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Home My WebLink About[04c] Labor Agreements Council Agenda Item 4c urry 01 S-ri MEETING DATE: December 7, 2015 AGENDA ITEM: Labor Agreement- Requested Action: Authorize the Mayor and Administrator to execute the Agreement regarding reduction of aggregate value (insurance) for both bargaining units, AFSCME and LELS. SUBMITTED BY: BOARD/COMMISSION/COMMITTEE RECOMMENDATION: PREVIOUS COUNCIL ACTION: The Council appointed a negotiating committee to work with Brandon Fitzsimmons on negotiating the labor contracts for both LELS and AFSCME. BACKGROUND INFORMATION: During the negotiation process, insurance became a focal point early as if the City were to change insurance plans a decision needed to be made by November 30. The current health insurance plan offered by the City is through Resource Training and Solutions, who operate as a large employer so the City insurance rates are based on family or single. When the renewal rates were received they reflected an increase of 19.9%. The City received quotes outside of Resource Training and Solutions which puts the City in the small business category. As such, the rates are age banded and rates vary by individual. The City could not offer the same Blue Cross Plan that is through Resource as it is a large business plan; therefore, the deductible amount would increase. When union members reviewed the rates a majority of the members would see a decrease in insurance contributions and requested the City provide insurance benefits outside Resource Training and Solutions. Since the change would result in a change of aggregate value (the deductible increases) the change has to be negotiated with the unions. Each member was affected differently and each union had employees that received a reduction as well as employees that would recognize an increase. To move the matter forward and meet deadlines, Brandon drafted an agreement that would indicate that the unions agree to the change in aggregate value and after each union voted they opted to execute the agreement. The City is in the process of enrolling employees in the new plans. The agreement does not identify the amount to be paid; rather just allows for the change. The other factors are part of the on-going negotiations. BUDGET/FISCAL IMPACT: ATTACHMENTS: Request for Council Action Agreement for change in benefit level REQUESTED COUNCIL ACTION: Authorize the Mayor and Administrator to execute the agreement between the City of St. Joseph and AFSCME and the City of St. Joseph and LELS reducing the aggregate value of the health insurance. This page intentionally left blank AGREEMENT BETWEEN CITY OF ST.JOSEPH AND AFSCME COUNCIL 65 This Agreement(hereinafter"Agreement") is made and entered into by and between the City of St. Joseph,Minnesota(hereinafter"City"),a municipat corporation,and AFSCME Counci165 (hereinafter"Union"). Recitals WHEREAS,Union is the exclusive representative for certain employees employed by City in an appropriate unit(hereinafter"Bargaining Unit"); WHEREAS, City provides group health insurance coverage for Bargaining Unit employees; WHEREAS,Minn. Stat. § 471.6161, subd. 5 states: "The aggregate value of benefits provided by a group insurance contract for employees covered by a collective agreement shall not be reduced, unless the public employer and exclusive representative of the employees of an appropriate bargaining unit, certified under section 179A.12,agree to a reduction in benefits;" WHEREAS, City has provided information to and discussed with Union the City's change in health plans from 2015 to 2016;and WHEREAS,the parties agree to the reduction in the aggregate value of benefts that will result when the City changes its group insurance contract from 2015 to 2016 in accordance with the terms and conditions set forth below in this Agreement. A�reement NOW, THEREFORE, in consideration of the mutual covenants and agreements to be performed, as hereinafter set forth, City and Union agree as follows: Article 1. Reduction in Benefits The parties agree to the reduction in the aggregate value of benefits that will result when the City changes the health insurance b�nefits in its group insurance contract for 2015 to the benefits in the group insurance contract for 2016 summarized in Attachment 1 attached hereto and incorporated herein by reference in its entirety. Article 2. Entire Agreement This Agreement constitutes the entire agreement among the parties hereto.No representations, warranties,covenants, or inducements have been made to any party concerning this Agreement, other than the representations,covenants,or inducements contained and memorialized in this Agreement between City of St.Joseph and AFSCME Council 65 Page 1 of 3 Agreement, This Agreement supersedes all prior negotiations, oral and written agreements, policies and practices with respect thereto addressing the specific subject matter addressed in this Agreement. Article 3. Waiver of Bargaining While this Agreement is in full force and effect,Employer and Union each voluntarily and unqualifiedly waives the right and each agrees that the other shall not be obligated to bargain with respect to the specific matter addressed in this Agreement. Article 4. Limitations This Agreement is intended for the sole and limited purpose to comply with Minn. Stat. § 471.6161. This Agreement cannot be construed to be nor does it constitute or establish any admission of the Employer,precedent,past practice or otherwise place any prohibition or limitation on any management right of the Employer except as otherwise prohibited or limited by the express terms of this Agreement. The Employer expressly reserves the right to exercise all of its management rights without limitation unless otherwise limited by this Agreement in its sole discretion. Article 5. Amendment or Modification This Agreement or any of its terms may only be amended or modified by a written instrument that: (1)expressly states it is amending or modifying the Agreement;and(2) is signed by or on behalf of all of the parties hereto or their successors in interest. Article 6. Voluntary Agreement of the Parties The parties hereto acknowledge and agree that this Agreement is voluntarily entered into by all parties hereto as the result of arm's-length negotiations. Article 7. Effective Date This Agreement is effective on November 30,2015. Article 8. Cqunterparts This Agreement may be executed in counterparts. Facsimile,photocopied or scanned signatures shall be considered as valid signatures as of the date thereof. IN WITNESS HEREOF,the parties hereto have made this Agreement on the latest date affixed to the signatures on the next page. Agreemerrt between City of St.Joseph and AFSCME Counci165 Page 2 of 3 CITY OF ST.JOSEPH AFSC CO CIL 65 By: / By: Its Presid Its Mayor By: By: �� ,� Its City Administrator Its S ward By: Its AFSCME Labor Representative Dated: Dated: � 1 — � � '- �s Agreement between City of St.Joseph and AFSCME Counci165 Page 3 of 3 � ¢ BlueAccess HSA Silver�3,500 Plan 645 �� gf�eGross � � BlueShield A"►��'"et'"°� � Minnesota Benefit highlights for sma11 busr`nesses wifh 9— t00 ernployees January 9,2016—December 31,ZQ1fi • • . Ybur dad�ctFtile � ` , $3,500 per pe�son $10,000 per person TG�e amQ�rit Yqu'paY P�'c,�lel�dar;year before ydur healtl� ptan slarSs fA p�y Ar�oyatts paici bu�pf ne�rirork Qp NpT ..` ��a family $20,600 family apply to the in netwo�ic�eductitii�; Embeclil�d The,plan�begin�pay�ng t�n�t`s that reqwfre ��` cost sligr�r�for the firsf f�m�ly mernb�r uvho rlaee�the per- , person de�u�iitil� The fa�nlly deduotlpfg it�ust th�n be�tnet by one�a�rrqre of the re►naihiT►g family�nem��aci¢then the lan: "benefits.fo�all:coveted.faKnil mbriabei�. Your cainsuraf%ce ' ' r . 0% 50% The " cent ou: after our ded�Cqble is rhet , Your out of packet maxim�m ` � ' $3.500 per person $30,00(}pec petson The m�wmum aittount l+�u R�Y h�t'caJ�rdaF year tri $7.000 family $6q000 Family medla@I,antt pressxiP�lon;dnJ�deduckibl�:�nd , `:,. -, coit�sur�nr.a Ariipunts.p�icJ out of�eSvvw�t'DO NU7'..apR�Y: ; Eo the.in�networl('oy#�of� ck�t.'maidmWrn ':. Y�91ts#o • heait#i;�are provider's offtc� . 0°!o after dedudEbie 50°!o aftet deductibie •sqecia(is� ' 0%after deductible 50%after deductlble `• r@ta(I tteaCttt clinie > 0°le after deduc#ible 50°/a after deductlble �urgetit:cace 0°lo after deductlble 50%after deductibte •e-Vi$i,ts : 0%after deductlble 5U%efter deduCtible , qther pi:ofes§ronal s�nilces#�tt�b office • lab�rid d�gnostlG��a�ingl)f tay'setvice$_ ,-: 0%after deductlbls 50%after deductlble Presc�tptiop di�ugs � Rx�il o K formy�la•. � 0°�after deductible 50%aRer deductible Prevehttva care:Inc�udin vision•e.icam `: 0°/a no deductibie 50°!o after deductible Prev�n�iva drugs • :Prei`erred dn,gg�ri q��.�Q��preu�huv�diug hst 1'oi�th� ,: 0°!0(no deductlDle) 50Yo after deductible fol�b�nnn��selected.categpries,�ilabete,s m�f$�ol��di,ab�tic;'-: su �ee�:hJ h�bt�ad .ess.iirean:d;h hcty�i�e�tarol�'; . Wel[ hild�ar�:a es Q�u7 6 indiieli� uiSlo�exa�r,t.' '� 0% no deductlble 0% no deductlble 'Prena�l.care,, �: " �` 0% no deductible 09�o no deductlble Maternit labor',t�elrv tg�d.' t�deliv `;care `:. 0%after deductlble 50�o after deductible ;Emer�e.i�cy ca�e;` �phys:ician • � . 0°/a after deduc�bie 0%after deductible •facll . . 0°�after deducBble 0%after deductible Amt#ulance , 0%after deduCtible 0%8ftef decluctible Ambul�Yory sutgioal center . 0%afte�deducGble 5Q%after deducdble �iospltal;{outp�tiant) • phySician 0°10 after deducdbfe 50°�after deductlble ��i�' 0°/a after deduCtlble 50°/a after'dP.duCtlble • lab arid d�a no&tic im f� -rA setvices` 0°!o after deductible 50%a8er deducUble tiosptta�vls�t�inpatiept). . • phys�cian 0°/a aRer deductlble 5U°fo after deductible •facil{ • � 0°�after deductible 50%after deducti�e ChEropraFtic,physicajl,occupational and spe�ch therapy. 0°!o after deductible 50%after deductible Eyei�rear for metnbe�u�d�r 2�e 19 • lenses and orie pair,of st�ndard co!lectlqn irames or 0%after deductible No Covera contactlenses ' ge ATTACHMENT 1 Y . BlueCross BlueAccess HSA Goid $2,OQQ Plan S53 '"! � � BlueShield Aware�Netwark _ M 1 n n 2SO�a Bene�t highlighfs fvr sma!!businesses wi�h 9-100 employees Janaary 1,2016-December 31,2016 •` • • . Your deduaflble $2,Od0 single $10,OU0 single The amount you pay per calendar year before your health pla�starts to pay.Amounts,pa{d aut of nefwQrk DO NOT �¢��Q�mily $2U,000 family apply ko the in-nefwork d�uctlble. . Non-embedded:Th�plan begins paying benefits tha# require cost sharing wheh the er►tire faml�y deducUble!s met.The deductible caR be�inet by one or a combtnation of several family members.The singie deductible applies to si te covera e oni . Your coinsurance 0% 60% The ercent ou aftef ur deductible is met. Your out-of,pocket maximum $2,000 singte $30,000 single The maxirtturri amouot you pay per caterxiar ysar in $4,000 famity $60,Q00 famlly medica!and prescription drug deductibles and colnsuiancs.Arnounts pafd out of netwqrk DO NOT apply fo the 3n-network out-of- ' cket maxii�tium. �sits to: • health care provfder's offloe 0%after deductible 50%aft�deductlble • sp'ecialist - 0%after deductible 50°/a afte�deductibie • ret�il hedhh dintc 0%after deductlbEe 50�o after deductible • urgent care 0%aRer deductible 50%after deductible ' e"y�� 0°!o after deductlbie 50%after dsductibie Other professiona!seivices in th�offlce • Iab arui d�agnostic im�ging/X-ray serviees 0%aRer deductlble 50%after deductible Presctiptlon drugs GenRx wifh o n fomwia 0%after deducUbie 50%after deductlble Preventive care Includin vision e�m 0% no deducdbfe 50%after deducfit�e Preventive drugs Preferred.drugs on the GenRx pcever�tive drug.list far the 0%(no deductible} 50%after deducUble foitouvir�g s�ected categwies:diabetes.mediat�n,diabetic su ies hi h.blood• sssure and hi h cholesterol Well Child care a es 0 to,6,indudin vision exam ' 0% no deducUble 0% no deductible Prenatal care 0% no deductible 0% no deduct€bie Maternit labor deliv and ost-deif've care O�o after deducdble 50%after deductlble Emer�ency care • physician 0°k after deducdbfe 0%after deductlble •faCilit 4°h affer dedUCtible 0°lo after deductible Amlxt(ancs 0%after deductibie 0%after deductibie Ambulafory surgical centar 0%after deductibfe 50°!o after deductlbfe Mospital(outpatient) • physic�an 0%after deductible 50%after deduotlbie '��Y 0%after deductlbie 50°1a after deductihle • lab and dia nosdc ima i -ra services Q%after deducdble 50%after deductibie Hospital visit(inpaUent) • physician ' 0%after deductible 50°/a after deductlble •facilft 0%after deductible 50%after deductible Chiropractic,physical,occupstlo�al and speech therapy 0%aRer deductibie 50%after deductl6le Eyewsar for members under age 19 • fenses and one pair of sNandacd collection framss or 0°h after decluctible No Coverage contact lenses 4 � BlueAccess HSA Bronze $fi,550 Plan 624 :,,; B��eCross � � BtueShieid Aware�Nefwork M i n n e sota Bene�f hrghlighfs for small businesses with 1-100 employees January 1,2096—December 31,2016 '' « • • • Yaur deductible $6,550 per person $10,000 r rson The amount you pay.per ca�endar year before your health � � plan s#arts to pay,Amounfs paid.oui of network DO NOT $13,100 famEiy $20,000 famity apply to the Itrnetwork deduc6bie. Embedded:The pian begins paying beneftts khat r8quire eost sf�ring for the flrst family member who meets the per- person deduatlble.The iamify deductible must then be met by one or more of th�remalning family members and then the lan s beneffts for all covered famil members. Your coinsurance 0°� 50°!0 The ercent ou after ur deductible is met. Your ot�t-of-pocket maximum $6,550 per person $30,000 per person The maximum atnount you paY per qlendar year in $13,700 fam(ly $60,�00 family rraedicat and prescriptfon drug cleducftbles ancf coinsurance.Amaunts palcl out of neMrork DQ N07 apply to the.in-network out af- ket maximum. Vis(ts tv: • heatth care provider's oifive 0°!o after deductible 50%after deductibie •spe�iaiist U%after deductlbie 50%after deductibte •retaii health cf9nic 0°�aRer deductible 5Q°10 after deductible •urgent care 0%after deductible � 50°k after deduc�ble • e-vigits 0%after deductible 50%aBer deductible Other professional senrices in the offce •lab and dlagnostic imagirg/X-ray services q%after dedudlble 50°!o after deductible Prescription drugs GenRx with o en formula 4%after deductlble 50�o after deducUble Pr.aventive care indudin vision exam 0% no deductibte 50°k after deductible P'reventive drugs Pretetred drugs an the GenRx prevantive drug list for the 0°�(no deductible) 50°10 after deductlble foAowing selected categortes:diabetes mediaUon,diabehc su lies�h h blood essure and hi h cholesterol WeIE child care a es 0 to 8;.inclu¢in vis(on exam 0°/a no deductible 0% no deductible Prenatal care 0% no deductible U% r�o deductible Matern' lab�r deliv and st-detive c�re Q°lo after deductible 50°fo after deductible Emergency care • physician 0%aPter deductible 0°�after deducUble •facili 0%after deductibie 0°/a after deductlble Ambulance 0%after deduc�ble 0°�after deductible Ambulatory surgicai center 0°10 aRer deductlble 50%after deducdble Hospltai(putpatlent) •phy31C1811 0%atter deduCtibfB 50°l0 8fte�deduCtiDl@ ' ��t��' 0%after deductible 50%after deducifble •lab and dfa nosHc im in /X-ra servlces 6°!o after deductibie 50%after deduct(ble Hospita!vfsit{inpatfentj � physician 0°Jo after deductibia 50°/Q after deductlbie • facili D%after deductibie 50%after deducdbie Chiropractic,physical,occupatlonal and speech ��r�py 0%aRer deductible 50°Io after deductible Eyewear for members under age 1S • lenses and one pair at star�dard colleetian frames or 0°�after deductible Nu Coverage contactlenses