HomeMy WebLinkAbout1998-05-20 PACKET 04.J.REQiJEST OF CITY COl1IVCIL ACTIC)td COUfVCIL AGENDA
MEETIPdG ITEM #
DATE 5/20/98 �� t�- ._�
PREPARED BY Administration Micheile Wolfe
ORIGIRIATING DEP,4RTMENT STP.FF AUTHOR
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Rpprove Hesith Insurance Changes and Employer Contribution for Certain Empioyee Groups
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SUPPORTING DOCUMENTS
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� MEMO/LETTER: Memo from Michelie
❑ RESOLUTION:
❑ ORDINANCE:
❑ ENGINEERING RECOMMENDATION:
❑ LEGAL RECOMMENDATION:
❑ OTHER:
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Wolfe dated May 15, 1998.
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City Administrator Date
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COUNCIL ACTION TAKEN: ❑ APPROVED ❑ DENIED ❑ OTHER
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To: Honorabie Mayor and City Council
Ryan R Schroeder, City Administrator
From: Michelle Wolfe
Date: 05/15/98
Re: Approval of Heaith Insurance Changes and Employer Contribution for Certain
Empioyee Groups
BACKGROUND
Recentiy, the City Councii approved a new bargaining unit agreement with the Police
Sergeants group. This agreement inGuded an increase in the employer contribution
from $325lmonth to $350/month and changes to the heaith plan. These changes
were an increase in the co-pay from $10 to $15, and the elimination of out-of-network
coverage. City employees had recently experienced an increase to the family
premium of over $90 per month. The increase in employer contribution and the
changes to the health plan resulted in significant savings for employees.
Previously, other bargaining groups (clerical, fire, public works, and dispatchers) had
agreed to a$340 empioyer contribution, provided that if the police officers received
more, they would get the same amount. However, we have not reached agreement
on a contract with the police union, and will be proceeding to interest arbitration. Ttiis
means that there will not be a hearing until late summer, and a decision will not be
rendered until sometime after the hearing. Essentially, it will be Fall before the police
cantract is settied via arbitration.
Meanwhile, the employees experienced a$90+ increase to family premiums on April
1, Since we reached agreement with the Sergeants, we went back to the other
groups and asked if they wouid be willing to accept the same package. They have ali
since agreed. We are now seeking approval to impiement the same 1998 insurance
package for the foliowing groups: ciericai, fire, dispatchers, public works and non-
represented employees. The plan changes have been implemented effective May 1.
RECOMMENDATION
Impiement the employer contribution of $350 per month for all employees except
those covered by the police officers bargaining unit. This change will be effective P,pril
1, 1998, as per the agreement reached under the Police Sergeant contract.
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