12/06/2010 Council Packet (2) - Laserfiche WebLink

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• • To: Mayor and Council From: Jeff Karlson, City Administrator Date: December 6, 2010 Re: Tentative Agreement with AFSCME Background We have reached a tentative one -year agreement with AFSCME, Local No. 2454. The members have agreed to a 0% wage increase and changes to health insurance. Effective January 1, 2011, the traditional HMO health plan will no longer be available to employees. The only change to the AFSCME contract is in Article 16, where the existing language will be deleted and replaced to read: 16.1 Effective January 1, 2011, EMPLOYER will provide health insurance through a consumer - driven style health insurance plan with a health savings account (HSA). EMPLOYER will contribute $351.57 toward the premium for single coverage and $880.33 toward the premium for family coverage. The EMPLOYER 'S contribution for the HSA to be used toward the annual deductibles will be $1, 500 for single coverage and $3, 000 for family coverage. The cash option for waiving health insurance coverage will be the same as the single HSA premium, which is $324.68 after Social Security and Medicare taxes have been deducted. EMPLOYER contributions toward the premiums and health savings accounts for year 2012 will be stipulated in a Memorandum of Understanding. There are no other changes to the contract. The Memorandum of Understanding stipulates that the City's contributions toward the HSA for single and family coverage will remain the same in 2012. Recommendation • Authorize execution of labor agreement between the City of Lino Lakes and Local No. 2454 of the American Federation of State, County, and Medical Employees, AFL -CIO.