Special MeetingItem 11aApproved
Approval of Labor Agreement with International Union of Operating Engineers, Local 49 (2026–2027)
The council approved a two-year labor agreement with the International Union of Operating Engineers, Local 49, covering labor and trades employees effective January 1, 2026 through December 31, 2027. The agreement included cost-of-living and market adjustments, increased clothing and safety boot allowances, licensure and certification pay adjustments, and continuation of insurance benefits including Minnesota Paid Leave. The resolution passed unanimously 4-0 (Resolution 12391).
Approved 4-0
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Potential benefit
Competitive compensation and updated benefits help the city retain and attract skilled public works and trades employees who maintain roads, infrastructure, and city facilities that residents rely on daily.
Concern to consider
Labor cost increases from wage adjustments and enhanced allowances will be reflected in the city operating budget, potentially influencing future tax levies or service funding decisions.
What happens next: The agreement took effect January 1, 2026 and runs through December 31, 2027. No further council action is required unless renegotiation occurs prior to expiration.
Sources: Special Meeting minutes (city portal) ↗
Special MeetingItem 11bApproved
Modification of Healthcare Savings Plan for Police Patrol (LELS Local #123)
The council approved modifications to the post-employment Healthcare Savings Plan (HCSP) for police patrol officers under LELS Local #123, effective January 1, 2026. Key changes included immediate HCSP enrollment upon employment, a shift from fixed-dollar to percentage-based employer contributions, and directing unused leave balances into the HCSP rather than paying them out as cash. The resolution passed unanimously 4-0 (Resolution 12392).
Approved 4-0
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Potential benefit
Immediate enrollment and percentage-based contributions create a more equitable, salary-linked retirement health benefit structure for officers, which can improve long-term retention of police personnel.
Concern to consider
Eliminating cash payouts for unused leave reduces officers' short-term financial flexibility upon separation, which could be a point of contention in future contract negotiations.
What happens next: The modified Healthcare Savings Plan took effect January 1, 2026. No further council action is required on this item.
Sources: Special Meeting minutes (city portal) ↗
City CouncilItem 11.a.Outcome pending
2026-2027 Labor Agreement with IUOE Local 49 (Labor and Trades Bargaining Unit)
The City Council considered a two-year labor agreement with International Union of Operating Engineers Local 49, covering Labor and Trades employees, effective January 1, 2026 through December 31, 2027. The contract includes a 3% cost-of-living adjustment plus 1% market adjustment each year, increased clothing and boot allowances, and updated licensure/certification pay. Total cost increase is approximately $125,921.35 in 2026 and $130,827.70 in 2027, with a roughly $30,000 funding gap to be covered by offsetting reductions within Public Works divisions.
final tally arrives when the city publishes the minutes
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Potential benefit
Ensures fair, competitive pay for City Labor and Trades workers (Public Works, Parks, Streets, Utilities, Water Plant), supporting recruitment and retention of staff who maintain city infrastructure residents rely on daily.
Concern to consider
The agreement costs the City about $125,921 in 2026 and $130,828 in 2027, with a roughly $30,000 gap requiring budget cuts elsewhere in Public Works divisions like Parks, Streets, and Recreation.
What happens next: If adopted, the agreement takes effect January 1, 2026, and the City Manager is authorized to execute it; the roughly $30,000 funding gap will be addressed in the 2026 revised budget.
Sources: City Council agenda (city portal) ↗