Adopt Resolution #14-01-011 to Ratify the City Council's Recommendations to Approve the 2014 Health Insurance Contributions for AFSCME, LELS-Patrol and LELS-Sergeants Groups

The purpose of this case it to ratify the recommendation of the City Council, as discussed at the December 10, 2013 closed session, to authorize the City's 2014 health insurance contributions for the City's unionized employees; this includes the groups for AFSCME, LELS-Patrol and LELS-Sergeants.    

The amounts agreed upon for the unions is the same amount that was previously authorized for the non-union employees and is within the 2014 adopted budget.   

Health Insurance -- Background
Historically, the City has always offered the same health insurance contributions to all employee groups, union and non-union alike.   Staff highly suggests continuing that practice in an effort to maintain internal equity, minimize the complexity of the budget, keep the payroll process streamlined, and to mirror other city's business practices.  

The City's 2014 premium increase were expected to be capped at 10% and the 2014 union contracts were negotiated based on that percentage.  However, staff was aware that there was a chance the increase would be slightly higher due to healthcare reform fees and the unions were given (and requested) to have a re-opener to negotiate for the added fees, which came in at 3.3% or 13.3% all together.  Staff negotiated with the unions and recommends the City Council consider authorizing the sharing of the premium increases with unionized employees as limited to the Single, Employee + Spouse, and  Employee + Children plans.   Staff recommends holding the City's contribution on the Family plan at the level that was previously negotiated with the unions in order to reduce costs and work toward  more equitable contributions amongst the tiers. 

Staff recommends option C, as was also approved for the non-union employee group.  This option: 1) maintains 100% coverage by the City on the least expensive single premium (consistent past with practice and recommended by the City's benefits broker), and 2)  offers $130.00 toward the single VEBA contribution (but not $155 as was the case last year).

Attachment:  Health insurance contribution options as presented at the December 10, 2013 meeting.

The City's total monthly contributions toward health insurance, effective January 1, 2014, is recommended as follows: 

Single $800
Employee + Spouse $1092
Employee + Children $1176
Family $1358

The funding required for the proposed City health insurance contributions has been accounted for in the adopted 2014 budget.

To ratify the City Council's recommendation to authorize the City's 2014 health insurance contributions for the AFSCME, LELS-Patrol, and LELS-Sergeants union groups, which are the same amounts already authorized for the non-union group.

Motion to approve resolution #14-01-011 to ratify the City Council's recommendation to authorize the City's 2014 health insurance contributions for the AFSCME, LELS-Patrol, and LELS-Sergeants union groups, effective January 1, 2014.