05-768Council File # � s 7�b
Green Sheet # 3027742
RESOLUTION
ITY OF�SAINT PAUL, MINNESOTA
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RESOLVED, that the City Council ofthe City of Saint Paul hereby approves and ratifies the
attached Memorandum of Agreement betcveen the City of Saint Paul and AFSCME District Council #5
Local 2508 (Clerical) regazding health insurance options and contributions for the 2006 benefit year.
B enanav
Bostrom
Harris
Helgen
I.anhy
Montgomery
Thune
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Adopted by Council: Date�
Adoption Certified by Council Secretazy
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Reques[ed by Department of.
� Hmnan Resources
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. MEMORANDUM OF AGREEMENT
BETWEEN THE
CTTY OF SAINT PAUL
AND
AFSCME DISTRICT COiJNCIL #5, Local 2508
The City of Saint Paul (hereinafter "Cit}�') and AFSCME District Council #5, Loca12508
(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 "LMCHI") meetings.
Far 2006, the LMCHI recommended the elimination of one traditional health insurance
plan and the adoption of a high deductible plan. The LMCHPs recommendation does not
equate to a selection of benefits, the selection of plans to be offered in subsequent years,
nor shall in any way be constnxed as a form of negotiation.
Since the parties have not been able to reach agreement regarding the impact of this
� recommendation on the contract language for single health insurance stating, "the
auerage 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 LMCHP s recommendation to continue the four current
plans plus adopt a High Deductible Plan, will mean that the averaging language in the
coniracts will not include the premium for the High Deductible Plan. This interpretation
shall only apply far the length of the current collective bargaining agreement.
The parties also agree that the High Deductible Plan will not be considered one of the
"lwo low-cost plans" which receive additional conhibutions for single health insurance.
Although the Parties have now agreed to the dollar amount of the Employer contriburions
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 bargaining for the successor to the
existing collective bargaining agreement. The parties further agree that neither the
existence nor the terxns 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 bargaining agreement. Neither party has
conceded an advantage in future bargaining to the other regarding the negotiation of
future City contriburions 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.
FO�'CI� CITY:
8/�-r
or}'�c � t Date
Labor Relarions Manager
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FOR THE UNI
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Chris Cowen Date
Union Representative
The City's contribution far 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
year — within 60 days)
Deductible: $409.49
Classic: $450.20
Plus: $429.02
Primary: $433.08
2007 Sinele
High Deductible:
Deductible:
Classic:
Plus:
Primary:
2006 Familv
All plans:
2007 Familv
Ail plans:
$361.61 (Plus $76.25/mth into PEHP prorated monthly for
participating months, to be paid annually in the following calendar
year — within 60 days)
$44634
$487.05
$457.54
$461.60
$827.40
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DepaMieM/ot�icehounal: Date Initiated:
H� -�� ,�-A�� Green Sheet NO: 3027742
ConWct Person 8 Phone:
�aMient SeM To Person InitiallDate
J�Ot7Schmidt 0 �nResonrces
� A55ign 1 �anResonrces De IArector
Must Be on Counc7l A9enda bY (Datel: N�aN�er 2 Attorn
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5 C1erk Qerk
Total # of Signature Pages _(Clip All Locations for Signature)
Adion Requested:
Resolution approving the attached Memorandum of Agreement between the City of Saint Paul and AFSCME District Council #5,
Loca12508 (Clerical) regazding health inc„rance options and contribution levels foi the 2006 benefit year.
Recommendations: Approve (A) or Reject (R): Perwnal Service Contracts Must Answer the Following Questions:
Pianning Commission 1. Has this persoNfirtn ever worked under a coMrect for this departmeM?
CIB Committee Yes No
Civil Service Commission 2. Has this persoNfirm ever been a city employee7
Yes No
3. Does this perso�rm possess a skill not nomiaity possessed 6y any
current city employee?
Yes No
Explain all yes answers on separate sheet and attach to green sheet
Inkiating Problem, Issues, Opportunity (Who, What, When, Where,lNhy):
LMCHI recommendafion fot plans and contriburion levels for the 2006 plan year.
AdvanWges If Approved:
Benefit plans and contribution levels for the 2006 benefit year wil be agreed to prior to implememation. Changes to plans as agreed to
by the LMCHI.
DisadvaMages If Approved:
None.
DisadvaMages If Not Approved:
Shained relationslup between the City and the unions.
Total Amou� of CosHRevenue Budgeted:
Transaction:
Funtling Source: Activky Number: �
Financial Infortnation:
(Explain)