HomeMy WebLinkAboutMINUTES - 02102015 - HA D.4RECOMMENDATIONS
ADOPT Resolution No. 5184 approving the Side Letters between the Housing Authority and Public Employees
Union Local #1 for their Maintenance and Clerical Units, modifying Sections 23 "Benefits" and Section 39 "Health
Benefits Reopener" of the current Memorandum of Understanding (January 1, 2013 – December 31, 2015) to allow
the Housing Authority to provide health insurance via CalPERS effective April 1, 2015;
ADOPT Resolution No. 5185 to allow the Housing Authority to provide health insurance via CalPERS to
unrepresented and exempt employees effective April 1, 2015;
AUTHORIZE the Executive Director to execute the Side Letters with Public Employees Union Local #1 on behalf of
the Housing Authority.
BACKGROUND
In 2008, the HACCC capped the amount it provides to employees to help pay for medical and dental coverage. Since
that time staff have seen health insurance costs for a family rise by 312.8%. All of this increase has been absorbed by
staff. Both the overall cost of HACCC's health care plans and the amount of increases are greater than other local
agencies the Committee looked at. In response to this dramatic increase in health care costs and the discrepancies in
overall costs, HACCC and Local #1 formed a Health Benefits Labor-Management Committee.
Action of Board On: 02/10/2015 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF
COMMISSIONERS
Contact: 925-957-8028
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of
Supervisors on the date shown.
ATTESTED: February 10, 2015
Joseph Villarreal, Executive Director
By: , Deputy
cc:
D.4
To:Contra Costa County Housing Authority Board of Commissioners
From:Joseph Villarreal, Housing Authority
Date:February 10, 2015
Contra
Costa
County
Subject:Side Letters With Local #1 To Allow the Housing Authority to Provide Health Insurance Via CalPERS
BACKGROUND (CONT'D)
The Committee began meeting on November 9, 2010 in order to determine why the HACCC's costs and increases
were so high, as well as to explore alternative health care options. The Committee met with Kaiser representatives
and other insurers and brokers in this effort. It was determined that the health care costs for HACCC's employees
were driven by overall age (12.1 years older than the average Kaiser pool in HACCC's agency class), high current
usage and high anticipated future usage. As long as HACCC is purchasing health insurance directly, rates will be
driven upward by these factors. Switching insurers or brokers will not change this. In order to lower overall health
care rates, HACCC will need to join a large pool.
CalPERS is among the largest, if not the largest, such pool available to HACCC. With over 1.3 million
participants, the negative factors that have driven HACCC's health care costs will have no impact. Switching to
CalPERS will result in significant annual savings for staff members who purchase health insurance through
HACCC.
The proposed side letters and both resolutions are attached.
FISCAL IMPACT
The Housing Authority (HACCC) is not increasing its contribution to health costs. Based on current participation
rates, HACCC may realize a small savings in monthly costs. Employees who participate in HACCC's health plan
will see a significant savings.
CONSEQUENCE OF NEGATIVE ACTION
Should the Board of Commissioners elect not to adopt Resolution Nos. 5184 and 5185, HACCC employees
would continue to pay excessively high health insurance premiums for coverage.
ATTACHMENTS
Resolutions 5184 & 5185
Clerical Side Letter
Maintenance Side Letter
1
HOUSING AUTHORITY of the COUNTY OF CONTRA COSTA
and
PUBLIC EMPLOYEES UNION LOCAL #1
SIDE LETTER OF AGREEMENT
CHANGE TO CALPERS MEDICAL PLAN
CLERICAL UNIT
PURPOSE
The purpose of this Side Letter is to revise the current Memorandum of Understanding
between the parties by changing the medical plans provided by the Employer for
bargaining unit members.
REVISED TERMS and CONDITIONS
This Side Letter supersedes the current Memorandum of Understanding (MOU) terms
and conditions referenced below that provide for medical benefits for bargaining unit
members:
1.Section 23.1 Benefits –Listing of health plans provided by the Employer.
2.Section 23.6 Contribution Rates –Provides for the maximum employer
contributions for to employee medical and dental plan coverage .
3.Section 23.7 Change in Plans –Requirement that change to medical and or
dental benefit plans only by mutual agreement of the parties.
4.Section 23.9 Health Benefits Labor-Management Committee –Established a
labor-management committee to explore reducing the cost of medical plan
coverage without a reduction in the benefits. Also, provides for a MOU re -opener
no later than February 1, 2015 to bargain over the Authority’s contribution for the
remainder of the calendar year.
5.Section 39 Health Benefits Reopener –Provides for the February 1, 2015
reopener as described in Section 23.9.
DURATION
This Side Letter shall run concurrently with the MOU Term effective January 1, 2013
through December 31, 2015.
2
SUPERSEDING TERMS AND CONDITIONS
Section 23.Benefits
23.1 The Employer will provide the following benefits:
1.Medical insurance
Effective Date:As soon as administratively possible,the Authority will contractwith the California Public Employees Retirement System Health Benefit Program(“CalPERS”)to provide medical insurance for all active employees. The Authorityshall pay the required minimum premium cost to CalPERS on behalf of eachactive employee.
Change in Plans:In the event CalPERS makes unilateral changes to theproviders and/or plans, the Authority will provide notice to the employees of thosechanges in addition to any notice provided by CalPERS.
2)Delta Dental Plan
3)Life, accidental death and disability insurance: Life insurance is Fifteen
Thousand Dollars ($15,000.00).
4)I.R.C. 125 Plan (Flex Spending Plan): Allows employees to elect to deduct
child care costs and unreimbursed medical costs from pay on a pre-tax
basis in accordance with the plan provisions and applicable law.
23.6 Contribution Rates
The Authority shall contribute the following maximum amounts per month for the
purpose of providing the medical and dental benefits in this Section. If the
maximum amount is not sufficient to provide such benefits, any excess amount
necessary shall be paid for by the employee through payroll deduction:
The Authority will pay increases to the medical and the dental premiums so long
as the maximum employer monthly contribution does not exceed the amounts
listed below.
(Employer Maximum Contribution)
Employee Only $345.00
Employee +1 $679.00
Employee +2 $980.00
23.7 Change in Plans
The right to change medical and/or dental plan contents and providers during the
term of the Agreement in an effort to provide comparable benefits at reduced
costs shall be by agreement by both parties.
3
23.9 Health Benefits Labor-Management Committee
The parties shall create a labor-management committee, whose task will be to
explore alternatives to the Authority purchasing health insurance directly, so as to
reduce cost without reducing benefits. Each party shall appoint four (4)
representatives to the committee. The committee shall begin meeting within 30
calendar days of the adoption of the MOU by the Board of Commissioners.
The parties shall commence Meet &Confer no later than September 1, 2014, to
discuss the Committee’s cost savings recommendations and to implement any
agreed upon changes to the Health Plans to become effective January 1, 2015.
The Parties shall open the MOU no later than February 1,2015 to bargain over
the amount of the Authority’s contribution for the remainder of the calendar year
2015. The Authority shall not propose reducing the dollar amount it pays and will
not unilaterally implement a reduction in the amount it pays for health care.
Section 39.Health Benefits Reopener
The parties shall open this MOU no later than February 1, 2015 to bargain over
the amount of the Authority’s health benefits contribution for the remainder of the
calendar year 2015.The parameters of the re-opener shall be as identified in
the Health Benefits Section of this MOU establishing the Health Benefits Labor -
Management Committee.
4
PUBLIC EMPLOYEES UNION,HOUSING AUTHORITY OF THE
LOCAL #1 COUNTY OF CONTRA COSTA
By By
Kathy Sosa Joseph Villarreal
Executive Director
By By
Alice Jenkins Frances Trant
Human Resources Director
By By
Justina Gomez Cynthia Simpson
Director of General Services
By By
Dennis Dugan Elizabeth Campbell
Business Agent Director of Asset Management
By
Ingrid Layne
Housing Assistance Manager
By
Judy Hayes
Administrative Services Officer
By
M. Fran Buchanan
Agency Negotiator
Dated this day of _______________________ 2015
1
HOUSING AUTHORITY of the COUNTY OF CONTRA COSTA
and
PUBLIC EMPLOYEES UNION LOCAL #1
SIDE LETTER OF AGREEMENT
CHANGE TO CALPERS MEDICAL PLAN
MAINTENANCE UNIT
PURPOSE
The purpose of this Side Letter is to revise the current Memorandum of Understanding
between the parties by changing the medical plans provided by the Employer for
bargaining unit members.
REVISED TERMS and CONDITIONS
This Side Letter supersedes the current Memorandum of Understanding (MOU) terms
and conditions referenced below that provide for medical benefits for bargaining unit
members:
1.Section 23.1 Benefits –Listing of health plans provided by the Employer.
2.Section 23.6 Contribution Rates –Provides for the maximum employer
contributions for to employee medical and dental plan coverage .
3.Section 23.7 Change in Plans –Requirement that change to medical and or
dental benefit plans only by mutual agreement of the parties.
4.Section 23.9 Health Benefits Labor-Management Committee –Established a
labor-management committee to explore reducing the cost of medical plan
coverage without a reduction in the benefits. Also, provides for a MOU re -opener
no later than February 1, 2015 to bargain over the Authority’s contribution for the
remainder of the calendar year.
5.Section 39 Health Benefits Reopener –Provides for the February 1, 2015
reopener as described in Section 23.9.
DURATION
This Side Letter shall run concurrently with the MOU Term effective January 1, 2013
through December 31, 2015.
2
SUPERSEDING TERMS AND CONDITIONS
Section 23.Benefits
23.1 The Employer will provide the following benefits:
1.Medical insurance
Effective Date:As soon as administratively possible,the Authority will contractwith the California Public Employees Retirement System Health Benefit Program(“CalPERS”)to provide medical insurance for all active employees. The Authorityshall pay the required minimum premium cost to CalPERS on behalf of eachactive employee.
Change in Plans:In the event CalPERS makes unilateral changes to theproviders and/or plans, the Authority will provide notice to the employees of thosechanges in addition to any notice provided by CalPERS.
2)Delta Dental Plan
3)Life, accidental death and disability insurance: Life insurance is Fifteen
Thousand Dollars ($15,000.00).
4)I.R.C. 125 Plan (Flex Spending Plan): Allows employees to elect to deduct
child care costs and unreimbursed medical costs from pay on a pre-tax
basis in accordance with the plan provisions and applicable law.
23.6 Contribution Rates
The Authority shall contribute the following maximum amounts per month for the
purpose of providing the medical and dental benefits in this Section. If the
maximum amount is not sufficient to provide such benefits, any excess amount
necessary shall be paid for by the employee through payroll deduction:
The Authority will pay increases to the medical and the dental premiums so long
as the maximum employer monthly contribution does not exceed the amounts
listed below.
(Employer Maximum Contribution)
Employee Only $345.00
Employee +1 $679.00
Employee +2 $980.00
23.7 Change in Plans
The right to change medical and/or dental plan contents and providers during the
term of the Agreement in an effort to provide comparable benefits at reduced
costs shall be by agreement by both parties.
23.9 Health Benefits Labor-Management Committee
3
The parties shall create a labor-management committee, whose task will be to
explore alternatives to the Authority purchasing health insurance directly, so as to
reduce cost without reducing benefits. Each party shal l appoint four (4)
representatives to the committee. The committee shall begin meeting within 30
calendar days of the adoption of the MOU by the Board of Commissioners.
The parties shall commence Meet &Confer no later than September 1, 2014, to
discuss the Committee’s cost savings recommendations and to implement any
agreed upon changes to the Health Plans to become effective January 1, 2015.
The Parties shall open the MOU no later than February 1,2015 to bargain over
the amount of the Authority’s contribution for the remainder of the calendar year
2015. The Authority shall not propose reducing the dollar amount it pays and will
not unilaterally implement a reduction in the amount it pays for health care.
Section 39.Health Benefits Reopener
The parties shall open this MOU no later than February 1, 2015 to bargain over
the amount of the Authority’s health benefits contribution for the remainder of the
calendar year 2015.The parameters of the re-opener shall be as identified in
the Health Benefits Section of this MOU establishing the Health Benefits Labor -
Management Committee.
4
PUBLIC EMPLOYEES UNION,HOUSING AUTHORITY OF THE
LOCAL #1 COUNTY OF CONTRA COSTA
By By
Lavelle Nichols Joseph Villarreal
Executive Director
By By
Davey Carter Frances Trant
Human Resources Director
By By
Mack Nasseh Cynthia Simpson
Director of General Services
By By
Dennis Dugan Elizabeth Campbell
Business Agent Director of Asset Management
By
Ingrid Layne
Housing Assistance Manager
By
Judy Hayes
Administrative Services Officer
By
M. Fran Buchanan
Agency Negotiator
Dated this day of __________________________ 2015