05-744Council File # �`I
Green Sheet # �a���
RESOLUTION
SAINT PAUL, MINNESOTA
Presented
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RESOLVED, that the City Council of the City of Saint Paul hereby approves and ratifies the
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attached Memorandum of Agreement between the City of Saint Paul and the Operating Engineers,
Local #70 regarding health insurance options and contributions for the 2006 benefit year.
Requested by Department of:
AdoptedbyCouncil: Date .f'l�Ci.�Bf a`f, �ODS
AdopUon Certified/b� Co�t}c:il �cretary
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Approved by�y�r: Date _
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Hnuiaii Resources
By:
Form Approved b City ttorney
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Approved by Mayor for Submission to Council
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� Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet �
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Departrnent/office/council: Date Initiated: V'J ���
H „ ���,� O5-AUG-0S Green Sheet NO: 3027624
CoMact Person 8 Phone: Oeoartment Serrt To Person InitiallDate
Jason Schmidt � 0 Resom�ccs
266 A55igt1 1 Resources De entDiredor �
Must Be on Council Agenda by (Date): Number Z • Aaome
For
Routing 3 or•sOSce Mavor/Assistant
Order 4 ��
5 ' Clerk CStv Clerk
ToWI # of S'�gnafure Pages _(Cfip Ati Locations for Signature} -
Action Requested•
Resolution approving the attached Memorandum of Ageementbetween the City of Saint Paul and the Operating Engineers, Local #70
regazding health insm•auce options and contdbution levels for the 2006 benefit yeaz.
Recommendations: Approve (A) or Reject (R): Personal Service Contracts Must Mswer the Following 4uestions:
Planning Commission 1. Has this person/firm ever worKed under a contract for this department?
CIB Committee Yes No
Civil Service Commission 2. Has this person/firm ever been a city employee?
Yes No
3. Does this person/firm possess a skill not normally possessed by any
cuneM city employee?
Yes No
Explain all yes answers on separate sheet and attach to green sheet
Initiating Problem, Issues, Opportunity (Who, What, When, Where, Why):
LMCHI recommendation for plans and contribution levels for the 2006 plan year.
AdvantageslfApproved:
Benefit plans and conhibuflon levels for the 2006 benefit year will be agreed to prior to impiementation. Changes to plans as agreed to
by the LMCHI.
bisadvantages If Approved:
None.
. �P�Qarr� r�_...,,,,
DisadvanYageslfNotApproved: QJlR q o ^���
Strained xelationship between the City and the unions. aav g �
Total Amount of CostlRevenue Budgeted: �
Transaction:
Funding Source: Activity Number:
Financial Information:
(Explain)
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MEMORANDUM OF AGREEMENT
BETWEEN THE
CITY OF SA1NT PAUL
AND
OPERATING ENGINEERS, Local #70
The City of Saint Paul (hereinafter "City") and Operating Engineers, Local #70
(hereinafter "Union") agree to the terms of the following Memorandum of Agreement
(hereinafter "MOA").
The City and Union have actively engaged in a mutually beneficial exchange of
information and ideas on a"meet and confer" basis at Labor-Management Committee for
Health Insurance (hereinafter "LIVICHI") meetings.
For 2006, the LMCHI recommended the elimination of one traditional health insurance
plan and the adoption of a high deductible plan. The LMCHI's recommendation does not
equate to a selection of benefits, the selection of plans to be offered in subsequent years,
nor shail in any way be construed as a form of negotiation.
� Since the parties ha�e not been able to reach agreement regazding the impact of this
recommendation on the contract language for single health insurance stating, "the
a�erage increase to the single insurance premium of all plans for 2006," and the contract
language for family health insurance stating, "the average premium of all plans per
month," the parties agree that the LMCHI's recommendation to continue the four current
plans plus adopt a High Deductible Plan, will mean that the aueraging language in the
contracts will not include the premium for the Fiigh Deductible Plan. This interpretation
shall only apply for the length of the current collective bargaining agreement.
The parties also agree that the High Deductible Plan will not be considered one of the
"two low-cost plans" which receive additional contributions for single health insurance.
Although the Parties have now agreed to the dollaz amount of the Employer contributions
for the length of the current collective bargaining agreement, the Parties have not
presently agreed upon an adjustment to the formula for the City's contribution to health
insurance. However, the parties agree that the adjustments to the formula for the City's
contribution for health insurance will be subject to bazgaining for the successor to the
existiug collective bargaining agreement. The parties further agree that neither the
ea�istence nor the terms of this MOA shall create or constitute the presumption that the
Union has accepted the continuation of the current percentage of City health insurance
contribution beyond the current collective bazgaining agreement. Neither party has
• conceded an advantage in future bazgaining to the other regazding the negotiation of
future City contributions to health insurance.
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The Union agrees to waive any and all rights to file a grievance or court action regarding
this change in health insurance plans or the aggregate value of the benefits provided by
the health insurance plans recommended by the LMCHI for 2006 health insurance.
FOR'Tf� CTTY:
/ / / /J'
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Labor Relations Manager
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Dick Lally
Business N
Date
�=��� �/�/os�
Ernie i,uad �ate
Business Representative
The City's contribution for 2006 and 2007 shall be:
• 2006 Sinele
High Deductible: $331.75 (Plus $70.00/mth into PEHP prorated monthly for
participating months, to be paid annually in the following calendar
yeaz — within 60 days)
Deductible: $409.49
Classic:
Plus:
Primary:
•
2007 Sinele
High Deductible:
Deductibie:
Classic:
Plus:
Primary: "
2006 Familv
All plans:
2007 Familv
All plans:
$450.20
$429.02
$433.08
$361.61 (Plus $7625/mth into PEHP prorated monthly for
participating months, to be paid annually in the following calendar
yeaz — within 60 days)
$44634
$487.05
$457.54
$461.6Q
$827.40
$901.86
G:\Shaad�I,RCOMMONU,MCFN200SAve�age MOAs\OperEng MOAdoc