HomeMy WebLinkAboutHBPOA - Huntington Beach Police Officers Association - 1990-01-22REQUEA FOR CITY COUNCIL ACTION
Date January 22, 1990
Submitted to: Honorable Mayor and City Council Members
Submitted by:
Paul E. Cook, City Administrator
Prepared by: Robert J. Franz, Deputy City Administrato
CI UUNC._
Subject: MOU Amendment - Police Officers' Association
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Consistent with Council Policy? [X] Yes [ ] New Policy or Exception CITY
Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Actions, Attachments: �
Objective: To amend the MOU with employee organizations to reflect changes in the City's
medical benefit plan.
Recommendation: Adopt Resolution #
Analysis: All employee groups agreed with the proposed changes to the City's medical benefits
plan as described in the attached memorandum. Formal amendments to the multi -year
agreements with the groups are required to document the changes. The changes are reflected
in the attached MOU amendment which needs to be approved by a resolution of the City
Council.
Funding Source: 1989/90 Budget
Alternatives: Request further meeting and conferring.
Attachments:
1. ovember 2, 1989 memorandum
2. Resolution
3. Amendment to MOU
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PIO 5/85
CONFIDENTIAL
CITY OF HUNTINGTON BEACH
INTER -DEPARTMENT COMMUNICATION
HUNTINGTON BEACH
To HONORABLE MAYOR AND From
CITY COUNCIL MEMBERS
Subject MAXIMUM CITY CONTRIBUTION - Date
EMPLOYEE HEALTH PLAN PREMIUMS
ROBERT J. FRANZ
Deputy City Adminis ra o
NOVEMBER 2, 1989
The current agreements with all employee organizations limit the City contribution towards the
monthly cost of medical premiums to a maximum of $400. The premium for the City Plan as of
January 1, 1990 for coverage of an employee and two or more dependents (full family coverage)
will be $459 per month. Our current agreements with employee organizations require us to meet
and confer with them if the cost exceeds $400 per month. We have been conducting those meet
and confer sessions in accordance with the agreements.
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As you can see in the attached' exhibits; the,City's monthly:rates for health plan coverage., are
comparable to rates for plans An other' cities. •.Three ,or: four .years ago, the City, plan was Ether,
highest,.cost, but now we are,"average'.' in terins_ofr cost.', -,,."Please note also that many. of,,the .-,rates"._
represented for other cities will be"adjusted �January:1`or,�sometime in,,mid- 1990-:whereas.:the
City'states are.1ndicated for, both 1989"and:_1990i>rIn=addition,-please note ;.that `;City costs have, :: ',
bee'nder relatively good control over the last nusix years'since,..the City;. 'took, over
and self-administered plan. We have not experienced the recent.30 to 70$,medical plan.premium�Y 7
increases that have received so much publicity in the media. -
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In addition, we have been able -to -get -,excellent -cooperation from employee groupsin.the past six
years to implement cost control and incentive programs to�help;control.overall City;.claims.costs..,.:. - ..
For all of -these reasons, the.City - taff-is recommending*,that'the maximum City,contribution
the health plan costs be increased from $400ao $459 per._.moritti.if the employee ';organizations will
agree to the following plan benefit changes: =
1. Increase the maximum -deductible per, family from $400 to $450 per year.
2. Increase the . maximum out-of=pocket -employee " co -payment from., the
current $55.0 to $750 per year.
3. Modify the plan to have the $150 deductible for plan benefits apply to
hospitalization costs which, under the current plan, are paid without
assessing a deductible.
With the above plan changes, it is our opinion that we will be able to continue to exercise good
cost control on our medical claims. While this will not result in any dramatic savings as doctors
and hospitals continue to charge more for their services, it should result in the City continuing to
control its costs to the maximum extent possible.
The estimated cost of increasing the City's maximum payment is $220,000 per year, while the
savings from the benefit changes is unknown but estimated to be in excess of $100,000. The net
increase in cost represents a 3.7 % increase in the health plan costs that otherwise would be
assessed to employees. Another way of computing the same cost is to calculate its value in the
total salary and benefits package. Expressed in this manner, the charge represents a 0.2 %
increase in the salary and benefit package.
Attachments
4853j
RESOLUTION NO. 6103
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HUNTINGTON BEACH APPROVING AND IMPLEMENTING THE
MEMORANDUM OF UNDERSTANDING BETWEEN THE HUNTINGTON
BEACH POLICE OFFICERS' ASSOCIATION AND THE CITY OF
HUNTINGTON BEACH FOR 1987-1990
The City Council of: the City of Huntington Beach does resolve
as follows:
The amendment to the October 1, 1987 Memorandum of
Understanding between the City of Huntington Beach and the
Huntington Beach Police Officers' Association, a copy of which
amendment is attached hereto and by reference made a part hereof, is
hereby approved and ordered implemented in accordance with the terms
and conditions thereof, and the City Administrator is authorized to
execute this agreement. Such Memorandum of Understanding shall be
effective January 1, 1990.
ATTEST:
City Clerk
REVIEWED AND APPROVED:
1
City Administrator
Mayo r
APPROVED AS TO FORM:
City Attorney /4�1 '/1l'ia
/- ,. - �,j C• pf
INITIATED AND APPROVED:
Chi e_f'_o; -Police
A111VIENMIFMT TO i).'TEP:IORANDUP,T OF UNIDERQTANDING
BETWEEN
THE CITY OF HUNTINGTON BEACI-.I
(HEREINAFTER CALLED "CITY")
AND
THE HUNTINGTON BEACH POLICE OFFICERS' ASSOCIATION
(HEREINAFTER CALLED "ASSOCIATION")
The representatives of the City and the Association have met and conferred on the
issues of medical and dental insurance and hereby agree to the following changes to the
P'OU between the City and Association dated October 1, 1987.
Article VI.D. The City will assume full payment, subject to the limitations set
forth in Article VI.E below, for dependent health insurance effective the first of the
month following the month during which the employee completes one (1) year of full
time continuous service with the City.
Article VI.E. The City's obligation to pay for health insurance premiums shall
be limited to $459 per month for the duration of this PJOU. The employee shall pay
for any premium in excess of $459 per month.
Article VI.F.1. Effective January 1, 1990, the maximum out-of-pocket
expense for covered expenses under the Employee Health Plan shall be $750 per
person per year after the deductible has been met.
Article VI.F.2. Effective January 1, 1990, the Employee Health Plan shall be
rodified to increase the maximum deductible per family from Four Hundred ($400)
to Four Hundred and Fifty ($450) during any period of benefit entitlement as
described in the City's Employee health Plan. The maximum deductible per person
is $150 during any period of benefit entitlement as described in the Plan Document.
Article VI.F.6. (new) Effective January 1, 1990, covered hospitalization costs
shall be included under the covered costs subject to the plan deductible.
Article VI.H.1. (retitled) Employees shall continue to be covered by dental
plan benefits equal to those currently being provided by the City as modified in
Exhibit "G".
Article VI.H.2. (new) The orthodontia benefit under the indemnity dental plan,
Group No. 4729-0004, shall be increased from $1,500 to $3,000 maximum benefit.
CITY OF HUNTINGTON BEACH
POLICE OFFICERS' ASSOCIATION
ark- Reid
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Res. No. 6103
STATE OF CALIFORNIA
COUNTY OF ORANGE ss:
CITY OF HUNTINGTON BEACH )
I, CONNIE BROCKWAY, the duly elected, qualified City
Clerk of the City of Huntington Beach, and ex-officio Clerk of the
City Council of said City, do hereby certify that the whole number of
members of the City Council of the City of Huntington Beach is seven;
that the foregoing resolution was passed and adopted by the affirmative
vote of at least a majority of all the members of said City Council
at a regular adjourned meeting thereof held on the 22nd day
of January , 19 90 , by the following vote:
AYES: Councilmembers:
.MacAllister; Wirichell, Green, Mays, Banninster, Silva, Erskine
NOES: Councilmembers:
None
ABSENT: Councilmembers:
Non
City Clerk and ex-officio er
of the City Council of the City
of Huntington Beach, California