HomeMy WebLinkAboutAgenda Report - August 16, 2017 I-04CITY OF LODI
COUNCIL COMMUNICATION
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AGENDA ITEM
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AGENDA TITLE: Adopt Resolution Approving Side Letter Agreement Amending the Memorandums
of Understanding Between the City of Lodi and AFSCME General Services and
Maintenance & Operators Units 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: August 16, 2017
SUBMITTED BY: Human Resources
RECOMMENDED ACTION: Adopt resolution approving side letter agreement amending the
Memorandums of Understanding between the City of Lodi and
AFSCME General Services and Maintenance & Operators Units,
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 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 2017. 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 Plus Family
$34.50
$69.00
$89.70
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.
Staff recommends that the Council approve the side -letter agreements with the AFSCME bargaining
units and to extend the same one-time payment to the unrepresented -confidential employees that are
provided the same benefits as the represented members within AFSCME.
FISCAL IMPACT: Total cost of the one-time payment for FY 2017/18 is $8,000, General Fund
impact is $2,300.
APPROVED:
Adopt Resolution Approving Side Letter Agreement Amending the Memorandums of Understanding
Between the City of Lodi and AFSCME General Services and Maintenance & Operators Units 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
August 16, 2017
Page Two
FUNDING AVAILABLE:
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.
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Adele Post, Human Resources Manager
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Andrew Keys, Deputy City Manager
Side Letter Agreement Amending the Memorandums of Understanding
Between the City of Lodi and AFSCME Representing Members of the
General Services and Maintenance & Operators Units
January 1, 2015 — December 31, 2017
This Side Letter Agreement is entered into between the City of Lodi, a municipal corporation
("City"), and AFSCME representing members in General Services and Maintenance & Operators
units, and is effective as of August 16, 2017.
RECITALS
WHEREAS, the General Services and Maintenance & Operators Memorandums of
Understanding between AFSCME and the City have terms of January 1, 2015 through December
31, 2017 (MOUs), and
WHEREAS, the General Services and Maintenance & Operators MOUs contain re -opener
clauses, Article XXI, Section 21.3 of the General Services MOU and Article XXIV, Section 24.6
of the Maintenance & Operators MOU, solely limited to determining the amount the City will
contribute towards employee health plan premiums during the calendar year 2016 and 2017, and
WHEREAS, representatives from the City and from AFSCME have met and conferred in good
faith to discuss the increase to medical insurance premiums for calendar year 2017 and agreed to
the following:
The City will provide a one-time, non-PERSable payment to partially off -set increased
medical insurance premiums for employees who are actively enrolled in one of the City's
medical plans during the calendar year 2017;
This one-time payment does not affect the maximum amount the City will contribute
towards medical premiums;
Employees who waive or opt -out of the City's medical insurance will not be eligible for
this one-time payment;
Eligible employees must have been hired by the City on or before January 1, 2017 and
must be an active employee at the time the City Council approves this Side Letter Agreement;
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 of this Side Letter Agreement by
City Council; and
The one-time payment will be based on the employee's medical tier that was in place as
of July 20, 2017, as follows:
Employee Only
Employee Plus One
Employee Plus Family
$34.50
$69.00
$89.70
All other provisions of the MOU remain in full force and effect.
CITY OF LODI, A.F.S.C.M.E., Council 57
a municipal corporation Local 146 -AFL-CIO
Stephen Schwabauer Date Linda Tremble Date
City Manager President, AFSCME
Adele Post Date Cliff Tillman, Jr. Date
Human Resources Manager Senior Business Agent
ATTEST:
Jennifer M. Ferraiolo Date
City Clerk
APPROVED AS TO FORM:
Janice D. Magdich
City Attorney
Date
RESOLUTION NO. 2017-162
A RESOLUTION OF THE LODI CITY COUNCIL APPROVING SIDE LETTER
AGREEMENTS BETWEEN THE CITY OF LODI. AND AFSCME GENERAL
SERVICES AND MAINTENANCE & OPERATORS UNITS REGARDING A
ONE-TIME, NON-PERSABLE PAYMENT TO PARTIALLY OFFSET
INCREASED MEDICAL PREMIUMS FOR EMPLOYEES WHO ARE
CURRENTLY ENROLLED IN ONE OF THE CITY'S MEDICAL PLANS
WHEREAS, Council approved revisions to the Memorandums of Understanding with
AFSCME General Services and Maintenance and Operators units, January 1, 2015 through
December 31, 2017, which included a re -opener provision to discuss increased costs to health
care in calendar years 2016 and 2017; and
WHEREAS, representatives from the City and AFSCME reached a tentative agreement
for a one-time payment that will partially offset the increased costs to the medical premiums for
calendar year 2017; 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, 2017, 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 with an estimated total cost of $8,000, will be based
on the employee's medical tier that was in place as of July 20, 2017, as follows:
Employee Only
Employee Plus One
Employee Plus Family
$34.50
$69.00
$89.70
WHEREAS, the City desires to provide the same one-time payment to unrepresented
Confidential Employees who are extended similar benefits as the represented members within
AFSCME.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby approve
side -letter agreements with the AFSCME General Services and Maintenance & Operators units
to provide a one-time, non-PERSable, lump -sum payment to partially offset increased medical
insurance premiums for calendar year 2017, and extend the same one-time payment to
unrepresented Confidential Employees who are extended similar benefits, at a total estimated
cost of $8,000.
Date: August 16, 2017
I hereby certify that Resolution No. 2017-162 was passed and adopted by the Lodi City
Council in a regular meeting held August 16, 2017, by the following vote:
AYES: COUNCIL MEMBERS — Chandler, Johnson, Mounce, Nakanishi, and
Mayor Kuehne
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
NIFER FERRAIOLO
City Clerk
2017-162