HomeMy WebLinkAbout02-28-2023 Council Packet
CITY OF OAK PARK HEIGHTS
CITY COUNCIL MEETING AGENDA
TUESDAY, FEBRUARY 28,2023AT6:00PM
CITY HALL COUNCIL CHAMBERS
6:00p.m.I.Call to Order/Pledge of Allegiance/Approval of Agenda
Estimated
times
II.Summary of February 14, 2023 City Council Meeting Closed Session
6:05p.m.III.Council/StaffReports
A.Mayor McComber
B.Councilmember Dougherty
C.CouncilmemberJohnson
D.Councilmember Liljegren
E.Councilmember Runk
F.Staff
Chief of Police
Assistant City Administrator/City Clerk(pg. 3)
6:10p.m.IV.Visitors/Public Comment
This is an opportunity for the public to address the Council with questions or concerns on issuesthat are orare notpart of the regular
agenda (Please limitcomments to 3 minutes in length).
A.Proclamation for March 2023 as Colorectal Cancer AwarenessMonth(pg. 5)
6:15p.m.V.Consent Agenda(Roll Call Vote)
A.ApproveBills & Investments
B.Approve City Council Minutes February 14, 2023(pg.7)
C.Approve Renewal of Consumption and Display Permit for LRS Enterprises dba
Sodies Cigar and Pipe(pg.11)
D.Approve Renewal of Consumption of Display Permit for St. Croix Yacht Club
(pg.13)
E.Approve Summary for Publication of Ordinance AmendmentRelated to Day Care
Nursery Facilities(pg.15)
F.Approve Ordinance Amendment to 203.17.A. Health Insurance(pg.19)
G.ApproveCity AFSCME 2023-2025 Labor Agreement(pg.23)
6:20p.m.VI.PublicHearings
6:20p.m.VII.OldBusiness
A.Consider Resolution Relating to Fire Services Agreement and Consultant Lead
Study(pg.49)
6:30p.m.VIII.NewBusiness
6:30p.m.IX.OtherCouncil Itemsor Announcements
6:30p.m.XI.Adjournment
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Oak Park Heights
Request for Council Action
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Meeting Date February 28, 2023
Time Required: 1 Minutes
Agenda Item Title: Approve Ordinance Amendment to 203.17. A. Health Insurance
Agenda Placement Consent Agenda
Originating Department/Requestor Eric Johnson, City Administrator
Requester’s Signature:
Action Requested: Approve Ordinance Amendment to 203.17. A. Health Insurance
Background/Justification (Please indicate if any previous action has been taken or if other
public bodies have advised):
Please see the attached Memo
Page 19 of 58
2/24/23
MEMO
TO: Mayor and City Council Members
FROM: Eric Johnson, Cty Administrator
RE: COBRA Coverages / Medicare
The City received an inquiry relating to the possible continuation of health insurance coverages
for current employees over 65 years of age but whose spouse desires to seek COBRA coverages
under Federal Law being potentially up to 36 Months versus 18 months at the time of specific
separation or qualifying act under Minnesota law.
More specifically, it is sought to allow that employees’ dependents to remain on City coverages
under a “COBRA election” and the City would make an equivalent payment for premiums as
what was previously allocated should those individuals have remained in the dependent status
under the traditional City plan as available to eligible City employees.
The COBRA election for dependents while the Employee remains with the City and shall
be cost neutral to the City but costs to the City for both the Employee and dependent shall
terminate at the time of separation between the City and Employee.
Should there be additional costs for such election of COBRA status compared to current cost
shares including but not limited to taxes, fees or other costs - shall be the responsibility of the
Employee. Changes of family status that effect deductibles as required by Federal Law and/or
the City’s Health Care provider (Health Partners) these costs would also be the responsibility of
the Employee similar to other single or family policies enacted in the City.
Once the Employee leaves the City, the employee and their dependents may elect to stay on
City coverages as allowed by State or Federal law, but the City shall bear no further COBRA
costs (or other health care costs)for the Employee or their dependents.
The City makes the following findings and which be embedded into the City’s 203
Ordinance relating to Personnel and Health Insurances
To the extent permitted by State and Federal law for eligible full-time employees who select to
remain with the City after age 65 and become eligible for MEDICARE and chose remain on
City coverages but their dependent spouse seeks to select coverage under COBRA benefits and
is eligible to do so under Federal Law, the City will continue an equivalent cost share for their
dependent spouse until such time as (whichever is first):
1.The Employee leaves the City; or,
2.The City is prohibited from doing so under State or Federal law; or
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203.17Insurance Benefits.
A. Health Insurance.
The City of Oak Park Heights provides full-time regular employees with a
comprehensive hospital and major medical group health insurance plan. The City
pays a portion of the premium for employees and their dependents. The
employee portion of the premium is deducted from the employee’s paycheck.
1.Pursuant to applicable state and federal law requirements, employees who
terminate employment with the City for any reason other than retirement
may be eligible to continue with the group health care program. Changes
in family status, eligibility for Medicare, or death of a spouse may also
warrant continuing coverage. The employee must pay the premiums for
this continuation of coverage.
2.Employees who retire and are receiving retirement benefits are eligible to
continue the group health care program and shall be responsible for the
premium cost.
3.Employees that are 65 and over and remain in full-time status may be
eligible to have their dependent(s) health care coverage provided under
State or Federal continuation laws, “COBRA”, but further subject to
EDITS IN
the following:
GREYSCALE
i. If permitted by law and so elected by the employee, the City will
provide the equivalent monthly premium cost share for such
coverages while the employee remains with the City in a full-time
capacity, and;
ii. If required by State or Federal law or requirements of the City’s
health care insurer that the employee must amend their status from
family to single coverages, the City will not be responsible for
financial impacts resulting from such change and will limit City
costs similar to those of other single full-time employees, and;
iii. Upon any separation between the employee and the City, the City’s
financial responsibility for the premium cost share or any other
costs shall cease for both the employee and dependent(s).
4. Employees on an unpaid leave of absence are responsible for the full
payment of insurance premiums and are required to maintain the same
level of health insurance coverage while on unpaid leaves of absence
that was in effect prior to the leave.
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CITY OF OAK PARK HEIGHTS
WASHINGTON COUNTY, MINNESOTA
ORDINANCE NO. __________
AN ORDINANCE AMENDING SECTION 203.17. A. OF
CHAPTER 203 OF THE CODEOF ORDINANCES OF THE
CITY OF OAK PARK HEIGHTS RELATING TO INSURANCE BENEFITS
THE CITY COUNCIL OF THE CITY OF OAK PARK HEIGHTS, WASHINGTON COUNTY,
MINNESOTA, DOES ORDAIN:
Section 1. Amendment. That Chapter 203.17 of the Code of Ordinances of the City
of Oak Park Heights is hereby amended to add the following after 203.17. A.2
3. Employees that are 65 and over and remain in full-time status may be eligible to
have their dependent(s) health care coverage provided under State or Federal
continuation laws, “COBRA”, but further subject to the following:
i. If permitted by law and so elected by the employee, the City will provide
the equivalent monthly premium cost share for such coverages while the
employee remains with the City in a full-time capacity, and;
ii. If required by State or Federal law or requirements of the City’s health care
insurer that the employee must amend their status from family to single
coverages, the City will not be responsible for financial impacts resulting
from such change and will limit City costs similar to those of other single
full-time employees, and;
iii. Upon any separation between the employee and the City, the City’s financial
responsibility for the premium cost share or any other costs shall cease for
both the employee and dependent(s).
Section 2. Effective Date. This ordinance shall be in full force and effect from and after its passage
and publication according to law.
Passed by the City Council of the City of Oak Park Heights, Washington County,
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Minnesota, on this 28Day of February 2023.
CITY OF OAK PARK HEIGHTS
____________________________________
Mary McComber, Mayor
____________________________________
Attest: Eric Johnson, City Administrator
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Oak Park Heights
Request for Council Action
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Meeting Date February 28, 2023
Time Required: 1 Minutes
Agenda Item Title: Approve City – AFSCME 2023-2025 Labor Agreement
Agenda Placement Consent Agenda
Originating Department/Requestor Eric Johnson, City Administrator
Requester’s Signature:
Action Requested: Discussion, Possible Action
Background/Justification (Please indicate if any previous action has been taken or if other
public bodies have advised):
The attached Tentative Agreement between the City and the AFSCME is enclosed and is
reflective of the discussions sought by both parties.
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FINAL FOR SIGNATURE
LABOR AGREEMENT
BETWEEN
THE CITY OF OAK PARK HEIGHTS
&
THE AMERICAN FEDERATION OF STATE,
COUNTY, AND MUNICIPAL EMPLOYEES,
DISTRICT COUNCIL 5,
LOCAL 517
January 1, 2023 through December 31, 2025
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CONTENTS
ArticleSection Title Estimated Page
1Purpose of Agreement ................................................................................... 2
2Recognition .................................................................................................... 2
3Definitions...................................................................................................... 2
4Employer Security ......................................................................................... 4
5Employer Authority ....................................................................................... 4
6Union Security ............................................................................................... 4
7Employee Rights – Grievance Procedure ...................................................... 5
8Savings Clause ............................................................................................... 7
9Seniority ......................................................................................................... 7
10 Discipline ....................................................................................................... 8
11 Work Schedule ............................................................................................... 9
12 Overtime ...................................................................................................... 10
13 On-Call / Call-Back ..................................................................................... 10
14 Working Out of Classification ..................................................................... 11
15 Salary Schedule ............................................................................................ 11
16 Holidays ....................................................................................................... 11
17 Vacations...................................................................................................... 12
18 Sick Leave .................................................................................................... 12
19 Bereavement pay .......................................................................................... 13
20 Insurance ...................................................................................................... 13
21 Leaves of Absence ....................................................................................... 14
22 Family and Medical Leave Act .................................................................... 14
23 Post-Employment Health Care Savings Plan ............................................... 15
24 Training and Tuition Reimbursement .......................................................... 15
25 Uniforms and Equipment ............................................................................. 16
26 Safety ........................................................................................................... 16
27 Severance Pay .............................................................................................. 16
28 Injury on Duty .............................................................................................. 16
29 Longevity and Educational/Health & Wellness Incentive Pay .................... 17
30 Additional Vacation Day ............................................................................. 18
31 Right of Subcontract .................................................................................... 19
32 Jury Duty ...................................................................................................... 19
33 Deferred Compensation ............................................................................... 19
34 Non-Discrimination ..................................................................................... 19
35 Waiver .......................................................................................................... 19
36 Duration ....................................................................................................... 20
Appendix A: Salary Schedules
Appendix B: Health Care Agreement
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ARTICLE 1: PURPOSE OF AGREEMENT
agreement is entered into as of January 1, 20
This 23, between the City of Oak Park
Heights, hereinafter called the “Employer,” and the American Federation of State, County,
and Municipal Employees, Council 5, Local 517, hereinafter called the “Union.”
It is the intent and purpose of this Agreement to:
1.1 Assure sound and mutually beneficial working and economic relationships
between the parties hereto;
1.2 Establish procedures for the resolution of disputes concerning the Agreement’s
interpretation and/or application;
1.3 Placed in written form the parties agree upon the terms and conditions of
employment for the duration of this Agreement;
The Employer and the Union, through this Agreement, shall continue their dedication to
the highest quality of service to the residents of Oak Park Heights. Both parties recognize
this Agreement as a pledge of this dedication.
ARTICLE 2: RECOGNITION
2.1 The Employer recognizes the Union as the exclusive representative, under
Minnesota Statutes, Section 179A.03, Subd. 14 for all employees of the City of
Oak Park Heights, excluding supervisory, confidential, police personnel and
essential employees.
2.2 In the event the Employer and the Union are unable to agree as to the inclusion or
exclusion in the bargaining unit 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: The American Federation of State, County and Municipal
Employees, Council 5, Local 517.
3.2 Union Member: A member of the American Federation of State, County
and Municipal Employees, Council 5, Local 517.
3.3 Full-Time Employee: A member of the exclusively recognized bargaining unit
who works a regular work schedule that averages forty (40) hours per week and is
hired for a non-specific duration by the employer.
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3.4 Part-Time Employee: A member of the exclusively recognized bargaining unit
who works a regular work schedule that is on average less than forty (40) hours
per week and more than fourteen (14) hours per week, or thirty-five percent
(35%) of the normal work week in the employee’s bargaining unit, and is hired
for a non-specific duration by the employer. (MSA 179A.03, Subd. 14 (Employer)).
3.5 Seasonal Employee: A member of the exclusively recognized bargaining unit
and is defined as a public employee under MN Statutes Section 179A, who works
a regular full or part-time schedule for a specific duration annually by EMPLOYER
and (1) who works more than sixty-seven (67) working days in any calendar year;
or (2) more than one hundred (100) working days in the calendar year and the
employees are under the age of twenty-two (22) years, are full-time students
enrolled in a non-profit or public education institution prior to being hired by the
EMPLOYER, and have indicated either in an application for employment or by
being enrolled at an educational institution for the next academic year or term, an
intention to continue as a student during or after their temporary employment.
(MSA 179A.03, Subd. 14(f)).
3.6 Temporary Employee: An individual hired for a specific duration (1) not to
exceed sixty-seven (67) working days in any calendar year; or (2) not for more than
one hundred (100) working days in the calendar year and the employees are under
the age of twenty-two (22) years, are full-time students enrolled in a non-profit or
public education institution prior to being hired by the EMPLOYER, and have
indicated either in an application for employment or by being enrolled at an
educational institution for the next academic year or term, an intention to continue
as a student during or after their temporary employment. (MSA 179A.03, Subd.
14(f)).
3.7 Call-in Employee: A person who is called in for specific projects and is hired for
a non-specific duration of employment and who is not working a regular work
schedule.
3.8 Employer: The City of Oak Park Heights.
3.9 Union Steward: Steward elected or appointed by the American Federation of State,
County and Municipal Employees, Council 5, Local 517.
3.10 Overtime: Work performed at the express authorization of the Employer in
excess of the employee’s scheduled shift.
3.11 Shift: A consecutive work period including two (2) fifteen (15) minute rest breaks
and a thirty (30) minute lunch break.
3.12 Rest Break: Two (2) fifteen (15) minute periods during the scheduled shift.
3.13 Lunch Break: A thirty (30) minute period during the scheduled shift.
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3.14 Strike: Concerted action in failing to report for duty, the willful absence from a
position, the stoppage of work, show-down or abstinence in whole or in part from
the full, faithful and proper performance of the duties of employment for the
purposes of including, influencing or coercing a change in the conditions,
compensation, rights, privileges, or obligations of employment.
3.15 Probationary Period: That six (6) month period of time from the employee’s date
of hire until he/she becomes a regular employee.
3.16 Base Rate Pay: That wage rate paid to the employee, exclusive of such payments,
as overtime, longevity, educational incentive, fringe benefits or premium payments.
3.17 Intern: An employee of the City of Oak Park Heights, who works on a temporary
basis for educational credit or experience and shall not be included in a union.
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 or other interruptions of
interference with the normal functions of the Employer.
4.2 The Employer shall institute no lockout during the life of this Agreement, provided
the Union does not violate section 4.1 of this article.
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 functions not
specifically limited by this Agreement.
5.2 Any term and condition of employment not specifically established by this
Agreement shall remain solely with the discretion of the Employer to modify,
establish or eliminate.
ARTICLE 6: UNION SECURITY
6.1 The Employer shall deduct from the wages of employees who authorize such a
deduction in writing, an amount necessary to cover monthly Union dues, or a fair
share deduction, as provided in Minnesota State Statues 179A.06, Subd. 3, if the
employee elects not to become a member of the Union. Such monies shall be
remitted as directed by the Union.
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6.2 The Union may designate employees from the bargaining unit to act as 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 the
posting of Union notices and announcements.
6.4 The Union agrees to indemnify and hold the Employer harmless against any and all
claims, suits, orders or judgment 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.
6.5 The Employer shall provide the Union with the names and addresses for all newly
hired Bargaining Unit employees at the time of hire.
6.6 The Employer shall deduct from the wages of employees who authorize such
deduction in writing, an amount designated by the employee for participation in the
Union’s P.E.O.P.L.E. check-off program. Such monies shall be remitted as directed
by the Union.
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 duties and responsibilities as established by this Article. The Union shall
notify the Employer in writing of the names of such Union Representatives and or
their successors when so designated, as provided in section 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 working hours only when consistent with such Employee duties and
responsibilities. The aggrieved Employee and a 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 of the Employer.
7.4 Procedure: Grievance, 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
Page 29 of 58
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(s) of the Agreement allegedly violated, 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’sdesignated Step 2 representative. Submitting the
grievance to mediation preserves the timeliness for Step 3 of the grievance
procedure. Any grievance not appealed, in writing, to Step 3 by the Union within
ten (10) calendar days shall be considered waived.
Step 3: A grievance unresolved in Step 2 and appealed to Step 3 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 “Rules Governing the Arbitration of Grievances” as
established by the Public Employment Relations Board.
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 or issues submitted in
writing to 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(s) shall be submitted in writing within thirty (30)
calendar 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 decisions(s) 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
record to be made providing it pays for the recording. If both parties desire
a verbatim record of the proceedings, the cost shall be shared equally.
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7.6 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 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 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
written agreement of the Employer and the Union at each step.
7.7 Election of Remedies: It is specifically understood that any matters governed by
statutory provisions or personnel rules, except as expressly provided for in this
Agreement, shall not be considered grievances under this Agreement. If by law an
appeal procedure, other than the grievance procedure contained herein is available
for the resolution of a dispute arising from any provision covered by this
Agreement and the aggrieved party pursues the dispute through such appeal
procedure provided by law, the aggrieved Employee(s) shall be precluded from
making an appeal under this grievance procedure.
ARTICLE 8: SAVINGS CLAUSE
8.1 This Agreement is subject to the laws of the United States, the State of Minnesota,
and the City of Oak Park Heights. In the event any provision of this Agreement
shall be held to contrary law or by a court of competent jurisdiction from whose
final judgment or decree no appeal has been taken within the time provided, such
provisions shall be voided. All other provisions of this Agreement shall continue in
full force and effect. The voided provisions shall be re-negotiated at the written
request of either party.
8.2 In the event the compensation provisions of this Agreement are found to be in
violation of the Minnesota Local Government Pay Equity Act by the
Commissioner, Department ofEmployee Relations, State of Minnesota, from
whose final decision and no appeal is taken, at the written request of either of them,
enter into negotiations to bring such provision(s) into compliance therewith.
ARTICLE 9: SENIORITY
9.1 Seniority shall be determined by the employee’s length of continuous employment
with the City and posted in an appropriate location. Seniority rosters shall be
maintained by the Employer on the basis of time with the City and time within a
specific classification.
9.2 During the six (6) month probationary period, a newly hired or rehired employee
may be discharged at the sole discretion of the Employer. During the probationary
period, a promoted or assigned employee may be replaced in his/her previous
position at the sole discretion of the Employer.
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9.3 A reduction in the work force will be accomplished on the basis of seniority.
Employees shall be recalled from lay off on the basis of seniority. An employee on
lay off shall have an opportunity to return to work within two (2) yearsof the time
of his/her lay off before any new employee is hired.
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9.4 Vacation period shall be selected on the basis of seniority until March 15 of each
calendar year.
9.5 Employees hired as full-time, seasonal employees earn pro-rated vacation and sick
leave pay. At the end of their season any unused vacation pay will be cashed out to
employee and any unused sick leave accrued will be banked to be added to next
season’s accrual in the event that the employee is hired back for a second
consecutive season. Accumulated sick leave may not exceed six (6) days. In the
event the employee is not hired back for a second consecutive season the pro-rated,
accrued, unused sick leave will be lost.
ARTICLE 10: DISCIPLINE
10.1 The Employer will discipline employee(s) 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; or
E.Discharge.
10.2 Suspensions, demotions and discharges shall be in written form.
10.3 Any discipline imposed shall be done in the privacy of the supervisor’s office, and
not in public.
10.4 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
signature of the employee. Employee will receive a copy of such reprimand and/or
notice. Employee may submit a written explanation disagreeing with any
disciplinary action.
10.5 Employee may examine their own individual personnel file at reasonable times
under the direct supervision of the Employer.
10.6 Prior to discharge an employee, the Employer shall notify the employee and the
Union in writing that the employee is to be discharged, the reason(s) therefore, the
employee’s right to a hearing in accordance with this Article, and the effective date
of discharge. The employee may request an opportunity to hear an explanation of
the evidence against him/her, and to present his/her explanation or issues and
circumstances related to the employee’s discharge to the Employer’s representative.
The employee is entitled to Union representation at such meeting, upon request.
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The right to such meeting shall expire at the end of the scheduled workday after the
Notice of Discharge is delivered to the employee, unless the Employer and the
employee agree otherwise. The employee shall remain in pay status during the time
between Notice of Discharge and the expiration of the meeting.
10.7 Employees will not be questioned concerning an investigation of disciplinary action
unless they have been advised that they have the opportunity to have Union
Representative present at such questioning.
10.8 Grievances relating to the Article shall be initiated by the Union in Step 2 of the
grievance procedure under Article 7.
ARTICLE 11: WORK SCHEDULE
11.1 The sole authority for work scheduled is with the Employer. The normal workday
for a full-time employee shall be eight (8) hours. The normal work week shall be
forty (40) hours, Monday through Friday.
11.2 The normal work year is two thousand and eight (2,080) hours, to be accounted for
by each employee through:
A. Scheduled hours or work in assigned shifts;
B. Assigned training;
C. Authorized leave time; or
D. Holidays.
11.3 Service to the public may require the establishment of regular shifts for some
employees on a daily, weekly, seasonal, or annual basis other than the employee’s
normal workday. The Employer shall give seven (7) days advance written notice to
the employee(s) affected by the establishment of workdays different from the
employee’s normal workday.
11.4 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 workday be scheduled to work more than the
workday; unless, per their job description, they are required to call-backs in their
departments.
11.5 Service to the public may require establishment of regular work weeks that
schedule work on Saturdays and/or Sundays.
11.6 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.
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ARTICLE 12: OVERTIME
12.1 Employees will be compensated at one and one-half (1-1/2) times the employee’s
regular rate of pay for hours in excess of the employee’s regularly scheduled shift.
Compensated leave, consisting of work hours, vacation hours, sick leave hours and
holiday hours shall be considered hours worked for the purpose of this Article.
12.2 For the purpose of computing overtime compensation, overtime hours worked shall
not be pyramided, compounded or paid twice for the same hours worked.
12.3 Overtime shall be calculated to the nearest fifteen (15) minutes. Any time worked
over eight (8) hours a day and forty hours per week will be considered overtime.
12.4 Employees shall be entitled to take compensatory time in lieu of overtime pay, for
hours worked over eight (8) hours per day, forty (40) hours per week, subject to the
prior review and approval of their supervisor. Compensatory time shall be taken in
the calendar year earned, and shall not be carried over to the subsequent year.
Compensatory time may be accrued up to a maximum of forty hours. Unused
compensatory time shall be cashed out on the first pay period of each year.
ARTICLE 13: ON-CALL / CALL-BACK
13.1 On-Call:
13.1.a. Public Works employees will regularly rotate being on-call during
weekends and holidays and shall receive (1) hours overtime for each
day the employee is considered to be on-call. On-call pay is in
addition to call-back pay.
13.1.b. Public Works Employees shall receive on-call pay for weekends,
holidays, or when designated as the Public Works Emergency
Contact. Normally this duty is the responsibility of the Public
Works Director. Employees need to be told they are on-call.
13.2 Call-Back:
13.2.a. A Public Works employee who is called back to duty during his/her
scheduled off-duty time shall receive a minimum of two (2) hours
pay at one and one-half (1-1/2) times the employee’s regular rate of
pay. Call-back which takes more than two (2) hours shall
be compensated at one and one-half (1-1/2) time the employee’s
regular rate of pay.
Regular weekend Public Works duties such as pump checks shall be
compensated with three (3) hours pay for such work.
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13.2.b. An extension or early report to a regularly scheduled shift for duty
does not qualify the employee for the three (3) hours minimum call-
back pay.
13.2 Shift Differentials: In addition to the established rates of pay, the Employer shall
pay an hourly premium of $1.25 to all employees for all hours worked outside the
normally scheduled work shift, when the employee works at least four (4) hours
within that time span. Employees requesting work shifts outside the normally
scheduled work shift are not eligible for shift differential.
ARTICLE 14:WORKING OUT OF CLASSIFICATION
14.1 Employees assigned by the Employer to assume the full responsibilities and
authorities of a higher job classification for ten (10) or more working days shall
receive the salary schedule of the higher classification. The additional pay begins
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after the tenth (10) working day.
ARTICLE 15: SALARY SCHEDULE
15.1 The salary schedule for employees under this Contract as set forth in Appendix A,
subject to Article 15.2.
15.2 Full-time, seasonal employees will progress through the pay scale based on
accumulated hours worked from season to consecutive season worked.
15.3 Wages shall increase by 4.0% for 2023, 3.5% for 2024 and 3.5% for 2025 effective
January 1 of each year. (See Appendix A).
ARTICLE 16: HOLIDAYS
16.1 Employer grants to each employee twelve (12) paid holidays per year, including
one (1) floating holiday as selected by the employee and subject to the approval of
their supervisor.
Paid holidays being as follows:
New Year’s Day Veteran’s Day
Martin Luther King Jr. Day Thanksgiving Day
President’s Day Day after Thanksgiving Day
Memorial Day Christmas Eve
Independence Day Christmas Day
Juneteenth (effective in 2024) Labor Day
One (1) Floating - Employee selected, subject Supervisor approval
For 2023 ONLY – One (1) Floating Holiday is added. This floating holiday expires
and sunsets effective 12/31/23.
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16.2 Should a two-day holiday fall partially or fully on a weekend, those holidays shall
be taken the day preceding the first holiday and the next workday following the
second holiday. If Christmas Eve falls on a Friday, the Christmas Day holiday will
be observed on the following Monday.
16.3 Any employee required to work on a holiday listed in section 16.1 shall receive an
additional one-half (1/2) time pay for all hours worked on that shift in addition to
regular pay and holiday pay.
ARTICLE 17: VACATIONS
17.1 The Employer grants to each employee paid vacation as per the following schedule:
Years of Service Vacation Days Granted Per Year
0-5 10 working days (5/6 day per month)
6-10 15 working days (1-1/4 day per month)
11-15 20 working days (1-2/3 day per month)
16 + One (1) additional day/year to max of 25 days/year
17.2 Employees shall earn vacation during the probationary period, but shall not use
vacation leave without the approval of the Employer.
17.3 Employees shall accrue vacation leave to a maximum of 328 working hours after
which such hours shall be forfeited by the Employee.
17.4 Vacation leave may be used as earned, provided that the Supervisor shall approve
the requested time.
17.5 Any employee leaving City employment shall receive unused accumulated vacation
leave if said employee has given proper notice of fourteen (14) days.
17.6 In addition to the vacations set forth in section 17.1, after two (2) years of service
with the City, regular employees shall be granted two (2) days personal leave with
pay to take care of personal business that can only be taken care of during normal
working hours. Said leave will be non-accumulative and subject to the prior
approval of the supervisor.
ARTICLE 18: SICK LEAVE
18.1 The Employer grants to each employee paid sick leave at the rate of one (1) day per
month for each month of employment, or major fraction thereof.
18.2 Employees shall earn sick leave during the probationary period, but shall not use
sick leave without the approval of the Employer.
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18.3 Employees that utilize sick leave for more than three consecutive work days shall
provide evidence of such illness via the provision of medical doctor’s written
communication to the City confirming such illness and when the employee is
anticipated to return. This documentation must be provided prior or concurrently
with the employee returning to work.
18.4 Each employee, in order to be eligible for sick leave pay, shall report to the
supervisor or his /her duly appointed assistant at his/her office, prior to the start of
his/her scheduled shift, the reason for the use of the sick leave.
18.5 Each employee shall keep the department informed of his/her condition if an
absence is more than one (1) day.
18.6 For serious illness in the immediate family, sick leave shall be granted for a period
not to exceed three (3) working days, with prior approval from the department head.
Immediate family shall be defined under this clause as husband, wife, son,
daughter, father, mother, sister, brother, father or mother-in-law, step-father, step-
mother, step-sister, step-brother, step-daughter or step-son.
ARTICLE 19: BEREAVEMENT PAY
19.1 When necessary, and upon approval by the Employer, up to five (5) days of sick
leave, with pay may be used in case of death in the family. The degree of
relationship includes husband, wife, son, daughter, father, mother, sister, brother,
father or mother-in-law, stepfather, stepmother, stepsister, stepbrother, step-
daughter or stepson.
19.2 In the event of death of a spouse, father, mother, father or mother-in-law, stepfather,
stepmother, child or step-child, three days (24 hours) of the total five days may be
taken with pay that does not count against sick-leave or vacation.
ARTICLE 20: INSURANCES
20.1 HEALTH PLANS:
See Appendix B.
See Appendix C. relating to non-binding discussions for future Health Care options
20.2 DENTAL PLANS:
The City shall execute an agreement with Delta Dental (or other competent
provider) that is anticipated to offer dental coverage benefits and at rates found as
are/were in effect as of December, 2019 and would be prospectively effective from
January 1st 2023 through December 31st, 2025.
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For such dental coverages offered, the Employee shall pay thirty (30%) percent
toward the premium of Family Annual Dental Insurance and twenty-four (24%)
percent toward the premium of Single Dental Insurance. The Employer shall pay
the balance of the premium not paid by the employee. These percentages shall
continue to remain in effect through December 31st, 2025.
As rates and or plan changes become available, typically in the 4th Quarter of each
year, the City shall attempt in good-faith to provide reasonable notice prior to any
discontinuation, changes or possible supplementation of any coverages for any
prospective year. The Union shall also regularly communicate with City staff so as
to also monitor possible benefit changes, their timelines and impacts. The City shall
have the right to amend the coverage plans the City deems reasonably necessary to
ensure plan or coverage continuity, but such changes may not materially alter the
coverages offered nor the cost share allocations.
20.3 The City shall provide a minimum life insurance policy of $50,000.00 for all
eligible employees and pay the monthly premiums.
ARTICLE 21: LEAVES OF ABSENCE
21.1 Personal Leave of Absence: Upon request of any employee, a leave of absence
without pay may be granted by the City Administrator. Such leaves of absence
shall not exceed a period of ninety (90) calendar days, provided that the leave 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 exceed one (1) year. Leaves of
absence for medical reasons shall be granted with continued medical with continued
medical, health and dental contributions being made by the City for a period up to
ninety (90) calendar days. After ninety (90) calendar days and up to one (1) year,
group insurance shall be available to employees at employee’s expense.
ARTICLE 22: FAMILY AND MEDICAL LEAVE ACT
22.1 An employee must have been employed by the City for at least twelve (12) months
and have worked at least one thousand two hundred and fifty (1,250) hours in the
twelve (12) months preceding the commencement of the leave. An eligible
employee is entitled to twelve (12) weeks leave during any twelve (12) month
period commencing with the first date family or medical leave is taken for the
following reasons:
A. Birth of a son or daughter or placement of a son or daughter for adoption or
foster care. Such leave may be taken within twelve (12) months after birth
or placement. There is no maximum age limit for adoption or foster care
placement
B.To care for a spouse, son, daughter, or parent who has a serious health
condition.
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C. Because of a serious health condition making the employee unable to
perform the essential functions of their positions.
Thirty (30) days written notice is required if the leave is foreseeable. Health insurance
coverage will be maintained at the same level and under the same terms as if the employee
continued working. Arrangements for payment of the employee’s portion of the premium
must be made by the employee through the personnel office. Family and medical leave
may be taken in increments up to the full twelve (12) weeks and as small as one (1) hour,
depending on the circumstances. Employees are eligible to draw down accumulated sick
leave and vacation leave while on FMLA leave. After, FMLA leave shall be without pay.
ARTICLE 23: POST EMPLOYMENT HEALTH CARE SAVINGS PLAN
23.1 The City will maintain a Post-Retirement Health Insurance Plan consistent with State
and Federal regulations. All costs and responsibilities associated with such plan shall
be paid in full by the Employees. At no-time shall this plan and its benefits become the
financial responsibility of the Employer. The Employees shall provide the City with its
desired selections.
ARTICLE 24: TRAINING & TUITION REIMBURSEMENT
24.1 The Department Head will post announcements of those special training schools to
which employees may be sent. Selection of attendees will be made by the
supervisor. In addition, employees may request to attend training to their
supervisor. The supervisor and the City Administrator will approve or deny all
training requests. The City shall pay the training costs, including the employee’s
salary, mileage, parking fee, if any, and meals if employee is unable to leave the
training location for meal break while attending the approved training. If training is
out of town, the City shall pay for meals and lodging in addition to the above listed
expenses. The City will pay for those classes necessary to maintain such
certifications as are required by the job.
24.2 The City shall reimburse one hundred percent (100%) of an employee’s cost for
tuition for educational classes. Tuition shall be defined as those fees specifically
defined as tuition and fees defined as part of tuition by a learning institution and
non-negotiable by the student. Fees outside of those determined as part of the
tuition fee and related fees, per credit shall not be deemed tuition and shall not be
reimbursed.
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24.3 For any AFSCME employees hired after December 31, 2010, the tuition
Reimbursement shall be capped at fifty percent (50%). This 50% cap shall apply to
any AFSCME employee(s) that is not employed in a regular, full-timeposition with
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the City as of December 31, 2010.
24.4 Reimbursement is subject to the following conditions:
A. Employees must have the approval of their supervisor to take any classes for
which tuition reimbursement is requested;
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B. Employees must present written proof through a report card or similar
method that he/she has passed the class, with a grade of “C” or higher or the
equivalent.
C. Reimbursement will occur after the employee has presented proof of grade
and/or passing to his/her supervisor.
D. Education must be job related.
ARTICLE 25: UNIFORMS & EQUIPMENT
25.1The City shall provide all necessary uniforms and equipment as needed to carry out
the required duties for the City.
25.2 Uniforms damaged in the course of employment requirements shall be replaced by
the City at no cost to the employee
ARTICLE 26: SAFETY
26.1 The Employer adheres to the principle that employees should work in a safe
environment. Accordingly, each employee has an obligation to observe safe
working practices and to alert his/her supervisor to the existence of safety hazards.
The City has an obligation to provide a safe work environment for employees
which adhere to OSHA standards.
ARTICLE 27: SEVERANCE PAY
27.1 Upon retirement, being disabled so that employment must be terminated, or for
termination of employment for reasons other than for cause, permanent employees
who have completed 10 years of service with the City shall be entitled to 50% of
the unused sick leave as severance pay. The severance payment shall not exceed a
maximum of 75 days upon separation. In the case of employee's death, the
beneficiaries of the deceased employee shall be entitled to 100% of the severance
pay the deceased employee was entitled to at the date of his/her death.
27.2 In the event of a retirement from City employment by the employee, the employee
shall provide thirty (30) calendar days to the City. Should the employee not be able
to comply with this provision, the employee shall provide the City a written
statement as to why compliance is not reasonably possible.
ARTICLE 28: INJURY ON DUTY
28.1 Any employee injured on duty shall receive up to twelve (12) months-pay, without
loss to any accrued sick leave or vacation leave, provided as follows:
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A. The employee reports the injury as soon as possible to the supervisor;
B. The injury is of a nature which is covered by Worker’s Compensation;
C. If requested and paid for by the Employer, the employee shall submit to an
examination by a competent medical practitioner, including drug and
alcohol screening; and
D. The employee shall report the annual amount of Worker’s Compensation to
the Employer. The Employer shall pay the employee the differences
between Worker's Compensation and the employee’s regular salary.
ARTICLE 29: LONGEVITY & EDUCATIONAL / HEALTH & WELLNESS
INCENTIVE PAY
29.1 The Employer agrees to pay longevity pay as per the following:
A. Effective January 1, 1985:
After four (4) years of service 3% of salary per month
After eight (8) years of service 5% of salary per month
After twelve (12) years of service 7% of salary per month
After sixteen (16) years of service 9% of salary per month
B. Commencing in 2020 and continuing through 2024, the City will offer
employees who receive Longevity Pay, an opportunity to earn an additional
one percent (1%) in base salary per month if they pass and maintain the
qualifications for a wellness program as established by the Employer for
other employees, which includes: standardized fitness testing (using the
APFT Standards), and application of related weight charts. Failure to meet or
maintain the wellness program requirements set forth by the Employer shall
result in revocation of the 1% additional pay for twelve (12) months unless
the duration is shortened by the City. Any Longevity employee who seeks
this additional wellness incentive must also meet and comply with any “no
smoking/non-tobacco” use provision similar to non-longevity employees.
Failure to comply with the “no-smoking/ non-tobacco” use provision will
result in the revocation ofthe additional 1% wage incentive. Unless agreed
upon in writing by the City, the benefits conveyed in this paragraph shall
automatically sunset and terminate on December 31st, 2024.
The City typically holds fitness testing in May and passing of such will result
in the benefit remaining in effect for twelve months from the date of passing
which may be after December 31, 2024. After twelve months from the date
of 2024 test and its passing by the Employee, the benefitceases.
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C. If an employee is smoke/tobacco free, he/she is entitled to one percent (1%)
of his/her base salary per month. If an employee uses tobacco, he/she shall
lose the 1% incentive but shall also lose one percent (1%) of his/her salary
per month for at least one month and continuing thereafter until the
Employee provides written documentation to the City that they are
smoke/tobacco free.
D. A maximum of ten percent (10%) additional pay may be earned through the
longevity and the additional wellness incentive pay or any combination
thereof.
29.2 As an alternate to longevity pay, the Employer agrees to pay an
educational/health and wellness incentive pay as per the following:
Years of Post-High School Education Salary Per Month Total
After one (1) year 2% 2%
After two (2) years 2% 4%
After three (3) years 2% 6%
After four (4) years 2% 8%
A. The Employer agrees to pay an additional two percent (2%) if an employee
receives a Master’s Degree or completes an additional sixty (60) hours of
accredited course work per year.
B. At such time an employee achieves fifty percent (50%) of the next year’s
goal, the employee would be entitled to the next percentage of salary
increase (i.e., the employee who achieves 2-1/2 years of post-high school
education is therefore entitled to six percent (6%) of salary per moth).
C. Fitness Pay: The physical tests shall consist of push-ups, sit ups and the two
(2) mile run, according to current APFT Standards (Army Physical Fitness
Test). The employee must complete each test with at least the minimum
score for his/her age group and gender. A comparable alternative test would
be allowed if an employee could not do a particular test due to a specific
injury. Completion of all three (3) physical tests with at least a passing
minimum score and meeting required height/weight standards would entitle
the employee to one percent (1%) of his/her salary per month.
D. Wellness Pay: If an employee is smoke/tobacco free, he/she is entitled to
one percent (1%) of his/her base salary per month. If an employee uses
tobacco, he/she shall lose the 1% incentive but shall also lose one percent
(1%) of his/her salary per month for at least one month and continuing
thereafter until the Employee provides written documentation to the City
that they are smoke/tobacco free.
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E.If an employee selects the educational / health and wellness incentive as
outlined above, that choice is irrevocable and the employee would no longer
be entitled to receive longevity incentive pay.
F. A maximum of ten percent (10%) additional pay may be earned through the
educational / health and wellness incentive pay.
ARTICLE 30: ADDITIONAL VACATION DAY
30.1.1 Any full-timeemployee that commenced employment with the City prior to
12/31/2022 that maintains a sick leave balance of one hundred (100) days annually
shall receive one (1) additional day of vacation pay per year. At any time should
such benefit be determined as not permissible under Federal or State lawor under a
finding of an applicable court of law, the benefit shall cease and the City is not
responsible for any supplemental or compensatory relief to the Employee.
ARTICLE 31: RIGHT OF SUBCONTRACT
31.1 Nothing in this Agreement shall prohibit or restrict the right of the Employer from
subcontracting work performed by employees covered in this Agreement. No
bargaining unit employees shall be laid off as a result of any decision to contract
work performed by bargaining unit employee; however, the Employer may contract
bargaining unit work if an employee leaves City employment.
ARTICLE 32: JURY DUTY
32.1 In the event an employee covered by this Agreement is called for jury duty or
subpoenaed to appear as a witness in court, the employee shall give the Employer
any payment received (less any meal or mileage allowance) in exchange for full
wages from Employer for any days the employee served on jury duty.
ARTICLE 33: DEFERRED COMPENSATION PLAN
33.1 The City at its sole discretion, may offer a deferred compensation or retirement plan
which is created due to the sole contribution of the employees of the City within a
fund to be administered by the City or its designees pursuant to state and federal
law. Any participating employee acknowledges that there is inherent risk of
financial loss in the use of a deferred compensation plan and its related investments.
Any employee who selects to participate in such plan does so at his/her sole risk.
The City does not guaranty any specific rate of return.
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ARTICLE 34: NON-DISCRIMINATION
34.1 No employee shall be discriminated against under the provisions of this
Agreement by either the Employer or Union on any basis prohibited by law.
34.2 This Agreement shall comply with the Americans with Disabilities Act.
ARTICLE 35: WAIVER
35.1 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 the Agreement are hereby superseded.
35.2 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 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 waive 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 and conditions may not have been within the knowledge or
contemplation or either or both parties at the time this Agreement was negotiated or
executed.
ARTICLE 36: DURATION
36.1 This Agreement shall be in effect from January 1, 2023 and shall remain in full
force and effect until December 31, 2025 or until a new contract is signed with
the exclusive representative of the Employer.
35.2 The parties agree that the final Agreement document is jointly crafted and no party
is singularly responsible for any error or omission and both parties have equal duty to
ensure consistency. The parties further agree that except for substantive changes in
Articles: 15.3, 16.1, 19.2, 29.1 B, 30.1.1, 35.2, and Appendix B & C. the 2023-2025
Agreement remains wholly consistent with the 2020-2022 Agreement including
updates to timelines, effective years, names and/or administrative updates.
SIGNATURE PAGE FOLLOWS:
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For
For
CITY OF OAK PARK HEIGHTS AFSCME COUNCIL 5, LOCAL 517
MaryMcComber, MayorJolene Catudio, Field Representative
Eric Johnson, City Administrator Julie A. Hultman, Union Steward
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APPENDIX A: SALARY SCHEDULES
Page 46 of 58
APPENDIX B – Health Care Agreement 2023-2025
1.For the 2023-2025 Agreement, the City and Union agree that the Deductible Benefit
Contribution with the now established total annual amounts of $1,800 for Single and
$600 for Family shall be amended to $1,900 and $700 respectively. See paragraph 4.C.
of 2017-2019 Health Care Agreement
2. Except for the change in item #1 above relating to Deductible Benefit Contribution,
for the 2023-2025 Agreement, all other the terms and elements of the 2017-2019
Health Care Agreement remain in place until amended.
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APPENDIX C - Relating to non-binding discussions for future Health Care options.
The following paragraph is limited to an “understanding” between the City and the Union;
and for both parties to endeavor to make a good-faith effort to explore health care
alternatives. Neither party is compelled to take any specific action at the conclusion of any
discussions should they commence.
The City and Unions are compelled to retain the current policies and cost divisions until
such time as the parties agree otherwise. However, due to continued cost increases to both
the City and Union Members, the parties may collectively meet over the course of 2023 to
explore further options for health care savings opportunities for 2023 and beyond. The
objective would be to determine ifthe parties are able to discover and enable alternative
policies or programs to its employees and members that results in retaining quality
coverages and yielding a reasonable cost savings to both parties.
All discussions are non-binding in nature until all parties agree in writing to terms
determined to be acceptable.
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Oak Park Heights
Request for Council Action
th
Meeting Date February 28, 2023
Time Required: 10 Minutes
Agenda Item Title: Consider Resolution Relating to Fire Services Agreement and Consultant
Lead Study
Agenda Placement Old Business
Originating Department/Requestor Eric Johnson, City Administrator
Requester’s Signature:
Action Requested: Discussion, Possible Action
Background/Justification (Please indicate if any previous action has been taken or if other
public bodies have advised):
Please see the attached MEMO dated 2/24/23 and resolution.
Page 49 of 58
RESOLUTION ___________
A RESOLUTION RELATING TO THE INFORMATION RECEIVED FROM THE CITY OF BAYPORT REGARDING
AMENDMENTS TO THE FIRE SERVCIES AGREEMENT AND DIRECTING THE SOLICITATION OF A
CONSULTANT TO LEAD A FACILITATED DISCUSSION
Whereas, the City of Oak Park Heights (the City) currently has a Fire Services Agreement with the City of Bayport (Bayport)
through 2029 which requires parties to provide financial and/or certain emergency services with the City contracted to provide over
$5.6 million in operational and capital funds being approximately 40% of all agreed upon costs by the Agreement’s partnership;
and,
Whereas, Bayport has expressed concerns that it cannot continue with the current Agreement without experiencing financial
challenges for its community; and,
Whereas, the City understands Bayport’s financial challenges as it also experiences difficulties with funding critical services, but
which will be exacerbated in 2028 with the closure of the Allen. S. King Plant where the City will lose 33% of its tax base; and,
Whereas, all parties to the Fire Services Agreement – including Bayport, West Lakeland Township and Baytown Township will be
impacted by this tax capacity loss of the King Plant as well as their own fiscal challenges, but that all parties will be impacted with
staffing and capital costs of operating of a Fire Department which may require changes prior to 2029; and,
Whereas, Bayport provided the City a concept proposal that doubles the City’s costs, reduces Bayport’s costs, offers no change in
revenue-methodology, relinquishes no authority on operations, proposes financial commitments be determined by majority voting
of parties regardless of the contributing percentage, seeks to hire two full-time “command” positions and maintains the status-quo
of overall operations; and,
Whereas, the City has inquired of Bayport to participate in a consultant-led process to jointly explore alternative service delivery
concepts, but Bayport has indicated that it will only review vetted proposals citing concerns about cost of such process; and,
Whereas, the City received the Bayport proposal nine-months after it was requested and the City’s initial subcommittee has expired
relative to its termination date of February 2022 as outlined in City Council Meeting Minutes of 11/23/21; and,
Whereas, the exploration of new service delivery models remains necessary so that our collective communities, all partners, can
both continue to enable emergency services relative to each community’s needs and capacity to fund; and,
Whereas, the City has no preset concepts of what an alternative service delivery model may entail and that it does not desire to
control any such “Department”, but that it would remain responsive to the needs of all partners; and,
Whereas, a legitimate first-step to better understand what is needed in our community is to engage a bona-fide independent “fire-
emergency services consultant” that can lead a discussion to identify what is needed moving forward and how that may be delivered
and that such conversation should include all of our Fire Service Agreement partners with additional invitations to the City of
Stillwater, Lakeview Ambulance and other partners that have a germane ability to share costs and/or services.
NOW, THEREFORE, BE IT RESOLVED THAT:
1. The City shall promptly undertake a consultant-led facilitated process to explore ideas and options about how to identify and
provide desired levels of service and that the City shall invite without an expectation of any cost sharing all current Fire
Agreement partners as well as Lakeview Ambulance and the City of Stillwater to participate such discussions.
2.The City does direct its Staff to craft and issue an RFP for such consultant services with results and a recommendation to be
provided to the City Council in June 2023. Staff are directed to seek input into the RFP from all Fire Agreement partners.
3. That the City will complete this Consultant led process prior to any formal or informal consideration of amending the current
Agreement.
Passed by the City Council of the City of Oak Park Heights this ____day of ______________2023
__________________________________
Mary McComber, Mayor
Atte
st:___________________________
Eric Johnson, City Administrator
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City of Oak Park Heights
14168 Oak Park Blvd. N Oak Park Heights, MN 55082 Phone (651) 439-4439 Fax (651) 439-0574
February 24, 2023
MEMO
TO: Mayor and City Council Members
FROM: Eric Johnson, City Administrator
RE: UPDATE - Received Data from the City of Bayport
Staff have had an opportunity to review the attached proposal from the City of Bayport – received
approximately 9 months after it was asked. We know much of it is beyond any realistic capacity for
OPH to fund or likely consider without a fair vetting of alternatives. But some points to note
specifically:
1. The proposal ultimately seeks to move OPH costs from $304,328 annually to $629,525 annually.
Under the Current Agreement from 2024-2029 the City costs is $1.9 million – Bayport proposes
$3.3 million. (NON DEBT COSTS).
2. Moves Bayport costs from $281,000 annually to $172,000 annually +/- over same period
dropping their total from $1.6 million to $1.03 million. (NON DEBT COSTS)
3. Bayport proposes it would be the singular-decision maker for what an operational budget would
be, and which would have a minimum annual increase of 5%. Offers no true authority to direct
budgets, staff or offers no veto authority to other members on operational expenditures even
when OPH is expected to pay the majority share.
4. Does not propose an amendment the contributing formula - leaving of the KING PLANT in the
Fair Share Calculations…while preserving Bayport’s LGA as not utilized in the formula.
(These are not a trivial matters to be decided later…)
5. Proposes an equipment ownership arrangement where members that may leave are left with
partial ownership of equipment which is not extractable and would likely be paid out as used-
goods value. This keeps the entities locked-in without extractable resources, or places to take it or
operate it even if possible – thus largely it is a very limited asset – much like the real-estate itself
which may only be used as a fire station under the agreed upon declarations.
6. The proposal does not offer a clear change to the model where its members elect its own Chief
which further disconnects oversight of the contributing members.
7. If there is a split vote on a CIP acquisition – it is suggested that a “disinterested third-party”
would vote… so essentially transferring taxing authority of one community to three others
(regardless of the % size of contribution) by being outvoted and/or to some unknown person.
Similarly, three voting members on a CIP element could encumber the final members finances
without clear recourse or respect to their percentage of contributions OR, the actual need of an
asset in that party’s City/Town.
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8. Suggesting the members keep their CIP funds until demanded by Bayport is not oversight in
decisions relative to needs of the purchase and its timing and does not reduce any financial
burden on the members.
9. Proposes to hire TWO- Full time positions – which will cost near $300,000 when benefits are
included, yet it does not engage the discussion of what the impact of this would be on the
volunteer model or the reliance on the volunteer model itself.
Summary of the Proposal
There is little in the Proposal that would rise to something that can be negotiated to fundamentally
ameliorate the massive funding shifts or that truly connects annual budgetary oversight with what services
are desired by each community or how they can be delivered. This is a status-quo proposal that simply
demands more funding without recourse.
That said, what could the City propose that would make a meaningful dent in these costs without
changing what, how or who delivers these services? Even if the City desired to sign-on to this….Oak Park
Heights would not have financial capacity to provide the funding proposed AND THEN only to see it rise
at a minimum of 5% annually AND THEN without direct oversight. The proposal is patently tone-deaf
to what has been explained to all parties about the City’s budgetary near-future and how the City (if not
all parties) may need to re-envision services.
What is most apparent (nd not subtlety in anyway) is that the proposal supports the status-quo in terms
a
of service delivery, command, form of organization and how it is funded. Phrased more bluntly – the
Proposal’s priority is on preserving the “Department” and Bayport’s unilateral control - versus ensuring
real ability to fund the provision of necessary emergency services. It expects the other parties to just pay
more and by extension - Bayport pays less. Lastly, if taken at face value, Bayport represents little desire
to collaboratively consider possibilities.
Relating to a Consultant.
The City inquired if the parties would be desirous to hire a consultant to explore other options on how
services may be envisioned, delivered, managed, funded, organized – such as via Fire District or other
concept. Bayport’s letter does not clearly engage that commitment to explore these concepts - rather only
a position that if members had a proposal it would consider it, but only after it was vetted here.
In essence, Bayport declines the clear option to have engaged – partnered – facilitated conversation about
these elements. Yet, Bayport expects the members to patently accept its data and research ..whatever it is?
Bayport does mention that it performed its“…own research…” but does not provide that data.
Staff has requested that data via email on 2/17 as of 2/24 it has not been received.
Finally, Bayport comments it is concerned about the costs for such study which can be a fair concern –
yet, Bayport hires an attorney to attend various meetings – for what purpose is unknown to OPH Staff.
Certainly Bayport may hire whomever they desire, but the Fire Membership had no involvement in the
hiring nor has no knowledge of purpose of such person – so certainly not an impartial or “disinterested”
party in attendance thus far.
So what could happen now?
Fundamentally – as the City does have some time to explore options – 6 years…and considering the
foregoing… OPH (and all parties) should –before it takes any action - FIRST have an exercise that
investigates key questions such as:
1. If we ALL had to start over today to form a fire department or other related emergency services
… what would that look like?
2. What does the OPH community (or others) need from a Fire service?
3. Who would or could deliver it?
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4.What is equitable?
5. What other models are out there?
6. Are there partners?
These are a set of questions that need to be explored at this time –BY ALL PARTNERS under a
facilitated process led by a bona-fide Minnesota consultant. Yes a challenge.. yes difficult… but a plain
duty before the City could even begin to consider such a proposal or anything near it. While such an
investigation can require $25,000 +/- , and given Bayport’s concerns about cost, Staff would offer that if
the City simply covers such costs so as to take that concern off the table for partner agencies as it may be
helpful to bring people together to begin to find out these answers.
The parties do not have to agree on everything, but the City is proposing that partners simply offer
their time at this juncture…and Bayport is needed.
So...Two RecommendationsAre Offered:
Staff Recommendation #1:
The arrangement of such general terms proposed by Bayport is not advisable - gives no clear alternatives
or a clear path to jointly investigate options that would make a meaningful impact in the financial asks or
scope of decision making. Therefore the City should retain the current Agreement in place and take no
action relative to this Proposal.
Staff Recommendation #2 :
In addition to taking no formal action on the received Proposal, Staff would offer that the City of Oak
Park Heights engage a bona-fide Minnesota consultant of high-regard to facilitate the answering of these
questions AND also inviting our current partner agencies including Bayport to talk about these complex
matters with OPH fully funding fund it. (Partners may certainly offer funding if any entity would like to of
course!)
erefore the Council may consider to - Direct the City Administrator to:
Th
1. Work with the Chief of Police to develop and issue an RFP to solicit consultants for Fire
Service Delivery discussions – including the 6 listed items above.
2. Contact our partner communities – including Bayport, but also Stillwater and Lakeview
Ambulance. to inform them of the City’s plan to engage in this conversation and inviting
them to participate without expectation of funding and also invite upfront input in the
RFP.
3. Bring responses back to the RFP by June 2023 and (presumably proceed from there with
that engaged process)
STAFF has reduced these two Recommendations into a RESOLUTION – See
enclosed.
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C ITY OF B AYPORT
294 N ORTH T HIRD S TREET
B AYPORT, M INNESOTA 55003
P HONE 651-275-4404 F AX 651-275-4411
WWW.CI.BAYPORT.MN.US
Date:February 14, 2023
To:City of Oak Park Heights City Council (via email only)
Betty Caruso, Finance Director, City of Oak Park Heights (via email only)
Eric Johnson, City Administrator, City of Oak Park Heights (via email only)
Steve Hansen, Chief of Police, City of Oak Park Heights (via email only)
John Hall, Chairman, Baytown Township (via email only)
Rick Weyeruch, Vice Chairman, Baytown Township (via email only)
Dave Schultz, Supervisor, West Lakeland Township (via email only)
From: Michele Hanson, Mayor, City of Bayport
Connie Carlson, Councilmember, City of Bayport
John Dahl, Councilmember, City of Bayport
Ethan Gilmore, Councilmember, City of Bayport
Katie Hill, Councilmember, City of Bayport
Matthew Kline, Interim City Administrator, City of Bayport
RE: Bayport Fire Department Service Agreement Review and Proposal
Dear City and Township Representatives:
Following the November10, 2021 seven-year Service Agreement review meeting between designated
representatives from the City of Bayport, the City of Oak Park Heights, Baytown Township, and West Lakeland
udgetary information and has sought to
arrange follow-up meetings to collaborate on potential solutions to the issues raised at the meeting. At that
meeting, the Members all agreed that protecting the long-term viability of the Bayport Fire Department wasa
priority and pledged to develop, review and support remedies to address both long-term and short-term funding
shortfalls.
In this context, Bayport is in receipt of a letter from the Oak Park Heights Subcommittee members dated May 13,
2022 (seeattached), in which the City of Oak Park Heights made two requests:1) Bayport provide a written
proposal as to whatis being requested of the Members,and 2) Bayport indicate whether it is willing to discuss
alternative long-term fire servicesoptions. Wewill address both within this letter. The City of Bayport
appreciates your patience as we gathered the requisite information in order to prepare a realistic and meaningful
proposal, as requested. We still intend to collaborate in the development of a final plan;however, we recognize
that perhaps all Members couldbenefit from the establishment of a jumping-off point. To that end, Bayport
offers the following:
The Problem
The present version of the Fire Services Agreement is deficient in providing a sustainable and predictable
funding mechanism for the present and long-term operation of the Bayport Fire Department. The current
agreement does not sufficiently address equipment replacement or future staffing needs.Presently, Bayport is
funding financing shortfalls at an increasing and unsustainable level. Costs for the delivery of fire services
continue to rise at alarming levels as equipment costs soar and the paid-on call model continues to become a
thing of the past. Planning is necessary now to avoid an unprecedented cost explosion in the not-too-distant
future.
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The Proposed Solution
Bayport proposes that the Members amend the current Fire Service Agreement to contemplate increased
Member contributions to the Fire Department budget to cover existing funding shortfalls and establish dedicated
Bayport would disclose an annual
operating budget to the Members, independent of capital improvement and staffing costs, and excluding any
Bayport would propose preliminary operating budget
amounts as detailed in the attached Exhibit(Excel spreadsheet documents).
The annual operating budget would be set by Bayport and increase by no more than the average annual General
Fund Budget increase of the Members, or 5%, whichever is greater. If a proposed budget exceeds this amount, it
would require approval of a majority of the Members. Staffing allocations scheduled by the Members to be
allocated to hire full or part time staff would be rolled into the operating budget in the year in which such staff
are actually hired, but such costs would not be subject to the 5% cap.
It is further proposed that the Members establish a review board to agree upon a CIP fund budget and proposed
allocations on it. This would separately include equipment allocations and future projected necessary staffing
allocations. Each Member would retain the approvedand dedicated CIP funds until the funds are used for the
contemplated distributions. Each member would be responsible for only
costs which are actually incurred and staffing allocations would be set aside for the purpose of guaranteeing
their availability at the time they are projected to become necessary. After a staffing cost becomes a part of the
operating budget, Members would
budget contribution. Members would retain an interest in any capital equipment items purchased commensurate
with contributions. So, if a Member or Members were to seek fire servicefrom an alternative provider in the
future, each would have an investment interest in certain Fire Department major equipment assets, purchased
after this proposed amendment is executed.
Considerations
d the following considerations as we evaluate potential
solutions. A response to each is included.
1)How are major cost increases avoided?
a.Cost increases cannot be avoided but this process would help the Members to plan and
prepare for them and share the burden in a sustainable and equitable way.
2)What if a Member wants to discontinue receiving service from the Bayport Fire Department?
a.We are willing to include a provision in the amendment to the Fire Services Agreement
which allows a Member to step out of the Agreement, after reasonable notice. In such an
event, that Member would retain a proportional interest in capital equipment purchased after
the date of the amendment.
could then be used by theexiting Member to facilitate the transition to the alternative
services.
3)Should the Fire Services Agreementbe extended?
a.We can discuss extending the existing term if this is of interest to the Members. As long as
a sustainable funding framework is established, Bayport believes this is a workable
framework for many years beyond the existing term of the Agreement.
4)Should an alternative JPA or Fire Services District be discussed?
a.Bayport is willing to explore all options in evaluating the best way to secure the delivery of
affordable fire services into the future. Nationally, the trend is clearly one of consolidation
of services. We think it is in the best interests of all Members to continue to look for
opportunities to share in the financial burden of service delivery in the future. The proposed
amendment to the Agreement should contemplate this. That said, Bayport strongly believes
the present model, even after considering the proposed contribution increases, will still be
the most cost-effective model for the delivery of high-quality fire services to each of the
Member municipalities.
5)Should a consultant be retained to advise the Members on a path for fire services in the
future?
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a.Bayport is willing to discuss this and proportionately contribute to a process that makes
sense for all Members. However, prior to making a substantial investment in a consultant,
Bayport would ask that each Member first conduct its own reasonable preliminary due
diligence to evaluate alternative options and the cost of each. Bayport
matter in the past has yielded the conclusion that there exists a substantial gap between the
cost of delivery of services under the present model and the cost under the next most
affordable option. ifferent conclusion, we would welcome
the opportunity to review and discuss it.
6)What if the Members are split on a CIP budget?
a.The proposed amendment can contemplate an agreed-upon method to resolve split votes.
Commonly a disinterested third party would be given the opportunity tobreak the tie.
7)How will the Fire Services Agreement Cost Allocation Formula be Affected?
a.Bayport proposes to retain the present cost
calculation method. However, if a new formula is preferred by the Members, we can discuss
this.
8)Where would staffing costs be reflected?
a.Staffing costs would initially be budgeted for and allocated in a separate staffing fund
(separate from the operating budget) and each Member would retain those funds until they
are needed. The Members would collaborate on the projected staffing allocation schedule in
the same way as they would in projecting and budgeting for capital equipment purchases.
After a staffing cost becomes a part of the operating budget, Members would thereafter
budget for such cost as a paThe
reservation of staffing allocations will assist Members in planning for and incrementally
absorbing such costs over time.
9)How will a Member be reimbursed for CIP equipment cost contributions upon exit?
a.The Members should discuss what is preferred, but this would be factually dependent. If a
Member desired to exit and the remaining Members planned to continue under the
Agreement, then an incremental buyout would likely be budgeted for over the remaining
term (after notice but before termination).
10)When would this Amendment commence?
a.Bayport would propose that the Amendment take effect as soon as possible. Bayport would
seek to collect any unpaid cost allocations prior to commencement of the Amendment so
that the initial operating budget level is not artificially inflated. This is particularly
important if the Agreement is to be extended.
Synopsis
Overall, we believe this proposal will address the funding shortfall issue and prepare our communities for rising
costs in the future in a framework that addresses the primary concerns expressed by the Members during our
discussions. It merits mention that the proposed increased cost participation still resultsin a superior option for
all Members, over any current alternatives. However, should that ever change, the Members would be
positioned to transition to the then superior option.
When it comes to fire service, we believe our communities are stronger together than apart. We seek your
participation in preserving the substantial benefits we all enjoy from receiving fire service from the Bayport Fire
Department. We see a future in which our collaboration and cooperation will help to guarantee exemplary and
affordable fire service is delivered to each Member community for years to come.
We respectfully offer this proposal as a starting point from which we can mutually develop a more detailed plan.
If aspects of this proposal cause concern, we welcome your feedback. In any event, we would liketo formally
invite all Member subcommittees to meet and discuss next steps on Wednesday, April 5, 2023or Thursday,
April 6, 2023at 5:00 p.m.Please let us know your availability on these dates to set up a meeting.
Thank you in advance for your efforts to consider and protect the public safety interests of all of our
communities. We look forward to hearing from each of you.
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