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0 <br />• <br />Of <br />Report Number <br />N�� Agenda Section <br />M� Council Meeting Date <br />the city that works for you <br />REQUEST FOR COUNCIL CONSIDERATION <br />09-052 <br />VI -9 <br />February 10, 2009 <br />ITEM DESCRIPTION: Consideration Memorandum of Understanding Between the City of New <br />Brighton and Law Enforcement Labor Services (L.E.L.S.) Sergeants Local No. 263 Regarding Contract <br />Re-o,Dener for 2009 Health Insurance. <br />DEPARTMENT HEAD'S APPROVAL: <br />Schawn P. Johnson, Assistant to the City Manager <br />CITY MANAGER'S APPROVAL: <br />No comments to supplement this report 7W Comments attached <br />Recommendation: <br />To approve the Memorandum of UnderstaUng between the City of New Brighton and Law Enforcement <br />Labor Services No. 263 (Sergeants) for the contract re -opener regarding health insurance. <br />Legislative History: <br />In 2007, the City of New Brighton and the Law Enforcement Labor Services No. 263 (sergeants) agreed <br />on a two year contract for the 2008 to 2009 calendar years. However, the current contract has a clause that <br />allows for a re -opener to discuss health insurance benefits for the 2009 contract year. The following is an <br />overview of the agreement that was reached by the L.E.L.S. Local 263 and the City of New Brighton, <br />Financial Impact: <br />The 2009 adopted budget already reflects the projected costs for health insurance benefits for union and <br />non-union personnel. <br />Explanation: <br />The MOU includes language for health insurance contributions in 2009 for the LELS Local 263 union <br />(Sergeant) members. The City will contribute $530/month to sergeants electing single health coverage <br />and $740/month for sergeants electing family medical coverage. This is the same contribution that the <br />City is providing to all non-union and union staff members in 2009 for insurance benefits. <br />In 2007, the City instituted a High Deductible Health Plan (HDHP) with a health Savings Account <br />(HSA). The City will contribute 50% of the deductible to a Health Savings Account for all City <br />employees that are enrolled in the High Deductible Health Plan (HDHP). This equates to $575/year for <br />employees that have elected single health insurance coverage and $1,150/year for employees that have <br />elected family health insurance coverage under the City's HDHP. <br />The MOU also includes an increase in contribution for employees that opt -out of health insurance. In <br />2009, employees that opt -out of health insurance will receive $280/month that may be applied towards <br />other,*nefits in o1W cafeteria program (such as dental insurance or long-term disability) or as taxed <br />'Schawn P. nson <br />Assistant the City Manager <br />l:\COUNCILaEPORTS\2009\Admin\I,F.LS Sergeants Insurwice Re opener -Feb 2009. doe <br />