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HomeMy WebLinkAboutResolution No. 007-26 - Resolution - Engineering Technicians Collective Bargaining Agreement 2026-2028 RESOLUTION Approving the Collective Bargaining Agreement with the Engineering Technicians’ Association (Union) for the calendar years 2026-28. WHEREAS, the Union and the City of Rochester are parties to an existing Collective Bargaining Agreement (CBA) that expired on December 31, 2025; and WHEREAS, representatives of the Union and representatives of the City of Rochester have negotiated a three-year Collective Bargaining Agreement (CBA) for the term of January 1, 2026 - December 31, 2028; and WHEREAS, Attachment A summarizes the changes negotiated to the existing CBA between the parties. NOW, THEREFORE, BE IT RESOLVED that the Common Council of the City of Rochester approves and ratifies the attached changes to the 2026-2028 CBA with the Engineering Technicians’ Association. PASSED AND ADOPTED BY THE COMMON COUNCIL OF THE CITY OF ROCHESTER, MINNESOTA, THIS __________ DAY OF _______________, 2026. ___________________________________ PRESIDENT OF SAID COMMON COUNCIL ATTEST: __________________________ CITY CLERK APPROVED THIS _____ DAY OF ______________________, 2026. ___________________________________ MAYOR OF SAID CITY (Seal of the City of Rochester, Minnesota) 1 | Page ATTACHMENT A 2026-2028 Engineering Technicians’ Association Summary of Collective Bargaining Agreement Changes Article 7 - Holidays A. All employees covered by this Agreement shall receive the following paid holidays, subject to the limitations below: 1. New Year's Day 2. Martin Luther King's Birthday 3. President's Day 4. Memorial Day 5. Juneteenth (June 19) 6. Independence Day 7. Labor Day 8. Veteran's Day 9. Thanksgiving Day 10. Day After Thanksgiving Day 11. ½-Day Christmas Eve 12. ½-Day New Year's Eve 13. Christmas Day B. Employees who are required to work on the actual day of the above holidays shall be paid at one and one- half (1-1/2) times the normal base hourly rate in addition to the holiday pay. C. Any employee who is on vacation that extends through a holiday period shall not be charged for a day or days of vacation for the holiday. th D. Whenever any of the listed holidays falls on a Saturday, except December 24 and December st 31, the preceding Friday shall be observed as a holiday. th E. Whenever any of the listed holidays falls on Sunday, except December 24 and December st 31, the following Monday shall be observed as a holiday. E.F. In the event Christmas Eve falls on a Sunday, it will be observed as a holiday on the preceding Friday. In the event Christmas Day falls on a Saturday, it will be observed as a holiday on the following Monday. G. To be paid for these holidays, it shall be necessary for the employee to work, or be on pre- requested vacation or sick leave, the day before and after the holiday. F.H. All regular, part-time employees working 20 or more, but less than 40 hours per week are eligible to earn pro-rated holiday benefits.To be eligible for the benefits provided by this Article, employment must be scheduled to last more than twelve (12) months and twenty (20) hours per week. Eligible employees working more than twenty (20) hours, but less than forty (40) hours per week will earn pro-rated holiday benefits. 2 | Page Article 8 – Vacation To be eligible for the benefits provided by this Article, employment must be scheduled to last more than twelve (12) months and twenty (20) hours per week. Eligible employees working more than twenty (20) hours, but less than forty (40) hours per week will earn pro-rated vacation benefits. A. Employees shall earn and be eligible to use accrued vacation benefits from the start of their regular employment. B. No accrued vacation benefits shall accrue be paid to an employee terminating within six (6) months of their employment starting date. G. When an employee separates employment with the City and when their accrued vacation balance (including the “saved” vacation accrual balance, if applicable) is in excess of three hundred (300) hours, the City will multiply one hundred percent (100%) of the employee’s entire outstanding accrual balance by the employee’s rate of pay at that time. This amount will then be contributed to a healthcare savings account (HCSP). However, when an employee has applied for and been granted an irrevocable waiver of participation by MSRS and provided to the Employer written documentation of such waiver: amounts payable for unused vacation in the event of an eligible employee’s separation shall be paid to the employee rather than to the MSRS Health Care Savings Plan. Such payments to the employee shall be subject to normal payroll withholdings as required by law. Article 10 – Health and Dental Coverage and Life Insurance To be eligible for the benefits provided by this Article, employment must be scheduled to last more than twelve (12) months and twenty (20) hours per week. Eligible employees working more than twenty (20) hours, but less than forty (40) hours per week will earn pro-rated insurance benefits. A. The City shall provide term life insurance in an amount equal to two (2) times the employee’s annual salary rounded to the next higher thousand dollars as outlined in the master policy on file in the City Clerk’s office. All new employees are eligible to receive life insurance effective the first (1st) day of the month following their date of hire and continuing while actively employed. An employee’s life insurance shall cease on their termination date. Continuation of coverage will be available as provided by Federal and/or State law and other provisions of this agreement. B. The City will provide group medical insurance to eligible employees and pay a portion of the total premium as follows: Medical Plan City’s Monthly Premium* Basic Medical Plan Tier Effective Effective Effective 20232026 20242027 20252028 Employee Only 8887.00% 87.5000% 87.00% Employee + Spouse 8483.50% 8483.0050% 83.50% Employee + Child(ren) 8483.50% 8483.0050% 83.50% 3 | Page Family 8483.50% 8483.0050% 83.50% High Deductible Plan Effective Effective Effective 20232026 20242027 20252028 Employee Only 8887.00% 87.5000% 87.00% Employee + Spouse 8483.50% 8483.0050% 83.50% Employee + Child(ren) 8483.50% 8483.0050% 83.50% Family 8483.50% 8483.0050% 83.50% The employee’s share of the premium will be paid through a payroll deduction. The employee contribution towards the cost of coverage(s) is divided among twenty-four (24) pay periods. No payroll deductions are taken on the third pay period in any month. C. The City shall contribute the following amounts to a Health Savings Account (HSA) for all benefit-eligible employees selecting the High-Deductible Health Plan coverage: High-Deductible Medical Plan Annual Contribution to HSA* Employee Only $1,400.00 Employee + Spouse $2,800.00 Employee + Child(ren) $2,800.00 Family $2,800.00 *The annual contribution to the Health Savings Account is paid over 24 pay periods. D. The City will provide group dental coverage and will pay one hundred (100) percent of the cost of employee coverage. Dependents may participate in the same group dental coverage at the employee’s expense. The City will pay eighty-five (85) percent of the cost of dependent coverage. E. New employees who are eligible for health, dental and life insurance shall have coverage st effective the first (1) day of the month following their date of hire. F. An employee on an authorized leave of absence from City employment who does not have nd earnings on the second (2) pay date of the month must submit payment for individual and/or th family health coverage to Human Resources prior to the twenty-fifth (25) of the month in order to maintain coverage(s). During a Family and Medical Leave Act (FMLA) leave of absence, the City will continue to pay its portion of the employee and dependent coverage(s) cost. The employee is responsible for the remainder of the cost of the coverage(s). Failure by the employee to make a timely payment as described above will result in the loss of coverage(s). G. An employee’s group health coverage shall cease on the last day of the month in which the employee terminates employment from the City. H. The City assumes no liability or responsibility for insurance coverage if the employee fails to fulfill their responsibility under Sections F and G of this Article. I. The City assumes no liability or responsibility for failure to insure or for lapsed or expired coverage. 4 | Page J. Continuation of coverage will be available as provided by Federal and/or State law and other provisions of this Agreement. Article 13 - Wages st An employee salary schedule effective the first (1) payroll cycle in January 20232026, January 2024 2027 and January 2025 2028 is attached to this Agreement marked Appendix A. The prevailing schedule of hourly wages for all bargaining unit positions shall be increased by two four percent (24%), two three percent (23%), and three two percent (32%) respectively. To be eligible for the general wage increases reflected in Appendix A, the employee must be stst employed by the City prior to March 31, of the first (1) year of the successor contract and on the date of ratification of this Agreement by both parties. A one-time lump sum payment in the amount of $1,000 shall be paid to employees in active payroll status as of December 1, 2024, with the lump sum payment being paid the second pay date in December of 2024. With the approval of the Public Works Department Head and the Director of Human Resources, new employees may be placed on a higher step in the wage grid which factors in the candidate’s employment qualifications, market conditions or other position-related criteria. Article 16 – Grievance Procedure Step Four The request for arbitration must be made to the Director of Human Resources within six (6) working days of the determination of impasse. If the City and the Association can agree on an arbitrator, such person shall be named as arbitrator for this grievance. In case both parties cannot agree on an arbitrator within six (6) working days, they shall request a list of names from the Bureau of Mediation Services (BMS). The selection of an arbitrator will be made in accordance with the rules governing the arbitration of grievances as established by the Bureau of Mediation Services. The arbitrator shall be notified of their selection by a joint letter from the City and the Association. The arbitrator shall consider only the specific issue presented to him/herthem and shall have no power to add to, subtract from, or modify in any way the terms of this Agreement. The arbitrator's decision shall be rendered within thirty (30) days of the close of the hearing or submission of written briefs by the parties, whichever is later. It is understood by both parties that: 1. The cost of the arbitrator shall be paid equally by the City and the Association. 2. Each party shall pay the cost of its witnesses, legal fees, and representatives. 3. The decision of the arbitrator shall be final and binding. 4. In the event a cancellation penalty is charged by the arbitrator, the party requesting the cancellation will pay such penalty, unless otherwise mutually agreed. 5 | Page Grievances presented by the City against the Association or an employee shall be filed in writing with the Association President. If the grievance is not settled to the satisfaction of the City within six (6) working days, it shall go to arbitration at the request of the City in the same manner and with the same provisions outlined in this Agreement for employee initiated grievances. Choice of Remedy If the grievance remains unresolved after Step Three or Step Four, the grievance may be referred to either Step Five or to a procedure such as Civil Service, Veteran’s preference, or Human Rights. If appealed to any procedure other than Step Five, the grievance is not subject to arbitration pursuant to Step Five. The employee shall indicate in writing which procedure the employee chooses to use. An employee pursuing a remedy pursuant to a statute under the jurisdiction of the United States Equal Employment Opportunity Commission may also pursue an appeal under the grievance procedure of this Agreement. If a court of competent jurisdiction rules contrary to the ruling in EEOC v. Board of Governors of State Colleges and Universities, 957 F.2d 424 (7th Cir.), cert. denied, 506 U.S. 906, 113 S. Ct. 299 (1992), or if Board of Governors is judicially or legislatively overruled, the italicized portion of this section shall be null and void and deleted. Article 18 – Duration of Agreement st The Agreement shall be effective as of the first (1) day of January 20232026, and shall remain st in effect through the thirty-first (31) day of December 20252028. Article 25 – Promotional Procedure A. When a job opening occurs within the Engineering Technicians’ Association’s bargaining unit, it shall be posted internally and externally for a minimum of five (5) working days. The posting shall be prepared in standard Human Resources job posting format. B. Employees within the Public Works Department who are qualified shall be considered simultaneously with external candidates for promotion or transfer opportunities. Article 27 – Unused Sick Leave To qualify for any provision of this Article, Unused Sick Leave, the employee must be an active employee who has accrued ten (10) or more years of continuous full-time or part-time regular service with the City of Rochester. For employees hired prior to January 1, 2013: When an employee separates employment, the City will convert forty (40) percent of the employee’s unused sick leave balance to be deposited to an individual Minnesota State Retirement System (MSRS) Health Care Savings Plan (HCSP). The dollar value of the accumulated sick leave hours will be equal to forty (40) percent of the total accumulated sick leave hours at the time of separation multiplied by the employee’s hourly rate of pay at the time of separation. Regular part-time employees (those regularly scheduled for twenty \[20\] to thirty-nine \[39\] hours per week) and who are not designated as temporary or seasonal will be eligible to convert forty (40) percent of their accumulated sick leave. 6 | Page For employees hired on or after January 1, 2013: All employees, except those who are discharged for cause, shall convert forty (40) percent of the employee’s first twelve hundred (1200) hours of accumulated but unused sick leave balance upon separation of employment. This amount shall be deposited into an individual Minnesota State Retirement System (MSRS) Health Care Savings Plan (HCSP) and calculated at the employee’s regular rate of pay at time of separation. In case of permanent disability of an active employee, as determined by PERA, an amount equal to one hundred (100) percent of unused sick leave will be deposited in a MSRS Health Care Savings Plan for the use of the employee as governed by MSRS rules. In case of the death of an active employee who has a dependent(s), an amount equal to one hundred (100) percent of unused sick leave balance will be paid in cash (less required State and Federal withholdings) to the dependent(s). When an employee has applied for and been granted an irrevocable waiver of participation by MSRS and provided to the Employer written documentation of such waiver; amounts payable for unused sick leave in the event of an eligible employee’s separation or permanent disability as specified above shall be paid to the employee rather than to the MSRS Health Care Savings Plan. Such payments to the employee shall be subject to normal payroll withholdings as required by law. Article 28 – Safety Equipment 1 The City will reimburse an employee a maximum amount of five hundred twenty-five dollars ($525.00) for the three-year term of this Agreement for the purchase of City-approved safety items provided an original receipt is submitted when requesting reimbursement. Items that may be covered by this provision include safety shoes, safety shoe insoles, prescription sunglasses, safety sunglasses, safety jackets, rain suits, rubber boots and other safety items approved by management. Any employee hired in the third year of this agreement will be limited to a maximum safety reimbursement of one hundred and seventy-five dollars ($175.00). In the event an employee leaves employment prior to the end of the contract term and has collected more than the annually prorated amount of this benefit, such excess amount paid shall be withheld from any final pay or shall be repaid to the City by the employee. The City and Association agree to meet annually to review the list of City-approved safety equipment covered by this Agreement. 1 The safety reimbursement is set up for $175 for each year of this Agreement. The City will reimburse all employees covered under this Agreement for the purchase of safety footwear and other personal safety items/equipment, approved by management, up to the maximum of $675 for the term of this Agreement:  The reimbursement amount will be prorated annually ($225 per year) if an employee is hired during the term of this agreement.  In the event an employee leaves employment or transfers to another bargaining unit prior to the end of the contract term and has collected more than the annual prorated amount, the reimbursement shall be prorated monthly, and such excess amount paid shall be withheld from any final pay or shall be repaid to the City by the employee. 7 | Page  Safety footwear eligible for reimbursement must meet ASTM-2412 or ASTM-2413 standards and may include insoles and/or protective coatings. The City will not reimburse for the re-soling of safety footwear, clip-on steel toe caps, or protective toe covers.  Other personal safety items/equipment eligible for reimbursement require prior management approval and may include safety rubber boots, safety jackets, and/or upgraded safety items not provided by the department.  The reimbursement may also be used for employee-designated upgrades or enhancements under the City’s Prescription Safety Eyewear program.  Employees will only be eligible for reimbursement when the original receipt is submitted for reimbursement within 3 months of the purchase or within the contract year, whichever comes first.  There shall be no pyramiding or compounding of safety reimbursement if an employee transfers between departments/bargaining units. If prescription safety glasses are required, the City will reimburse the employee for the cost of lenses and City-approved frames under the City’s Prescription Safety Eyewear program. The examinations are specifically excluded. All City-provided safety clothing and Personal Protective Equipment will be required to be worn when performing safety-related duties. Article 30 – Step Adjustments Beginning in 2023, existing employees will be given a choice to follow either the existing tenure-based wage grid (Base Wage Grid), which requires 16 years of service to reach the maximum wage step; or follow the Accelerated Wage Grid, which allows for accelerated step progression, based on the successful completion of competencies, in order to advance to the maximum wage step, along with annual lump-sum merit payment after reaching the maximum step. Existing employees (hired before January 1, 2023) can opt into the accelerated grid at any time, but cannot revert-back to the original Base Wage Grid after opting-in. Prior to making their irrevocable choice, employees interested in the competency-based Accelerated Wage Grid will be advised how they will transition to the wage grid and the competencies required for advancement. All employees hired after January 1, 2023, will be required to follow the competency-based Accelerated Wage Grid. Employees reassigned within this bargaining agreement can retain their grid designation. A. Employees who elected to follow the existing Base Wage Grid will move to their next eligible step in the pay period that most closely aligns with their anniversary or promotional date in their job classification providing the employee received a successful performance evaluation rating of “Meets Expectations” or “Exceed Expectations” for that year. B. Beginning in 2023, employees who elect to follow the competency-based Accelerated Wage Grid will be placed at their current wage step and will move to their next eligible step in the pay period that most closely aligns with their anniversary or promotional date in their job classification, provided they meet the competencies required for advancement to Steps D, G and I, contained in Appendix A. Interim step advancement is also available, based on tenure, provided an employee’s annual performance rating is “Successful””Meets Expectations” or 8 | Page “Exceeds Expectations” and they are making progress, as determined by their supervisor, in obtaining the competencies necessary for advancement to Steps D, G or I. Once an employee following the competency-based Accelerated Wage Grid has been at Step I for at least one year, they shall be eligible for a lump-sum merit payment of a minimum of one-three-fourtshalf of a percent up to a maximum of two and one-halfthree- fourths of a percent (0.75% to 2.75%), based on their performance. The lump-sum merit payment shall be in the pay period that most closely aligns with their anniversary date. C. Performance evaluations that have not been completed two (2) months after the employee’s anniversary and/or promotional date shall be subject to the grievance process; however, step adjustments shall not be subject to the grievance process. D. Newly hired employees will generally be placed on Step A of the wage grid. With the approval of the Department Head and the Director of Human Resources, newly hired or promoted employees may be advanced steps within the grid due to consideration for previous work history or to accommodate an increase in wages for internal promotions. At the discretion of the Department Head and Human Resource Director, an employee’s wage step may be adjusted upward in order to maintain internal equity or due to market competitiveness, provided it does not supersede the milestone criteria. E. All general wage grid adjustments will be effective the first full pay period of January for all contract years. E.F. There shall be no step progression, or lump-sum merit payments after December 31, 2028, except as may be negotiated in the successor Collective Bargaining Agreement. Article 31 – Standby B. An employee who is instructed to remain in a standby status shall be compensated for such time at the rate of thirty forty dollars ($3040.00) per night (end of workday shift to start of the next day shift) on Monday, Tuesday, Wednesday, Thursday, and Friday; one two hundred fifty dollars ($150200.00) for week-end coverage which begins at the 7:00 a.m. on Saturday to the start of the work shift on the following Monday morning; and seventy ninety dollars ($7090.00) for a half-day or full-day holiday as listed in Article 7 of this Agreement. All standby premiums will be paid as earned wages. If the holiday falls within the timeframe of Tuesday through Thursday, the start of the standby period shall be from the end of the work day prior to the holiday to the start of the next workday following the holiday. If the holiday falls on a Friday or Monday, the weekend standby will be added to the holiday standby with the standby period running from the preceding workday to the start of the next workday. Article 32 – Option to Purchase City-Sponsored Health Coverage, Dental Coverage, and/or Life Insurance after Retirement An employee who retires from regular full-time employment with the City of Rochester may continue to participate in the City-sponsored benefits the employee had immediately prior to retirement pursuant to state and federal law, the City’s Organizational policies, as well as benefit plan documents. Spouses of deceased retirees will be allowed to continue coverage under state and federal law. 9 | Page An employee who retires from regular full-time employment with the City of Rochester may continue to participate indefinitely in the City-sponsored health and/or dental insurance group that the employee participated in immediately prior to retirement. The retiree may receive dependent coverage only if s/he received dependent coverage immediately prior to retirement. A retiree who initially selects dependent coverage may later drop dependent coverage while retaining individual coverage, but the retiree may not drop individual coverage and retain dependent coverage. City-sponsored life insurance may be continued until the retiree’s th seventy-fifth (75) birthday. In order to retain City-sponsored health and/or dental coverage or life insurance, the retiree and their spouse, if applicable, must authorize the requisite deductions from a checking or savings account in the amount that is designated by the City and may be changed from time to time through written notification from the City. If a retired employee dies, the surviving spouse may continue to participate in the City- sponsored health and/or dental insurance group that the surviving spouse participated in at the time of the retired employee’s death. The surviving spouse must authorize the requisite deductions from a checking or savings account in the amount that is designated by the City and may be changed from time to time through written notification from the City. For the retiree, until age sixty-five (65), the amount of life insurance coverage which can be purchased is any amount, in thousand dollar-increments, between a minimum of ten thousand dollars ($10,000.00) and a maximum of the amount of coverage available to the employee on th the date of retirement from the City of Rochester. Beginning on a retiree’s sixty-fifth (65) birthday, the amount of life insurance coverage is limited by the underwriter to ten thousand dollars ($10,000.00). Any life-time maximum benefit designated in the City’s health coverage plan document continues to be applied after retirement. 34 – Limited Appointment Employees Employees hired to fill the limited appointment positions will be members of the bargaining unit represented by the Union/Association and will be covered by all the terms and conditions of employment set forth in the current CBA except as follows: A. Each limited appointment employee may work up to a maximum of one thousand forty (1,040) hours during each calendar year. The Employer shall determine the daily work schedule for limited appointment employees. B. Each limited appointment employee shall be excluded from all wage and benefit provisions of the CBA during the first one thousand forty (1,040) hours worked by said employee each calendar year. C. The hourly rate of pay for a limited appointment employee may be less than, but shall not be greater than sixty percent (60%) of the Step A wage rate established for engineering technicians as identified in the 2026-2028 CBA, Appendix A. D. Limited appointment employees shall not accrue seniority under the CBA. 10 | Page E. Limited appointment employees may have their appointment terminated or hours reduced at the sole discretion of the Employer and without recourse to the grievance procedure set forth in the CBA. Appendix A – Wage Grid For Advancement to Step D** Employees must have been at Step C for at least 1 year, and:  Complete all required job training;  Obtain all required certifications;  Successfully performing all regular job duties; and  Demonstrate the ability to work effectively with others (teamwork). Once it is determined that an employee has the competency requirements to be placed at Step D, they shall annually advance to Steps E and F, provided their performance is “Successful””Meets Expectations” or “Exceeds Expectations” and they are making progress, as determined by their supervisor, in obtaining the competencies necessary for advancement to Step G. For Advancement to Step G** Employees must have been at Step F for at least 1 year, and demonstrate proficiency in at least 4 of the following 6 competencies:  The ability to perform increasingly complex job tasks;  Increased independence in performing job duties;  Problem solving on their own;  Contribution to process/policy/program improvements;  Increased responsibility for communicating with customers/stakeholders;  Responsibility for record-keeping, archiving, or other project documentation. Once it is determined that an employee meets the competency requirements to be places at Step G, they shall annually advance to Steps H, provided their performance is “Successful””Meets Expectations” or “Exceeds Expectations” and they are making progress, as determined by their supervisor, in obtaining the competencies necessary for advancement to Step I. For Advancement to Step I** Employees must have been at Step H for at least 1 year, and demonstrate proficiency in at least 4 of the following 6 competencies:  Independence in daily workload, by working with little or no supervision;  Completion of leadership coursework and training;  Commitment to continuous improvement and learning;  Mentorship of less-experienced teammates by being a resource or SME;  Leading special projects;  Coordinating City projects independently or with little oversight. **The process to formally approve advancement to Steps D, G and I will include a 3-person review panel consisting of the employee's supervisor, another supervisor selected by the employee, and another supervisor selected by the employee's supervisor who will determine if the employee meets the competency criteria necessary for advancement to Steps D, G and 11 | Page I. If in the event the review panel does not determine an employee has met the competency criteria necessary for advancement to Steps D, G and I, they shall remain at the step preceding Steps D, G and I, even if their annual performance rating is “Successful””Meets Expectations” or “Exceeds Expectations”. Delete Obsolete MOU/MOA’s, Contract Clean-up Delete the following MOU/MOA’s  2024 & 2025 Wage Schedule and Continuation of Benefits MOU  Performance Evaluation Language  Holidays Eliminate he/she pronouns and other grammatical errors. 12 | Page