HomeMy WebLinkAboutAgenda Report - November 5, 2008 E-08AGENDA ITEM Efto?
&1h CITY OF LODI
COUNCIL COMMUNICATION
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AGENDA TITLE: Adopt Resolution Amending the 2007-2011 Memorandum of Understanding
between the City of Lodi and the Lodi Police Mid -Management Organization
Relating to Opt -Out Provisionfor Medical Benefits and Approving Said Provision
for Confidential Employees
MEETING DATE: November5,2008
SUBMITTED BY: Human Resources Manager
RECOMMENDED ACTION: As previously directed by the City Council, this action is to Adopt a
Resolution Amending Memorandum of Understanding between the City of Lodi
and the Lodi Police Mid -Management Organization (LPMO) Relating to Opt -Out
provision for Medical Benefits and Approving said Provision for Confidential
Employees.
BACKGROUND INFORMATION: At present, the Police Officers Association of Lodi has a provision in
its Memorandum of Understanding (MOU) that allows the police officers to "opt -out" of the City's medical
coverage program and to receive monies into their deferred compensation account equal to one-half of
the medical insurance premium. This provision results in significant savings to the City. For example, a
police officer with a family selects Blue Shield HMO as their medical provider, the cost to the City $1,281
per month. If he/she "opt -out" of medical coverage, this MOU provision would reduce the City's monthly
cost from $1,385 per month to $692 per month (or half the cost of the medical insurance).
In order to provide fairness among sworn police officers, Police Mid -Management is requesting to adopt
the MOU provision currently in the Police Officers Association of Lodi into the Lodi Police Mid -
Management Organization (this language is currently included in the Lodi Professional Firefighters and
the Lodi Fire Mid -Management MOUs as well). That language is as follows:
Effective December 1, 2008, if an employee elects not to be covered by medical insurance
through the City of Lodi, an additional $692.81 per month for family or $532.92 for employee + 1
dependent will be added to the employee's deferred compensation account to equal one-half of
the medical insurance premium that would have been paid by the City of Lodi. This dollar amount
shall not increase during the term of this MOU.
This action is also requested to be offered to Confidential employees, who are not represented by a
bargaining association.
APPROVED:
ing, City Manager
FISCAL IMPACT Adoption of this resolution would result in an annual savings of $47,508.
FUNDING AVAILABLE: nla
Respectfully submitted,
Dean Gua o, Humi inkeVo6urc-es Manager
Attachments
A RESOLUTION OF THE LODI CITY COUNCIL
AMENDING THE MEMORANDUM OF UNDERSTANDING
BETWEEN THE CITY OF LODI AND LODI POLICE
MID -MANAGEMENT ORGANIZATION RELATING TO
OPT -OUT PROVISION FOR MEDICAL BENEFITS
AND APPROVING SAID PROVISION FOR
CONFIDENTIAL EMPLOYEES
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby
approve an amendment to the Lodi Police Mid -Management Memorandum of
Understanding and Confidential Employees replacing current practice of the opt -out
provision for medical benefitsto the language as follows:
Effective December 1, 2008, if an employee elects not to be covered by medical
insurance through the City of Lodi, an additional $692.81 per month for family or $532.92
for employee + 1 dependent will be added to the employee's deferred compensation
account (equal to one-half of the medical insurance premium that would have been paid
by the City of Lodi). This dollar amount shall not increase during the term of this MOU.
Date: November 5,2008
I hereby certify that Resolution No. 2008-209 was passed and adopted by the
City Council of the City of Lodi in a regular meeting held November 5, 2008, by the
following vote:
AYES: COUNCIL MEMBERS— Hitchcock, Hansen, Johnson, Katzakian,
and Mayor Mounce
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS— None
ABSTAIN: COUNCIL MEMBERS— None
RA JOHL
City Clerk
2008-209