CCP 01-13-2009 (3) - Laserfiche WebLink

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IOf Report Number 09-030 ICUBRKATM Agenda Section VI -27 the city that works 16r you Council Meeting Date January 13, 2009 10 REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: Consideration Memorandum of Understanding Between the City of New Brighton and Law Enforcement Labor Services (L.E.L.S.) Local No. 113 Regarding Contract Re -opener for 2009 Health Insurance. DEPARTMENT HEAD'S APPROVAL: Schawn P. Johnson, Assistant to the City Manager S� CITY MANAGER'S APPROVAL: _ No comments to supplement this Comments attached Recommendation: To approve the Memorandum of Understan ng between the City of New Brighton and Law Enforcement Labor Services No. 113 for the contract re -opener regarding health insurance. Legislative History: In 2007, the City of New Brighton and the Law Enforcement Labor Services No. 113 (police officers) agreed on a two year contract for the 2008 to 2009 calendar years. However, the current contract has a clause that allows for a re -opener to discuss health insurance benefits for the 2009 contract year. The following is an overview of the agreement that was reached by the L.E.L.S. Local 113 and the City of New Brighton. Financial Impact: The 2009 adopted budget already reflects the projected costs for health insurance benefits for union and non-union personnel. Explanation: The MOU includes language for health insurance contributions in 2009 for the LELS Local 113 union (patrol officers) members. The City will contribute $530/month to police officers electing single health coverage and $740/month for police officers electing family medical coverage. This is the same contribution that the City is providing to non-union and union staff members in 2009. In 2007, the City instituted a High Deductible Health Plan (HDHP) with a Health Savings Account (HSA). The City will contribute 50% of the deductible to a Health Savings Account for all City employees that are enrolled in the High Deductible Health Plan (HDHP). This equates to $575/year for employees that have elected single health insurance coverage and $1,150/year for employees that have elected family health insurance coverage under the City's HDHP. The MOU also includes an increase in contribution for employees that opt -out of health insurance. In 2009, employees that opt -out of health insurance will receive $280/month that may be applied towards other,,,benefits in opr-9kfeteria program (such as dental insurance or long-term disability) or as taxed 0 U ,Schawd P. oAnson Assista o the City Manager 1:\COUNCIL\REPOR'I'S\2009\Admin\LEL5 Police Officer Insurance Re opener -Jan 2009.doc