DISCLAIMER

 

05-0741R                                                          REPLACEMENT


RESOLUTION APPROVING A SUPPLEMENTAL AGREEMENT WITH THE CITY OF DULUTH SUPERVISORY ASSOCIATION REGARDING ACTIVE AND RETIREE HEALTH INSURANCE.

BY COUNCILOR STAUBER:

     RESOLVED, that the proper city officials are authorized to execute and implement a supplemental agreement to the collective bargaining agreement between the city of Duluth and the city of Duluth supervisory association covering years 2004-2006, said supplemental agreement to contain the terms and be in substantially the form of that agreement on file with the city clerk as Public Document No. .


STATEMENT OF PURPOSE:  The city of Duluth supervisory association recognizes the enormous liability facing the city with regard to health insurance, and this supplemental agreement puts into place terms that will have a significant impact on this liability both immediately and in the future. The major changes from the existing collective bargaining agreement are:

1.   The replacement resolution adds the definition of new hires. Under the definition, new hires will not include city employees who are promoted to a position in the supervisory unit. New hires will be those individuals who are hired outside of city employment.

2.   Active employees will have the choice of only two plans rather than the four plans listed in the current agreement. Employees selecting single coverage may choose Plan 3 or Plan 4. Employees selecting family coverage may choose only Plan 3.

3.   The city pays the full cost for single coverage and 80 percent of the cost of family coverage.

4.   Any employee hired after December 31, 2005, will be eligible for retiree health insurance only at their own expense.

5.   Employees hired before January 1, 2006, who retire from city employment after December 31, 2005, can choose Plan 3 or Plan 4 for single coverage and Plan 3 only for family coverage.

6.   Eligibility requirements for retiree health insurance for all groups is unchanged and for employees hired before January 1, 2006, the entire cost of retiree health insurance is paid for by the city.

7.   The supplemental agreement will expire on December 31, 2006, or when the city council approves, by resolution duly passed, the new contract for the period beginning January 1, 2007, whichever occurs first.


This replacement resolution is necessary because the supplemental agreement was changed from that previously provided to the council by adding a definition of new hires to the supplemental agreement.