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HomeMy WebLinkAboutCC 10 MOU TMEA 10-19-93CONSENT CALENDAR NO. 10 DATE' 10-i9-93 Inter-Oom OCTOBER 13, 1993 TO: FROM: SUBJECT: WILLIAM A. HUSTON, CITY MANAGER BETTIE CORREA, SENIOR PERSONNEL ANALYST AMENDMENT TO MEMORANDUM OF UNDERSTANDING - TMEA RECOMMENDATION' That the City Council authorize the City Manager to sign the attached Amendment to the Memorandum of Understanding (MOU) between the City and the Tustin Municipal Employees' Association. FISCAL IMPACT: The fiscal impact of this agreement will not be immediate. The Health and Welfare benefits offered to employees has been restructured to allow for a flexible benefits plan. The health plans offered have a three-level rate structure as opposed to the two-level rate previously offered. Likewise, the amount paid by the City under the flexible benefits plan is based on three levels which should not significantly increase the cost of the health plans overall. All health plans will be purchased through the Public Employees Retirement System Health Plan which will allow the City to eliminate the self-insured plan. This will reduce the City's exposure to risk and the cost of re- insurance. The amendment to the MOU includes a new retiree benefit, the cost of which will increase gradually over the years. Out of 129 employees covered by this agreement, there are 7 employees eligible to retire. Should all 7 employees retire immediately, the cost to the City would be $13,944 per year. Over the next five years, an additional 5 employees would be eligible to retire. Should-those employees retire, the cost of retiree medical benefits for twelve employees would be $23,904.00. Beyond five years, costs associated with this benefit are difficult to predict as employees will drop off the plan and costs will be reduced when retirees become eligible for Medi-care. The City's self-insured long term disability plan will be replaced with a purchased long term disability plan. Financial obligation for this plan will continue to be the employee's responsibility. This will relieve the City of a considerable amount of risk associated with the self-insured plan and administration. MEMO TO WILLIAM A. HUSTON MOU - TUSTIN MUNICIPAL EMPLOYEES' ASSOCIATION Page 2 DiSCUSSiON: The City met and conferred with the T~,stin Municibal Employees Association to arrive at this agreement and many of the provisions adopted were those recommended by the Insurance Committee. The Insurance Committee, which was comprised of representatives from every segment of the City's employee population was used to make recommendations to restructure the benefits to arrive at a plan to give employees less costly options for health coverage. The City's financial obligation for the health and welfare plans waS left t~,negotiations with the employee associations. BMC2:AMENDMOU.MEA AMENDMENT TO MEMORANDUM OF UNDERSTANDING CITY OF TUSTIN AND TUBTIN MUNICIPAL EMPLOYEE8 A880CIATION In accordance with the provisions of the California Government Code Sections 3500 et.seq, and Section 17 of the Personnel Rules and Regulations of the City of Tustin, city representatives have met and conferred in good faith with representatives of the Tustin Municipal Employees' Association on wages, benefits and conditions of employment for employees in the Miscellaneous Employees' Representation Unit. The meetings between the Association and City representatives have resulted in an agreement and understanding to amend the Memorandum of Understanding, city of Tustin and Tustin Municipal Employees' Association as set forth herein and that the City Council adopt by resolution or resolutions the changes and additions to the wages, hours and conditions of employment of represented employees. The Memorandum of Understanding between the Tustin Municipal Employees' Association and City of Tustin for the period dating from December 30, 1992 through December 31,.1993 is hereby amended as follows: Article 7. General Leave. The City shall provide General Leave Accrual rates for all represented employees according to the following formula: Years of Service General Leave Hours Per Year 0-5 168' 6-10 208 Over 10 248 * 160 hours for employees hired after the effective date of this Amendment. Article 8. Flexible Benefits Plan. Effective on or before January 1, 1994 the City will establish a Flexible Benefits Plan in accordance with the following: A. Flexible Benefits Contribution per month per eligible employee. Employee Only Employee + 1 Dependent Employee + 2 or more Dependents $267 $327 $478 Note: Employees who do not take medical insurance through the program offered by the City shall receive $120 per month in lieu of the flexible benefits contribution. As a condition of receiving S. Ct such amount, the employee must provide evidence, satisfactory to the City, that he/she has medical insurance coverage comparable to coverage available through the City program. The Flexible Benefits contribution consists of mandatory and discretionary allocations which may be applied to City sponsored programs. Employees are required to take employee only dental insurance with premiums to be paid out of their contribution and $16 of the contribution constitutes the City payment towards employee medical insurance. Employees may allocate the remaining amount among the following City sponsored programs: le · Medical insurance offered under the Public Employees' Medical and Hospital Care Act Program. Dependent Dental Insurance Additional Life Insurance Vision Insurance Deferred Compensation Section 125 Program Discretionary allocations are to be made in accordance with program/City requirements including restrictions as to the time when changes may be made in allocations to the respective programs. Section 125 Program A Section 125 Program will be implemented on or before January 1, 1994 and include such options as may be available. The Program shall be administered through Colonial Life provided that the City retains the right to change administrators for cause. Participation in the Program is voluntary and such costs as may attend participation are to be paid by the employee. Article 9. Retiree's Health Insurance The City will contribute a maximum of $150.00 per month towards the payment of medical insurance premiums for employees who retire from the City of Tustin after October 1, 1993. Such contribution is supplemental to the $16.00 per month City contribution to be made for eligible retirees under the Public Employees' Medical and Hospital Care Act Program and subject to the same conditions applicable to the PERS City contribution. Article 22. LTD Plan. a. Attachment "A" is a master policy for an employee Long-Term Disability Insurance Plan. This policy contains the primary components of a plan to be offered employees by the Canada Life Assurance Company as soon as possible but not later than January 1, 1994. Parties to this M.O.U. are in agreement with the master B. Ce De Assurance Company as soon as possible but not later than January 1, 1994. Parties to this M.O.U. are in agreement with the master policy but retain the right to meet and confer on any provisions of the final Policy which are considered inconsistent with the intent of the parties. The "Bank of Hours" program referenced in the Long-Term Disability Plan, adopted by reference to Attachment "A" in the current M.O.U., will be abolished upon the effective date of the Plan in A. above. Hours in the bank will be distributed equally to the general leave accounts of employees, provided that if such distribution results in the employee's account exceeding the authorized maximum accumulation, such excess will be paid at the employee's then current hourly rate. It is understood that extant liabilities of the City administered .LTD Plan are to be satisfied as a condition to implementation of the Canada Life Assurance Company Plan. Funds on deposit which may not be needed to satisfy such liabilities will be applied to costs of the Canada Life Plan. In addition to provisions of the Long-Term Disability Insurance_ Plan, the City agrees to pay the same salary benefit paid by the Plan for disability leave which occurs after the employee has used eighty (80) consecutive hours of general leave during the 30 day period beginning with the 1st day of the leave. Flexible benefits will be continued for three (3) months of a disability leave and such time will be counted towards satisfying Federal FMLA requirements. CITY OF TUSTIN BY WILLIAM A. HUSTON City Manager TUSTIN MUNICIPAL EMPLOYEES ASSOCIATION BY CATHY ~RKUSlC President HLAMMEA.FIN