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05-884Council File # � l Green Sheet # c� $ 0 3� RESOLUTION CITY OF SAINT PAUL, MINNESOTA � � � � Presented by 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 Professional Employees 3 Association, Inc. and the Fire Supervisory Association regazding health insurance options and 4 conh for the 2006 benefit yeaz. Requested by Department of: Adoption Certified�y Council Secretary Human Resources � � By: Form Approved b Ciry Atton BY- � � Avnrove b avorforSubmi L/,/[%�r f •�.. -..��.- _ ,.� � / �/. � Adopted by Council: Date G S, o20ds � Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet � DeoartrnentlofflcefmuneiL• Dafelnidafed� �—�� Hu �,�� 75SEP-05 0 1 2 3 4 5 Green Sheet NO: 3028034 DeDartment SeMToPerson InitiaUDate an u uman R r De ent ' � Horn a r's Ma r/ t ou erk C� er CoMad Person & Phone: .lason Sclmidt 266-6503 Must Be on Council Agen� ContractType: RE-RESOLUTtON � , Assign Number Por Routing Order Total # of Signature Pages _(Clip NI Lowtions for Signature) Action Requesfed: Resolution approving the attached Memorandum of Ageement between the Ciry of Saint Paul and the Professional Employees Association, Inc. and the Fire Supervisory Association regazding healih insurance opfions and contribution levels for ihe 2006 benefit yeaz. Recanmendations: Appm�e (A) or F Plannirg Commission CI8 Committee Citil Senice Commission 7. Has this persort/firtn e�er ewrked under a contract for this department? Yes No 2. Has this person/firm e�er been a ciry employee? Yes No 3. Does this persorJfirtn possess a skill rrot nortnally possessed by any cunent city employee? Yes No Explain all yes answers on separete sheet and attach to green sheet Initiating Problem, issues, Opportuniry (Who, Wha; When, Where, Why): LMCHI recommenda6on for plans and con[ribufion levels for the 2006 plan year. Advantages If Approved: Benefit plans and coniribution levels for the 2006 benefit yeaz will be agreed to prior to implementation. Cbanges to plans as agreed by the LMCHI. Disadvantages N Approved: None. Disadvantages M Not Approved: Sirained relationship behveen the City and the union. ' ' } T2nsaefion: Funding Source: Financial Information: (ExpWin) CosHRevenue Budgeted: Aefivity Number: September 19, 2005 839 AM Page 1 09/16/2005 13:15 6512286255 CITY STPAUL FIRE PAGE 02 �� D�� MEMORANDUM OF AGREEMENT SETWEEN THE CITY OF SAINT PAUL AND FIRE SUPERVISORY A.SSOC7ATION The City of Saint Paul (hereinafter "Cit}�� and k'ixe Supervisory Association (hereinafter "Union") a�azee to the tezins of the £ollowang Memorandum of Agreement (hereiva£tez "MOA"). The City and Union have actively engaged in a mutually beneficial exchange of infozznation and ideas on a"meet and confer" basis at Labor-Management Committee �oz �-Iealth Iusuranoe (bezeina8er "LMCHI'� meetings. Foz 2006, tbe LMCHI reconnmended the elimination of one tradational health insurance plan and the adoption of a Ltigb deductible plan. The I:MCHI's recommendation does not equate to a selection o�'beneftts, the selection of plans to be offered in subsequent yeazs, nor shall in any way bs constzued as a form of negotiarion. • Since the parties have not been able to zeach agteament regatding the impact of this recommendation on the contr�act language for single health insurance staring, "the avera�e inczease to the suo,gle insurance premium of all plans for 2006," and the contract language for family health insurance stating, "the average premium of a11 plans per montb," tbe parties agree tliat Che LMCHPs recommendatzon to continue the four current plans plus aflopt a HigJi Deductible Plan, will mean that the averaging language in the contracts will not include the premium for the �i� Aeductible Plan. This intezpxetation shall only apply for the lenpth o� the ciuresit collective bargaining agreement. The parties also agree that tk�e Higb Deducrible Plan will not be considerad one of the "two low-cost plans" which receive addirional contriburions for single health insuxance. AlYhough the Parties have now agreed to the dollaz amount of the Employez contributions for the let�gth of the current collective bugain,_ng agxeement, the Parties have not presently a�eed upon an adjustment to the formula £or the City's conuibution to health insurance. However, the parties agree that the adjustments to the £ozmula fat the City's contribution foz heaJth 'vasurance will be subject to bazgaining for the successoz to the existing collective bargainizk; agreement. The parties further agree that neithar the exis'tence nor the terms of this MOA shall czeate or consritute Yhe presumpfion that the Union has accepted the continuarion of the current percentage o£ City health insurance contribution beyond the current collective bargaining agreement. Neithez party has conceded an advantage in £uture bargaining to the other regardi� the negoriation of futurc Citv eontributions to health insiu-ance. � 69/16/2005 13:15 6512286255 CITY STPAUL FIRE PAGE 03 � $ �a The Union agrees to waive any and all rzgbts Yo file a grievance or court action regarding • this change in health insuzance plans or the aggegate value of the benefits pxovided by the health insurance plans recommended by the LIvICHI for 2006 health insurance. � FOR THE CITX: y�6�� ason Sc1 " - Date Labor Relations Ivianager FOR THE iJNION: c � 9 ��aS Robert Mo •ison l�a e President The City's contribution £or 2006 and 2007 shaJl be: 2006 Sinele High Deductible: $331.75 (Plus $70.00!mth into PEkIP prorated monthly for participatiz�g months, to be paid annually in the �ollowing calendar yeaz — within 60 days) Deducbible: $409.49 Classic: $450.20 Plus: $429.02 Primary: $433.�8 2007 Sinele High Deductible: Deductible: Classic: Plus: Primary: 2006 Familv All plans: 2007 Familv All plans: $361.61 (Plus $76.25lmth into P�JIP prorated raonthly for paz[icipafing raottths, to be paid annually in the following catendaz yeaz — within 60 days) $446.34 $487.45 $457.54 $461.60 $827.40 5901.86 • G:\ShandU.RCG:�ShsredU,RCOMMON�LMCFIIt2005Wva�e MOas�Firo Supervisory Assoc MOA.doc �,-�� • MEMORANDUM OF AGREEMENT BETWEEN THE CITY OF SAINT PAUL AND PROFESSIONAL EMPLOYEES ASSOCIATION, INC. The City of Saint Paul (hereinafter "Cit}�') and Professional Employees Association, Inc. (hereinafter "Union") agree to the terms ofthe following Memorandum ofAgreement (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 elimination of one traditional heakh insurance plan and the adoption of a high deduchble plan. The LMCHPs recommendation does not equate to a selection ofbenefits, the selection ofplans to be offered in subsequent years, nor shall in any way be construed as a forxn of negotiation. • Since the parties have not been able to reach agreement regazding the unpact of this recommendation on the contract language for single health insurance stating, "the average increase to the single insurance premium of ali plans for 2006," and the contract language for family heakh insurance stating, "the average premium of all plans per month," the parties agree that the LMCHPs recommendation to continue the four current plans plus adopt a High Deductible Plan, will mean that the averaging 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 contnbutions for single health insurance. Although the Parties have now agreed to the doliar amount of the Employer contributions for the length of the current 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 subject to bargaining for the successar to the existing collective bargaining agreement. The parties further agree that neither the e�stence nor the terms of this MOA shall create or constitute the presumption that the Union has accepted the continuation of the cwrent 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. os-g�'� • The I3nion agrees to waive any and all rights to file a grievance or court action regarding this change in health insurance plans or the aggegate value of the benefits provided by the health insurance plans recommended by the LMCffi for 2006 health insurance. FOR THE CITY: � � ason Sc dt D e Labor Relations Manager FOR THE LTNION: �� °i �(6(05 David C. Peterson Date President �IM,N„i �" W�.e 9 �IS/o,f Mike Wilde Date Legal Counsel � The City's contribution for 2006 and 2007 shall be: 2006 Sin¢le High Deductible: Deductible: Classic: Plus: Primary: 2007 Sinele High Deductible: Deductible: Classic: Plus: Prunary: 2006 Familv All plans: 2007 Familv All plans: $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) $409.49 $450.20 $429.02 $433.08 $361.61 (Plus $76.25/mth into PEHP prorated monthly for participating months, to be paid annually in the following calendaz yeaz — within 60 days) $44634 $487.05 $457.54 $461.60 $827.40 $901.86 • GVSha[ed�LRCOMMOMIMCH[�2�US�AverageMOAS�PEAMOAdoe