ITEM: CONSENT CALENDAR

 

4. CONSIDER AN AMENDMENT OF THE MEMORANDUM OF UNDERSTANDING BETWEEN THE MONTEREY PENINSULA WATER MANAGEMENT DISTRICT AND THE GENERAL STAFF BARGAINING UNIT

 

Meeting Date:     November 17, 2003       Budgeted: Yes

Program/Line Item No.: Personnel, Employee Insurance, Acct. No. 7160

Staff Contact:     Cynthia Schmidlin         Cost Estimate: $73,800 versus $77,280 General Counsel Approval: Yes                                                             budgeted

Committee Recommendation: The Administrative Committee reviewed this item on November 6, 2003 and recommended approval.

CEQA Compliance: N/A

SUMMARY: The General Staff Bargaining Unit, represented by LIUNA/UPEC Local 270, has requested a change in health benefits plans from the LIUNA Special Plan III to the LIUNA-sponsored Western Growers Assurance Trust, and associated Delta Dental and Vision Services Plans, effective January 1, 2004. (Exhibit 4-A) This change would require amendment of Article 10, Paragraph 3 of the Memorandum of Understanding between the District and the General Staff Unit as follows:

 

"Effective January 1, 2004, the District shall enroll unit employees and dependents, and as well as retirees including and Board members so-interested, in the LIUNA Special Plan III, LIUNA-sponsored Western Growers Assurance Trust and associated Delta Dental and Vision Services plans to provide medical, dental, and vision care. The District will pay the current $567 per month composite rate for all participants during the first 12-months and pay the cost of premiums up to a maximum of $644 per month per participant for the next 6 months period of January 1, 2004 through June 30, 2004.

 

IMPACT ON DISTRICT RESOURCES: The District payment cap remains $644 per month per participant. The total premiums for the Western Growers health plans are estimated to be $615 per month. This will result in anticipated District savings of approximately $3,480 during FY 2003-2004.

RECOMMENDATION: Adopt by motion an amendment to the Memorandum of Understanding between the Monterey Peninsula Water Management District and the General Staff Bargaining Unit, as reflected in the attached Side Letter of Agreement. (Exhibit 4-B) This item was considered by the Administrative Committee on November 6, 2003, at which time the committee recommended voted 3 to 0 to recommend approval.

 

BACKGROUND: On December 16, 2002 the Board approved a Memorandum of Understanding (MOU) between The District and the General Staff Bargaining Unit, represented by LIUNA/UPEC Local 270. Article 10, Paragraph 3, of that MOU states that the District shall enroll employees, dependents, and retirees, including Board members so-interested, in the LIUNA Special Plan III, to provide medical, dental, and vision care. The MOU states that the District will pay the entire $567/month composite-rate premium for participants during the 2003 calendar year and up to $644 per month per participant, for the next 6-months.

 

 Effective January 1, 2004, premiums for the LIUNA Special Plan III will increase to $797 per month. This increase would exceed the District cap by $153. LIUNA has offered another health insurance plan through Western Growers Assurance Trust, with separate dental and vision insurance components through Delta Dental and Vision Services Plan, for a total of $615 per month. Members of the General Staff Bargaining Unit voted to change to the Western Growers plans rather than contribute the additional $153 to remain in the LIUNA Special Plan III. Members of the Management Staff Bargaining Unit voted to remain with the LIUNA Special Plan III, as have unrepresented members of the Confidential Staff Bargaining Unit.

 

 

U:\staff\word\boardpacket\2003\2003boardpacket\20031117\ConsentCalendar\4\item4.doc