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HomeMy WebLinkAbout06779ORDINANCE NO. 6779 AN ORDINANCE AMENDING THE COLLECTIVE BARGAINING AGREEMENT BY AND BETWEEN THE CITY OF PUEBLO AND THE PUEBLO ASSOCIATION OF GOVERNMENT EMPLOYEES FOR CALENDAR YEAR 2002 WHEREAS, the City of Pueblo, a municipal corporation, and the Pueblo Association of Government Employees, as the sole and exclusive collective bargaining agent for the other classified employees of the City of Pueblo, have entered into a Collective Bargaining Agreement effective January 1, 2000 through December 31, 2002; and WHEREAS, the City of Pueblo and the Pueblo Association of Government Employees have reached mutual written agreement to amend Article 25 of that Collective Bargaining Agreement to provide for an increase in the City contribution toward the cost of employee health insurance premiums; and WHEREAS, Section 8 -14(1) of the Charter of the City of Pueblo requires that any such Agreement shall be enacted as an ordinance by the corporate authorities; BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: (brackets indicate language being deleted, underscoring indicates language being added) SECTION 1 ARTICLE 25 of the Agreement is hereby amended to read as follows: Section 1. HEALTH, ACCIDENT, HOSPITALIZATION AND MAJOR MEDICAL INSURANCE. The City will [make every reasonable effort to] obtain a health benefit plan covering the employees in the bargaining unit, under the procedures and conditions set forth in this Article. The City shall pay [$98.14 plus one -half (%) of the difference between $98.14 and] 95% of the actual premium for an individual policy per month. The City shall pay [the amount of $209.27 plus one -half (' /z) of the difference between $209.27 and] 70% 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, [provided that the maximum contribution by the City under this Article shall not exceed a maximum of Two Hundred and eighty -one dollars ($281.00) per month,] in addition to the $24.66 monthly contribution toward dental insurance established in Section 2 herein; provided, further, that if the employee elects coverage under a PPO or indemnity option, the City's contribution to payment for such PPO or indemnity option shall be in the same dollar amount as if the employee had elected coverage under the HMO option at the same tier level. Section 2. DENTAL POLICY. The City shall pay $24.66 monthly toward the full cost of an individual employee policy or family policy for employees. Section 3. INSURANCE COMMITTEE. The City and the Union will form an insurance, joint, consultation committee, composed of not more than two (2) representatives designated by each. Nothing in the language of this Article shall be interpreted to preclude the participation of representatives of the bargaining agents of other bargaining units, from participating in the consultations of the committee. All meetings with representatives of health care plans, for the purpose of discussing bid specifications and plan structure, shall be conducted by and with the committee. The Committee shall confer regarding bid specifications and the letting of bids for the health benefit plan required under this Article. [ However, because of the City's contribution cap, the Union shall have the right to unilaterally determine the bid specifications for the health benefit plan covering employees in the bargaining unit.] Such bid specifications shall include, but not be limited to, the following: a) Deductibles; b) Co- Payments; C) Coverage; d) Benefits; e) Specialist Referral, location, and availability' f) Participation eligibility; g) Physicians available under the plan [(the list of available primary care physicians under 14MO and PPO Options may be required, at a minimum, to include those physicians, who are designated as primary care physicians by 90 percent of the employees in the bargaining unit and covered dependents)]; h) Options; I) Tiers. The City shall solicit bids for the health benefit plan based upon the bid specifications [established by the Union]. The City shall award the contract(s) for the health benefit plan to those bidders, who meet bid specifications at the lowest aggregate premium cost for all options required under the bid specifications[.] , including the specifications of any self insurance plan, provided however any health benefit plan(s) specifications shall be at least equal to the plans) in effect on December 31, 2001. Nothing in this Article shall preclude other City of Pueblo, employees, bargaining units, City of Pueblo Transportation Company employees or City of Pueblo, Union- Exempt, Supervisory Employees from participating in the health benefit plan provided pursuant to this article. Nothing shall preclude the City from utilizing a City self - insurance plan for the health benefit plan required under this Article, provided, however, the City shall retain the services of a third party administrator to manage such plan; the third party administrator shall be selected upon the basis of requests for professional proposals, the parties shall share in any reimbursement from the plan, based upon utilization, in the same proportion that the costs were shared. The consultations of the committee established under this Section of this Article shall not be subject to the grievance /arbitration procedure of this agreement. Section 2. The above amendment shall become effective January 1, 2002 and shall terminate December 31, 2002. All other provisions of the Collective Bargaining Agreement shall continue unchanged through December 31, 2002, unless amended by mutual written agreement of the parties. INTRODUCED: January 28 , 2002 By: Al Gurule Co 1person APPROVE President of the City Council ATTESTED BY: City Clerk PASSED AND APPROVED: February 11, 2002 Background Paper for Proposed ORDINANCE DATE: JANUARY 28, 2002 AGENDA ITEM # ( IS05t DEPARTMENT: CITY MANAGER'S OFFICE LEE R. EVETT, CITY MANAGER DAVID J. GALLI, DEPUTY CITY MANAGER TITLE AN ORDINANCE AMENDING THE COLLECTIVE BARGAINING AGREEMENT BY AND BETWEEN THE CITY OF PUEBLO AND THE PUEBLO ASSOCIATION OF GOVERNMENT EMPLOYEES FOR CALENDAR YEAR 2002 Approval BACKGROUND The City of Pueblo and the PAGE Union, which represents the City's general service employees, agreed on the provisions of a collective bargaining agreement effective January 1, 2000 and terminating December 31, 2002. In the autumn of 2001, during negotiations between the City and the Police Union, the City agreed to increase the contribution toward employee health insurance premiums for all City employees. Under the new language, the City will pay 95% of the cost of a single health insurance premium and 70% of the cost for the family insurance premium. This ordinance amends the collective bargaining agreement between the City and the PAGE Union only as it pertains to health insurance. FINANCIAL IMPACT The cost of increasing the City's contribution toward health insurance premiums for members of the PAGE Union is approximately $300,000, and the cost for all City employees is approximately $700,000. These funds have already been appropriated in the 2002 budget.