HomeMy WebLinkAboutReso 2004-318
RESOLUTION NO. 2004-318
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AMENDING THE MEMORANDUM OF
UNDERSTANDING WITH THE CHULA VISTA POLICE
OFFICER'S ASSOCIATION RELATED TO HEALTH
BENEFITS, AND APPROPRIATING FUNDS THEREFOR,
BASED ON UNANTICIPATED SALES TAX REVENUES
WHEREAS, on December 12, 2000 City Council adopted a resolution extending the
Memorandum of Understanding (MOU) with the Chula Vista Police Officer's Association
(POA) through June 30, 2005; and
WHEREAS, since this time health care premium costs have increased significantly.
Between January 2001 and January 2004 Kaiser rates increased 23%, and PacifiCare rates
increased 43%; and
WHEREAS, higher premiums are anticipated in the coming year. Beginning January I,
2005, PacifiCare and Kaiser premiums will increase an additional 10% and 20% respectively;
and
WHEREAS, the premiums have risen to a point where nearly all members experience
significant out of pocket expenses in order to pay for their health coverage; and
WHEREAS, negotiating teams representing POA and the City recently met to discuss the
issue of rising health care premiums and the negative impact it is having on POA's
memberships; and
WHEREAS, the negotiating teams representing POA and the City agreed that the most
cost effective way of meeting the needs of POA's membership would be to switch from the
current cafeteria-style health plan to an employer paid plan; and
WHEREAS, the current MOU with POA provides for a tiered cafeteria-style health plan
whereby employees receive a flex allotment from which they purchase their health benefits; and
WHEREAS, the proposed MOU amendment would replace the existing tiered cafeteria
plan with an employer paid plan whereby the health and dental premiums of an employee and
their eligible dependents are simply covered by the City; and
WHEREAS, the main benefit of this type of plan is that the uncertainty surrounding
future health and dental care costs is removed for the employee, thus protecting annual cost of
living salary adjustments from run away premium expenses; and
WHEREAS, staff believes that switching to an employer paid plan will significantly
improve morale, aid in the retention of more experienced staff, and enable the City to recruit
more effectively in an increasingly competitive labor market; and
WHEREAS, the general fund impact resulting from the proposed changes to the MOU
with POA is estimated at $136,784 for fiscal year 2005 and $273,568 ongoing; and
Resolution 2004-318
Page 2
WHEREAS, the proposal was presented to the POA membership and approved by a vote
of the membership.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Chula
Vista hereby amends the Memorandum of Understanding with the Chula Vista Police Officer's
Association, and appropriates funds therefore.
Presented by
Approved as to form by
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Marcia Raskin
Human Resources Director
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AnD. Moore
City Attorney
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 5th day of October, 2004, by the following vote:
AYES:
Councilmembers:
Davis, McCann, Rindone, Salas and Padilla
NAYS:
Councilmembers:
None
ABSENT:
Councilrnernbers:
None
ATTEST:
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Susan Bigelow, MMC, City ð{erk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2004-318 was duly passed, approved, and adopted by the City Council at a
regular meeting ofthe Chula Vista City Council held on the 5th day of October, 2004.
Executed this 5th day of October, 2004.
-:- ~~''Yl.J)º
Susan Bigelow, MMC, City Clerk