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0% Of <br />us Report Number 10-252 <br />119BRKATM Agenda Section VI-6 <br />the city that works for you Council Meeting Date November 9, 2010 <br />REQUEST FOR COUNCIL CONSIDERATION <br />ITEM DESCRIPTION: Consideration Memorandum of Understanding Between the City of New <br />Brighton and Law Enforcement Labor Services Local No. 263 Regarding Contract Re-opener for 2011 <br />Health Insurance. <br />DEPARTMENT HEAD'S APPROVAL: <br />Dean R. Lotter, City Manager <br />Schawn P. Johnson, Assistant to the City Manager <br />CITY MANAGER'S APPROVAL: <br />No comments to supplement this <br />Comments attached <br />Recommendation: <br />To approve the Memorandum of Understan ing between the City of New Brighton and Law Enforcement <br />Labor Services for the contract re-opener regarding health insurance. <br />Legislative History: <br />In 2010, the City of New Brighton and the Law Enforcement Labor Services No. 263 (sergeants) agreed <br />on a two year contract for the 2010 to 2011 calendar years. The current contract has a clause that allows <br />for a re-opener to discuss health insurance benefits for the 2011 calendar year. The following is an <br />overview of the agreement that was reached by the Local 263 and the City of New Brighton. <br />Financial Impact: <br />The 2011 budget already reflects the projected costs for health insurance benefits. <br />Explanation: <br />The MOU includes language for health insurance in 2011 for the LELS union (sergeants). The City will <br />contribute $590/month for employees electing single health coverage, $705/month for employees electing <br />single+l health coverage, and $820/month for employees electing dependent coverage. In 2007, the City <br />instituted a High Deductible Health Plan (HDHP) with a Health Savings Account (HSA). The City will <br />also contribute 50% of the deductible to the HSA for employees enrolled in the HDHP. This amounts to <br />$600 year for employees with single health coverage and $1,200/year for employees with dependent <br />coverage. <br />The MOU also includes an increase in contribution for employees that opt-out of health insurance. In <br />2011, employees that opt-out of health insurance will receive $310/month that may be applied towards <br />other benefits in our cafeteria program such as dental insurance or long-term disability <br />Per th aagreemen a Sergeants are scheduled to receive the same contribution levels that are being <br />off o n- Miff members in 2011. <br />Schawn ohnson <br />Assist to the City Manager <br />I:\COUNCIL\REPORTS\2010Wdmin\LELS Sergeants Insurance Re opener-Nov 2010.doc