HomeMy WebLinkAbout2018-08-28; City Council; Resolution 2018-157RESOLUTION NO. 2018-157
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, APPROVING A SIDE LETTER WITH THE CARLSBAD
FIREFIGHTERS' ASSOCIATION, INC. (CFA) THAT AMENDS ARTICLE 15.D,
TITLED "OPT OUT PROVISION", OF THE MEMORANDUM OF
UNDERSTANDING
WHEREAS, on June 13, 2017 the City Council adopted Resolution No. 2017-015
approving a Memorandum of Understand (MOU) with the CFA with a term of three
years that expires on December 31, 2019; and
WHEREAS, on January 1, 2019, due to a decrease in the cost of two ofthe
medical plans sponsored by the city, the unused Benefits Credits corresponding to
these two medical plans would be higher than the Benefits Credits corresponding to
waiving medical insurance; and
WHEREAS, this situation incentivizes employees who would otherwise waive
city-sponsored medical insurance (because they have obtained insurance elsewhere)
to enroll in city-sponsored medical plans unnecessarily, thereby increasing the total
cost of city contributions to health insurance; and
WHEREAS, representatives of management and the Carlsbad Firefighters'
Association, Inc. have met and conferred in good faith pursuant to the Meyers-Millias-
Brown Act regarding wages and other terms and conditions of employment; and
WHEREAS, said representatives have reached agreement which they desire to
submit to the City Council for consideration and approval; and
Exhibit 1
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WHEREAS, the City Council has determined it to be in the public interest to
accept such an agreement in the form of a side letter marked Attachment A and
incorporated by reference herein.
NOW, THEREFORE, BE IT RESOLVED by the City Council for the City of Carlsbad,
California, as follows:
1. That the above recitations are true and correct.
2. That the side letter as set forth in Attachment A is hereby approved and
the City Manager is authorized and directed to execute it.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of
the City of Carlsbad on the 28th day of August, 2018, by the following vote, to wit:
AYES: M. Hall, K. Blackburn, M. Schumacher, C. Schumacher, M. Packard.
NOES: None.
ABSENT: None.
(SEAL)
August 28, 2018 Item #1 Page 4 of 6
Attachment A
SIDE LETTER AGREEMENT TO THE JANUARY 1, 2017 -DECEMBER 31, 2019
MEMORANDUM OF UNDERSTANDING BETWEEN
THE CITY OF CARLSBAD AND THE CARLSBAD FIREFIGHTERS' ASSOCIATION, INC.
REGARDING THE CFA MEDICAL INSURANCE OPT OUT PROVISION
This side letter memorializes an agreement reached between the City of Carlsbad ("City") and
the Carlsbad Firefighters' Association, Inc. ("CFA"), to reflect an agreed upon amendment to the
January 1, 2017-December 31, 2019 Memorandum of Understanding ("MOU") entered into
between the City and CFA. All other terms and conditions of the existing MOU shall remain in
full force and effect. The change is listed below.
Effective upon City Council approval, Article 15.D shall be amended to state the following:
D. Opt Out Provision
CFA represented employees who do not wish to participate in the CalPERS Health
Program will have the choice of waiving the city's medical insurance, provided they can
show that they are covered under another group insurance plan.
Employees who waive city-sponsored medical insurance will be given a reduced city
contribution amount (Benefits Credits) to be used toward the purchase of dental
insurance, vision insurance, AD&D insurance or as a contribution to a flexible spending
account. The city contribution amount will be granted to any employee who elects to
waive the CalPERS Health Program and who provides proof of other medical insurance
coverage, regardless of the employee's level of coverage (employee only, employee plus
one dependent, employee plus two or more dependents).
Effective the pay period that includes January 1, 2018, the City monthly benefit credits
associated with waiving medical coverage will be set equal to 50% of the benefit credits
associated with Employee Only medical coverage level. Effective the pay period that
includes January 1, 2019, if this results in a situation where the unused benefit credits
associated with any medical plan exceed the benefit credits associated with waiving
medical coverage, the benefit credits associated with waiving medical coverage will be
set equal to one dollar ($1) above the unused benefit credits associated with that medical
plan.
Unused Benefits Credits will be paid to the employee in cash and reported as taxable
income.
It is the understanding of the City and CFA that this side le is of no force or effect
whatsoever, unless and until adopted by resolution of th Cit Council of the City of Carlsbad.
Carlsbad Firefighters' Association, Inc.
Scott Chadwick, City Manager Date
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