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I <br />I <br />I <br />i <br />I <br />I <br />I <br /> <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />pIZASE#: ~ <br /> <br /> CONSIDER NEGOTIATED PROPOSAL <br />INCREASING CITY CONTRIBUTION TO EMPLOYEE HEALTH CARE COVERAGE <br />By: Linda Waite Smith, Administrative Services Manager <br /> <br />Background: <br /> <br />Both of the City's labor contracts contain language stating that if monthly premiums for the <br />lowest cost family health care coverage offered by the City rise above $480 per month, the <br />amount of employer contribution will be renegotiated and the new contribution will go into <br />effect January 1, 1999. <br /> <br />The reopener language is very narrow and does not apply to employer contributions for single <br />health care coverage or for employees who waive health care coverage. Those contributions <br />have been frozen at $290 per month for several years and remain frozen in the AFSCME contract <br />that runs through the year 2000. Several Councilmembers have indicated an interest in changing <br />the current practice of allowing employees who waive coverage to receive cash equal to the <br />employer contribution for single coverage. That would have to be negotiated in future contracts. <br /> <br />Monthly premiums for the lowest priced family health care plan increased to $536, effective <br />September 1, 1998, triggering the reopening of the contracts for this item. Management <br />representatives and union repesentatives have reached a tentative agreement for City Council <br />consideration. The proposal is for the employer and employee to evenly split responsibility for <br />the $56 per month premium increase. The employer's contribution would increase by $28 per <br />month to a total of $389 per employee. The 1999 increase in City cost would be $6,016 to cover <br />all employees who elect family coverage. <br /> <br />Attached to this case is a history of the level of employer health care contributions in Rams..e_y <br />and a comparison of Ramsey's contribution with other metro area cities in the same populai~on <br /> <br />group. <br /> <br />Committee Action: <br /> <br />Recommend that City Council authorize amendments to the AFSCME and LELS labor contracts <br />to increase the employer contribution to family health care coverage to $389 per month. <br /> <br />Reviewed By: <br /> <br />City Administrator <br />Administrative Services Manager <br />Finance Officer <br /> <br />PC 11/24/98 <br /> <br /> <br />