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<br />I~ <br /> <br />the city that works for you <br /> <br />Re ort Number: <br />A enda Section: <br />Re ort Date <br />Council Meetin <br /> <br /> <br />Dec. 6, 2006 <br />Date Dec. 12,2006 <br /> <br />REQUEST FOR COUNCIL CONSIDERATION <br /> <br />ITEM DESCRIPTION: Consideration Memorandum of Understanding Between the City of New <br />Brighton and Law Enforcement Labor Services Local No. 113 Regarding Contract Re-opener for 2007 <br />Health Insurance. <br />DEPARTMENT HEAD'S APPROVAL: <br /> <br />CITY MANAGER'S APPROVAL: <br /> <br />No comments to su lement this re <br /> <br /> <br />Comments attached <br /> <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 /> <br />Legislative History: <br />The City has already settled the 2006-2007 union contract with Law Enforcement Labor Services No. <br />113, however, the contract has a re-opener for 2007 health insurance. We negotiated with the union and <br />reached this agreement. <br /> <br />Financial Impact: <br />The 2007 budget already reflects these costs. <br /> <br />Explanation: <br />The MOD includes language for health insurance in 2007 for the LELS union (patrol officers). The City <br />will contribute $470/month for employees electing single health coverage and $660/month for employees <br />electing dependent coverage. In 2007, the City will be instituting a new High Deductible Health Plan <br />(HDHP) with a Health Savings Account (HSA). This new plan has significantly lower premiums than the <br />other two plans that are offered. Due to the reduction in premiums and the implementation ofthe <br />HDHP/HSA plan, the City will not be increasing our contribution to health insurance premiums in 2007. <br />The City will also contribute 50% of the deductible to the HAS for employees enrolled in the HDHP. <br />This amounts to $550/year for employees with single health coverage and $1,100/year for employees with <br />dependent coverage. <br /> <br />The MOU also includes an increase in contribution for employees that opt-out of health insurance. In <br />2007, employees that opt-out of health insurance will receive $250/month that may be applied towards <br />other benefits in our cafeteria program such as dental insurance or long-term disability. This is an <br />increase of $50/month over the 2006 contribution amount. This amount has not increased for three years. <br /> <br />~tlVVlAO-r~ <br />a Troha <br />Acting City Manager <br /> <br />1:\COUNCIL\REPORTS\2006\Administration\LELS Insurance Rc opcner.d(lC <br />