SR-02-10-2015-3GCity Council Meeting: February 10, 2015
Agenda Item:
To: Mayor and City Council
From: Donna C. Peter, Director of Human Resources
Subject: Resolution Authorizing the City Manager to Execute a Memorandum of
Understanding Setting the Terms and Conditions of Medical Insurance
Coverage with the Administrative Team Associates (ATA), International
Brotherhood of Teamsters Local 911 (IBT), Management Team
Associates (MTA), Municipal Employees Association (MEA), Public
Attorneys Union (PAU), Public Attorneys' Legal Support Staff Union
(PALSSU), Supervisory Team Associates (STA), United Transportation
Union, Local 1785 (SMART), Executive Pay Plan Participants, and certain
unrepresented classifications.
Recommended Action
Staff recommends that the City Council adopt the attached Resolution accepting the
tentative agreement and authorizing the City Manager to execute a Memorandum of
Understanding (MOU) establishing the terms and conditions of medical insurance
coverage with the City's miscellaneous employee (non- safety) bargaining units and the
participants of the Executive Pay Plan as represented by the Coalition of Santa Monica
City Employees.
Executive Summary
Negotiations for a successor MOU between the City and the Coalition of Santa Monica
City Employees has resulted in a tentative agreement. The terms of the tentative
agreement are summarized below. The total cost of the negotiated changes is included
in the adopted FY 2014 -2015 budget and was included in the General Fund FY 2015 -16
through FY 2019 -20 Five -Year Financial Forecast.
Background
The Coalition of Santa Monica Employees (the "Coalition ") represents miscellaneous
employee (non- safety) bargaining units and the employees covered by the Executive
Pay Plan for terms and conditions of employment relating to medical insurance and
retirement benefits under two separate MOU's. The current MOU with the Coalition for
medical insurance coverage expired on December 31, 2014. Per the terms and
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conditions of that MOU, negotiations with the Coalition for a successor MOU have
resulted in a tentative agreement on the terms of a new MOU. The Coalition is
scheduled to conclude its process to ratify the tentative agreement no later than
February 9, 2015. In the event that the Coalition does not ratify the tentative
agreement, staff will present an amended resolution and subsequently bring forth a
tentative agreement, when reached.
Discussion
Term of the Agreement
A four -year agreement has been negotiated with the Coalition effective January 1, 2015,
through December 31, 2018.
Significant Negotiated Changes
1) Effective February 1, 2015, the contribution by active employees covered under
the agreement towards the cost of their medical insurance premium, will increase
from the current amount of 5% to 5.5 %, not to exceed a 15% annual increase per
year through the term of this agreement. The amount of employee contribution
will increase 0.5% January 1st of each subsequent year of the agreement.
2) The City currently contributes a flat dollar amount of $150.69 per month towards
the retiree medical trust on behalf of each active employee. This amount will
increase by 2% effective January 1st of each year of the agreement.
3) Permanent part -time employees hired after January 1, 2015, will be offered an
HMO medical insurance plan for the employee only and will have the option to
purchase coverage for eligible dependents and /or coverage under the City's PPO
medical insurance plan.
Attached is a resolution for City Council consideration authorizing the City Manager to
Execute a Memorandum of Understanding Setting the Terms and Conditions of Medical
Insurance Coverage with the Coalition of Santa Monica City Employees.
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Financial Impacts & Budget Actions
The total cost of the negotiated changes contained in the new agreement is
approximately $50,000 for Fiscal Year 2014 -15. The budget impact of the majority of
these changes was included in the General Fund FY 2015 -16 through FY 2019 -20 Five
Year Financial Forecast.
Prepared by: Michael Earl, Human Resources Manager
Approved`:
C
Donna C. Peter
Director of Human Resources
Attachments:
A. Resolution
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Forwarded to Council:
Elaine Polachek
Interim City Manager
Reference:
Resolution No. 10864
(CCS)