REPORT TO THE CITY COUNCIL
July 31, 2014
FROM: JEFF CARDELL, Director
Personnel Services Department]
BY: KEN PHILLIPS, Labor Relations Manager
Personnel Services Department]
SUBJECT
Title
*Adopt a Side Letter of Agreement between the City of Fresno and Unit 10, represented by the International Association of Fire Fighters (IAFF), Local 753, Management Unit amending the Memorandum of Understanding (MOU) provision on payment of health care premiums
Body
RECOMMENDATION
It is recommended that Council approve the attached Side Letter of Agreement between the City and Unit 10, Fire Management implementing an MOU provision which provides for a change in the City payment of health and welfare premiums.
EXECUTIVE SUMMARY
The MOU between the City and Fire Management contains a provision that allows renegotiation of the health and welfare benefit if a more favorable benefit is provided to another bargaining unit. On July 14, 2014, Terms and Conditions were implemented for Unit 5, represented by IAFF Local 753, Fire Basic which contained a more favorable benefit.
Approval of this Side Letter Agreement will change the monthly City contribution for health insurance from $800 to $813. The monthly contribution for employees will change from $284 to $271. Any future increases will be shared equally by the City and the employees with a cap of 30% of the monthly premium for the employees.
BACKGROUND
In 2013, the City paid 80% of the monthly health and welfare premium set by the City of Fresno Health and Welfare Trust for the majority of employees. The City contribution rate for new employees with a few bargaining units is 70% of the monthly premium.
Through negotiations of successor MOUs, the City has been pursuing other cost sharing approaches for health and welfare premiums. In the current MOU, Fire Management agreed to a flat City contribution of $800 per month; however, the MOU included a provision indicating that if a...
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