduled off-duty time shall receive a
minimum of three (3) hour's pay at one and one-half times the employee's base pay rate. An
extension or early report to a regularly scheduled shift for duty does not qualify the employee
for the three (3) hour minimum.
ARTICLE 16 WORKING OUT OF CLASSIFICATION
Employees assigned by the Employer to assume the full responsibilities and authority of a
higher job classification shall receive the salary schedule of the higher classification for the
duration of the assignment. Said assignment shall be in writing from the Chief of Police and
specify the assignment starting date and the length of the assignment.
ARTICLE 17 INSURANCE
17.1 Effective January 1, 2014, the Employer shall make payment according to the schedule
below.
11
The VEBA and HSA funding will be deposited in two installments, the first six months will be
deposited in January and the second six months will be deposited in July. Deposits for new
employees will be prorated.
17.2 Effective January 1, 2015, the Employer will provide single health insurance to the
employee for the lowest cost high -deductible plan(s). (Currently these plans are the
MONTHLY PREMIUM COSTS (2014)
Employee
Employer
Total Premium VEBA/HSA Funds
Co -pay - Passport
network
Employee
336.31
371.51
707.82
EE + Child(ren)
895.29
532.80
1428.09
EE + Spouse
948.03
563.66
1511.69
�Q9
kYv,696.01
Co -pay - Elect or Essential network
Employee
12.74
624.30
637.04
EE + Child(ren)
505.48
779.80
1285.28
EE + Spouse
540.05
820A7
1360.52
Fames
666.32
1012.66
1678.98
High DeductibleNEBA
- Passport network
Employee
51.59
464.30
515.89
160.00
EE + Child(ren)
446.05
594.80
1040.85
185.00
EE + Spouse
466.31
635.47
1101.78
185.00
Family
552.01
807.66
High DeductibleNEBA - Elect or Essential network
Employee
.00
464.30
464.30
160.00
EE + Child(ren)
I 341.97
594.80
936.77
185.00
EE + Spouse
356.13
635.47
991.60
185.00
F
416.04
0- 1`6
205.00
High Deductible/HSA - Passport network
Employee
45.58
410.25
455.83
160.00
EE + Child(ren)
I 324.89
594.80
919.69
185.00
EE + Spouse
338.05
635.47
973.52
185.00
Family
393.74
807.66
1201.40
205.00
High Deductible/HSA
- Elect or Essential
network
Employee
.00
410.25
410.25
160.00
EE + Child(ren)
I
232.92
594.80
827.72
185.00
EE + Spouse
240.70
635.47
876.17
185.00
Family
273.60
807.66
1081.26
205.00
Wellness
Employee only
Employer match of Medica wellness gift cards up to $135.
The VEBA and HSA funding will be deposited in two installments, the first six months will be
deposited in January and the second six months will be deposited in July. Deposits for new
employees will be prorated.
17.2 Effective January 1, 2015, the Employer will provide single health insurance to the
employee for the lowest cost high -deductible plan(s). (Currently these plans are the
VERA Elect or Essential plans and the H.S.A. Elect or Essential Plans.) In addition, the
employer and employee will split the increase, or the decrease, for dependent
coverage of the lowest cost high -deductible VERA plan. This value will then be
applied towards all others plans with the exception of the open network (open
Access) co -pay plan.
Wellness Employer match of HealthPartners wellness gift cards up to $135.
Employee only
The VEBA and HSA funding will be deposited in two installments; the first six months of
funding will be deposited in January and the second six months of funding will be deposited
in July. Deposits for new employees will be prorated.
17.3 Any cost beyond the amounts payable by the Employer shall be paid by the employee
via payroll deduction.
17.4 In the event that the health insurance provisions of this Agreement fail to meet the
requirements of the Affordable Care Act and its related regulations or cause the
Employer to be subject to a penalty or fine, either party may request that the other
party meet and negotiate over amendments to those health insurance provisions that
the requesting party deems necessary. In such negotiations, the rights and
obligations of the Union shall be subject to the provisions of Minn. Stat. §179A.06, and
the rights and obligations of the Employer shall be subject to the provisions of Minn.
Stat. § 179A.07.
17.5 The Employer shall contribute 100% of the monthly cost for ($25,000) Life Insurance
13
MONTHLY PREMIUM COSTS (2015)
Employee
Employer
Total Premium VEBAIHSA Funds
Co -pay
Employee
307.58
371.51
679.09
EE + Child(ren)
824.09
532.80
1356.89
EE + Spouse
899.10
563.66
1462.76
n v{
1090.68
696.01
1786.69
High DeductibleNEBA
Employee
24.86
489.17
514.03
160.00
EE + Child(ren)
385.62
638.46
1024.08
185.00
EE + Spouse
413.93
693.28
1107.21
185.00
872.02
1352.41
High Deductible/HSA
Employee
.00
458.07
458.07
160.00
EE + Child(ren) I
276.81
638.46
915.27
185.00
EE + Spouse
293.40
693.28
986.68
185.00
Family
333.16
872.02
1205.18
205.00
Wellness Employer match of HealthPartners wellness gift cards up to $135.
Employee only
The VEBA and HSA funding will be deposited in two installments; the first six months of
funding will be deposited in January and the second six months of funding will be deposited
in July. Deposits for new employees will be prorated.
17.3 Any cost beyond the amounts payable by the Employer shall be paid by the employee
via payroll deduction.
17.4 In the event that the health insurance provisions of this Agreement fail to meet the
requirements of the Affordable Care Act and its related regulations or cause the
Employer to be subject to a penalty or fine, either party may request that the other
party meet and negotiate over amendments to those health insurance provisions that
the requesting party deems necessary. In such negotiations, the rights and
obligations of the Union shall be subject to the provisions of Minn. Stat. §179A.06, and
the rights and obligations of the Employer shall be subject to the provisions of Minn.
Stat. § 179A.07.
17.5 The Employer shall contribute 100% of the monthly cost for ($25,000) Life Insurance
13
for the employee as per the coverage and terms of the policy.
176 Effective January 1, 2001, the Employer shall contribute 100% of the cost of single
coverage toward Group Dental Insurance coverage. If the Employee elects additional
dependent coverage, the Employee will pay the monthly cost above the Employer
contribution via payroll deduction.
ARTICLE 18 FALSE ARREST INSURANCE
The Employer shall provide false arrest insurance for the police officers.
ARTICLE 19 STANDBY PAY
Employees required by the employer to standby shall be paid for such standby time at the
rate of one hour's pay for each hour on standby. Standby pay as defined in this article does
not apply to court appearances, criminal or civil.
ARTICLE 20 UNIFORMS
20.1 Effective January 1, 2011, the uniform allowance shall be eight hundred twenty
($820.00). The uniform allowance shall be paid by the 411 week of January.
20.2 All newly -hired police officers shall receive a complete uniform as provided for in the
contract Exhibit A in lieu of uniform allowance for the first two years of employment.
During that time, the Employer shall replace any item worn or damaged. At the
beginning of the third year of employment, employees shall be entitled to prorated
uniform allowance as provided in the contract.
20.3 In addition to the uniform allowance, soft body armor shall be provided by the
Employer and replaced as needed due to poor condition or as recommended by the
manufacturer's specifications. This shall be done without deduction from the uniform
allowance.
20.4 Effective January 1, 1993, police officer(s) assigned to an investigator position shall
receive a uniform allowance in accordance with the terms and conditions under
Exhibit B to this Agreement.
20.5 Upon termination of employment, employees of the Police Department shall return all
uniform articles paid for by the Employer under the terms of this Agreement, except
shoes. The Chief of Police shall issue a receipt to the Employee for said articles upon
his receipt before the issuance of the Employee's last pay check.
ARTICLE 21 SALARY SCHEDULE
14
21.1 The wage schedules for employees areas follows:
Effective Date:
Start A
12 mo. (B)
24 mo. 10
36 mo. (D)
Effective 1-1-14
$25.38
$29.04
$31.42
$34.95
Effective 1-1-15
$26.14
$29.91
$32.26
$36.00
21.2 The Investigator, School Resource Officer and K-9 Officer pay shall be established at
the Salary Schedule plus an additional 6% of the 36 month rate of the Police Officer
Salary Schedule, rounded off to the nearest whole dollar.
21.3 A new police officer may be hired at a rate higher than Step A if the person has
previous related experience in police work, is state certified, meets all other entrance
requirements of the Employer and is approved by the Chief of Police and City
Administrator.
21 A Part-time employees will be paid the hourly rate that their hours worked earns them
based on a standard of 2,080 hours per year.
21.5 The Senior Officer on Duty shall be paid 107.5% of the officer or investigator rate of
pay when no other supervisory personnel of the essential employee group are on duty
and there is one or more other essential group employees on duty. Supervisory
personnel shall include the Chief of Police, Deputy Chief of Police, Sergeant
Investigator, Lieutenant, Lieutenant Investigator, and any future command positions
that may be established for the essential employee group in the Department. The
7.5% additional pay shall be earned by the hour for each hour the Police Officer serves
as the senior officer on duty under the terms and conditions of this Article. The Senior
Police Officer shall be responsible for supervisory duties and responsibilities as
outlined in the Department Police Manual for this position.
21.6 The EMPLOYER may appoint an employee to a full-time Lead Investigator position.
Lead Investigator pay shall be 9% of the 36 -month rate of the Police Officer Salary
Schedule, rounded off to the nearest whole dollar.
ARTICLE 22 PART-TIME EMPLOYEE'S FRINGE BENEFITS
22.1 Part-time employees will earn vacation, holiday and sick leave benefits based on the
percentage of their hours worked the previous year. This percentage will be taken on
2,080 hours as the standard work year.
ARTICLE 23 VACATION SCHEDULE AND USE
23.1 The vacation schedule shall be as follows:
Beginning in the 1 st yr of employment
12 days 96 hrs
Beginning in the 2nd yr of employment
12 days 96 hrs
Beginning in the 3rd yr of employment
12 days 96 hrs
15
Beginning in the 4th yr of employment
12 days
96 hrs
Beginning in the 5th yr of employment
15 days
120 hrs
Beginning in the 6th yr of employment
16 days
128 hrs
Beginning in the 7th yr of employment
16 days
128 hrs
Beginning in the 8th yr of employment
16 days
128 hrs
Beginning in the 9th yr of employment
16 days
128 hrs
Beginning in the 10th yr of employment
18 days
144 hrs
Beginning in the 11 th yr of employment
18 days
144 hrs
Beginning in the 12th yr of employment
18 days
144 hrs
Beginning in the 13th yr of employment
20 days
160 hrs
Beginning in the 20th yr of employment
25 days
200 hrs
23.2 Each employee shall have vacation earned computed on a bi-weekly basis, or every
two weeks.
23.3 Employees shall accrue vacation during the first year of employment but not be
eligible to L!se accrued vacation until completion of the first six months of
employment.
23.4 Employees shall request vacation time in writing to the Chief of Police and receive his
approval a minimum of 30 days in advance to permit the Chief to effectively schedule
the department's forces.
23.5 Except as approved in writing by the City Administrator, employees will not be
allowed to carry over more than the number of hours of vacation they earned in the
two previous calendar years.
23.6 No employee shall be permitted to waive vacation leave for the purpose of receiving
pay.
ARTICLE 24 EDUCATION PAY/TUITION REIMBURSEMENT
24.1 Education incentive pay for a four year bachelor's degree will be $30.00 per month.
Payment is to be made on each biweekly pay check in 26 equal amounts for police
officers. If the bachelor's degree is received after the start date, the $30.00 per month
payment will begin with the first payroll of the month following the presentation of
the diploma to the Chief of Police. Police Officers can elect to receive either
educational incentive pay or longevity pay, but not both.
24.2 Police officers shall be reimbursed 100% in 1992 and thereafter for tuition cost upon
completion of college courses approved by the Employer as beneficial to the
performance of police officers duties and required for the attainment of a Bachelors or
Masters degree. The officer must receive a letter grade of "C" or better or "Pass" on the
pass/fail grade system to qualify for tuition reimbursement. An employee must have
completed the probationary period to be eligible for tuition reimbursement towards a
IV
Bachelor's Degree. Further, an employee must have completed three years of service
to be eligible for tuition reimbursement towards a Master's Degree. Reimbursements
of the tuition will be paid for the course not to exceed the tuition rate charged by the
University of Minnesota for an equivalent course. Beneficial courses shall include, but
are not limited to, courses leading to a degree such as Business Administration, Public
Administration, Education, Social Sciences, Law Enforcement and similarly related
major courses of study.
24.3 Police Officers hired after January 1, 2001 shall not be eligible for tuition
reimbursement toward a Master's Degree.
ARTICLE 25 HOLIDAYS
25.1 There shall be eleven (11) holidays per year as follows:
New Year's Day, January 1
Martin Luther !ding's Birthday, Third Monday in January
President's Day, Third Monday in February
Memorial Day, Last Monday in May
Independence Day, July 4th
Labor Day, First Monday in September
Veterans Day, November 11
Thanksgiving Day, Fourth Thursday in November
Christmas Eve, One-half day
Christmas Day, December 25th
New Year's Eve, One-half day
Floating Day
25.2 Employees who work on a holiday shall be paid at one and one-half (1 1/2 ) times their
regular hourly rate of pay. Employees shall be paid in the month of December for the
holidays they have earned beginning with January 1, New Year's Day. The rate of pay
shall be the rate in effect on the date of the holiday.
25.3 The Employer shall have the right to reduce the work schedules for holidays and to
provide time off in lieu of holiday pay in December.
ARTICLE 26 SICK LEAVE
26.1 Sick leave is to be earned at a rate of one eight (8) hour day per month with no limit to
accumulation. Sick leave is earned while on vacation, sick leave and injury on duty
leave.
26.2 Sick leave may be used only for personal illness of the employee or in the case of an ill
or injured child of the employee or employee's spouse. Effective August 1, 2013, sick
leave will be amended to incorporate Minn. Stat. §181.9413.
17
26.3 In order to be eligible for sick leave pay, an employee must:
a) Report no later than one hour before the beginning of the shift or sooner if
possible.
b) Keep the Chief of Police informed of his or her condition.
c) Submit a medical certificate for any illness of three days or longer if requested
by the Chief of Police.
26.4 Sick leave is to be used for actual illness and/or emergency medical attention of the
employee, or the care of an ill or injured child of the employee or the Employee's
spouse or critical illness of the employee's spouse. If the Employer has reason to
believe an employee is abusing sick leave by review of usage, the employee may be
required to submit a doctor's statement upon written advance notice from the
Employer for future usage. Where abuse is evident, an employee shall be subject to
the provisions of Article 10 of the Agreement. Employees are expected to accumulate
sick leave and not abuse it by using it as it accrues monthly.
ARTICLE 27 INJURY ON DUTY PAY
27.1 An Employee who, in the ordinary course of employment, while acting in a reasonable
and prudent manner and in compliance with established rules and procedures of the
Employer, is injured during the performance of his/her duties and thereby unable to
work, shall be paid the difference between the employee's regular pay, including
longevity and/or investigator pay, and the worker's compensation insurance
payments for a period not to exceed the equivalent of 260 eight (8) hour working days.
A working day is defined as the combination of worker's compensation insurance and
injury on duty pay.
27.2 For each day of injury on duty used, one eight (8) hour day shall be deducted from the
Employee's accumulated injury on duty leave of up to one calendar year of two
hundred sixty (260) working days.
27.3 The employee must be eligible for and receive worker's compensation insurance wage
benefits to be eligible for and receive injury on duty pay from the Employer.
27.4 An employee shall continue to accumulate vacation and sick leave while on injury on
duty leave.
27.5 The Employer shall have the right to request and receive reports from the employee's
doctor(s) on the employee's condition and ability to return to work, and the right to
have the employee examined by the Employer's doctor to determine his/her condition
and ability to perform the duties of the employee's position.
18
27.6 An employee may choose to use sick leave and/or vacation leave after his/her injury
on duty leave is exhausted.
ARTICLE 28 LONGEVITY PAY
28.1 Effective January 1, 2001, the longevity pay shall be as follows:
3.0% of the 36 month rate after 4 years
3.5% of the 36 month rate after 5 years
4.0% of the 36 month rate after 6 years
4.5% of the 36 month rate after 7 years
5.0% of the 36 month rate after 8 years
5.5% of the 36 month rate after 9 years
6.0% of the 36 month rate after 10 years
6.5% of the 36 month rate after 11 years
7.0% of the 36 month rate after 12 years
7.5% of the 36 month rate after 13 years
8.0% of the 36 month rate after 14 years
8.5% of the 36 month rate after 15 years
9.0% of the 36 month rate after 16 years
9.5% of the 36 month rate after 17 years
28.2 Police officers can elect to receive either education incentive pay or longevity pay, but
not both.
ARTICLE 29 SEVERANCE PAY
29.1 Severance pay shall be paid to full-time employees based on the following schedule:
• After 5 years of full-time service, 35% of the Employee's unused sick leave.
• After 10 years of full-time service, 45% of the Employee's unused sick leave.
• After 15 years of full-time service, 55% of the Employee's unused sick leave.
29.2 Only service with the City of Lakeville shall be counted toward the time required for a
person to be eligible. Severance pay is to be based only on the employee's wage
schedule base pay rate, exclusive of any longevity, investigator, or education incentive
pay and shall be the wage rate in effect on the date of termination. Employee must
leave the service in good standing and give the Employer two (2) weeks written notice
of termination.
ARTICLE 30 PROBATIONARY PERIOD
30.1 The probationary period for new employees shall be twelve (12) months. The
19
probationary period for employees who are promoted, or rehired when they
previously had served six or more months with the City in the same position rehired
for, shall be six months.
30.2 At any time during the probationary period for new employees or rehired former
employees, the employee may be dismissed at the sole discretion of the Employer if
performance is unsatisfactory. During the six month probationary period for a
promoted or reassigned employee, the Employer may assign the employee to his/her
former position at the sole discretion of the Employer.
ARTICLE 31 COMPENSATORY TIME ACCUMULATION AND USE
31.1 Compensatory time may be accumulated for overtime worked at the rate of time and
one-half (1 1/z) not including holiday overtime.
31.2 The maximum number of compensatory time hours that may be accumulated shall be
80 hours.
31.3 The Employee may choose to carry over up to 40 hours of comp time from one year to
the next. All compensatory time hours not carried over shall be used by December 31
of each year, or the Employer shall pay the employee at the hourly rate at which the
compensatory time was earned on the employee's last paycheck of the year.
Compensatory time can be used only with the approval of the Chief of Police when
the effective scheduling of personnel permits taking time off.
31.4 Compensatory time off shall be claimed on a form provided by the Employer and the
request shall be made to the Chief a minimum of one week in advance, and approved
by the Chief.
31.5 Preference will be given the employee who requests compensatory time off the
furthest in advance. Seniority will be the determining factor when more than one
employee in the same department requests the same date(s) off at the same time.
ARTICLE 32 REIMBURSEMENT FOR DAMAGE TO PERSONAL WRISTWATCH,
PRESCRIPTION GLASSES OR CONTACT LENS WHILE ON DUTY
32.1 Police officers may submit a report of claim to the Chief of Police of a wrist watch,
prescription glasses or contact lens damaged, or contact lens lost, in the line of duty
and request reimbursement for the cost of repair or replacement up to $154.00 per
year, per employee. If the article is to be replaced, the damaged watch, glasses or
contact lens shall be turned in to the department with the report.
32.2 The claim for reimbursement shall be submitted with an estimate of the cost of repair
from an appropriate watch repair or eye glass business. The claim will be approved if
the requirements of Article 32.1 have been met and the Chief of Police approves the
claim after determining from the written report the damage was caused by activity in
the line of duty.
ARTICLE 33 LEAVE OF ABSENCE WITHOUT PAY AND JURY DUTY
33.1 Upon request of an employee, leave of absence without pay may be granted by the
City Council, taking into consideration good conduct, length of service, and efficiency
of the employee and the general good of the municipal service. Such leave of absence
shall not exceed a period of ninety (90) days; provided that the same may be extended
beyond such period if the leave of absence is for continued disability or other good
and sufficient reasons, but in no case to exceed one year, except when the Employee is
called in to military service or is disabled from a disability incurred while in the service
of the City. No benefits shall accrue during a period of leave of absence without pay.
33.2 In the case of jury duty or subpoena for witness in court, an employee shall receive an
amount of compensation which will equal the difference between an employee's
regular pay and compensation paid for jury duty or witness fee.
ARTICLE 34 PREGNANCY RELATED DISABILITY LEAVE AND CHILD CARE LEAVE
34.1 In conformance with the Minnesota Human Rights Act and the Pregnancy
Discrimination Act, disability caused or contributed to by pregnancy, child birth or
related medical conditions shall be treated the same as disabilities caused or
contributed to by other medical conditions.
34.2 A pregnant Employee who is unable to perform job duties and responsibilities due to
disabilities caused or contributed to by pregnancy, child birth or other related medical
conditions, is eligible to use sick leave in accordance with Article 26. The employer
reserves the right to request an Employee to provide medical evidence of disability,
illness or injuries. Failure to provide such evidence shall result in the loss of sick leave
for the period of absence.
34.3 An Employee who wishes to request a leave of absence for the purposes of child care
may request an unpaid leave of absence in accordance with Article 33.
ARTICLE 35 TRAINING OFFICER/COMP PAY
35.1 The Employer shall credit an employee designated as a Training Officer for a new
police officer for one hour of compensatory time or pay one hour at the employee's
wage schedule base pay rate per each shift, at the employee's option, that a training
officer has a new police officer assigned by the Chief of Police to the training officer
and the two are on duty with each other.
35.2 The Employer shall credit an employee designated as a Training Officer for a new
21
Community Service Officer for one hour of compensatory time or pay one hour at the
employee's wage schedule base pay rate per each shift, at the employee's option. This
training credit shall not exceed 10 hours per CSO trainee.
35.3 Compensatory time earned under this article is not earned at the rate set forth in
Article 31.1 and shall be used as approved by the Chief of Police.
ARTICLE 36 TIME CARDS AND REPORTS
36.1 Employees shall report their hours worked on a bi-weekly time card report form
provided by the Employer and signed by the employee. No employee shall make
entries in another employee's time card unless written approval is received from the
Chief of Police or his designee.
ARTICLE 37 WAIVER
37.1 Any and all prior agreements, resolutions, practices, policies, rules and regulations
regarding terms and conditions of employment to the extent inconsistent with the
provisions of this Agreement are hereby superseded.
37.2 The parties mutually acknowledge that during the negotiations which resulted in this
Agreement, each had the unlimited right and opportunity to make demands and
proposals with respect to any term or condition of employment not removed by law
from bargaining. All agreements and understandings arrived at by the parties are set
forth in writing in this Agreement for the stipulated duration of this Agreement. The
Employer and the Union each voluntarily and unqualifiedly waives the right to meet
and negotiate regarding any and all terms and conditions of employment referred to
or covered in this Agreement or with respect to any term or condition of employment
not specifically referred to or covered by this Agreement, even though such terms or
conditions may not have been within the knowledge or contemplation of either or
both of the parties at the time this contract was negotiated or executed.
ARTICLE 38 FUNERAL LEAVE
38.1 All full-time employees will be granted, if requested, up to three days funeral leave for
a death in the employee's immediate family.
38.2 Immediate family shall include mother, father, husband, wife, son, daughter, brother,
sister, mother-in-law and father-in-law of the employee and grandparents of the
employee.
ARTICLE 39 LONG-TERM DISABILITY INSURANCE
The City shall contribute one -hundred percent (100%) of the cost of the long-term disability
insurance policy for all eligible employees.
22
ARTICLE 40 DRUG AND ALCOHOL TESTING POLICY
Drug and alcohol testing police language - see attached.
ARTICLE 41 LICENSE PAY
Effective January 1, 1999, the Employer shall contribute 100% of the cost of the license fee
required by the Minnesota Peace Officer Standards and Training Board (POST).
ARTICLE 42 DURATION
This Agreement shall be effective as of January 1, 2014 and shall remain in full force and effect
until the thirty-first (31 st) day of December, 2015. In witness whereof, the parties hereto have
executed this Agreement on this 5th day of January, 2015.
CITY OF LAKEVILLE
MATT LITTLE, MAYOR
JUSTIN J. MILLER, CITY ADMINISTRATOR
23
LAW ENFORCEMENT LABOR SERVICES
DANIEL J. WELLS, BOSINESS AGENT
LAKEVILLEPOLICE OFFICER REPRESENTATIVE
ITEM
3 Summer shirt
3 Winter shirt
3 Trouser
1 Summer hat
1 Winter hat
1 Summer hatband
1 Rain cover
2 Breast badges
1 Hat badge
2 Name tags
1 Summer Shoes/Boots
1 Winter Shoes/Boots
I Jacket
1 Service Belt
1 Under Belt
1 Holster
1 Cuff Case
1 Mag Pouch
1 Ballistic Vest
1 Key Holder
1 Flash light/Holder/
Traffic Cone
1 Small Mace and Holder
1 Asp and Holder
1 Whistle and Chain
2 Collar Brass (shirt and jacket)
3 Ties
1 Rain Coat
1 Traffic Vest
1 Pair of Gloves
1 Large Utility Bag
1 Robber Glove Case
1 Metal Clip Board
1 Ball Cap
1 Coverall
1 Hand Cuffs
1 Duty Weapon
1 Portable Radio
EXHIBIT A
UNIFORMS - POLICE OFFICER
Initial Issue
BRAND & MODEL #
Flying Cross
Flying Cross
Horace Small
Five Star
Super Trooper
Uniforms Unlimited
Uniforms Unlimited
Blackington #B736R
Blackington #8720R
Uniforms Unlimited
Blazer
Safariland
Safariland
24
STYLE & COLOR
S/S Navy
US Navy
All season, Navy
Short bill, Navy
Cloth & pile, Navy
Silver
Silver w/black panels
Silver w/black panels
Silver w/black letters
Black
Black
Black basket weave
Black basket weave
Black basket weave
Black basket weave
Black basket weave
Additional Authorized Purchases:
Additional Uniform Badges and flat ID badges
Citation and Report Form Holders
Earmuffs (shooting)
Shooting Safety Glasses
Winter Jacket (Minneapolis Leather - 4455, Navy Blue)
Any other supervisor approved items
25
EXHIBIT B
INVESTIGATOR
UNIFORMS
A specific uniform code will not be established for officers permanently assigned to these
units. These officers will, however, be expected to present a professional, neatly attired
appearance at all times. The exception to this is when undercover or other details require the
assumption of a manner of dress which is designed to protect the identity and safety of the
officer. These officers are expected to maintain a compliment of regulation uniforms (per
Exhibit A) so as to be available for street assignment as the need arises.
Officers assigned to these units may use their uniform allowance to purchase the following
items: suits, blazers, slacks, vests, dress shirts, neckwear, outer coats, shoes, sweaters and
belts. Casual wear (jeans, etc.), underclothing, jewelry and accessory items are not approved.
Items purchase under Exhibit B will not have to be returned to the City in the event that an
employee resigns.
26
DRUG AND ALCOHOL TESTING POLICY
POLICE
I. The City recognizes drug and alcohol abuse by EMPLOYEES as threatening the welfare
of the public and the well-being of the other EMPLOYEES. Therefore, the City has
established drug and alcohol testing for positions covered by this Policy as a means of
protecting the public's welfare and EMPLOYEE'S well-being.
If. The intent of this article is to prevent drug and alcohol abuse by EMPLOYEES and to
offer the opportunity for rehabilitation of EMPLOYEES who have tested positively for
drug and alcohol use while on duty.
III. The City shall inform a job applicant prior to testing. Information shall include the
City's right to request a test, the processing of a test, the consequences of testing
positively and the rights of the EMPLOYEE.
IV. Before requesting an EMPLOYEE to undergo drug or alcohol testing or a job applicant
to undergo drug testing, the City shall provide the EMPLOYEE or job applicant with a
form developed by the City on which to acknowledge the EMPLOYEE or job applicant
has reviewed the Policy. On an additional form, the EMPLOYEE or job applicant may
indicate any over the counter or prescription medications that they are currently
taking or have recently taken and any other information relative to the liability of or
explanation for a positive test result. This form will be completed at the collection site
and will not be reviewed by the EMPLOYER.
V. Random testing is prohibited.
VI. The City shall not require an EMPLOYEE or job applicant to undergo drug or alcohol
testing except as authorized below:
A. The City may require a job applicant to undergo drug testing provided a job
offer has been made to the applicant and the same test is required of all job
applicants conditionally offered employment for that position. If the job is
withdrawn the City shall inform the applicant of the reasons for its actions.
B. The supervisor in charge may require an EMPLOYEE to undergo drug or alcohol
testing provided a reasonable attempt has been made to receive approval from
the Chief of Police, that said requirement is stated in writing, and there is
reasonable suspicion that the EMPLOYEE:
7 . Is under the influence of drugs or alcohol;
27
2. Is found to personally possess illicit drugs or alcohol while on duty;
unless possession is in conjunction with their official duties;
3. Sustained a personal injury or caused another EMPLOYEE to sustain a
personal injury and the supervisor in charge has reasonable suspicion
that drugs or alcohol were involved;
4. Has caused a work related accident or was helping to operate
machinery equipment or vehicles involved in a work related accident
and the supervisor in charge has reasonable suspicion that drugs or
alcohol were involved.
C. The City may require an EMPLOYEE to undergo drug or alcohol testing if the
EMPLOYEE has been referred by the City for chemical dependency treatment or
evaluation which results in a determination that the EMPLOYEE is chemically
dependent, in which case the EMPLOYEE may be required to undergo drug or
alcohol testing without prior notice during the evaluation or treatment period
and for a period of up to two (2) years following completion of any prescribed
chemical dependency treatment program.
D. Reasonable suspicion shall be defined as that quantity of proof or evidence
that is more than a hunch, but less than probable cause. Reasonable suspicion
must be based on specific, objective facts and any rationally derived inferences
from those facts about the conduct of an individual that would lead the
reasonable person to suspect that the individual is or has been using drugs
while on or off duty.
VII. Test sample collection shall be conducted in a manner which provides a high degree
of security for the sample and freedom from adulteration. EMPLOYEES may not be
witnessed while submitting a urine sample. Administrative procedures and biologic
testing of the samples shall be conducted to prevent the submission of fraudulent
tests. All screening tests shall make use of a split sample which shall be used for
confirmatory retests. Upon request, an EMPLOYEE shall be entitled to the presence of
a union representative before testing is administered. The testing may not be delayed
for an unreasonable amount of time to allow the EMPLOYEE this opportunity.
VIII. All samples shall be tested for CHEMICAL ADULTERATION, OPIATES, CANNABIS, PCP,
COCAINE, AMPHETAMINES, BARBITURATES, BENZODIAZEPINES AND ALCOHOL. The
testing shall be done at a laboratory to be determined by the City and the following
standards shall be used:
28
DRUG
SCREENING TEST
CONFIRMATION
Amphetamines
1,000 ng/ml Amphetamine
500ng/mg GC -MS
Bartiburates
300 ng/ml Barbiturate
300ng/mi GC -MS
Benzodiazepine
300ng/ml Oxazepam
300ng/ml GC -MS
Cannabis
50ng/ml Delta -THC
15ng/ml GC -MS
Cocaine
300ng/ml Metabolite
150ng/ml GC -MS
Opiates
300ng/ml Morphine, Codeine 3
OOng/ml GC -MS
PCP
200ng/ml PCP
25ng/ml GC -MS
Alcohol
0.040 m/dl Alcohol
0.040 gm/dl GC -MS
IX. Any sample which has been altered or is shown to be a substance other than urine or
blood shall be reported as such. All samples which test positive on a screening test
shall be confirmed by gas chromatography -mass spectrophotometry, and no records
of unconfirmed positive tests shall be released by the laboratory.
X. Initial screening tests and confirmatory tests shall be at the sole cost of the City.
XI. Testing and evaluation procedures shall be conducted in a manner to ensure that an
EMPLOYEE'S legal drug use does not affect the test results.
XII. All results shall be evaluated by a suitably trained occupational physician or
occupational nurse prior to being reported.
XIII. Test results shall be treated with the same confidentiality as other EMPLOYEE medical
records. The test results shall not be reported outside the City organization.
XIV. Each EMPLOYEE whose confirmatory tests indicate positive for drug or alcohol use
shall be medically evaluated by a substance abuse professional. If required by the
substance abuse professional, the EMPLOYEE will then be counseled and treated for
rehabilitation. At any time an EMPLOYEE may voluntarily enter the chemical
dependency program. This program is designed to provide care and treatment to any
EMPLOYEE who is in need of rehabilitation. Details concerning treatment any
EMPLOYEE receives at this program shall remain confidential between the City and
EMPLOYEE and shall not be released to the public. The EMPLOYER shall not be
responsible for the cost of the treatment. The EMPLOYEES' health care provider shall
provide a portion of the cost of the treatment.
XV. No EMPLOYEE shall be relieved of his or her position based on one positive
confirmatory test result although the EMPLOYEE may be re-evaluated for his or her
assignment. When undergoing treatment and evaluation, EMPLOYEES shall receive
the usual compensation and fringe benefits provided at their assigned position
29
provided the EMPLOYEE is using available accumulated leave.
XVI. Each EMPLOYEE has the right to challenge the results of drug testing in the same
manner that he or she may grieve any managerial action.
XVII. Upon successful completion of rehabilitation, the EMPLOYEE shall be returned to her
or his regular duty assignment. EMPLOYEE reassignment during treatment shall be
based on each individual's circumstances. If follow-up care is prescribed after
treatment, this may be a condition of employment. Once treatment and any follow-up
is completed and provided no further incidents of positive confirmatory tests occur, at
the end of two (2) years the records of treatment and positive drug test results shall be
retired to a closed medical record, given to the EMPLOYEE. References of the incident
shall be removed from the EMPLOYEE'S personnel file.
XVIII. EMPLOYEES shall be subject to the disciplinary actions prescribed in Article 10 if the
EMPLOYEE;
A. Refuses to undergo drug or alcohol testing; EMPLOYEE may refuse to undergo
drug or alcohol testing of a blood sample upon religious grounds if the
EMPLOYEE consents to testing of a urine sample.
B. Fails to successfully complete a required rehabilitation program as prescribed
by a substance abuse professional;
C. Tests positively after completing the initial rehabilitation program. The
EMPLOYEE will be given the opportunity to complete a second rehabilitation
program. If the EMPLOYEE refuses to complete a second rehabilitation
program or if she or he tests positively after the completion of a second
rehabilitation program, disciplinary action as prescribed in the union contract
may be applied.
XIX. An EMPLOYEE may request a confirmatory retest of the original sample at the
EMPLOYEE'S own expense within S days of receiving notice of a positive confirmatory
test result. It shall be the responsibility of the EMPLOYEE to contact the EMPLOYER
who will work with the EMPLOYEE to contact the laboratory which performed the
original test and also make arrangements with a second federally certified laboratory
to perform the confirmatory retest. If the confirmatory retest does not confirm the
original positive test result, no adverse personnel action based on the original result
may be taken against the EMPLOYEE and the City will reimburse the EMPLOYEE for the
actual cost of the confirmatory retest.
XX. The EMPLOYEE, upon request and subject to approval of the testing laboratory will
have the right to inspect and observe any aspect of the drug -testing program. The
30
UNION may inspect individual test results if the EMPLOYEE involved authorizes the
release of this information.
XXI. This drug testing program is solely initiated at the behest of the CITY for the safety and
well-being of the public and EMPLOYEES. The CITY shall be solely liable for any legal
obligations for its actions of requiring testing or for actions taken as a result of testing.
XXII. This Policy is in no way intended to supersede or waive an EMPLOYEE'S federal or state
constitutional rights, or contractual rights.
XXIII. This policy is subject to the interpretation of the state law pertaining to drug and
alcohol testing.
31
MEMORANDUM OF UNDERSTANDING
This Memorandum of Understanding, made the 5th day of January, 2015, is by and between the City of Lakeville,
a Minnesota municipal corporation ("City") and Law Enforcement labor Services, a Minnesota non-profit
corporation ("Union"j.
RECITALS
WHEREAS, the City and LELS. are parties to a Collective Bargaining Agreement for the period of January 1, 20014
through December 31, 2015 (hereafter "CBAj; and
WHEREAS the parties have agreed to a new CBA for the period of January 1, 2014 through December 31, 2015;
and
WHEREAS. the parties also stipulated that certain amendments would not be incorporated into a new CBA, but
in the alternative, would proceed on a trial basis and only be renewed by mutual agreement,
NOW. THEREFORE. it is understood and agreed by the parties hereto that the following articles will proceed on
a trial basis:
1. Article 13 —Overtime —Contracted Police Services
a. Requesting organizations will work from written agreements
b. All contracted overtime will be made to recruit from other agencies. If shifts are not filled, an
attempt will be made to recruit from other agencies. If still remain unfilled, Chief may mandate
the overtime.
c. If the contracted overtime is cancelled within 24 hours of the event, Lakeville Police Officers will
be compensated for two hours at 1.5 times the regular rate of pay.
For LELS:
Q�i� 0 MV-04-
Daniel
J. Wells, Bu iness Agent
For the City of Lakeville:
Justin J. Miller, City Administrator
0a /'93 1,471
Date Date
32
LETTER OF AGREEMENT
BETWEEN
LAW ENFORCEMENT LABOR SERVICES
AND
CITY OF LAKEVILLE
WHEREAS, the City of Lakeville and LELS are in agreement to the following:
Effective January 1, 2004, the City will implement the Minnesota State Retirement System
Post -Retirement Health Care.Savings Plan (PRHCSP), which allows employees to save money
on a pre-tax basis to pay me4dical expenses and/or health insurance premiums after
retirement from the City. Employees will be able to choose among several different
investment options provided by the State Board of Investment. Assets in the program will
accumulate tax-free. This plan is pursuant to Minnesota Statutes §352.98.
Eligibility is determined based on PERA definitions for retirement. The mandatory employee
contribution into the PRHCSP will be 700% of eligible separation pay. The value of the
applicable FICA/Medicare tax savings will be added to the retiring employees HCSP account.
The Minnesota State Retirement System will determine all provisions of this plan, and an
employee will deal directly with the State Retirement System on all account matters. The
City's responsibility will be to process the initial employee enrollment in the plan and to
forward the appropriate employee,contributions.
For LELS:
1�� � //j'i4 --
Daniel J. Wells, 6usiness Agent
/",)
Date
For the City of Lakeville:
Justin J. Miller, City Administrator
Date
tic]
Of THE MATTER OF THE INTEREST ARBITRATION BETWEEN
CITY OF LAKEViLLE ) BMS CASE N0.14 -PN -1305
}
DECISION AND AWARD
)
LAW ENFORCEMENT LABOR ) RICHARD R. ANDERSON
SERVICES LOCAL 128 ) ARBITRATOR
"UNION" )
DECEMBER 99 2014
APPEARANCES
Far the IInion:
Dan J. Wells, Chief Executive Officer
Jeff Hanson, Steward
For the City:
Scott M. Lepak, Attorney
Karen K. Kurth, Attorney
Cindi Joosten, Human Resource Manager
JURISDICTION
Pursuant to the provisions of the Minnesota Public Employment Relations Act (PELRA), I
Bureau of Mediation Services (BMS) Commissioner Josh Tilsen certified the following issues in
dispute to interest arbitration in a letter dated August 1, 2014:
1. Duration - What should the Duration of this Agreement bel - Article 42
2. Wages - What changes, if any, should be made to the wage/salary structure for 2014? -
Article 21
3, Wages - What changes, if any, should be made to the wage/salary structure for 2015? -
Article 21
Minn. Stat, § 179A.16, SO& 2 and Minn. R. 5510.3930
1
The undersigned Arbitrator, being duly appointed as an Arbitrator under the auspices of the
BMS, was notified of my selection as the neutral arbitrator in this matter by the Law
Enforcement Labor Services (LELS) Chief Executive Officer Dan J. Wells in a letter dated
September 15, 2014. A hearing was held on November 13, 2014 in Lakeville, Minnesota. The
parties were afforded a full and fair opportunity to present its case. Witness testimony was
sworn and subject to cross-examination Exhibits were introduced and received into the record.
During the course of the hearing the parties indicated that Issue 1 (Contract Duration) had been
resolved and stipulated that the two remaining Commissioner -certified issues were properly
before the undersigned Arbitrator for final determination. The record was closed on November
28, 2014 after the Arbitrator received the parties' timely post -hearing briefs.
BACKGROUND
The City of Lakeville, hereinafter the City or Employer, is located approximately 23 miles
south of downtown Minneapolis, Minnesota in Dakota County. Lakeville is one of the fastest-
growing cities in the Minneapolis—Saint Paul metropolitan area with the estimated 2014
population of approximately 59,000. The City has approximately 190 employees. There are 103
unrepresented employees. Eighty seven (87) employees are represented in four bargaining units.
There is one non-essential unit consisting of 39 Public Works and Parks Department (Public
Works) employees represented by Teamsters Local 320 and three essential units consisting of 48
employees represented by various LELS locals.
LELS Local 128 represents a unit of 39 Police Officers and Investigators, herein after
Officers, which is the subject of this interest arbitration. LELS Local 177 represents a unit of
five (5) Police Sergeants while LELS Local 384 represents a unit of four (4) Lieutenants.2
This will be the first contract between the parties. Prior to this, this Officer unit was
represented by Minnesota Public Employees Association with the last contract effective from
January 1, 2012 through December 31, 2013.
OPINION AND AWARD
On the basis of the evaluation of all of the testimony, documents and arguments presented by
2 The Lieutenant position was created in 2013 when the Captain classification was eliminated. It appears three
Sergeants assumed the Lieutenant classification and the existing Captain was reclassified as a Lieutenant.
2
the parries, the decision by this Arbitrator is as follows:
ISSUE 1—CONTRACT DURATION -42
Pursuant to the agreement and stipulation of the parties, the contract will be effective from
January 1, 2014 through December 31, 2015.
MILES 2 AND 3—WAGE INCREASES FOR 2014 AND 2015—Article 21
The existing language:
Effective January 1, 2013, the following monthly rates shall apply.
Start $24.88
After 12 months $28.47
After 24 months $30.80
After 36 months $34.26
Union's 2014-2015 Wage Proposals:
The Union is requesting a three percent (3%) wage increase retroactive to January 1, 2014, and
a three percent (3%) wage increase effective January 1, 2015,
Effective January 1, 2014
Starr $25.63
After 12 months $29.32
After 24 months $32.72
After 36 months $35.39
Effective January 19 2015
Start $26.40
After 12 months $30.20
After 24 months $32.68
After 36 months $36.35
City's 2014-2015 Wage Proposals:
The City is requesting a two percent (2%) wage increase retroactive to January 1, 2014 and a
two percent (29/6) wage increase effective January 1, 2015.
Effective January 1, 2014
Start $25.38
After 12 months $29.04
After 24 months $31.42
After 36 month $34.95
Effective January 1, 2015
Start $25.89
After 12 months $29.62
IK
After 24 months $32.05
After 36 months $35.65
Pav Eaulty
The Union's position is that there is no pay equity issue. The Union argues the City is
currently in compliance with the Minnesota Local Government Pay Equity Act (Union
Exhibit 9). The latest report dated January 22, 2014 disclosed that the City has an
underpayment ratio of 93.33%, well above the recommended 80% ratio. Based on the
Union's wage proposals, the City would still be in compliance and has offered no argument
that it would not be.
The City's position is that pay equity must be considered in any award that issues. The
City argues that the male -dominated Officers are already above predicted pay and any
additional wage increase will mnve the Officers f s*er away from their existing preferred
position. Any wage increase above what other employees receive strongly weighs against
granting the Officers their requested pay increases.
Ability to Pay
The Union's position is that the City has adequate resources and is in sound financial
health, and therefore, has the ability to pay Officers its wage proposals. According to the
City's 2013 Comprehensive Annual Financial Report (Union Exhibit 8), the City's total cash
and investments exceeded $84 million. The City's estimated unassigned general fiord
balance for 2014 is $9,096,974 reflecting an increase of $1,036,534 in 2012 and $468,268 in
2013. This projected unassigned fund balance is 41% of total general fund expenditure at the
end of 2013 and well within the 35% to 50% parameters recommended by the State Auditor.
The cost difference between the Union and the City wage proposals furnished by the City is
only $129,028 for the two-year contract period.
The City's position is that the proper analysis is not the "ability to pay" but rather the
statutory mandate in PELRA that "the arbitrator ... shall consider the statutory rights and
obligations of public employers to efficiently manage and conduct their operations within the
legal limitations surrounding the financing of these operations." (Minn. Stat. 179A. 16,
Subd. 7)
4
The City noted that there are two primary factors that need to be considered in assessing
the statutory rights and obligations to efficiently manage and conduct its operations: (1)
Growth in population provides increased revenue but also creates the demand for increased
level of services. Accordingly, funds associated with growth should not be used for existing
obligations. (2) The recent recession created a situation in which needed spending was
deferred, resulting in a need for additional spending as the recession eases.
Looking at the $466,268 increase to the fund balance in 2013, the Union's proposal will
mean that almost 30% of the fund balance increase from 2013 would go to this one minority
group of employees in a male -dominated classification that is already above predicted pay.
Such a result is not rational particularly given the financial challenges facing the City.
Expanded fund balances are necessary to pay for projected stalling increases and
expanded service levels. Increased staffing and service levels means that increased revenues
associated with growth are not available to fund existing salary obligations at a greater level.
Additional revenues will be needed to fund areas that were deferred in the recent
recession, particularly infrastructure needs related to street repair and maintenance. in
addition to the looming financial burden associated with its streets, the City will be required
to address facility needs. During the recession and the years that followed, the City's
governing body has been judicious in approving a conservative budget and tax levy. As a
result major maintenance of facilities, parks and other infrastructure has been financed with
onetime revenues or debt or in certain situations deferred to future years.
The City also has financial needs related to its parks and trails. The Trail Improvement
Fund balance (which was initially financed with a one-time transfer from the General Fund)
was and will be reduced from $759,000 beginning in 2014 to $154,000 at the end of 2018.
The portion of the talc levy for trail maintenance and reconstruction will need to be increased
as this fund dwindles. in addition, parks major maintenance projects were deferred during
the recent recession. The 2014-2015 Capital Improvement Plan identifies approximately
$1,000,000 of park improvements and major maintenance projects for which there is no
approved revenue source.
5
Another major area of financial concern relates to the Employer's need to replace and
acquire equipment needed to provide City services. In order to address the peaks and valleys
associated with the City's equipment replacement schedule, the increase in City funding for
this area represents 1.5% of the City's total tax levy for 2015.
A short band measure of health often utilized in interest arbitrations is a review of
whether a City's fund balance exceeds the State Auditor's 50% recommended threshold.
Lakeville, at 41%, is not at this threshold. It is also a recognized arbitral principal that
reserves in excess of the State Auditor's recommended range are not an appropriate basis for
awarding a general increase. This arbitral principal of not raiding a fixed account to pay for
ongoing expenses also applies to investments and income from investments. Any amounts
beyond the budgeted two percent (2%) in both 2014 and 2015 for this bargaining unit would
not be consistent with the City's statutory rights and obligations to efficiently manage and
conduct its operations within the legal limitations surrounding the financing of these
operations. These factors overwhelmingly support the City's final wage position.
Internal EgWft
The Union's position is that the City does not have an internal equity argument to deny
the Officers its proposed wage increases in 2014 and 2015. The Union argues that the City
has negotiated wage settlements with all the other represented units that deviated from an
internal wage pattern in both contract years. The Sergeant unit received 3% in 2014 and will
receive another 3% in 2015. The newly created Lieutenant unit received an 11% increase for
their two-year contract. The Public Works unit received 1.75% plus a $400 lump sum
payment in each year of its two-year contract. Non-union employees were the only group
that received a 2% wage increase in both contract years and that amount was unilaterally
determined by the City. Based on the foregoing, it is clear that the City has failed to establish
an internal wage increase pattern for its employees
3 Fifty percent represents the top of the recommended 35% to 50°!0.
4 Washington County and MNPE,4, BAB Case No. 12 -PN -0813 (Richard John Willer, 2013) at page 9.
6
The Union argues further that there has historically been a 25% wage separation between
the Officer and Sergeant units dating back to at least 2005.5 (Union Exhibit 10) Denying the
Union's wage proposal will further separate the two groups.
The City's position is that the internal settlement pattern supports its wage proposal. The
City argues that its final offer of 2% for each year of the contract is the same as budgeted and
provided to non-union employees and to the newly formed Lieutenant unit. Contrary to the
Union's assertions that the Lieutenant unit received an 11% wage increase, the record reflects
that this group received 2% for both years of the two-year contract. 6
While the Sergeant and Public Works units received a general wage increase that differed
from non-union employees and the Lieutenant unit, the deviations were based upon the 2%
internal pattern before external market conditions were considered. A review of the external
market comparable group resulted in the Sergear t unit receiving an additional 1% wage for
each year of the two-year contract, In the case of the Public Works unit, their lower wage
adjustment of 1.75% in each year of the two-year contract initially used the 2% internal
pattern which was then reduced based upon a review of the wage rates of its external
comparable group. The additional $400 lump sum payments were negotiated in order to
make the external market adjustment more palatable to this group of employees.
With respect to the Union's claim of a historically established 25'% wage separation
between the Officers and Sergeants, there was no evidence presented that the parties
intentionally negotiated or consciously maintained this spread. Rather, this consistent
differential appears to be the result of uniform wage increases for both groups during this
period. It would be unjust to give the Officers a wage adjustment based upon a wage
adjustment justified for the Sergeant unit where none is warranted when comparing the
Officers to other officers in the comparable group.
5 Exhibit 10 discloses a separation rate of 29% in contract years 2005 and 2006, 23% in contract year 2007, 260/6 in
contract year 2009 and 25% in contract years 2009-2023. In reviewing this Exhibit, I recalculated the differential
using the salary figures in Exhibit 20 and arrived at different percentages of separation that will be discussed later in
this Decision.
6 It appears that the City is arguing that once a base rate for this new classification was established during
negotiations for an additional 20A was agreed to for each year of the two-year contract. However, no evidence was
proffered to support this scenario.
7
Finally, it would be inappropriate to give the male -dominated Officer unit that is already
above predicted pay any wage increase beyond that which other employees will be receiving
for the two-year contract period.
External Eanift
It is the Union's position that external factors also support the Union's position on wage
increases. The Union argues that the historical external comparable market consists of the
following 11 cities—Apple Valley, Blaine, Burnsville, Eagan, Eden Prairie, Edina, Maple
Grove, Minnetonka, Plymouth, St. Louis Park and Woodbury. This group of cities in the
external market is no longer comparable because five cities (Apple Valley, Eden Prairie,
Minnetonka, St. Louis Park and Plymouth) do not provide longevity in 2014 and 2015.
Blaine also is no longer comparable because it provides longevity and an educational
incentive plan that is being phased out. In view of this only the top wage rats should be
used for comparison.
The Union contends that even with its requested 3% wage increase in each year of the
two-year contract, the Officer unit's top wage rate would be 1.8% below the average of the
other 11 comparable cities; however, it would maintain its current 2013 6" place ranking
among the comparable cities in bath 2014 and 20158.
It is the City's position that the wage rate in the applicable external comparable market
consisting of Apple Valley, Blaine, Burnsville, Eagan, Eden Prairie, Edina, Maple Grove,
Minnetonka, Plymouth, St. Louis Park and Woodbury does not warrant a market adjustment
in excess of the 2% increase that the City has proposed.9
The City argues that the Officers are at or slightly above the external market average.
Using the benchmark top salary plus longevity in 2013 and in terms of relative ranking, the
City was P of the 12 comparable cities and only $G/month behind St. Louis Park. Awarding
the Employer's final position of a two percent (24/0) increase each year will keep Officers
with a combined top wage and longevity compensation package well above the external
It should be noted that only Apple Valley provided longevity pay in this group for 2013.
a In this comparison the Union did not consider longevity pay.
9 This group of cities was also used as the comparable external market for the Public Works and Sergeant external
market reviews.
8
market average. The market average of $6,525.36 in 2014 is less than the City's proposed
2% increase resulting in a monthly top wage plus longevity of $6,632.60. Similarly in 2015,
the market average of $6,723.21 is less than the City's proposed 2% increase resulting in a
monthly top wage plus longevity of $6,765.25. Thus, external market considerations
strongly support the EmpIoyer's final position.
Cost of Living and Other Economic Factors
The Union did not present any evidence or arguments regarding this factor except for
material in its `Book" that disclosed that the Consumer Price Index (CPI) for all cities
increased by 1.7% in the 12 -month period ending in August 2014. The City agrees with this
figure and argues that the 2% it is proposing in each contract year is consistent with the CPI
data while the Union's 3% is not.
The City also argues that it has not experienced a recruitment or retention problem. Four
Officers left for employment in other law enforcement jurisdictions. Two Officers went to
the City of Bloomington while one Officer went to the City of Edina where his father had
been previously employed as a police officer. The fourth Officer joined the Minnesota
Bureau of Criminal Apprehension (BCA). The application process for these positions
produced 210 viable candidates. Further, in 2014 the City hired a total of nine Officers, five
of whom had previous law enforcement experience with other municipal agencies.
DISCUSSION AND AWARD
.Arbitrators in Minnesota generally consider the following factors in interest arbitration
awards—employer's ability to pay, pay equity, internal equity, external equity, the cost of
living and purchasing power, and other economic factors such as difficulty in hiring, turnover
and retention rates. I intend to continue to follow these traditional factors in making my
award.
My role as an Arbitrator is to ensure that any award is consistent with what the parties
would arrive at if this bargaining unit had the right to strike or the City had the right to leek
out the Officers if no agreement was reached at the bargaining table. I also need to ensure
that this award does not significantly alter the Officers' internal or external relative standing
unless there are compelling reasons to do so.
E
Furthermore, I must ensure under PELRA that any award I fashion does not conflict with
Pay Equity Act compliance as measured by DOER. Based upon the evidence presented pay
equity is not a factor in my award and would have no effect even if I were to award the
Union its requested wage increases. The City is currently in compliance with the Pay Equity
Act with an underpayment ratio of 93.3%, well above the recommended 80% threshold. The
31 patrol officers and 10 special assignment officers were respectively $16.43 and $81.75
above predicted pay in the City's January 2014 pay equity report to the State. Meanwhile the
seven patrol sergeants and one special assignment sergeant who received 3% wage increases
in each year of their two-year contract were respectively $205.32 and $311.88 above
predicted pay in this report. In view of this and contrary to the City's argument, my award
will have less impact on the City's predicted pay compliance than the 3% wage increases
negotiated with the male -dominated Sergeant unit
The ability to pay is also not a factor in my award since the City is financially well
positioned to absorb its cost. The State's economy is improving based upon the recent
projected $1,000,000 budget surplus for fiscal 2016-2017 and also appears to be improving
for the City based upon a $468,268 improvement in its unassigned general fund for 2014.
The City also continues to maintain a healthy unreserved fund balance in excess of the 35%
threshold balance recommended by the State Auditor. Consequently, the City should be able
to finance my award without resorting to levying additional property taxes on its property
owners or cutting any vital City services.
The cost of living is also a non -factor in any award #flat I fashion since both wage
proposals are greater than the current inflationary index. Moreover, it appears with the recent
plunge of oil prices this inflationary index will be even more of a non -factor. Turnover,
recruitment and retention also appear to be a neutral factor in determining an appropriate
wage increase. If there is any impact, it would support the City's wage proposals since it
appears that wage rates are not a source of employment decisions or otherwise detrimental to
the City's hiring process.
Most arbitrators, including the undersigned, rely heavily on internal considerations when
fashioning wage awards. The stronger the pattern based on current contract proceedings, the
greater the reliance on internal equity. The evidence presented discloses that there has not
10
been a consistent wage pattern negotiated by the parties in the other bargaining units with
only the four person Lieutenant unit receiving 2% in 2014 and in 2015.14 The 104 non-union
employees also received a City imposed 2% in 2014. The City has indicated that the wage
increase will also be 2% in 2015; however, to my knowledge this has not yet been formally
implemented.
The Union presented evidence in Union Exhibit 10 in order to support its wage proposals
that there has been a consistent separation or differential (25%) between the Officers and
Sergeants pay structure since 2005. In reviewing this Exhibit, I found a discrepancy in its
figures and recalculated the differential using the same Union salary figures. The
recalculation disclosed the following differential figures ---(2005 - 24.800/6), (2006 - 24.78%),
(2007 - 20.91%), (2008 - 23,310/6), (2009 - 22.320/o), (2010 - 22.310/o), (2011 - 22,310/o)11,
(2012 - 22.32%) and (2013 - 22.30%).12 Thus, it appeal°s that at least since 2009 the wage
differential has remained constant hovering around 22.31%. The Union's proposed 3% in
2014 will reduce this differential to 22.02% while the City's 2% wage proposal will raise the
differential to 23.26%. The parties' 2015 wage proposals disclose that differential based on
the Union's 3% wage proposal would be 22.291/o while the differential under the City's 2%
wage proposal would be 24.29%.
The City argues that there is no evidence that the wage differential has ever been
negotiated or consciously maintained by the parties, adding that it is obvious that granting the
Sergeant unit a market adjustment would impact on the differential. Nevertheless, it appears
that historically there is merit to the Union's wage differential argument; however, it should
be noted that the wage differentials under the City's 2014 and 2015 proposals are less than
what they were in 2005 and 2006.
It is clear that there is no conclusive internal equity basis for awarding wage increases;
rather, there are .reasons to support each party's wage proposals. Therefore, it is appropriate
to warrant an examination of external market factors. Using salary figures supplied by the
10 The City argued that the Lieutenants also received 2% in 2014; however, there is no evidence that I am aware of
to support this.
11 There were no pay increases for either group.
iz It appears that the wage figeres in Union EXhibit 10 did not include longevity pay.
11
City in the attachment to its brief, the Officers ranked 6" in the 11 comparative cities based
on monthly salary and 4a` if longevity is included. 13 The City proposed 2% wage increase in
2014 maintains the respective 6" and 4`" place ranking for 2014 while the. Union proposed
3% wage increase in 2014 results in 6a' and 3`d place rankings. The City proposed 2% wage
increase in both 2014 and 2015 results in a 70" place ranking in each category for 2015. The
City proposed 2% wage increase in 2014 and the Union proposed 3% wage increase in 2015
results in 6" and 3`d place rankings for 2015. The Union proposed 3% wage increase in both
years results in a 6'" and a virtual V4 place tie in the rankings for 2015.
Awarding the City's 2% wage proposal or the Union's 3% wage proposals for both
contract years would upset both the internal and external relationship established in past
contract years. Based upon all the evidence presented in this matter, it is appropriate to
award the City's 2% wage proposal for 2014 and the Union's 3% wage proposal for 2015.
This award results in the wage differential between the Officers and Sergeants in both 2014
and 2015 of approximately 23.25%, which is historically consistent with the salary
differential between the Officers and the Sergeants over the past 10 years. This award is also
consistent with the Officer's current relative ranking in the comparable cities.
Issue 1 Contract Duration. The parties agree that the contract will be effective from
January 1, 2014 through December 31, 2015
Issue 2 Wage incse for 2014. The City's proposal is awarded. There will be a 2% wage
increase in 2014, effective January 1, 2014.
Issue 3 Wage increase for 2015. The Union's proposal is awarded. There will be a 3%
wage increase in 2015, effective January 1, 2015.
Dgtted: December 9, 2014 Q-'�- - 0 ,z4aoa-,^ _
Richard R. Anderson, Arbitrator
13 Apple Valley is being excluded because it dropped its longevity pay in 2014 and 2015. It was replaced with a
wellness program for which the parties did not cost.
12