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City Of <br />V MGHTON <br />the city that works for you <br />REQUEST FOR COUNCIL <br />CONSIDERATION <br />Report Number: <br />Agenda Section: <br />Report Date December 3, <br />2015 <br />Council Meeting Date December 8, <br />2015 <br />ITEM DESCRIPTION: Consider a Memorandum of Understanding Between the City of New <br />Brighton and Law Enforcement Labor Services Local No. 113 Regarding Contract Re -opener for 2016 <br />Health Insurance. <br />DEPARTMENT HEAD'S APPROVAL: <br />Dean R. Lotter, City Manager <br />CITY MANAGER'S APPROVAL: <br />No comments to supplement this report Comments attached <br />Recommendation: <br />To approve the Memorandum of Understanding 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 2014, the City of New Brighton and the Law Enforcement Labor Services No. 113 (Officers) agreed on <br />a three year contract for the 2015, 2016, and 2017 calendar years. The current contract has a clause that <br />allows for a re -opener to discuss health insurance benefits for the 2016 calendar year. The following is an <br />overview of the agreement that was reached by the Local 113 and the City of New Brighton. <br />Financial Impact: <br />The 2016 proposed budget already reflects the projected costs for health insurance benefits. <br />Explanation: <br />In 2015, the City began only offering High Deductible Health Plans (HDHP) with a Health Savings <br />Account (HSA). In 2016, the City of New Brighton will be offering three different health insurance plan <br />options: <br />1. HDHP/Health Savings Account Plan ($1,500 Deductible Single Coverage and $3,000 <br />Deductible for Single+l and Family Coverage's) <br />2. HDHP/Health Savings Account Plan ($3,000 Deductible Single Coverage and $6,000 <br />Deductible for Single+l and Family Coverage's) <br />3. HDHP/Health Savings Account Plan ($5,000 Deductible Single Coverage and $10,000 <br />Deductible for Single+l and Family Coverage's) <br />HSA contributions will stay the same as in 2015, contribution of $1,150.00 per year for single, $2,300.00 <br />per year for single+l, and $2,300.00 per year for family coverage from the City. <br />The 2016 budgeted employer contributions are $735 for those choosing Single, $995 for those choosing <br />Single+l, and $1,125 for those choosing Family.The MOU also includes an increase in contribution for <br />employees that opt -out of health insurance. In 2016, employees that opt -out of health insurance will <br />receive $365.00 per month that may be applied towards other benefits in our cafeteria program (such as <br />dental insurance or long-term disability) or as taxable compensation. <br />IACouncil - NEW FOLDER\2015\Report Drafts ie Working DocsWdminVoe Hatch\LELS Officers Insurance Re opener -December 2015.doc <br />