HomeMy WebLinkAboutAgenda Report - May 4, 2016 I-04CITY OF LODI
COUNCIL COMMUNICATION
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AGENDA ITEM
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AGENDA TITLE: Adopt Resolution Amending the Statement of Benefits Between the City of Lodi
and Council Appointees Regarding a One -Time, Non-PERSable Payment to
Partially Off -Set Increased Medical Premiums For Employees Who Are Currently
Enrolled in One of the City's Medical Plans
MEETING DATE: May 4, 2016
SUBMITTED BY: Human Resources
RECOMMENDED ACTION: Adopt resolution amending the Statement of Benefits between the
City of Lodi and Council Appointees regarding a one-time, non-
PERSable payment to partially off -set increased medical premiums
for employees who are currently enrolled in one of the City's medical plans.
BACKGROUND INFORMATION: Members of the AFSCME General Services and Maintenance &
Operations Units and representatives from the City successfully
negotiated a successor Memorandum of Understanding (MOU),
covering January 2015 through December 31, 2017, approved by Council on May 20, 2015. The
successor MOUs contain a re -opener provision to discuss increased costs to health care in calendar
years 2016 and 2017. Representatives from the City and AFSCME met and conferred over the past
several months and have reached a tentative agreement for a one-time payment that will partially off -set
the increased costs to the medical premiums for calendar year 2016. The one-time payment would be
provided to those employees who are actively enrolled in one of the City's medical plans and the amount
is based on the employee's current coverage tier as follows:
Employee Only
Employee Plus One
Employee Pius Family
$150.00
$300.00
$400.00
Employees who opt out of the City's medical insurance are not eligible for the one-time payment.
Additionally, this side -letter agreement does not change the City's monthly contribution to medical
insurance as defined in the subsequent MOUs and all other elements of the MOUs remain unchanged.
Representatives from the other bargaining units have requested that the City provide the same one-time
payment to their members. The City has no obligation to provide this one-time payment to the other
bargaining units; however, the City wishes to provide the same benefit to all employees, represented and
unrepresented.
Staff recommends that Council extend the same one-time payment to the Council Appointees, and to
appropriate funds.
APPROVED:
Stephen Schwabauer, City anager
10,7
FISCAL IMPACT:
FUNDING AVAILABLE:
Total cost of the one-time payment for FY 2015/16 is $92,600 City-wide,
General Fund impact is $50,850.
Funding for this item within the General Fund will be provided by funds in
excess of the General Fund reserve target established by Council.
Expenses in other funds is to be absorbed within existing appropriations.
aget--6-
Adele Post, Human Resources Manager
Jordan Ayers, Deputy City nager
RESOLUTION NO. 2016-74
A RESOLUTION OF THE LODI CITY COUNCIL APPROVING A
ONE-TIME, NON-PERSABLE PAYMENT TO COUNCIL
APPOINTEES TO PARTIALLY OFF -SET INCREASED MEDICAL
PREMIUMS FOR EMPLOYEES WHO ARE CURRENTLY
ENROLLED IN ONE OF THE CITY'S MEDICAL PLANS
WHEREAS, Council approved side -letter agreements with the various bargaining units
to provide a one-time, nonPERSable payment to partially off -set the increased costs to the
medical premiums for calendar year 2016; and
WHEREAS, this one-time payment does not affect the maximum amount the City will
contribute towards medical premiums; and
WHEREAS, employees who waive or opt -out of the City's medical insurance will not be
eligible for this one-time payment; and
WHEREAS, eligible employees must have been hired by the City on or before
January 1, 2016 and must be an active employee at the time the City Council approves this
Resolution; and
WHEREAS, the one-time payment will be processed in a lump -sum manner along with a
regularly -scheduled pay check within two pay periods of the approval; and
WHEREAS, the one-time payment will be based on the employee's medical tier that was
in place as of March 16, 2016, as follows:
Employee Only $150
Employee Plus One $300
Employee Plus Family $400
WHEREAS, the City desires to provide the same one-time payment to Council
Appointees as was provided to the represented employees.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby approve
a one-time, non-PERSable, lump -sum payment to Council Appointees to partially off -set
increased medical insurance premiums for calendar year 2016.
Date: May 4, 2016
I hereby certify that Resolution No. 2016-74 was passed and adopted by the Lodi City
Council in a regular meeting held May 4, 2016, by the following vote:
AYES: COUNCIL MEMBERS — Kuehne, Mounce, Nakanishi, and
Mayor Chandler
NOES: COUNCIL MEMBERS — Johnson
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
NNIFERG► . FERRAIOLO
ity Clerk
2016-74