HomeMy WebLinkAbout5L Health Contribution 2020 Teamsters MOA 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 21, 2019
AGENDA #: 5L
PREPARED BY: LORI OLSON, ASSISTANT CITY MANAGER
PRESENTED BY: LORI OLSON, ASSISTANT CITY MANAGER
AGENDA ITEM: Adopt Resolution No. 19-122 Approving the Memorandum 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 the Minnesota Teamster Public and Law
Enforcement Employees’ Union, Local 320 (Teamsters) to establish the
2020 health insurance contribution.
Background
In May 2018 the Prior Lake City Council ratified the 2018-2020 labor
agreements with the City’s three bargaining units. 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).
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
2
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 Teamsters membership voted to approve these terms.The
Memorandum of Agreement (MOA) is attached. The MOAs for the City’s
two other unions, AFSCME and LELS, were approved by the City Council
at the October 7, 2019 meeting.
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 Teamsters 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 19-122
A Resolution Approving Memorandum of Agreement with the Teamsters 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 agreement
between the City and the Minnesota Teamster Public and Law Enforcement
Employees’ Union, Local 320; 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 Agreement
between the City and the Minnesota Teamster Public and Law Enforcement Employees’
Union, Local 320.
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 21st day of October, 2019
VOTE Briggs Thompson Burkart Braid Erickson
Aye ☐ ☐ ☐ ☐ ☐
Nay ☐ ☐ ☐ ☐ ☐
Abstain ☐ ☐ ☐ ☐ ☐
Absent ☐ ☐ ☐ ☐ ☐
______________________________
Jason Wedel, City Manager