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Home My WebLink About01/06/2004, C7 - ADDENDUM TO THE MEMORANDUM OF AGREEMENT BETWEEN THE CITY AND THE SAN LUIS OBISPO POLICE OFFICERS' A council I_U ..� j agenda REpout 1k.Nhw CITY OF SAN LUIS OBISPO FROM: Monica.Moloney, Director of Human Resources Prepared by: Karen Jenny, Risk Manager SUBJECT: ADDENDUM TO THE MEMORANDUM.OF AGREEMENT BETWEEN THE CITY AND THE SAN LUIS OBISPO POLICE OFFICERS' ASSOCIATION CAO RECOMMENDATION Adopt a resolution approving an Addendum to the Memorandum of Agreement between the City and the San Luis Obispo Police Officers' Association. DISCUSSION The 2000-04 Memorandum of Agreement (MOA) between the City of San Luis Obispo and the San Luis Obispo Police Officers' Association (POA) included a formula for calculating the increase to the City's contribution to the cafeteria plan for health insurance in 2003 and 2004. The formula stated that the City's contribution to the cafeteria plan would be increased by the average increase for family coverage for the Health Maintenance Organizations (HMO's) available in San Luis Obispo County. The MOA required the City and the POA to meet and confer on a modification to the formula if fewer than three HMO's became available, which did occur in 2003. After several meetings, a tentative agreement was reached with the POA that mirrors a recent agreement with the Police Staff Officers' Association (SLOPSOA). Because of frequent transfers between associations it is reasonable to keep the City contribution at or near the same level between these two associations. This ensures that transfers are not viewed negatively due to a decrease in contribution to health premiums when a Police Officer is promoted to a position covered by SLOPSOA. The details of the tentative agreement for a three-tiered cafeteria contribution are as follows: Effective Effective Current December 2002 December 2003 Employee Only $290 $373 $415 Employee+1 $540 $663 $754 Family $690 $885 $995 Council Agenda Report—San Luis Obispo Police Officers' Association Page 2 Addendum to the Memorandum of Agreement The increase in the City's contribution is slightly more than the average increase in premiums from 2002 to 2003. For 2004,the increase represents a cost-sharing of the average premium increases,with the City picking up 80% of the increase and the employee absorbing 20%. Future contributions to health insurance premiums will be negotiated as part of the overall negotiations for a successor MOA beginning July 1,2004. FISCAL IMPACT The cost of the increase to the cafeteria plan contribution for fiscal year 2003-04 is approximately $158,000. Adequate funding for this increase is currently available in the MOA adjustment account. ALTERNATIVES Because the addendum complies with previous Council direction, is similar to tentative agreements recently reached with other units (including SLOPSOA), and demonstrates the City's and the POA's willingness and ability to craft a mutually satisfactory agreement in a collaborative manner, no alternatives are presented for Council consideration. ATTACHMENTS Resolution Addendum G:1Agenda Repom\Addendum To SLOPOA MOA For Cafeteria Contribution.Doc RESOLUTION NO. (2004 Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO ADOPTING AND RATIFYING AN ADDENDUM TO THE MEMORANDUM OF AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE SAN LUIS OBISPO POLICE OFFICERS' ASSOCIATION FOR THE PERIOD OF JULY 17 2000 - JUNE 30,2004 BE IT RESOLVED, that the City Council of the City of San Luis Obispo hereby resolves as follows: SECTION 1. The Addendum to the Memorandum of Agreement between the City of San Luis Obispo and the San Luis Obispo City Police Officers' Association (POA), attached hereto as Exhibit "A" and incorporated herein by this reference, is hereby adopted and ratified. SECTION 2. The Finance Director shall adjust the Personnel Services appropriation accounts to reflect the negotiated compensation changes. SECTION 3. The City Clerk shall furnish a copy of this resolution and a copy of the executed Memorandum of Agreement approved by it to: Dale Strobridge, San Luis Obispo Police Officers' Association, and Monica Moloney, Director of Human Resources. Upon motion of , seconded by and on the following roll call vote: AYES: NOES: ABSENT: the foregoing resolution was adopted this day of 2004. ATTEST: Lee Price, City Clerk Mayor David F. Romero APPROVED AS TO FORM: Jonathan P. Lowell, City Attorney Exhibit "A!'- ADDENDUM #3 TO THE MEKORANDUH OF AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE SAN LUIS OBISPO POLICE OFFICERS' ASSOCIATION ARTICLE 17 HEALTH CARE INSURANCE 17.1 CONTRIBUTION City shall contribute the monthly amounts as set forth below for Cafeteria Plan benefits for each regular, full time employee covered by this agreement. Less than full-time employees shall receive a prorated share of the City's contribution. This contribution will be effective in December 2002 for insurance covering the month of January 2003. Employee $372.00 Employees Plus One $663.00 Family $885.00 Effective in December,2003 for insurance covering the month of January, 2004,the contributions will be as follows: Employee $415.00 Employee Plus One $754.00 Family $995.00 The Cafeteria Plan amount is inclusive of mandatory dental and vision coverage. Employees shall be eligible for the City contributions set forth above based on the number of dependents they enroll in the PERS Health Benefit Program. Employees opting out of health coverage as provided for below, shall also receive payment at the employee only level. 17.2 INSURANCE COVERAGE A. PERS Health Benefit Program The City has elected to participate in the PERS Health Benefit Program with the "unequal contribution option" at the PERS minimum contribution rates,currently $16 per month for active employees and 59.00 for retirees. Effective January, 2004, the S16 minimum contribution will increase to $32.20. The City's contribution toward retirees shall be increased by 5% per year of the City's contribution for the active employees until such time as the contributions for employees and retirees are equal. The City's contribution will come out of that amount the City currently contributes to employees as part of the Cafeteria Plan. The cost of the City's participation in PERS will not require the City to expend additional funds toward health insurance beyond what is already provided. in summary,this cost and any increases will be borne by the employees. B. Health Insurance Coven=Qptional Participation Employees with proof of medical insurance elsewhere are not required to participate in the PERS Health Benefit Program and may receive the unused portion of the City's contribution(after dental and vision insurance is deducted) in cash in accordance with the City's Cafeteria Plan. Those employees will also be. assessed $16.00 per month to be placed in the Retiree Health Insurance Account. This account will be used to fund the Citys contribution toward retiree premiums and the City's costs for the Public Employee's Contingency Reserve Fund and the Administrative Costs. However, (here is no requirement that these funds be used exclusively for this purpose nor any guarantee that they will be sufficient to fund retiree health costs,although they will be used for negotiated employee benefits C. Dental and Vision Insurance/Dependent Coverage Employees will be required to participate in the City's dental and vision plans at the employee only rate. Should they elect to cover dependents in the City's dental and vision plans, they may do so, even if they do not have dependent coverage under PERS. Ct) D. Long Term Disability insurance(LTD) Sworn employees are covered for Long Term Disability Insurance through the Association and are responsible for premium payments. Non-sworn employees continue to be covered under the City's Long Term Disability Insurance Program. 17.3 FLEXIBLE BENEFITS PLAN The 1988-1993 addendum outlining the flexible benefits plan is incorporated herein as Appendix E. The non-reimbursed maximum medical cost will be $3,000 per calendar year. 17.4 REPRESENTATION ON A MEDICAL PLAN REVIEW COMMITTEE The Association shall appoint one voting representative to serve on a Medical Plan Review Committee. In addition, the Association may appoint one non-voting representative to provide a wider range ofviewpoint for discussion_ A. Duties and Oblizations of the Medical Plan Rcview Committee The duties and obligations of the Medical Plan Review Committee shall be to: 1. Review and suggest changes for the City's flexible benefits plan and the insurance plan offered under the MOA. 2. Submit to the City and its employee associations recommendations on proposed changes for the City's flexible benefits plan and the insuranec plans offered under the MOA. 3. Disseminate information and educate employees about the City's flexible benefits plan and the insurance plans offered under the MOA. 4. Participate in other related assignments requested by the City and its employce associations. B. Miscellaneous 1. The actions of the Medical Plan Review Committee shall not preclude the Association and the City from meeting and conferring. No recommendation of the Medical Plan Review Committee on matters within the scope of bargaining shall take effect before completion of meet and confer requirements between the City and the Association. 3. If changes to the City's flexible benefits plan are subject to meet and confer requirements,the City and the Association agree to meet and confer in good faith. 4. In performing its duties, the Medical Plan Review Committee may consult independent outside experts. The City shall pay any fees incurred for this consultation, provided that the City has approved the consultation and fees in advance. 42.1 HEALTH INSURANCE FOR UNIT MEMBER SURVIVORS The City shall maintain and pay for the existing level of benefits for one (1)year for the surviving family of a unit member who dies while in the line of duty. 7:=/ UIS OBISPO FOR THE POLICE OFFICERS ASSOCIATION 6 Le, Via= A� William Avery Dale Strobridge Dated /10 D Dated z�-08-' 2o4'�