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12. LOCAL No. 49 Labor Agreement 2021-2023 (final Draft) LABOR AGREEMENT BETWEEN THE CITY OF SCANDIA -AND- INTERNATIONAL UNION OF OPERATING ENGINEERS LOCAL No. 49 AFL-CIO January 1, 2021 through December 31, 2023 INDEX Article Page Article I Purpose of Agreement ............................................. 2 Article II Definitions …………………………………. ................. 2 Article III Recognition .............................................................. 3 Article IV Union Security .......................................................... 3 Article V Employer Security .................................................... 4 Article VI Employer Authority ................................................... 5 Article VII Employee Rights-Grievance Procedure ................... 5 Article VIII Savings Clause ........................................................ 8 Article IX Work Schedules ....................................................... 8 Article X Overtime Pay ........................................................... 9 Article XI Call Back .................................................................. 10 Article XII Legal Defense .......................................................... 10 Article XIII Right of Subcontract ................................................. 10 Article XIV Discipline .................................................................. 10 Article XV Seniority ................................................................... 12 Article XVI Probationary Periods ................................................ 12 Article XVII Safety ....................................................................... 12 Article XVIII Job Posting .............................................................. 13 Article XIX Health Benefits ......................................................... 13 Article XX Life Insurance .......................................................... 13 Article XXI Holidays ................................................................... 14 Article XXII Funeral Leave .......................................................... 14 Article XXIII PTO .......................................................................... 15 Article XXIV Uniforms/Boot Allowance ......................................... 16 Article XXV Severance Pay ......................................................... 17 Article XXVI On-Call Position ........................................................ 17 Article XXVII Waiver ....................................................................... 17 Article XXVIII Wage Schedule ......................................................... 18 Article XXIX Duration .................................................................... 19 Signatures ................................................................. 19 MOU- Central Pension Fund …………………………. 20 MOU- Insurance Premium……………………………. 21 MOU- CPF Contribution MOU ……………………… 22 1 LABOR AGREEMENT BETWEEN THE CITY OF SCANDIA AND INTERNATIONAL UNION OF OPERATING ENGINEERS, LOCAL No. 49, AFL-CIO ARTICLE I – PURPOSE OF AGREEMENT This AGREEMENT is entered into between the City of Scandia, 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 II – DEFINITIONS 2.1 UNION: The International Union of Operating Engineers, Local No. 49, AFL-CIO. 2.2 EMPLOYER: The individual municipality designated by this AGREEMENT is the CITY OF SCANDIA. 2.3 UNION MEMBER: A member of the International Union of Operating Engineers, Local No. 49. 2.4 EMPLOYEE: A member of the exclusively recognized bargaining unit. 2.5 BASE PAY RATE: The Employee’s hourly pay rate exclusive of any other special allowances. 2 2.6 SENIORITY: Length of continuous service with the EMPLOYER. 2.7 SEVERANCE PAY: Payment made to an Employee upon honorable termination of employment. 2.8 OVERTIME: Work performed at the express authorization of the EMPLOYER in excess of forty (40) hours within a five (5) day period. 2.9 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. 2.10 STRIKE: Concerted action in failing to report for duty, the willful absence from one’s position, the stoppage of work, slowdown, or abstinence in whole or in part from the full, faithful and proper performance of the duties of employment for the purpose of inducing, influencing, or coercing a change in the conditions or compensation or the rights, privileges or obligations of employment. ARTICLE III – RECOGNITION 3.1 The EMPLOYER recognizes the UNION as the exclusive representative pursuant to Minn. Stat. §179A.12, subd. 10 of a bargaining unit certified by the Minnesota Bureau of Mediation Services, BMS Case No. 15PCE0312, and described as: All Maintenance Workers, Equipment Operators, Snowplow Operators, Parks Wastewater Operators, Street, Sewer/Water employees employed by the City of Scandia, Minnesota, who are public employees within the meaning of Minn. Stat. §179A.03, subd. 14, excluding clerical, supervisory and confidential employees. 3.2 In the event the EMPLOYER and the UNION are unable to agree as to the inclusion or exclusion of a new or modified job class, the issue shall be submitted to the bureau of mediation services for determination. ARTICLE IV – UNION SECURITY In recognition of the UNION as the exclusive representative the following shall apply: 3 4.1 The UNION shall obtain written authorization from all Employees within the certified bargaining unit for the deduction of union dues established by the UNION in accordance with the provisions of Minn. Stat. §179A.06, subd. 3. 4.2 The EMPLOYER shall deduct each payroll period an amount sufficient to provide the payment of dues established by the UNION from the wages of all Employees within the certified bargaining unit authorizing in writing such deduction. The UNION will inform the EMPLOYER as to the amount of membership dues and initiation fees, which amounts will not change more than once per calendar year. Initiation fees, dues and other assessments shall commence thirty-one (31) days from the date of employment. 4.3 The EMPLOYER shall remit such deduction to the appropriate designated officer of the UNION Administrative Dues: Effective January 1, 2021 the Employer will, upon written notification of the individual employee, deduct from the pay of such employee the working dues assessment. These dues will be deducted at ten cents ($.10) per hour, not to exceed 40 hours per week. All money collected by the Employer, as provided here, shall be remitted, along with the reporting form which states the employee’s name, last four digits only of social security number, hours worked, and amount of working dues owed, to Local 49’s office located at 2829 Anthony Lane South, Minneapolis, Minnesota 55418, not later than the 15th day of the month following the month in which deductions were made. 4.4 The UNION may designate certain Employees from the bargaining unit to act as stewards and shall inform the EMPLOYER in writing of such choice. 4.5 The UNION agrees to indemnify and hold the EMPLOYER harmless against any and all claims, suits, orders or judgments, including attorney fees and costs, brought or issued against the EMPLOYER as a result of any action taken or not taken by the EMPLOYER under the provisions of this Article. ARTICLE V – EMPLOYER SECURITY 5.1 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. 5.2 Any Employee who engages in a strike may have their appointment terminated by the EMPLOYER effective the date the violation first occurs. Such termination shall be effective upon written notice served upon the Employee. 4 5.3 An Employee who is absent from any portion of the Employee’s work assignment without permission, or who abstains wholly or in part from the full performance of the employee’s duties without permission from the Employee’s EMPLOYER on the date or dates when a strike occurs is prima facie presumed to have engaged in a strike on such date or dates. 5.4 No Employee shall be entitled to any daily pay, wages or per diem for the days on which the Employee engaged in a strike. ARTICLE VI – EMPLOYER AUTHORITY 6.1 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, modify, eliminate, or otherwise change the organizational structure; to select, direct, and determine the number of personnel; to establish work schedules; and to perform any inherent managerial functions, duties and/or responsibilities. Except as clearly limited by the express terms of this Agreement, the right of the EMPLOYER in all respects to manage its business, operations, and affairs shall be unimpaired. The enumeration of rights and duties listed in this Agreement shall not be deemed to exclude other inherent rights and management functions not expressly reserved in this Agreement, and all management rights and management functions not expressly delegated in this Agreement are reserved to the EMPLOYER. ARTICLE VII – EMPLOYEE RIGHTS – GRIEVANCE PROCEDURE 7.1 Definition of a Grievance: A grievance is defined as a dispute or disagreement as to the interpretation or application of the specific terms and conditions of this AGREEMENT. 7.2 Union Representatives: The EMPLOYER will recognize representatives designated by the UNION as the grievance representatives of the bargaining unit having the duties and responsibilities established by this Article. The UNION shall notify the EMPLOYER in writing of the names of such UNION Representatives and of their successors when so designated. 7.3 Procedure: The employee and the City shall attempt to adjust all grievances which may arise during the course of employment in the following manner: 5 An effort shall first be made to adjust the grievance informally between the employee and supervisor. If the grievance cannot be resolved through informal discussion, then the grievance shall be resolved in conformance with the following procedure: Step 1. An EMPLOYEE OR REPRESENTATIVE OF THE UNION 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. Grievances involving suspension or a dismissal may, by mutual agreement of the EMPLOYER and the UNION, commence at Step 3. 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 may 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 City Council. The City Council shall give the UNION the Employer’s answer in writing within fifteen (15) calendar days after receipt 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 City Council'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 Mediation Services. A grievance not resolved in Step 4 may be appealed to Step 5 within 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 within ten (10) calendar days shall be considered waived. 6 Step 5. A grievance unresolved in Step 4 and appealed in Step 5 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. In place of the Arbitrator selection process as outlined in the Public Employment Labor Relations Act, the UNION and EMPLOYER may select an Arbitrator by mutual agreement. 7.4 Unless mutually agreed, no grievance shall be considered by the arbitrator which has not been duly processed in accordance with the grievance procedure and appeal provisions. 7.5 Arbitrator's Authority a. The arbitrator shall have no right to amend, modify, nullify, ignore, add to, or subtract from the terms and conditions of this AGREEMENT. The arbitrator shall consider and decide only the specific issue(s) submitted in writing by the EMPLOYER and the UNION, and shall have no authority to make a decision on any other issue not so submitted. b. The arbitrator shall be without power to make decisions contrary to, or inconsistent with, or modifying or varying in any way the application of laws, rules, or regulations having the force and effect of law. The arbitrator's decision shall be submitted in writing within thirty (30) days following 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. 7 c. The fees and expenses for the arbitrator's services and proceedings shall be borne equally by the EMPLOYER and the UNION provided that each party shall be responsible for compensating its own representatives and witnesses. If either party desires a verbatim record of the proceedings, it may cause such a record to be made, providing it pays for the record. If both parties desire a verbatim record of the proceedings the cost shall be shared equally. 7.7 Choice of Remedy - If, as a result of the EMPLOYER Proposal 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 VIII or a procedure such as: Civil Service, Veteran's Preference, or Fair Employment. If appealed to any procedure other than Step 5 of Article VIII the grievance is not subject to the arbitration procedure as provided in Step 5 of Article VIII. The aggrieved employee shall indicate in writing which procedure is to be utilized — Step 5 of Article VIII 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 VIII. ARTICLE VIII – SAVINGS CLAUSE 8.1 This AGREEMENT is subject to the laws of the United States, the State of Minnesota, and the signed municipality. In the event any provision of the 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 IX– WORK SCHEDULES 9.1 The sole authority to create and/or modify work schedules is vested with the EMPLOYER. The normal work day for an Employee shall be eight (8) hours, the normal hours of operation will be 7:00 a.m. to 3:30 p.m. 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 Employees on a daily, weekly, seasonal, or annual basis other than the normal 7:00 a.m. to 3:30 p.m. work shift. Service to the public may require the establishment of regular work weeks that schedule work on Saturdays and/or Sundays. The EMPLOYER shall give seventy two hours (72) advance notice to 8 the Employees affected by the establishment of work days different from the Employee’s normal eight (8) hour work day. 9.3 In the event that work is required because of unusual circumstances such as (but not limited to) fire, flood, snow, sleet, tree removal from roadways, breakdown of municipal equipment for facilities or equipment failure in the wastewater system, no advance notice need be given as required in section 9.2. 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 backs if requested unless unusual circumstances prevent him/her from so working. ARTICLE X – OVERTIME PAY 10.1 Hours worked in excess of eight (8) hours within a twenty four (24) hour period Monday through Friday or forty (40) hours within a five (5) day period Monday through Friday will be compensated for at one and one-half (1-½) times the Employee’s regular base pay rate, or at discretion of management, compensatory time off at the rate of one and one-half (1-½) hours off for each hour of overtime worked. 10.2 All overtime must be approved by the Employee’s direct supervisor or designee in advance of such work. Any Employee who works overtime without prior approval may be subject to disciplinary action in accordance with Article XIV Discipline. 10.3 For the purpose of calculating overtime compensation, overtime hours worked shall not be pyramided, compounded, or paid twice for the same hours worked. 10.4 For purposes of calculating overtime, any Employee who performs work outside the bargaining unit will be paid subject to a weighted average between the two wage scales multiplied by 1.5. 10.5 Employees may accumulate up to a maximum of eighty 80 hours of compensatory time. Unused accrued compensatory time at the end of each calendar year may be carried over to the next calendar year. 10.6 For purposes of calculating overtime, all compensated hours including PTO, holidays or compensatory time shall be considered hours worked. Workers Compensation will not apply as hours worked for purposes of calculating overtime. 9 ARTICLE XI – CALL BACK 11.1 An Employee called in for work at a time other than the Employee’s normal scheduled shift will be compensated for a minimum of two (2) hours pay at one and one-half (1-½) times the Employee’s base pay rate. ARTICLE XII – LEGAL DEFENSE 12.1 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 municipality. 12.2 Any employee who is charged with a traffic violation (other than speeding), ordinance violation or criminal offense arising from acts performed within the scope of employment, when such act is performed in good faith and under direct order of the employee’s supervisor shall be reimbursed for reasonable attorney’s fees and court costs actually incurred by such employee in defending against such charge. ARTICLE XIII – RIGHT OF SUBCONTRACT 13.1 Nothing in this AGREEMENT shall prohibit or restrict the right of the EMPLOYER from subcontracting work performed by employees covered by this AGREEMENT. ARTICLE XIV – DISCIPLINE 14.1 The EMPLOYER will discipline Employees only for just cause. Any disciplinary actions in the Employee’s personnel file will be expunged after sixty (60) months of the initial occurrence, unless the same discipline has occurred more than once within sixty (60) months. 14.2 The EMPLOYER may elect to use progressive discipline with any Employee in the certified bargaining unit. Disciplinary action may include potential action, up to and including termination of employment, based on the nature and severity of the infraction, the conditions surrounding the incident, and any past history of discipline. There may be circumstances that warrant deviation from the suggested order or where progressive discipline is not appropriate. The EMPLOYER has the sole authority to choose the appropriate discipline and nothing in this AGREEMENT implies that an Employee in the certified bargaining unit has a property right to the job that he/she performs. 10 14.3 Documentation of any disciplinary action taken will be placed in the Employee’s personnel file with a copy provided to the Employee and Union Representative. 14.4 The following are descriptions of the type of disciplinary action the EMPLOYER may take against an Employee in the certified bargaining unit: 14.5 Oral Reprimand: This measure will be used where informal discussions with the Employee’s supervisor have not resolved the matter. All supervisors have the authority to issue oral reprimands without prior approval. Oral reprimands put the Employee on notice that the performance or behavior needs to change and what that change must be. Oral reprimands shall be documented in the file with the date issued, summary of the discussion and any corrective action needed. 14.6 Written Reprimand: A written reprimand is more serious and may follow an oral reprimand when the problem is not corrected or the behavior has not consistently improved in a reasonable period of time. Serious infractions may require skipping either the oral or written reprimand, or both. Written reprimands are issued by the supervisor with prior approval from the City Administrator. A written reprimand will: (1) state what happened; (2) identify the policy, directive or performance expectation that was not followed; (3) provide history, if any, on the issue; (4) state goals, including timetables, and expectations for the future; and (5) indicate consequences of recurrence. 14.7 Suspension With or Without Pay: The City Administrator may suspend an Employee without pay for disciplinary reasons. Suspension without pay may be followed with immediate dismissal as deemed appropriate by the City Council, except in the case of veterans. Qualified veterans will not be suspended without pay in conjunction with a termination. The Employee will be notified in writing of the reason for the suspension either prior to the suspension or shortly thereafter. An Employee may be suspended or placed on involuntary leave of absence pending an investigation of an allegation involving that Employee. The leave may be with or without pay depending on a number of factors including the nature and/or severity of the allegations. If the allegation is proven false after the investigation, the relevant written documents will be removed from the Employee’s personnel file and the Employee will receive any compensation and benefits due had the suspension not taken place. 14.8 Demotion and/or Transfer: An Employee may be demoted or transferred if attempts at resolving an issue have failed and the City Administrator determines a demotion or transfer to be the best solution to the problem. The Employee must be qualified for the position to which they are being demoted or transferred. The City Council must approve this action. 11 14.9 Salary: An Employee's salary increase may be withheld or the salary may be decreased due to performance deficiencies. The City Council must approve this action. 14.10 Discharge: The City Administrator, with the approval of the City Council, may discharge an Employee for substandard work performance, serious misconduct, or behavior not in keeping with EMPLOYER’S standards. ARTICLE XV – SENIORITY 15.1 Seniority will be the determining criterion for transfers, promotions and lay- offs when all other qualification factors are equal. ARTICLE XVI – PROBATIONARY PERIODS 16.1 All newly hired or rehired Employees within the certified bargaining unit will serve a six (6) month probationary period. 16.2 All Employees who are reassigned into the certified bargaining unit from a prior position, in which the employee has not yet served a probationary period with the EMPLOYER, will serve a six (6) month probationary period. 16.3 At any time during the probationary period a newly hired or rehired Employee may be disciplined and/or terminated at the sole discretion of the EMPLOYER. 16.4 At any time during the probationary period an Employee who was reassigned to the certified bargaining unit or promoted within the certified bargaining unit may be demoted or reassigned to the Employee’s previous position at the sole discretion of the EMPLOYER. ARTICLE XVII – SAFETY 17.1 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 XVIII – JOB POSTING 18.1 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 that applicants: 12 18.1.1 Have the necessary qualifications to meet the standards of the job vacancy; and 18.1.2 Have the ability to perform the duties and responsibilities of the job vacancy. 18.2 Employees filling a higher job class based on the provisions of this ARTICLE shall be subject to the conditions of ARTICLE XVI (PROBATIONARY PERIODS). 18.3 The EMPLOYER has the right of final decision in the selection of Employees to fill posted jobs based on qualifications, abilities and experience. 18.4 Job vacancies within the designated bargaining unit will be posted for five (5) working days so that members of the bargaining unit can be considered for such vacancies. ARTICLE XIX – HEALTH BENEFITS The employees are eligible for coverage from the Operating Engineers, Local No. 49 Health and Welfare Fund (Health and Welfare Fund). The terms of the Trust Agreement establishing the Health and Welfare Fund is hereby incorporated as a part hereof. The Employer agrees to make monthly contributions to the Health and Welfare Fund and will execute a separate participation agreement regarding those contributions. and provide all full time employees with Local 49’s bargaining premium health insurance, with the Employees responsible for twenty percent (20%) of the cost of their health insurance premium. ARTICLE XX – LIFE INSURANCE 20.1 The City shall provide $15,000 life insurance policy for all eligible employees and pay the monthly premium. An eligible employee is one regularly scheduled to work by the EMPLOYER for forty (40) hours or more per week. 20.2 Long Term Disability: Bargaining unit members shall receive the same long term disability benefits as all other city employees. ARTICLE XXI – HOLIDAYS 21.1 Holidays are defined as: New Year’s January 1 Martin Luther King Day Third Monday in January President’s Day Third Monday in February 13 Memorial Day Last Monday in May Independence Day July 4 Labor Day First Monday in September Columbus Day Second Monday in October Veteran’s Day November 11 Thanksgiving Day Fourth Thursday in November Day after Thanksgiving Fourth Friday in November Christmas Eve Day December 24 Christmas Day December 25 21.2 If a holiday falls on a Saturday, the day before shall be observed as the holiday. If a holiday falls on a Sunday, the day after shall be observed as the holiday. In the event Christmas Eve falls on either a Saturday or Sunday the Friday before Christmas Eve shall be the holiday. In the event Christmas Eve falls on a Friday, the day before shall be observed as the holiday. 21.3 Employees are entitled to Holiday pay, which is eight hours of pay given whether or not the employee works on the Holiday. Employees called in to work on the following Holidays: Memorial Day, Independence Day, Labor Day and Columbus Day shall receive time and one half (1-½) the employee’s regular rate of pay in addition to the holiday pay. 21.4 Employees called in to work on the following Holidays: New Year’s Day, Martin Luther King Day, Presidents Day, Veterans Day, Thanksgiving Day, Day after Thanksgiving, Christmas Eve Day and Christmas Day shall receive double time (2) the employee’s regular rate for all hours worked in addition to the holiday pay. ARTICLE XXII – FUNERAL LEAVE 22.1 Funeral leave shall be granted to full-time Employees as follows: Four (4) days in each case of the death of:  Employee’s parents or stepparents;  Employee’s spouse, or person regarded as such;  Employee’s children, stepchildren or foster children; Two (2) day in each case of the death of:  Employee’s siblings or stepsiblings;  Employee’s grandparents or stepgrandparents;  Employee’s grandchildren or stepgrandchildren;  Parents or stepparents of the Employee’s spouse or person regarded as such;  Siblings or stepsiblings of the Employee’s spouse or person regarded as such; 14 One (1) day in each case of the death of:  Employee’s aunt, uncle, niece, or nephew, including step relations;  Grandparents or stepgrandparents of the Employee’s spouse or person regarded as such;  Grandchildren or stepgrandchildren of the Employee’s spouse or person regarded as such. 22.2 Funeral Leave will be at the Employee’s regular rate of pay and shall not be counted against the Employee’s PTO. Upon approval of the supervisor, the Employee may choose to use PTO to extend the funeral leave. The City Administrator may determine the length of leave for any case not meeting the above guidelines. ARTICLE XXIII – PTO 23.1 Paid Time Off (PTO) 23.2 Paid Time Off shall accrue according to the following schedule for regular full-time Employees: Completed PTO hours PTO days (8 hr.) Years of accrued per accrued per year Employment year 0 – 1 132 16.5 2 – 4 168 21 5 – 9 192 24 10 – 14 216 27 15+ 240 30 23.3 An Employee shall not have more than 480 hours of PTO accrued at any time. Any PTO accrued over 480 hours shall be converted to a contribution to MSRS. Such conversion into MSRS shall be capped at forty (40) hours accumulation per year. The conversion shall take place once a year in the second week of December. 23.4 Employees may not use PTO until it has been credited to the employee’s bank in the payroll system. 23.5 Accumulated PTO cannot be transferred from one Employee to another. 23.6 PTO shall not be earned by an Employee during leaves of absence without pay when such leaves are in excess of ten (10) consecutive working days. An Employee receiving either short term or long term disability insurance is considered to be on leave without pay for the purposes of this section. 15 23.7 Probationary Employees will accrue PTO and may use PTO in conjunction with this article, but shall not receive payment for unused PTO if the employee is terminated during the probationary period. 23.8 PTO may be used in increments of 30 minutes or more so long as the employee(s) have notified their immediate supervisor or equivalent within thirty (30) minutes prior to the start of the work day or during the work day. Any PTO exceeding one (1) day must be scheduled in advance with the Employee’s immediate supervisor, unless taken due to illness or emergency. 23.9 PTO will take two forms: • planned time off which will be scheduled in advance with the supervisor's approval; • unplanned time off which will require notification of the supervisor within 30 minutes of the employee's scheduled work day if the employee is not at work, or notification of the supervisor before leaving work. 23.10 The unused balance of PTO shall be paid to an Employee leaving the city in good standing at the pay rate the Employee is earning at the time of separation from employment. ARTICLE XXIV - UNIFORMS/ BOOT ALLOWANCE The City will provide each employee an annual clothing allowance of $325.00 per year which will allow employees to purchase approved safety boots, jackets, bibs, t-shirts, Polos, sweat shirts, winter hats, gloves and jeans. The City will provide standard work gloves. If the employee prefers an alternative glove it will be paid for out of their clothing allowance. The City will provide 5 high visibility t-shirts each year. The employee is responsible for care of the clothing and the Employee recognizes that clothing must not be worn that does not meet safety standards. The City will replace high visibility jackets as needed with supervisor’s approval. ARTICLE XXV – SEVERANCE PAY Full-time Employees will be paid severance pay as follows: Employees who leave the employment of the EMPLOYER in good standing by retirement or resignation will receive pay for unused Paid Time Off as provided by Article 23 of this agreement. Good standing means the Employee notified an immediate supervisor a minimum of fourteen (14) days’ notice of their intentions to terminate or retire from the EMPLOYER. Employees have the option of 16 directing those dollars into a 457 deferred compensation plan (subject to IRS regulations and Minnesota law) or (MSRS). ARTICLE XXVI – ON-CALL POSITION 26.1 Worker on call Policy a. Local 49 members scheduled to be on-call on weekends shall be compensated Seventy Dollars ($70.00) per weekend day. b. Local 49 members scheduled to be on-call on weekdays shall be compensated Twenty-five Dollars ($25.00) per weekday. c. Local 49 members scheduled to be on-call on holidays shall be compensated Seventy Dollars ($70.00) per holiday day. d. Any time spent on-call will not count towards hours worked for purposes of calculating overtime, unless such Employee was actually called to answer and/or respond to an emergency call. Local 49 members and the Director of Public Works will make up the schedule to be on-call and carry the pager on weekends with the final approval by the Director of Public Works. ARTICLE XXVII – WAIVER 27.1 This AGREEMENT represents the complete and total AGREEMENT between the UNION and the EMPLOYER. 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. 27.2 The parties mutually acknowledge that during the negotiations which resulted in this AGREEMENT, each had the unlimited right and opportunity to make demands and proposals with respect to any term or condition of employment not removed by law from bargaining. All agreements and understandings arrived at by the parties are set forth in this AGREEMENT for the stipulated duration of this AGREEMENT. The EMPLOYER and the UNION each voluntarily and unqualifiedly waives the right to meet and negotiate regarding any and all terms and conditions of employment referred to or covered in this AGREEMENT or with respect to any term or condition of employment not specifically referred to or covered by this AGREEMENT, even though such terms or conditions may not have been within the knowledge or contemplation of either or both parties at the time this contract was negotiated or executed. 17 ARTICLE XXVIII- WAGES 28.1 Employees will be evaluated by their supervisors on their anniversary date of employment consistent with the step increases proposed below and a personal review of that evaluation will be required between the employee and the employee’s supervisor. The employee will complete a self- evaluation prior to review with supervisor. All employees will be eligible to move to the next step provided the employee meets the job performance criteria, in the sole discretion of the City. Full Time Maintenance Worker Effective 1/1/21: 3.25% COLA Step 1 Start $23.61 Step 2 1 Year Anniversary $24.92 Step 3 3 Year Anniversary $26.28 Step 4 5 Year Anniversary $27.72 Step 5 8 Year Anniversary $29.12 Effective 1/1/22: 3% increase Step 1 Start $24.32 Step 2 1 Year Anniversary $25.67 Step 3 3 Year Anniversary $27.07 Step 4 5 Year Anniversary $28.55 Step 5 8 Year Anniversary $29.99 Effective 1/1/23: 3% increase Step 1 Start $25.05 Step 2 1 Year Anniversary $26.44 Step 3 3 Year Anniversary $27.88 Step 4 5 Year Anniversary $29.41 Step 5 8 Year Anniversary $30.89 28.2 Any work performed by an Employee outside the bargaining unit shall not be subject to the wage scale included in this Article XXVIII. 28.3 Licensure Pay: Additional $.25 per hour premium for employees holding any of the following licenses: Service Provider, Class D Wastewater, Class E Water and Class C Water not to exceed one (1) license premium per employee. 18 ARTICLE XXIX – DURATION This AGREEMENT shall be effective as of January 1, 2021, and shall remain in full force and effect until December 31, 2023, and shall continue in effect from year to year thereafter unless either party shall give written notice at least sixty (60) days prior to any anniversary date of its desire to amend or terminate the Agreement. IN WITNESS WHEREOF, the parties hereto have executed this AGREEMENT on this ____ day of _________________, 2020. FOR THE CITY OF SCANDIA: FOR I.U.O.E. LOCAL NO. 49: ____________________________ __________________________ Christine Maefsky, Mayor Business Manager ____________________________ __________________________ Ken Cammilleri, City Administrator Business Representative __________________________ Steward 19 MEMORANDUM OF UNDERSTANDING Between LOCAL No. 49 and the CITY OF SCANDIA SUBJECT: Central Pension Fund of the International Union of Operating Engineers. PURPOSE:To Allow for Participation in the Central Pension Fund of the International Union of Operating Engineers APPLICABILITY: This letter applies to the International Union of Operating Engineers, Local No. 49 of the City of Scandia employees. STATEMENT OF UNDERSTANDING: The City of Scandia and Local 49 agree to continue in good faith the exploration of participation in the Central Pension Fund. Realizing the City’s concern of administrative costs as well as member’s willingness to participate, this memorandum of understanding can be terminated by either party prior to full enrollment in the plan. Should both parties agree to move forward, the following would apply: 1) Member participation will be by majority vote. 2) Employee contributions will be funded from their wage settlement. 3) Wages will be recalculated to reflect the amount of money contributed to the Central Pension Fund. The undersigned representatives for the Union and the City hereby agree this __________day of _______________, 2017. This Memorandum shall expire December 31, 2020. This Memorandum may be extended or modified by mutual agreement by both parties. For the City of Scandia For the International Union of Operating Engineers, Local No. 49; ______________________________ ______________________________ Neil Soltis, City Administrator Cory Bergerson, Area Business Rep. 20 Date: __________________________ Date: ________________________ MEMORANDUM OF UNDERSTANDING Between LOCAL No. 49 and the CITY OF SCANDIA The City of Scandia hereby agrees to provide all full time employees with Local 49’s bargaining premium health insurance, with the Employees responsible for twenty percent (20%) of the cost of their health insurance premium. This Memorandum may be extended or modified by mutual agreement of both parties and it shall expire December 31, 2020. City of Scandia International Union of Operating Engineers, Local No. 49 ______________________________ ______________________________ Neil Soltis, City Administrator Cory Bergerson, Area Business Rep. Date: _________________________ Date: __________________________ 21 MEMORANDUM OF UNDERSTANDING BETWEEN CITY OF SCANDIA AND INTERNATIONAL UNION OF OPERATING ENGINEERS, LOCAL NO. 49 The City of the Scandia and the Union hereby agree the City has until December 31, 2018 to explore the implementation of a phone or radio communication. If the City does not meet this deadline, the City and the Union will meet to discuss the implementation of a phone stipend for members of the bargaining unit. This Memorandum of Understanding will expire on December 31, 2020. _________________________ ___________________________ Neil Soltis, City Administrator Cory Bergerson, Area Business Representative Date: _____________________ Date: _______________________ 22 MEMORANDUM OF UNDERSTANDING Central Pension Fund City of Scandia The purpose of this Memorandum of Understanding is to assist both Labor and Management in identifying and implementing the Central Pension Fund (CPF) contribution rate. 1) The CPF is a supplemental Pension Fund authorized by Minnesota Statutes,§356.24, subdivision 1(10). 2) The parties agree that the agreed upon amount that would otherwise be paid in salary or wages will be contributed instead to the CPF as pre-tax employer contributions. Contributions from the City will not be funded from any source other than this wage reduction. 3) The Employer shall pay this contribution directly to the I.U.O.E. Central Pension Fund at 4115 Chesapeake Street NW, Washington, D.C. 20016. 4) For purposes of determining future wage rates, the Employer shall first restore the amount of the wage reduction, which is currently the CPF contribution rate of $1.50 per hour, then apply the applicable wage multiplier, then reduce the revised wage by the CPF contribution rate. 5) For purposes of calculating overtime compensation the Employer shall first restore the amount of the wage reduction ($1.50/hr.) then apply the applicable 1.5 wage multiplier required under the Fair Labor Standards Act and the collective bargaining agreement, then pay the resulting amount for overtime worked. 6) A contribution of $2.40 per straight time hour worked prevents annual CPF contributions for individual employees from exceeding $5,000.00 in a year and therefore complies with limitations set forth under Minnesota Statute § 356.24, subd. 1(10) as amended. 7) The parties agree that the Public Employees Retirement Association interprets employer contributions to the CPF as being included in determining "salary" for the purposes of the public pension. 8) The CPF Plan of Benefits and the Agreement and Declaration of Trust will serve as the governing documents. 9) Effective 1-1-2018 the contribution rate equals $1.50 for all straight time hours worked. 10) Members, by majority vote, may change the contribution rate at any time during the life of this agreement. The Union and the employer will work together to implement member approved changes as soon as is practicable. ________________________________ _____________________________ Employer: Cory Bergerson, Business Representative ________________________________ ______________________________ Date: Date: 23