HomeMy WebLinkAbout5F Health Contribution 2020 MOA AGENDA REPORT
Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com
4646 Dakota Street SE
Prior Lake, MN 55372
CITY COUNCIL AGENDA REPORT
MEETING DATE: OCTOBER 7, 2019
AGENDA #: 5F
PREPARED BY: LORI OLSON, ASSISTANT CITY MANAGER
PRESENTED BY: LORI OLSON, ASSISTANT CITY MANAGER
AGENDA ITEM: Approval of a Resolution Approving Memorandums of
Agreement for The Establishment of the 2020 Health Insurance
Contribution
DISCUSSION: Introduction
The purpose of this agenda item is to request City Council approval of a
Memorandum of Agreement with each of the City’s three bargaining units
to establish the 2020 health insurance contribution. The bargaining units
are:
• American Federation of State, County, and Municipal Employees
(AFSCME) – Council #5, Local 3883
• Law Enforcement Labor Services, Inc. (LELS), Local 100
• Minnesota Teamsters Public and Law Enforcement Employees’
Union, Local 320 (Teamsters)
Background
In May 2018 the Prior Lake City Council ratified the 2018-2020 labor
agreements with each bargaining unit. As part of these agreements, the
contracts included a provision to reopen for 2020 only the health insurance
contribution for negotiation. This was agreed upon due to the instability of
the healthcare markets and difficulty in predicting insurance rates three
years out.
Current Circumstances
The City’s 2020 health insurance rates through the provider, Medica,
increased 13.5% from the previous year. At a special City Council meeting
on September 16, 2019, the Council provided staff with the parameters for
conducting the negotiations. Negotiations between the City and the above
mentioned units occurred on September 25, 2019. Negotiating on behalf of
the City were Assistant City Manager Olson and Finance Director Erickson.
Representatives from the bargaining units included for AFSCME: Suzanne
Kocurek (business agent), Jacinta Heinzmann (records clerk), and Phil
Ryan (maintenance worker); for LELS: Jay Maher (business agent), Dan
Olson (police officer), and Josh Rozga (police detective); and for
Teamsters: Martin Goff (business agent) and Darcy White (police
sergeant).
2
The City and the bargaining units were able to come to agreement on the
2020 health contribution terms, including a defined contribution benefit of
$1,022.00 per month for employees selecting family coverage. The City
contribution for single coverge, regardless of the plan will equal the
monthly premium for the Accountable Care Organization (ACO) plan plus
$160.00 per month for contribution toward a Healthcare Savings Account
(HSA). An employee who selects the Passport plan will continue to pay the
difference between the premium for that plan and the ACO plan. In
addition, all employees electing single coverage will contribute $10.00 per
month toward their premium. These terms are in accordance with the
parameters set by the Council on September 16.
The AFSCME and LELS membership voted to approve these terms.The
Memorandums of Agreement (MOA) for these units are attached. The
City’s other union, Teamsters, was still organizing the membership vote at
the time of the drafting of this report. Staff anticipates bringing the MOA
between the City and Teamsters to the October 21, 2019 City Council
meeting for approval.
FINANCIAL
IMPACT:
The 2020 adopted budget includes funding to support the City’s health
insurance contribution as outlined in the Memorandums of Agreement.
ALTERNATIVES: 1. Approve the resolution approving memorandum of agreements with
the AFSCME and LELS for the establishment of the 2020 health
insurance contribution as part of the Consent Agenda.
2. Remove this item from the Consent Agenda for additional
discussion
RECOMMENDED
MOTION:
Motion and second for approval of alternative #1.
4646 Dakota Street SE
Prior Lake, MN 55372
RESOLUTION NO. 19-112
A Resolution Approving Memorandum of Agreements for the Establishment of
the 2020 Health Insurance Contribution
Motion By: Second By:
WHEREAS, in May 2018 the Prior Lake City Council ratified the 2018-2020 labor agreements
between the City and the American Federation of State, County, and Municipal
Employees (AFSCME), Council #5, Local 3883; and Law Enforcement Labor
Services, Inc. (LELS), Local 100; and
WHEREAS,
the terms of the agreements reopened for 2020 only the health insurance contribution
for negotiation; and
WHEREAS, negotiations between the City and the above mentioned parties on this matter
occurred on September 25, 2019; and
WHEREAS, The City and the above mentioned parties came to agreement on the terms of the
health insurance contribution for January 1, 2020 through December 31, 2020; and
WHEREAS, the employees represented by the above mentioned parties voted to approve the
health insurance contribution rates for 2020.
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA as follows:
1. The recitals set forth above are incorporated herein.
2. The Prior Lake City Council herby approves and ratifies the Memorandum of Agreements
between the City and the American Federation of State, County, and Municipal Employees
(AFSCME), Council #5, Local 3883; and Law Enforcement Labor Services, Inc. (LELS),
Local 100 for the establishment of the 2020 health insurance contribution.
3. The Mayor and City Manager are hereby authorized to execute the above referenced
Memorandum of Agreement.
Passed and adopted by the Prior Lake City Council this 7th day of October 2019
VOTE Briggs Thompson Burkart Braid Erickson
Aye ☐ ☐ ☐ ☐ ☐
Nay ☐ ☐ ☐ ☐ ☐
Abstain ☐ ☐ ☐ ☐ ☐
Absent ☐ ☐ ☐ ☐ ☐
______________________________
Lori Olson, Interim City Manager