HomeMy WebLinkAbout03- Bozeman Police Protective Association; Health Benefits- Collective Bargaining Agreement (Amendment)
MEMORANDUM OF AGREEMENT ,
AMENDMENT TO COLLECTIVE BARGAINING AGREEMENT
BETWEEN CITY OF BOZEMAN AND BOZEMAN
POLICE PROTECTIVE ASSOCIATION
The City of Bozeman, hereinafter referred to as "CITY" and the Bozeman Police Protective
Association, hereinafter referred to as "BPP A" enter into this memorandum of agreement.
A. The health insurance fund of the City of Bozeman once had nearly 1.8 million dollars
in reserves. However, the City of Bozeman's health insurance program experienced three years of
rapid decline in its insurance fund. Last year, the City's health insurance program was changed
from an 80/20, 1000/1000 plan to a 70/30, 1500/1500 plan. Additionally, the City increased its
health insurance contributions from $355 per month to $375 per month. These changes failed to stop
the decline in the health insurance reserves.
B. As ofthe end ofthe current fiscal year, the City is expected to lose approximately 2.1
million dollars or about $700,000 per year for three (3) years. Moreover, health insurance costs are
rapidly increasing at approximately 16% per year. Blue Cross/Blue Shield anticipates a 61 %
increase in contributions to the insurance fund needed to pay expected claims and a 91 % increase
would be necessary under a worse case scenario.
C. In April, the City opened negotiations with the Bozeman Police Protective
Association and the other unions to discuss this insurance crisis. BPP A, Teamsters, MPEA and
IAFF Local 613 agreed to submit to City employees a health insurance ballot on two alternatives.
BPP A and the unions agreed to abide by the majority vote of all City employees covered by the
City's health insurance.
D. A health insurance election was conducted between May 8, 2003 and May 23,2003.
The ballot is attached as Exhibit "A". The result of the health insurance ballot was 170 votes for
Option No.1 and 21 votes for Option No.2.
IN CONSIDERATION OF THE FOREGOING, BPP A and the City agree that Section B of
Article 7 ofthe Collective Bargaining Agreement is amended as follows:
"ARTICLE 7 ~ HEALTH, SAFETY & WELFARE
A. The health and safety of employees will be reasonably protected while in the service of the
Employer;
B. Emplo)e.I Conttibmio1l5 to IkalthfMcdie.al hlSmll1i"e. Ple.minUls. The. City will e.ontIi:bttte.
tlx. follovvill.g All.l.Ou.r1ts tOvvd.id elilploy'-c's insmancc prcmimns for full-t~m.'- wiployee6.
FY 2001 FY 2002
AvGlag( $355.00 *'
*The City is desiIotls OfpIoviding orll '-11iploycCS a b;mie level of health insmmle'- GO v '-1&'5c at no cost
to thG GmploYGG. Th" City ~ill pay insmanGG pIemimn iUCIMSCS in Gach YGM ofth" contIact, up to
the U.S. COnSm11'-1 rikG lnd,-^ [01 all Ulban COi15uHlei5 [01 All ItGm& - (SOu1Ge. U.S. Depatt:l:nent
OflclboI, DWGal1 ofLaboi Statistics) ofth" pIG v iotlS YGM. IftllG City is miabIe. to accommodatG thG
pI Gmiuni illGIGaSG in c.xccss ofthc. CPI, the DPPA ~ill ltg1c.c. to mc.ct ~ith Ic.pIC.scntativcs ofthG City
and OthGI bat gaining wits to dctamillG what adjuo:otments will be J.had,- to HiG iU&u1MiCG CO v CUI.gG.
EffcGtivc Jnly 1, 1997, thG ciry's contlibtrtion tO~Md employcG'!) h"althfdentalf vision ~ill bc. added
to tllG "mployGG's gross pay. As pMt of this collectivG bMgainingagrGGlllent, GlllploYGGS MG IcqniIed
to anthoIizc. a pa)Ioll deduction nom thG Gmployc.c.'s glOSS pay C.qtlM to thG city's contIibntion to~atd
GlllploYGG's hGcllth/dcnta3Jvision. This dcdttction from thG cmployGC:s gross pay ~ill bc. paid into a
fu11d Inaiilta~ned to piO ~ ide health/dcnta3J v isio11 benefits [01 unploYGGs.
The City of Bozeman will contribute $550 per month toward employee's healthldentaVvision
insurance for coverage commencing Julv 1. 2003 (June deduction) thromm June 30. 2004.
Employees wishing to cover their spouse will contribute $100 per month for this coverage.
Employees wishing to cover their children will contribute $50 per month. regardless of the number
of children. Coverae:e will remain unchane:ed. but will be reviewed bv the insurance committee.
Subsequent years' contributions will be determined through the health insurance committee. subiect
to employees' vote.
The purpose of including the city's contribution toward employee's healthldentaVvision in the
employee's gross pay is solely for the purpose of augmenting the employee's eventual retirement
benefit. The purpose of including the city's healthldental/life contribution in the employee's gross
pay is not to result in additional net income to the employee. It is hereby acknowledged that both
employee and employer retirement contributions will be required on this additional gross income--
causing a decrease to the net income of the employee. It is also acknowledged that the inclusion of
the City's healthl dentaVvision contribution in the employee's gross pay does not by its nature affect
overtime compensation, future pay increases, or other similar benefits. In the event that any
subsequent law, court, arbitrator, or other lawful authority determines that the inclusion ofthe city's
healthldentaVvision contribution in the employee's gross pay affects overtime compensation, then
the parties agree that there will be a corresponding adjustment to the affected hourly rate, pay, or
benefit, to carry out the intent of this provision."
Except as specifically amended above, the original Collective Bargaining Agreement shall
remain in full force and effect.
IN WITNESS WHEREOF, the Parties hereto have set their hands and Seals this 27th day
of June ,2003.
CITY OF BOZEMAN BOZEMAN POLICE PROTECTIVE
ASSOCIA nON
--.l ~ ~--l)~_L._l
Clark V. Johnson, City Manager ASW(j7fL1
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ATTEST:
~f~ Association Secretary
Robin L. Sullivan, Clerk of Commission