05-836Council File # ��" $.X
rresenced
Green Sheet # 30a7 � ( 9
RESOLUTION
OF SAINT PAUL, MINNESOTA S-
1 RESOLVED, that the City Council of the City of Saint Paul hereby approves and ratifies the
2 attached Memorandum of Agreement between the City of Saint Paul and the International Association of
3 Machinists and Aerospace Workers, District Lodge #77 regazding health insurance options and
4 contnbutions for the 2006 benefit yeaz.
� Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet �
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Pepartmantloffiee/council: Date Initiated: V.� `� �+T
Hu �,�R� ��� Green Sheet IdO: 3027819
Contaet Person 8 pywne: ����t Sent To Person InitiaUDate
Jason Schmid[ � 0 omao eso r
� Assign 1 man eso nt DireUOr �._
Must Be on Council Agenda by (Date): Number 2 • p� _���
For
Routing 3 a or•s Office r/ASSisiant
p�� 4 oanca7
5 ' Clerk Cti Clerk
Total � of Signature Pages _(Clip All Locations for Signature)
Action Requested:
Resolution approving the attached Memorandum of Agreement behven the City of Saint Paul and the Intemational Association of
Machinists and Aerospace Workers, District I.odge #77 regazding health insurance options and contribution levels for the 2006
benefit year.
Recommendations: Apprave (A) or Reject (R): Personal Service ConVacts Must Mswer the Following Questions:
Planning Commission
1. Has this persaiffim� ever aorked umler a contract for this department?
CIB Committee Yes No
Civil Service Commission 2. Has this persoNfirtn ever been a city employee?
Yes No
3. Does this person/firm poss�s a skill rrot nofmally possessed by any
curreM cRy employce?
Yes No
Explain all yes answers on separate sheM and attach to green sheM
Initiating Problem, Issues, OppoRUnity (V11ho, What, When, Where, Why):
LMCHI recommendation for plans and contribution levels for the 2006 plan year.
Advanta5�es Nqpproved:
Benefit plans and contribution levels for the 2006 benefit year will be agrced to prior to implementation. Changes to plans as agreed to
by the LMCHI.
Disadvantages If Approved: � �
None
AUG 3 � 2UU5
Disadvantaqes tF NM p aroved: � �°+s �°�� /� T-y-P1 � p g��
Strained relationshi between the Ci and the union. �a ! �"k €@ 6J 1�
Total Amourrt M CosURevenue Budgeted:
Transaction_
Funding Source: Activity Number. �� ������� ��`��
Financial IMOrtnation: �R S � t�
(Explain) 1��r � Ki .
� ��
•
MEMORANDUM OF AGREEMENT
BETWEEN THE
CITY OF SAINT PAUL
AND
MACHINISTS, District Lodge #77
The City of Saint Paul (hereinafter "City") and Machinists, District Lodge #77
(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.
For 2006, the LMCHI recommended the elixnination of one traditional health insurance
pian 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 shall in any way be construed 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 heaith insurance stating, "the
average increase to the single insurance preminm 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 High Deductible Plan. This interpretation
shall only apply for the length of the current collective bazgaining 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 dollar amount of the Employer contributions
for the length of the cunent collective bazgaining 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 subj ect to hargaining for the successor to the
existing collective bargaining agreement. The parties further agree that neither the
existence 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 bargaining agreement. Neither party has
conceded an advantage in future bargaining to the other regarding the negotiation of
• future City contributions to health insurance.
� $�P
• 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 TIIE CITY:
/ �/ �I
ason Sc Aate
Labor Relations Manager
•
FOR T'HE ilIVION:
� G , �/�-� -- �- a �- 05
Julie Anderson Date
Business Representative
The City's contribution for 2006 and 2007 shall be:
2006 Sin¢le
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:
Plus:
Primazy:
2007 Sinele
High Deductible:
Deductible:
Classic:
Plus:
Primary:
2006 Familv
All plans:
2007 Familv
All p1ans:
$450.20
$429A2
$433.08
$361.61 (Plus $7625Imth into PEF3P prorated monthly for
participating months, to be paid annually in the following calendar
year — within 60 days)
$446.34
$487.05
$45'7.54
$461.60
$827.40
$901.86
G\Shazed�LRCON�RON�L.MCF3I�200SAvemge MOAs�Nachuus4 MOA.doc
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