HomeMy WebLinkAbout09528ORDINANCE NO. 9528
AN ORDINANCE APPROVING AN AMENDMENT TO THE
COLLECTIVE BARGAINING AGREEMENT BETWEEN
THE CITY OF PUEBLO AND THE INTERNATIONAL
BROTHERHOOOD OF POLICE OFFICERS LOCAL 537
RELATING TO TERMS AND CONDITIONS OF
EMPLOYMENT IF THE CITY ELECTS TO PROVIDE A
SELF-FUNDED HEALTH BENEFIT PLAN IN CALENDAR
YEAR 2020 AND AUTHORIZING THE MAYOR TO
EXECUTE SAME
BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
The Amendment to the Collective Bargaining Agreement between the City of
Pueblo and the International Brotherhood of Police Officers Local 537, a copy of which
is attached hereto, having been approved as to form by the City Attorney, is hereby
approved and enacted as an Ordinance.
SECTION 2.
The Mayor is hereby authorized and directed to execute said Amendment for and
on behalf of the City and the City Clerk is directed to affix the seal of the City thereto and
attest same.
SECTION 3.
The officers and staff of the City are authorized and directed to perform any and
all acts consistent with the intent of this Ordinance and the attached Amendment to
effectuate the policies and procedures described therein.
SECTION 4.
This Ordinance shall become effective on the date of final action by the Mayor and
City Council.
Action by City Council:
Introduced and initial adoption of Ordinance by City Council on August 12, 2019 .
Final adoption of Ordinance by City Council on August 26, 2019 .
President of City Council
Action by the Mayor:
☒
Approved on August 28, 2019 .
□
Disapproved on based on the following objections:
Mayor
Action by City Council After Disapproval by the Mayor:
□
Council did not act to override the Mayor's veto.
□
Ordinance re-adopted on a vote of , on
□
Council action on _______ failed to override the Mayor’s veto.
President of City Council
ATTEST
City Clerk
City Clerk’s Office Item # R-23
Background Paper for Proposed
Ordinance
COUNCIL MEETING DATE: AUGUST 12, 2019
TO: President Dennis E. Flores and Members of City Council
VIA: Brenda Armijo, City Clerk
FROM: Mayor Nicholas A. Gradisar
SUBJECT: AN ORDINANCE APPROVING AN AMENDMENT TO THE COLLECTIVE
BARGAINING AGREEMENT BETWEEN THE CITY OF PUEBLO AND THE
INTERNATIONAL BROTHERHOOOD OF POLICE OFFICERS LOCAL 537
RELATING TO TERMS AND CONDITIONS OF EMPLOYMENT IF THE CITY
ELECTS TO PROVIDE A SELF-FUNDED HEALTH BENEFIT PLAN IN
CALENDAR YEAR 2020 AND AUTHORIZING THE MAYOR TO EXECUTE SAME
SUMMARY:
The proposed Ordinance approves an Amendment to the current collective bargaining agreement
with the International Brotherhood of Police Officers Local 537 relating to terms and conditions of
employment if the City elects to provide a self-funded health benefit plan in calendar year 2020.
PREVIOUS COUNCIL ACTION:
Not Applicable.
BACKGROUND:
If the City elects to provide a self-funded health benefit plan in calendar year 2020, there are a
number of terms and conditions of employment that will be affected by such election and must be
negotiated by the parties. The parties have met and conferred with respect to such issue and
present the Amendment for approval. Relevant terms of the Amendment include the following:
1. Plan design shall be determined by a majority vote of the Benefits Committee;
provided, however, if no majority vote is cast or if the plan and benefits selected will result
in any increase in the current premiums, the Mayor shall determine and select such plan
and benefits.
2. Premiums shall be determined by City based upon the recommendation of City’s
insurance broker consultant, the plan design chosen, and the funding level acceptable to
City.
3. The City’s percentage share of premiums including the current maximum dollar
amount the City must contribute toward any premium (“Contribution Cap”) shall be
continued. The City and Union shall share equally in the costs of any premium increase
approved by the Mayor, and the Contribution Cap shall be adjusted accordingly.
Contribution requirements and limitations with respect to employees who elect coverage
under a high deductible health plan with Health Savings Account shall be continued.
4. All contracts, programs and documents necessary to transition to and administer
the Self-Funded Health Benefit Plan shall be determined and selected by City including
but not limited to all costs and expenses of administrations, any third-party administration,
if selected, stop loss policy, if selected, HIPAA privacy and security policies, and plan
administration policies and procedures.
5. All assets of the Self-Funded Health Benefit Plan, including but not limited to
premiums, reserves and reimbursements, shall be the property of the City to be used
solely for providing benefits for enrolled employees and assuring funding of the Self-
Funded Health Benefit Plan at a risk level acceptable to City.
FINANCIAL IMPLICATIONS:
This proposed Amendment contains new costs of approximately $183,366 due to the agreed upon
50/50 split of health insurance increase in 2020.
Any other potential financial implications are dependent upon City Council’s approval of an
amendment to Section 6-7-1 of Title IV of the Municipal Code electing to provide a self-funded
health benefit plan in calendar year 2020 (“Self-Funding Ordinance”).
If City Council is not going to approve the Self-Funding Ordinance, it would be appropriate not to
approve this Amendment.
BOARD/COMMISSION RECOMMENDATION:
Not Applicable.
STAKEHOLDER PROCESS:
Not Applicable.
ALTERNATIVES:
City Council could choose not to approve the Amendment. If not approved, it is recommended
that City Council not approve the Self-Funding Ordinance.
RECOMMENDATION:
It is recommended that City Council approve this Amendment and the Self-Funding Ordinance.
Attachments:
AMENDMENT TO THE COLLECTIVE
BARGAINING AGREEMENT
This amendment to the collective bargaining agreement("Amendment") is executed this ,210-°..'
day of ALA K,S S , 2019, by and between Pueblo, a municipal corporation ("City"),
and International Brotherhood of Police Officers Local 537 ("Union") (collectively the"Parties").
WHEREAS, City and Union are parties to a collective bargaining agreement commencing
January 1, 2019 and ending December 31, 2019 ("Labor Agreement").
WHEREAS,the Parties are interested in transitioning from a fully-insured to a self-funded
health insurance plan("Self-Funded Health Benefit Plan").
WHEREAS, in order to proceed with such transition, City desires and Union is willing to
agree to certain terms and conditions which will be applicable to such Self-Funded Health Benefit
Plan.
NOW THEREFOR, in consideration of the foregoing and the mutual covenants herein
contained, the Parties stipulate, acknowledge and agree as follows:
1. If the City elects after consultation with the Union to transition to a Self-Funded
Health Benefit Plan to be available in calendar year 2020 and thereafter, the following terms and
conditions shall govern such plan, shall bind the Parties and shall supersede any conflicting or
inconsistent provision of the Labor Agreement:
a. Plan Design. If a Self-Funded Health Benefit Plan is provided to covered
employees of Amalgamated Transit Union Division No. 662 ("Transit"),
the City, Transit, Pueblo Association of Government Employees,
International Association of Fire Fighters Local No. 3 and Union shall meet
as a committee and confer with respect to determining the health plan design
and benefits to be provided under such plan. Each party shall have one vote
for a total of five(5) votes with respect to selecting such health plan design.
The majority vote of the committee shall determine the plan and benefits;
provided, however, if no majority vote is cast or if the plan and benefits
selected will result in any increase in the current premiums, the Mayor shall
determine and select such plan and benefits.
Alternatively, if a Self-Funded Health Benefit Plan is not provided to
covered employees of Transit, the City, Pueblo Association of Government
Employees, International Association of Fire Fighters Local No. 3 and
Union shall meet as a committee and confer with respect to determining the
health plan design and benefits to be provided under such plan. Each party
shall have one vote for a total of four(4)votes with respect to selecting such
health plan design. The majority vote of the committee shall determine the
plan and benefits; provided, however, if no majority vote is cast or if the
plan and benefits selected will result in any increase in the current
premiums, the Mayor shall determine and select such plan and benefits.
b. Premiums and Contributions. Premiums shall be determined by City based
upon the recommendation of City's insurance broker consultant, the plan
design chosen pursuant to above Subsection l.a., and the funding level
acceptable to City. Employees who are eligible and select an offered plan
shall pay the cost of any applicable premium by payroll deduction subject
to the contributions herein provided. The City shall pay 95% of the actual
premium for an individual policy per month but not to exceed$824.67. The
City shall pay 78% of the actual cost of a premium toward the cost of a
single plus spouse, single plus child or children or family policy per month
for employees but not to exceed $1,433.75 with respect to a single plus
spouse plan or$1,303.40 with respect to a single plus child or children plan
or$1,680.72 with respect to a single plus family plan("Contribution Cap").
The Contribution Cap applicable to each coverage tier,i.e.individual,single
plus spouse, single plus child or children or family coverage tier, shall be
increased by fifty percent (50%) of any increase between the HMO Tier 1
premium for such coverage tier in the current year and the recommended
HMO Tier 1 premium for such coverage tier in the subsequent year. If the
employee elects coverage under a PPO option, if offered, the City's
contribution to payment for such PPO shall be in the same dollar amount as
if the employee had elected coverage under the HMO Tier 1 option for the
same coverage tier. If an employee elects coverage under a high deductible
health plan with Health Savings Account ("High Deductible HSA"), if
offered,the City's monthly contribution for the High Deductible HSA shall
be One Hundred Dollars ($100.00) per month less than monthly
contribution required for the City's HMO Tier 1 plan, at the same coverage
tier, and the City will contribute Sixty Six Dollars and 67 Cents ($66.67)
per month to each employee's health savings account under such High
Deductible HSA.
c. Self-Funded Contracts and Documents. All contracts, programs and
documents necessary to transition to and administer the Self-Funded Health
Benefit Plan shall be determined and selected by City including but not
limited to all costs and expenses of administrations, any third-party
administration, if selected, stop loss policy, if selected, HIPAA privacy and
security policies, and plan administration policies and procedures.
d. Plan assets. All assets of the Self-Funded Health Benefit Plan, including
but not limited to premiums, reserves and reimbursements, shall be the
property of the City to be used solely for providing benefits for enrolled
employees and assuring funding of the Self-Funded Health Benefit Plan at
a risk level acceptable to City.
2. For calendar year 2020,the Union waives any present or future right, contingent or
otherwise,that it may have to negotiate any change to the terms and conditions of this Amendment
in any successor collective bargaining agreement. The intent and purpose of the foregoing waiver
is that the Self-Funded Health Benefit Plan available in calendar year 2020 shall be subject to and
governed by the terms and conditions of this Amendment,and this Amendment shall be construed
and applied consistent with such intent and purpose. Notwithstanding the foregoing,the City shall
not be prohibited or otherwise limited by this Amendment from asserting or otherwise maintaining
in any future negotiation of a successor collective bargaining agreement that any term or condition
of this Amendment is not a mandatory subject of bargaining.
3. To the extent the parties negotiate a successor contract to the Labor Agreement
which provides for extension of the collective bargaining agreement in calendar year 2021 or 2022
and if the City provides a Self-Funded Health Benefit Plan in calendar year 2020 and if the City
does so elect to extend the term of such successor collective bargaining agreement for calendar
year 2021 or 2022, the Union may commence negotiations after receipt of notice of such election
with respect to the terms and conditions of this Amendment by serving notice pursuant to Section
8-14, City Charter, on or before June 20, 2020 or June 20, 2021, as applicable. If the Union
exercises such option to open negotiations with respect to the terms and conditions of this
Amendment, no other provision of the collective bargaining agreement shall be opened for
negotiations.
4. With respect to any provision relating to determining plan design during any
subsequent calendar year negotiation for a successor collective bargaining agreement after 2020,
including any reopening as set forth in above Section 3, the parties expressly stipulate and agree
that the then current provisions for determining plan design shall govern the method and manner
in which the plan design is selected for the following calendar year even though such provisions
may be amended in the successor agreement.
5. Should the City elect to discontinue the Self-Funded Health Benefit Plan, the
provisions of the Labor Agreement applicable to a fully-insured health benefit plan shall be
reinstated; provided, however, any changes in the Contribution Caps shall be maintained.
6. Union expressly stipulates, acknowledges and agrees that City is materially relying
upon the faithful performance of each and every provision of this Amendment, and without this
Amendment, including each and every provision, the City would not consider proceeding with a
transition from a fully funded health insurance plan to a Self-Funded Health Benefit Plan.
7. This Amendment represents the entire agreement between the Parties and
supersedes all prior discussions and written agreements or understandings with respect to the
subject matter of this Amendment. This Amendment may be amended only by an instrument in
writing signed by the Parties. If any provision of this Amendment is held invalid or unenforceable,
no other provision shall be affected by such holding, and all of the remaining provisions of this
Amendment shall continue in full force and effect. This Amendment may be executed in multiple
counterparts, each of which shall be deemed an original, and all of which together constitute one
and the same agreement.
.
8. This Amendment shall be construed in accordance with and governed by the laws
of the State of Colorado.
9. This Amendment shall be binding upon and inure to the benefit of the parties and
their respective successors and assigns.
10. The persons signing this Amendment on behalf of Union represent and warrant that
such parties and Union have the requisite power and authority to enter into, execute, and deliver
this Amendment and that this Amendment is a valid and legally binding obligation of Union
enforceable against Union in accordance with its terms.
Executed at Pueblo, Colorado, the day and year first above written.
UNION CITY
INTERNATIONAL BROTHERHOOD Pueblo, a municipal corporation
OF POLICE OFFICERS LOCAL 537
By / By ‘,,a4
4011040'y
ride t Mayor
By 1 ATTEST:
Secretary
City Clerk