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IV.4. Approval of 2024-2026 Contract with Local 49; Lenz CITY OF HOPKINS City Council Report 2023-125 To: Honorable Mayor and Council Members Mike Mornson, City Manager From: Ari Lenz, Assistant City Manager Date: November 21, 2023 Subject: Approval of 2024-2026 Contract with Local 49 _____________________________________________________________________ RECOMMENDED ACTION MOTION TO Approve 2024-2026 Union Contract with Local 49 This will ratify a three year contract with Local 49 Employees (Public Works). OVERVIEW The contract calls for a 3.0% wage increase effective January 1, 2024, 2025 and 2026. The wages are within budget for 2024 and the insurance contributions are consistent with past practice and other union agreements. Primary issues to consider: • What other economic issues are included in the new contract? • Will the agreement keep the City Market competitive? • How does the agreement fit into the 2024 proposed budget. Analysis of Issues What other economic issues are included in the new contract? The agreement gives the local 49’s an increase in seasonal disruption pay from $2.25 per hour to $2.50 per hour. This increases to $2.75 on January 1, 2025. This pay is used when the schedules are modified due to snow clearing duties. The agreement changes the compensation for standby pay to give an additional hour on weekends employees are required to be on standby. Will the agreement keep the City market competitive? The compensation in this agreement is consistent with the Citywide market study results and we believe will put the City of Hopkins at the appropriate spot in the labor market. How does the agreement fit into the 2024 proposed budget. Administration The agreement is within the budgeted amounts in the proposed budget. Estimated budget impact in 2024 is $108,951. SUPPORTING INFORMATION • 2024-26 Union Agreement 1 LABOR AGREEMENT BETWEEN THE CITY OF HOPKINS AND INTERNATIONAL UNION OF OPERATING ENGINEERS LOCAL No. 49 AFL-CIO January 1, 2024 through December 31, 2026 2 Table of Contents ARTICLE 1 PURPOSE OF AGREEMENT 4 ARTICLE 2 RECOGNITION 4 ARTICLE 3 UNION SECURITY 4 ARTICLE 4 EMPLOYER SECURITY 5 ARTICLE 5 EMPLOYER AUTHORITY 5 ARTICLE 6 EMPLOYEE RIGHTS – GRIEVANCE PROCEDURE 5 ARTICLE 7 DEFINITIONS 8 ARTICLE 8 SAVINGS CLAUSE 9 ARTICLE 9 WORK SCHEDULES 9 ARTICLE 10 OVERTIME PAY 10 ARTICLE 11 COMP TIME 10 ARTICLE 12 CALL BACK 10 ARTICLE 13 LEGAL DEFENSE 11 ARTICLE 14 RIGHT OF SUBCONTRACT 11 ARTICLE 15 DISCIPLINE 11 ARTICLE 16 SENIORITY 11 ARTICLE 17 PROBATIONARY PERIODS 12 ARTICLE 18 SAFETY 12 ARTICLE 19 JOB POSTING 12 ARTICLE 20 INSURANCE 13 ARTICLE 21 WAGES 14 ARTICLE 22 HOLIDAYS 15 ARTICLE 23 SICK LEAVE 16 ARTICLE 24 FLEX LEAVE 17 ARTICLE 25 VACATIONS 17 ARTICLE 26 STANDBY PAY 18 ARTICLE 27 TUITION REFUND 18 ARTICLE 28 SEVERANCE PAY 18 ARTICLE 29 SEASONAL DISTRUPTION PAY 19 ARTICLE 30 COMMERCIAL DRIVERS LICENSE 19 ARTICLE 31 LIFE INSURANCE 19 ARTICLE 32 UNIFORMS 19 ARTICLE 33 EYEGLASS REPLACEMENT 19 ARTICLE 34 WAIVER 20 ARTICLE 35 ADVANCE RESIGNATION NOTICE PROGRAM 20 ARTICLE 36 POST EMPLOYMENT HEALTH PLAN 20 ARTICLE 37 PARENTING LEAVE 20 ARTICLE 38 DURATION 20 3 APPENDIX A 22 1: WAGES 22 2: LICENSES, PREMIUMS & INCENTIVES 22 APPENDIX B 23 1: MOU COMMERCIAL DRIVER’S LICENSE 23 2: MOU CENTRAL PENSION FUND 23 3: MOU SUMMER HOURS 23 4: MOU TRAINEE PROGRAM 23 4 ARTICLE 1 PURPOSE OF AGREEMENT This AGREEMENT is entered into between the City of Hopkins hereinafter called the EMPLOYER, and Local No. 49, International Union of Operating Engineers, hereinafter called the UNION. The intent and purpose of this AGREEMENT is to: 1.1 Establish certain hours, wages, and other conditions of employment; 1.2 Establish procedures for the resolution of disputes concerning this AGREEMENT’S interpretation and/or application. 1.3 Specify the full and complete understanding of the parties; and 1.4 Place in written form the parties’ agreement upon terms and conditions of employment for the duration of this AGREEMENT. The EMPLOYER and the UNION, through this AGREEMENT, continue their dedication to the highest quality of public service. Both parties recognize this AGREEMENT as a pledge of this dedication. ARTICLE 2 RECOGNITION The EMPLOYER recognizes the UNION as the exclusive representative for all employees in the job classifications listed below who are public employees within the meaning of Minn. Stat. 179A.03, Subdivision 14 excluding supervisory, confidential and all other employees: Maintenance Worker Maintenance Lead Worker Equipment Maintenance Specialist Utilities Assistant Utilities Worker Utilities Lead Worker ARTICLE 3 UNION SECURITY 3.1 The UNION will obtain written authorization from the e mployee for the deduction from wages of union dues established by the union. 3.2 The EMPLOYER shall remit such deduction to the appropriate designated officer of the UNION. 3.3 The UNION may designate certain employees from the bargaining unit to act as Stewards and shall inform the EMPLOYER in writing of such cho ice. 5 3.4 The UNION agrees to indemnify and hold the EMPLOYER harmless again st any and all claims, suits, orders, or judgments brought or issued against t he City as a result of any action taken or not taken by the City under the provisions of this Article. ARTICLE 4 EMPLOYER SECURITY 4.1 The UNION agrees that during the life of this AGREEMENT it will not cause, encourage, participate in or support any strike, slow down, 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 t o operate and manage all personnel, 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. 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. ARTICLE 6 EMPLOYEE RIGHTS – GRIEVANCE PROCEDURE 6.1 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. 6.2 UNION REPRESENTATIVE 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 su ch UNION representatives and of their successors when so designated. 6.3 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 only when consistent with such employee duties and responsibilities. The aggrieved employee and the UNION representative shall be 6 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 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. 6.4 PROCEDURE Grievances, as defined by Section 6.1, shall be resolved in conform ance 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 as designated by the EMPLOYER. The EMPLOYER-designated representative 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, and the remedy requested and shall be appealed to Step 2 within ten (10) calendar days after the EMPLOYER - designated representative’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 EMPLOYER-designated Step 2 representative. The EMPLOYER-designated representative 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 m ay be appealed to Step 3 within ten (10) calendar days following the EMPLOYER-designated representative’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 EMPLOYER-designated Step 3 representative. The EMPLOYER-designated representative shall give the UNION the EMPLOYER’S answer in writing within ten (10) calendar days after receip t of such Step 3 grievance. A grievance not resolved in Step 3 may be appealed to Step 4 within ten (10) calendar days following the EMPLOYER-designated representative’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 in Step 4 shall be submitted to the Minnesota Bureau of Mediatio n Services. A grievance not 7 resolved in Step 4 may be appealed to Step 5 with in ten (10) calendar days following the EMPLOYER’S final answer in Step 4. Any grievance not appealed in writing to Step 5 by the UNION with in ten (10) calendar days shall be considered waived. Step 5. A grievance unresolved in Step 4 and appealed to Step 5 by the UNION shall be submitted to arbitration subject to the provisions of the Public Employment Labor Relations Act of 1971, as amended. The EMPLOYER and the UNION representative shall endeavor to select a mutually acceptable arbitrator to hear and decide the grievance. If the EMPLOYER and the UNION representative are unable to agree on an arbitrator, they may request from the Director of the Bureau of Mediation Services, State of Minnesota , a list of five (5) names. The list maintained by the Director of the Bureau of Mediation Ser vices shall be made up of qualified arbitrators who have submitted an application to the Bureau. The parties shall alternately strike names from the list of five (5) arbitrators until only one (1) name remains. The remaining arbitrator shall hear and decide the grievance. If the parties are unable to agree on who shall strike the first name, the question shall be decided by a flip of a coin. 6.5 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 the 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 this 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. 8 6.6 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 extensio n 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 treat the grievance as denied at that step and immediately appeal the grievance to the next step. The time limit in each step may be extended by mutual agreement of the EMPLOYER and the UNION. 6.7 CHOICE OF REMEDY If, as a result of the EMPLOYER response in Step 4, 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 5 of ARTICLE 6 or a procedure such as: Civil Service, Veteran’s Preference, or Fair Employment. If appealed to any procedure other than Step 5 of ARTICLE 6 the grievance is not subject to the arbitration procedure as provided in Step 5 of ARTICLE 6. The aggrieved employee shall indicate in writing which procedure is to be utilized – Step 5 of ARTICLE 6 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 5 of ARTICLE 6. ARTICLE 7 DEFINITIONS 7.1 Union: The International Union of Operating Engineers, Local No. 49. 7.2 Employer: The City of Hopkins. 7.3 Union Member: A member of the International Union of Operating Engineers, Local No. 49 7.4 Department: Public Works Department 7.5 Division: Divisions of Public Works Department i.e. Parks, Forestry, Streets, Utilities 7.6 Employee: A member of the exclusively recognized bargaining unit. 7.7 Base Pay Rate: The employee’s hourly pay rate exclusive of longevity or any other special allowance. 7.8 Seniority: Length of continuous service in any of the job classifications covered by ARTICLE 2 – RECOGNITION. Employees who are promoted from a job 9 classification covered by this AGREEMENT and return to a job classification covered by this AGREEMENT shall have their seniority calculated on their length of service under this AGREEMENT for purposes of promotion, transfer, and lay off and total length of service with the EMPLOYER for other benefits under this AGREEMENT. 7.9 Severance Pay: Payment made to an employee upon honorable termination of employment. 7.10 Overtime: Work performed at the express authorization of the EMPLOYER in excess of either eight (8) hours within a twenty-four (24) hour period (except for shift changes) or more than forty (40) hours within a seven (7) day period. 7.11 Call Back: Return of an employee to a specified work site to perform assigned duties at the express authorization of the EMPLOYER at a time other than an assigned shift. An extension of or early report to an assigned shift is not a call back. An extension of call back in order to perform an additional task does not qualify for a separate call back compensation unless the employee has already departed from the original call back. ARTICLE 8 SAVINGS CLAUSE This AGREEMENT is subject to the laws of the United States, the State of Minnesota, and the City of Hopkins. In the event any provision of this AGREEMENT shall be held to be contrary to law by a court of competent jurisdiction from whose final judgment or decree no appeal has been taken within the time provided, such provision shall be voided. All other provisions of this AGREEMENT shall continue in full force and effect. The voided provision may be renegotiated at the request of either party. ARTICLE 9 WORK SCHEDULES 9.1 The sole authority in work schedules is the EMPLOYER. The normal work day for an employee shall be eight (8) hours. The normal work week shall be forty (40) hours Monday through Friday. 9.2 Service to the public may require the establishment of regular shifts for some employees on a daily, weekly, seasonal, or annual basis other th an the normal 7:00 am– 3:00 pm day. The EMPLOYER will give seven (7) days advance notice to the employees affected by the establishment of work day’s difference from the employee’s normal eight (8) hour work day. 9.3 For Park’s Division employees who are required to flood ice rinks, a three (3) day notice is required. 10 9.4 In the event that work is required because of unusual circumstances such as (but not limited to) fire, flood, snow, sleet, or breakdown of municipal equipment or facilities, no advance notice need be given. It is not required that an employee working other than the normal work day be scheduled to work more than eight (8) hours, however, each employee has an obligation to work overtime or call back if requested unless unusual circumstances prevent the employee from so working. 9.5 Service to the public may require the establishment of regular work weeks that schedule work on Saturdays and/or Sundays. ARTICLE 10 OVERTIME PAY 10.1 Hours worked in excess of eight (8) hours within a twenty-four (24) hour period (except for shift changes) or more than forty (40) hours within a seven (7) day period will be compensated for at one and one-half (1½) times the employee’s regular base pay rate. 10.2 Overtime will be distributed according to Division with the senior qualified employee having first choice. If additional workers are needed, the senior qualified employee outside of the Division would have first choice. The EMPLOYER will determine what overtime shall be assigned to which Department or Division. The EMPLOYER will also determine what constitutes a “qualified employee”. 10.3 For the purpose of computing overtime compensation, overtime hours worked shall not be pyramided, compounded, or paid twice for the same hours worked. ARTICLE 11 COMP TIME 11.1 Comp Time may be given instead of overtime pay. The Comp Time must be given at a rate of one and one-half (1½) hours per overtime hour worked. 11.2 Comp Time shall be limited to a maximum accrual of forty (40) hours. The use of Comp Time is similar to the use of Vacation and Flex Leave. Employees must request the use of Comp Time from their supervisors. 11.3 At the employee’s request, Comp Time may be cashed out annually the first full payroll in December. ARTICLE 12 CALL BACK An employee called in for work at a time other than the employee’s regularly scheduled shift will be compensated for a minimum of three (3) hour’s pay at one and one-half (1½) times the employee’s base pay rate. 11 ARTICLE 13 LEGAL DEFENSE 13.1 Employees involved in litigation because of negligence, ignorance of laws, non- observance of laws, or as a result of employee judgmental decision may not receive legal defense by the City. 13.2 Any employee who is charged with a traffic violation, ordinance violation or criminal offense arising from acts performed within the scope of the employee’s employment, when such act is performed in good faith and under d irect order of the employee’s supervisor, shall be reimbursed for reasonable attorney’s fees and court costs actually incurred by such emplo yee in defending against such charge. 13.3 Mechanic’s Liability: Any decision that is made in good faith by any employee would be supported by the City. Police Officers, for example, are sued based upon actions taken and decisions made. The City and the League of Minnesota Insurance Trust defend against these lawsuits. For an employee not to be defended there would have to be reckless disregard for safety, policies and procedures. ARTICLE 14 RIGHT OF SUBCONTRACT Nothing in this AGREEMENT shall prohibit or restrict the right of the EMPLOYER from subcontracting work performed by employees covered by this AGREEMENT. ARTICLE 15 DISCIPLINE 15.1 The EMPLOYER will discipline employees who have completed the required probationary period only for just cause. During the initial probationary period, an employee may be disciplined without the right of grievance or appeal. 15.2 An employee(s) will not be required to participate in an investigatory interview by the EMPLOYER where the information gained from the interview could lead to the discipline of the employee(s) unless the employee(s) is given the opportunity to have the UNION representative and/or a third party present at the interview to act as a witness for the employee(s). 15.3 A copy of a written reprimand to any employee covered by this AGREEMENT shall be forwarded to the UNION. ARTICLE 16 SENIORITY 16.1 Seniority will be the determining criterion for transfers, promotions and lay offs only when all job-relevant qualification factors are equal. 12 16.2 Seniority will be the determining criterion for recall when the job-relevant qualification factors are equal. Recall rights under this provision will continue for twenty-four (24) months after lay off. Recalled employees shall have ten (10) working days after notification of recall by registered mail at the employee’s last known address to report to work or forfeit all recall rights. ARTICLE 17 PROBATIONARY PERIODS 17.1 All newly hired or rehired employees will serve a one (1) year probationary period. 17.2 All employees will serve a six (6) months’ probationary period in any job classification in which the employee has not served a probationary period. 17.3 At any time during the probationary period a newly hired or rehired employee may be terminated at the sole discretion of the EMPLOYER. 17.4 At any time during the probationary period a promoted or reassigned empl oyee may be demoted or reassigned to the employee’s previous position at the sole discretion of the EMPLOYER. ARTICLE 18 SAFETY The EMPLOYER and the UNION agree to jointly promote safe and healthful working conditions, to cooperate in safety matters and to encourage employees to work in a safe manner. ARTICLE 19 JOB POSTING 19.1 The EMPLOYER and the UNION agree that permanent job vacancies within the designated bargaining unit shall be filled based on the concept of promotion from within provided those applicants: 19.1.1 have the necessary qualifications to meet the standards of the job vacancy; and 19.1.2 have the ability to perform the duties and responsibilities of the job vacancy. 19.2 Employees filling a higher job class based on the provisions of this ARTICLE shall be subject to the conditions of ARTICLE 17 (PROBATIONARY PERIOD). 19.3 The EMPLOYER has the right of final decisio n in the selection of employees to fill posted jobs based on qualifications, abilities, and experience. 13 19.4 Job vacancies within the designated bargaining unit will be posted internally for three (3) working days before being posted externally, so members of the bargaining unit can be considered for such vacancies before outside applicants. 19.5 It shall be the policy, whenever vacancies appear in the municipal service for full time positions, to fill such vacancies by promotion of other fully qualified permanent or temporary employees insofar as possible based upon employee qualifications and ability to perform the required duties. If there are two (2) or more such permanent employees in line for such promotion who possess equal qualifications, it shall be the policy to give consideration to the senior employee. 19.6 A full-time employee who was laid off could be hired back as a seasonal laborer at their full-time rate of pay. These employees would be el igible for insurance benefits. Benefits would begin thirty (30) days after the first day of the month after they are hired. If the employee is on COBRA, the City would pick up the cost of the insurance until the employee became eligible for insurance benefits. After the employee was laid off again they would be eligible for a n additional eighteen (18) months of COBRA. ARTICLE 20 INSURANCE 20.1 Effective January 1, 2024, 2025 and 2026 the EMPLOYER will contribute the following increase amounts based off the total increase for the most expensive plan (for example, if the total increase for the single plan was $100, the Employer would pay $95 towards the increase). Employer Contribution Employee Contribution Single 95% 5% Single +1 75% 25% Single +Children 75% 25% Family 60% 40% 1/1/2024 Single $1,225.32 Employee + Spouse $2,014.14 Employee + Child(ren) $1,989.38 Family $2,043.50 14 20.2 Employees with single insurance coverage, who were hired prior to March 1, 2004, will be eligible to commit the difference between single coverage expense and the EMPLOYER contribution to obtain certain mutually agreed appropriate benefits, such as deferred compensation, additional insurance, or cash. If the benefit is taken as cash, the amount will be reduced by payroll taxes. 20.3 Employees who choose to opt out of the City’s health insurance program will receive Three Hundred Sixty dollars ($360.00) to obtain certain mutually agreed appropriate benefits. Employees wishing to opt out must provide proof of insurance coverage through another provider. In lieu of the Three Hundred Sixty dollars ($360.00), employees hired after January 1, 2008, will receive Fifty dollars ($50.00) per month if they opt out of the City’s health insurance program. 20.4 In the event that health insurance provisions fail to meet the requirements of the Affordable Care Act (ACA) and its related regulations or cause the Employer to be subject to penalties, taxes, or fines; Union and Employer will meet immediately to bargain over alternative provisions so as to comply with the ACA to avoid and/or minimize any penalties, taxes, or fines for Employer. ARTICLE 21 WAGES 21.1 The following system provides a method for employees to reach higher wage levels based upon yearly assessments of their job knowledge, qualifications, skills, and performance. Effective January 1, 2023 Employees wages will be changed to those found in Appendix A-1 Wage Schedule. On the employee’s position anniversary date they will be eligible for a step increase review. At the review date, the employee may move to the next step or be held at the existing step depending on their performance during the year. In the event of a hold, the employee will have a six month period to correct deficiencies. The City will monitor qualifications and will make every effort to provide opportunities for employees to achieve the necessary training. The attainment of qualifications is the joint responsibility of the employee and the City. An employee, however, will not be held back from a scheduled step increase because of a failure of the City to provide the necessary training. Performance evaluations shall be conducted in accordance to the City of Hopkins’ Performance Appraisal Policy. 21.2 Employees will be compensated for premiums as provided in Appendix A -2. Employees will not receive premium license pay for extra licenses which are not required to have as part of their regular duties. 15 21.3 The Maintenance Worker who is designated as in-charge will be paid the Maintenance Lead Worker Step 7 rate during the hours he or she is in charge. 21.4 SEASONAL/TEMPORARY EMPLOYEES. Employees employed by the EMPLOYER on a seasonal or temporary basis for no m ore than 185 consecutive calendar days per calendar year either in a full-time or part-time capacity (more than 14 hours per week) will be paid at a rate set by the EMPLOYER which will not exceed 90% of the lowest rate for Utility Locator. Such employees will not be eligible for any benefits under this Labor Agreement between the City of Hopkins and Local 49 except those which may be required by law. ARTICLE 22 HOLIDAYS 22.1 Paid holidays will include those twelve (12) officially established under Minnesota Statutes 645.44 and shown below, except Columbus Day: • New Years Day • Martin Luther King’s Birthday • President’s Day • Memorial Day • Juneteenth • July 4th • Veterans Day • Labor Day • Thanksgiving Day • Christmas Eve* • Christmas Day • Plus, the Friday following Thanksgiving 22.2 Regular holidays are those for which all full-time probationary or regular employees are eligible, immediately upon entering the City service. 22.3 When a holiday as designated in this Article falls on Sunday, the following day (Monday) shall be considered the official observed holiday for employees, or when such holidays fall on Saturday, the preceding day (Friday) shall be considered the official observed holiday for employees. *Except when Christmas Eve falls on a Saturday, Sunday, or observed holiday, in these cases employees shall be granted 8 hours of floating holiday time, during the first pay period of the year, in lieu of an observed holiday. Floating holiday time must be used prior to the end of the calendar year. In the event, Minnesota Statutes 645.44 is amended to include Christmas Eve, the City is authorized with notice to make the adjustments to as necessary. 16 ARTICLE 23 SICK LEAVE Effective for employees hired prior to January 1, 2000 who have not switched to Flex Leave. 23.1 Sick leave with pay shall be granted to all probationary or permanen t full-time employees at the rate of one (1) working day per each calendar month of full - time service or major fraction thereof less sick leave used. Permanent part-time employees will receive sick leave credit on a pro-rata basis. Sick leave shall be computed on a calendar basis and may be accumulated. 23.2 Sick leave may be granted when necessary for personal illness, legal quarantine or because of serious illness in the employee’s family as defined in Minn. Stat § 181.9413 or death of spouse, children, grandparents, grandchildren, parents, brothers, sisters, mother-in-law, or father-in-law of employee. 23.3 In order to be eligible for sick leave with pay the employee shall: (a) Report promptly to his/her department head the reason for his/her absence; (b) Keep his/her department head at all times fully informed of his/her condition, including written permission to the City Manager to make inquiries of such employee’s physician, surgeon, or other health establishment. (c) Submit a medical certificate for any absence at the request of the department head. (d) Furnish upon demand to the City Manager any other information or medical certificate at any time that he/she may require. 23.4 No sick leave shall be granted except as permitted in this article and the claiming of sick leave whenever herein prohibited may be cause for disciplinary ac tion, including transfer, suspension, demotion, or dismissal by the City Manager. 23.5 Any employee covered by this contract who is unable to work at his/her City occupation because of injuries sustained by him/her during the course of such employment and is, therefore, entitled to or receiving Worker’s Compensation, may at his/her written request elect to receive his/her sick leave pay, and may thereupon pay to the City all Worker’s Compensation which he/she receives, the same to be credited to his/her sick leave account at his/her then basic monthly rate. 17 23.6 The regular working time consumed by employees using earned vacation leave or sick leave shall be considered to be working time for the purpose of accumulating additional vacation leave or sick leave. ARTICLE 24 FLEX LEAVE 24.1 The UNION hereby adopts the City of Hopkins’ Flex Leave Program. UNION members can continue on the existing vacation and sick leave program or choose to participate in the Flex Leave Program. Employees who choose to participate in the Flex Leave Program cannot return to the vacation and sick leave program. Full details on the Flex Leave Program are available in the citywide policy. LOCAL 49 Flex Leave Accrual Schedule Flex Leave Accrual Schedule Yea r Leave Yea r Leave Yea r Leave Yea r Leave Yea r Leave Hours Hours Hours Hours Hours 1 160 6 192 11 216 16 240 21 240 2 168 7 200 12 216 17 240 22 240 3 176 8 200 13 224 18 240 23 240 4 184 9 208 14 232 19 240 24 240 5 192 10 208 15 240 20 240 25 280 Note: Local 49 Holidays are paid directly and not included in flex leave accruals. 24.2 UNION employees hired after January 1, 2000, shall participate in the Flex Leave Program. Employees of the bargaining unit will not be forced to accept Flex Leave if they choose to remain in the existing Vacation/ Sick Leave program. 24.3 No Diminution of Benefits. The EMPLOYER will not diminish or decrease benefits available under the Flex Leave Program while this AGREEMENT is in effect. ARTICLE 25 VACATIONS Effective for employees hired prior to January 1, 2000 who have not switched to Flex Leave. 25.1 Each permanent and probationary employee shall earn vacation leave according to the following schedule: Hours 0-5 years 104 18 After 5 years 144 After 10 years 152 After 11 years 160 After 12 years 168 After 13 years 176 After 14 years 184 After 25 years 224 25.2 Vacation leave may be used as earned, provided that the employee’s supervisor shall in each case determine the time when such vacation leave may be taken. 25.3 Employees may accrue vacation leave to a m aximum of 200% of their annual entitlement. Any vacation leave days in excess of the amount hereunder permitted to be accrued may be taken by the employee, after proper notice to and consent by the employee’s supervisor, by absence from work on a day to day basis subject to a call for work by the supervisor. 25.4 Any employee leaving the municipal service in good standing after giving proper notice of such termination of employment shall be compensated for all vacation leave accrued to the date of separation. 25.5 No employee shall be permitted to waive vacation leave for the purpose of receiving double pay. ARTICLE 26 STANDBY PAY 26.1 It is mutually understood and agreed that employees of the Water/ Sewer Division shall be eligible for standby pay to compensate them for additional duties performed. 26.2 Employees shall be compensated for one (1) hour at time and one-half (1½) for each weekday (Monday – Friday) they are required to be on standby duty. Employees shall be compensated for two (2) hours at time and one-half (1½) for each weekend day (Saturday and Sunday) and Holiday (Observed Holidays listed in article 22.1) they are required to be on standby duty. Hours actually worked shall be paid at time and one-half (1½). Standby duty is defined as a period wherein an employee is required to respond to utility calls twenty-four (24) hours per day. 26.3 Employees required to be on standby duty on holidays will be paid for th e holiday plus time and one-half (1½) for any hours worked. ARTICLE 27 TUITION REFUND Employees are eligible to use the Citywide Tuition Reimbursement Program. ARTICLE 28 SEVERANCE PAY 19 Effective for employees hired prior to January 1, 2000 who have not s witched to Flex Leave. 28.1 After completion of five (5) years continuous City employment, Employees shall be entitled to severance pay calculated by either multiplying the total num ber of continuous years in the City employment by the daily wage rate prevailing at date of severance, at one and one-half (1½) days per year of such employment; or 20% of accumulated sick leave if separation occurs after five (5) years but before fifteen (15) years, 25% if separation occurs after fifteen (15) years but before twenty(20) years, and 33-⅓% if separation occurs after twenty (20) years; whichever is greater. 28.2 Such severance money shall be paid only in cases where separation occurs for non-disciplinary reasons. ARTICLE 29 SEASONAL DISTRUPTION PAY 29.1 From November 1st to April 1st each year, any and all employees assigned to snow removal duties including Mechanics and/or other employees assigned to support staff during snow events and ice rank maintenance duties shall receive an additional seasonal disruption pay of $2.50 for all hours served before 7:00 a.m. and/or after 3:00 p.m. shift Monday- Friday. On January 1, 2025 the amount will increase to $2.75. 29.2 Overtime shall apply. This pay is considered a premium and will not be added into overtime base pay calculations. ARTICLE 30 COMMERCIAL DRIVERS LICENSE The City will pay the cost of endorsements to a Class B Driver’s License. ARTICLE 31 LIFE INSURANCE The City will provide a $10,000 basic life insurance policy for each employe e. ARTICLE 32 UNIFORMS 32.1 The EMPLOYER agrees to pay up to a maximum of Five Hundred dollars ($500.00) per year for uniforms for all employees covered under this AGREEMENT. One hundred and fifty dollars ($150.00) of the five hundred will be paid to each employee on the first pay period of the year by a separate check. This contribution is taxable income. ARTICLE 33 EYEGLASS REPLACEMENT 20 The City will continue to provide replacement for safety glasses which include safety lenses and safety frames. ARTICLE 34 WAIVER 34.1 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. 34.2 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 terms or conditions of employment not removed by law from bargaining. A ll 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 regard ing 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 parties at the time this contract was negotiated or executed. ARTICLE 35 ADVANCE RESIGNATION NOTICE PROGRAM 35.1 The City of Hopkins Advance Resignation Notice Program is hereby adopted. ARTICLE 36 POST EMPLOYMENT HEALTH PLAN Commencing on January 1, 2008, all bargaining unit members shall participate in the Minnesota State Retirement System (MSRS) Health Care Savings Plan (HCSP) pursuant to Minnesota Statute §352.98, which shall be administered and provided by law. The plan will be funded by 100% of severance pay and/or accumulated flex leave due to the employee upon separation from employment with the City. ARTICLE 37 PARENTING LEAVE Effective January 1, 2026 the City will remove the short-term disability policy and the City’s parenting and caregiver leave policies and will in its place begin the state required Minnesota Paid Family & Medical Leave program. If for some reason there is a delay in the start of the program the City agrees to continue its existing policies until the new program goes into effect. The Employer (City) and the Employee (Union) will both contribute the required .35 percent on income up to the maximum income. ARTICLE 38 DURATION 21 This AGREEMENT shall be effective as of January 1, 2024, and shall remain in full force and effect until the 31st day of December, 2026. IN WITNESS WHEREOF, the parties hereto have executed this AGREEMENT on this_________, day of ________________ 2023. FOR THE CITY OF HOPKINS; FOR THE INTERNATIONAL UNION OF OPERATING ENGINEERS, LOCAL NO. 49; Mike Mornson, City Manager Jason George, Business Manager Patrick Hanlon, Mayor Jonathan Turner, Area Business Representative Jeff Spatafore, Union Steward 22 APPENDIX A 1: WAGES 2: LICENSES, PREMIUMS & INCENTIVES 23 APPENDIX B 1: MOU COMMERCIAL DRIVER’S LICENSE 2: MOU CENTRAL PENSION FUND 3: MOU SUMMER HOURS 4: MOU TRAINEE PROGRAM APPENDIX A – 1: WAGES The following are the wages for the length of the contract. Move to the new compensation structure on 1/1/24. To move: • Move Employees to the next closest step from 12/31/23 pay rates. • Eliminate all legacy and premiums not associated with formal licensing or test (except forestry, pesticide, utilities and equipment specialist) but honor those premiums by incorporating them into the base pay calculations for moving to steps. • Anyone set to receive less than 1.5% would move to the next step (see attachment A for steps and a specific breakdown by employee). There would be no additional steps in 2024. • Step increases for 2024 would all happen on January 1st to give early credit for partial steps. Step increases would return to regular dates in 2025. • Chandra Denault will receive an extra step. • Employees who did not receive an additional step in 2024 shall receive their 2025 step early (Paul Nelson, Trenton Stafford, Ronald Baumgartner, Andrew Klobe, Jeffery Spatafore will receive step movement on 7-1-2025) In addition to the revised ranges, the City proposes a three year contract with 3.0% COLA/Market Adjustments in 2024, 2025 and 2026. To take place on January 1 each year. Maintenance Worker Step 2024 2025 2026 1 29.93 30.83 31.75 2 31.24 32.18 33.15 3 32.55 33.53 34.54 4 33.86 34.88 35.93 5 35.16 36.21 37.30 6 36.48 37.57 38.70 7 37.79 38.92 40.09 8 39.10 40.27 41.48 9 40.43 41.64 42.89 Lead Maintenance Worker Step 2024 2025 2026 1 34.48 35.51 36.58 2 36.00 37.08 38.19 3 37.51 38.64 39.80 4 39.02 40.19 41.40 5 40.53 41.75 43.00 6 42.04 43.30 44.60 7 43.56 44.87 46.22 8 45.06 46.41 47.80 9 46.58 47.98 49.42 Equipment Specialist Step 2024 2025 2026 1 32.22 33.19 34.19 2 33.65 34.66 35.70 3 35.08 36.13 37.21 4 36.51 37.61 38.74 5 37.95 39.09 40.26 6 39.38 40.56 41.78 7 40.81 42.03 43.29 8 42.24 43.51 44.82 9 43.69 45.00 46.35 Utilities Assistant Step 2024 2025 2026 1 27.13 27.94 28.78 2 28.31 29.16 30.03 3 29.50 30.39 31.30 4 30.68 31.60 32.55 5 31.88 32.84 33.83 6 33.06 34.05 35.07 7 34.25 35.28 36.34 8 35.43 36.49 37.58 9 36.64 37.74 38.87 Utilities Worker Step 2024 2025 2026 1 31.70 32.65 33.63 2 33.14 34.13 35.15 3 34.57 35.61 36.68 4 36.00 37.08 38.19 5 37.43 38.55 39.71 6 38.86 40.03 41.23 7 40.29 41.50 42.75 8 41.73 42.98 44.27 9 43.18 44.48 45.81 Lead Utilities Worker Step 2024 2025 2026 1 36.25 37.34 38.46 2 37.83 38.96 40.13 3 39.42 40.60 41.82 4 40.99 42.22 43.49 5 42.58 43.86 45.18 6 44.17 45.50 46.87 7 45.75 47.12 48.53 8 47.34 48.76 50.22 9 48.95 50.42 51.93 APPENDIX A – 2: LICENSES, PREMIUMS & INCENTIVES Employees will not receive premium license pay for extra licenses which are not required to have as part of their regular duties. The following premiums are added to the employee’s hourly pay. Maintenance Worker Required Licenses: Class B Commercial Driver’s License with Air Brake and Tanker endorsement Eligible Premiums & Incentive Pay: Seasonal Disruption (Appendix A-5) The positions below receive the following incentives/premiums as a result of specialized training, licenses or responsibilities assigned to those in these position assignments. These assignments are not simply filling in or assisting but positions responsible for providing and overseeing services in these areas. Forestry Assignment (License Required) $1.00 Pesticide Assignment (License Required) $1.00 Lead Maintenance Worker Required Licenses: Class B Commercial Driver’s License with Air Brake and Tanker endorsement (Parks & Forestry) Class A Commercial Driver’s License with Air Brake and Tanker endorsement (Streets) Tree Inspector (Forestry) Eligible Premiums & Incentive Pay Seasonal Disruption (Appendix A-5) Equipment Specialist Required Licenses: Class A Commercial Driver’s License with Air Brake and Tanker endorsement Eligible Premiums & Incentive Pay: Seasonal Disruption (Appendix A-5) UTILITIES ASSISTANT Required Licenses: Class B Commercial Driver’s License Eligible Premiums & Incentive Pay: D Sewer or Water License $0.25 C Sewer or Water License $0.35 B Sewer or Water License $0.45 Combination B & C Sewer & Water Licenses $0.70 B & SB Sewer & Water Licenses $1.00 UTILITIES WORKER Required Licenses: Class B Driver’s License with Air Brake and Tanker endorsement Class D Sewer & Water Licenses Eligible Premiums & Incentive Pay: C Sewer or Water License $0.35 B Sewer or Water License $0.45 Combination B & C Sewer & Water Licenses $0.70 B & SB Sewer & Water Licenses $1.00 UTILITIES LEADWORKER Required Licenses: B & SB Sewer & Water Licenses Class A-CDL