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PE:medical ins. umbrella MOU.stfrpt.2001.bancroft.pms
Council Meeting: June 12,2001
Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Resolution Authorizing the City Manager to Execute a Memorandum of
Understanding Setting the Terms and Conditions of Medical Insurance
Coverage with Management Team Associates, Supervisory Team
Associates, Administrative Team Associates, Municipal Employees
Association, Public Attorneys' Union, United Transportation Union (Local
1785), Public Attorneys' Legal Support Staff Union and Executive Pay Plan
Participants
INTRODUCTION
This report requests that Council adopt the attached Resolution authorizing the City
Manager to execute a Memorandum of Understanding (MOU) setting the terms and
conditions of medical insurance coverage with the City's miscellaneous employee
(non-safety) bargaining units.
BACKGROUND
Due to unanticipated medical insurance premium increases for the 2001 medical plan year
which resulted in the composite medical insurance premium exceeding the cap on City
contributions towards the cost of medical insurance for miscellaneous City employees, the
City's Health Insurance Committee, comprised of representatives from the City's
miscellaneous employee (non-safety) bargaining units, met for the purpose of exploring
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other medical insurance plan options in an effort to control the escalating cost of medical
insurance for miscellaneous employees. The City's miscellaneous employee (non-safety)
bargaining units were also interested in addressing retiree medical insurance coverage.
The Health Insurance Committee conducted a thorough review of the various medical
insurance options and recommended that the City contract with the California Public
Employees' Retirement System (CaIPERS) to offer the CalPERS HealthCare program to
all miscellaneous employees. City Council adopted a Resolution in April, 2001 to
implement the Health Insurance Committee's recommendation.
The City and representatives from the miscellaneous employee (non-safety) bargaining
units met and conferred to reach agreement regarding medical insurance coverage for
miscellaneous employees and their qualified dependents and a City contribution towards
retiree medical insurance for miscellaneous (non-safety) employees. The attached
agreement is the result. This agreement has been ratified by the membership of each of
the miscellaneous employee (non-safety) bargaining units.
This agreement is a three-year agreement, covering the period from July 1, 2001 through
June 30, 2004, and it replaces the medical insurance provisions currently contained in each
of the separate Memorandums of Understanding between the City and its miscellaneous
employee (non-safety) bargaining units. The agreement retains the current cap on the
City's contribution towards medical insurance premiums for active City employees and their
eligible dependents and provides for a City contribution towards retiree medical insurance.
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BUDGET/FINANCIAL IMPACT
Funds are already included in the proposed budget for FY2001-2002 to cover any costs
associated with the attached Memorandum of Understanding between the City and its
miscellaneous employee (non-safety) bargaining units.
RECOMM ENDA TION
It is recommended that Council adopt the attached Resolution authorizing the City Manager
to execute a Memorandum of Understanding covering medical insurance between the City
and its miscellaneous employee (non-safety) bargaining units.
Prepared By: Karen Bancroft
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