HomeMy WebLinkAboutAgenda Statement 1988/03/01 Item 16•
COUNCIL AGENDA STATEMENT
Item 16
Meeting Date 3/1/88
ITEM TITLE Resolution ~3~ 7~ Amending the FY 1987-88 budget and
appropriating funds to cover increased health insurance
costs
SUBMITTED BY Budget Office
Risk Manager
REVIEWED BY City Manager ~ ~ 4/5ths Vote: Yes X No
The FY 1987-90 Memorandum of Understanding (MOU) betty een the City and the
Chula Vista Employees Association (CVEA) contained a provision that the City
and the employees would share any increases in health insurance costs
occurring during the three year term of the MOU. An increase of 17.2$ becomes
effective March 1, 1988.
COMMENDATION: That Council adopt the resolution amending the FY
1987-88 budget and appropriate funds to cover the City's
health insurance cost increases.
BOARDS/COMMISSIONS RECOMMENDATION: N.A.
DISCUSSION:
In October 1987, the Council was informed about premium increases for the MONY
(Mutual of New York) health plan. Premiums were increased 25$ with the
understanding that a mid-year adjustment might be required to fund the health
plan adequately. The Council was also informed that the open enrollment
period would be held in February and that a Request for Proposal was being
issued to select a consultant for the City's employee benefit plans. The
Council appointed the Wyatt Company as consultant on January 12, 1988.
The Wyatt Company performed an actuarial projection of health claims and
recommended a mid-year premium increase of 17$ to be effective March 1, 1988
through the end of our plan year, June 30, 1988. An open enrollment period
was held from February 1, 1988 through February 15, 1988, during which all
employees were notified of the increase. This most recent increase, even when
combined with the October increase, is not as high as we had previously been
led to expect.
The Wyatt Company is exploring other health plan options and is working with
e Health Insurance Committee in the hopes of presenting a more competive
~nefits package for the next plan year beginning July 1, 1988.
•
Page 2, Item 16
Meeting Date 3/1/88
The MOU with CVEA had taken a possible increase into account and had indicated
that employees would bear half of that burden and the City would bear the
other half by increasing the employee's market basket by half of any increase
over the market basket amount for FY 1987-90. The market baskets for
executive, mid-management and unrepresented employees were all increased by
the same amount as was CVEA's during employee negotiations. Since the City is
now going to increase CVEA's members market baskets by $73.77, it seems
appropriate to increase the market baskets for the other groups as well. The
total cost of this increase will be $29,000.
FISCAL IMPACT
As indicated above, the total cost and the total appropriation required is
$29,000. It is broken down as follows:
CVEA $ 23,300
Executive 1,400
id Management 3,800
nrepresented 500
$ 29,000
Funds are available in the unappropriated balance of the General Fund.
DCB:mab
a113/3
•
by thQ City Council of
Chula Vista, California
Dated '3 ~ ~ ~~
,~ ~.