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Home My WebLink AboutDocumentation_Regular_Tab 07_09/12/2013 VILLAGE CLERK'S OFFICE AGENDA ITEM TRANSMITTAL FORM Meeting Date: Meeting Type: Regular Ordinance #: 9/12/2012 Consent Agenda: No Resolution #: 9 � Originating Department: Human Resources - AGENDA ITEM TITLE: (Wording form the SUBJECT line of your staff report) Approval of Health insurance renewal with Cigna Insurance and Dental renewal with MetLife Insurance. BUDGET / FINANCIAL IMPACT: o,tc Account #: Various Amount of this item: Per Schedules $886,000 Cur ent Budgeted Amount Avail le: Am unt Re ining after it N � - �� z°�4 � � � � �� 2�� Bu get Transfer Required: i�os an Appropriate Fund Balance: Crn�s n item. item. � l EXECUTIVE SUMMARY OF MAJOR ISSUES: (This is a snap shot description of the agenda item) Request for renewal of a one-year contract for health insurance with Cigna Health and MetLife Dental for FY2013/2014 and authorizing the village manager to execute the contracts on behalf of the Village. The costs will be allocated across the various departments. APPROVALS: SIGNATURE: Department Head %J� <'4f /�? ' i . � �,,�., Finance Director Reviewed for Financial Sufficiency ❑ ��,�� °°� ' No Financial Impact ❑ -�J Attorney: (for legal sufficiency) See att hed Village Manager: __,.,, - � : - Submit for Council Discussion: ❑ Approve Item: � Deny Item: � SPECIAL INSTRUCTIONS FOR CLERK: (if you wish to have agreements signed, be sure to include the number of copies you want signed and place "Sign Here" sticker on them) Form Amended: 10/20/11 . • • Memo To: Michael R Couzzo, Jr., Village Manager ,,;�� From: Merlene Reid, HR Director r� ��' ,� ��,�� Date: September 3, 2013 f Re: Health and Dental Insurance 2013/14 After meetings with our Benefits committee and our insurance brokers, I've attached the brokers' negotiated renewal rates with projected costs of $886,000 for the 2013/14 fiscal year, a 7.54% increase over the prior year (see appendix 1). This projected cost is based on the current number of employees and their present choice of plans (family/individual). As the Village is still in negotiations with the 3 unions whose three-year contracts are set to expire on 9/30/2013, I've attached a copy of our labor attorney's email which outlines the Village's position in respect of the health insurance plans currently in place (appendix 2). The premiums are calculated based on their current health plans. �1P�r�� village of Tequesta GEHRING �GROUP INSUPAN[E BNONERSI & CONSUITFNTS Medica) Insurance Renewal Cost Evaluation Effective Date: October 1, 2013 CURRENT RENEWAL . MEDICAL CWA Bargaining Unit - OAPlN Employee 19 $50.00 $642.45 $692.45 $50.00 $687.47 $737.47 Employee + $pouse 2 $297.14 $1,183.87 $1,481.01 $309.96 $1,26734 $1,577.30 Employee+Child(ren) 4 $246.97 $1,033.37 $1,280.34 $256.53 $1,107.06 $1,363.59 Family 2 $445.94 $1,630.26 $2,076.20 $468.43 $1,742.76 $2,211.19 IAFF & General Employees - HSA PLAN Employee 14 $50.00 $489.11 $539.11 $50.00 $523.74 $573.74 Employee+Spouse 1 $252.24 $895.83 $1,148.07 $262.14 $960.15 $1,222.29 Employee + Child(ren) 2 $213.52 $779.66 $993.17 $220.90 $836.43 $1,057.32 Family 17 $367.09 $1,240.37 $1,607.46 $384.45 $1,327.10 $1,711.55 Police Employees - HSA PLAN Employee 9 $0.00 $539.11 $539.11 $0.00 $573.74 $573.74 Employee+Spouse 2 $152.24 $995.83 $1,148.07 $162.14 $1,060.15 $1,222.29 Empioyee+Child(ren) 2 $113.52 $879.66 $993.17 $120.90 $936.43 $1,057.32 Family 2 $267.09 $1,340.37 $1,607.46 $284.45 $1,427.10 $1,711.55 Retirees & COBRA Participants - HSA PLAN Employee 0 $539.11 $0.00 $539.11 $573.74 $0.00 $573.74 Employee+5pouse 0 $1,148.07 $0.00 $1,148.07 $1,222.29 $0.00 $1,222.29 Employee+Child(ren) 0 $993.17 $0.00 $993.17 $1,057.32 $0.00 $1,057.32 Family 0 $1,607.46 $0.00 $1,607.46 $1,711.55 $0.00 $1,711.55 Monthly Premium 76 $12,309.49 $63,641.00 $75,750.49 $12,607.49 $68,047.41 $80,654.89 Annual Premium $145,313.85 $763,692.03 $909,005.88 $151,289.82 $816,568.86 $967,858.68 $ Increase N/A N/A N/A $5,975.97 $52,876.83 $58,852.80 % Increase N/A N/A N/A 4.11% 6.92% 6.47% DENTAL Employee 44 $0.00 $33.96 $33.96 $0.00 $38.67 $38.67 Family 35 $57.70 $33.96 $91.66 $65.71 $38.67 $104.38 Monthly Premium 79 $2,019.50 $2,682.84 $4,702.34 $2,299.85 $3,054.93 $5,354.78 Annual Premium $24,234.00 $32,194.08 $56,428.08 $27,598.20 $36,659.16 $64,257.36 $ Increase N/A N/A N/A $3,364.20 $4,465.08 $7,829.28 % Increase N/A N/A N/A 13.88% 13.87% 13.87% VISION Employee 12 $5.77 $0.00 $5.77 $6.19 $0.00 $6.19 Employee+Spouse 4 $11.53 $0.00 $11.53 $12.37 $0.00 $12.37 Employee+Chiid(ren) 2 $11.64 $0.00 $11.64 $12.49 $0.00 $12.49 Family 9 $18.35 $0.00 $18.35 $19.69 $0.00 $19.69 Monthly Premium 27 $303.79 $0.00 $303.79 $325.95 $0.00 $325.95 Annual Premium $3,645.48 $0.00 $3,645.48 $3,911.40 $0.00 $3,911.40 $ Increase N/A N/A N/A $265.92 $0.00 $265.92 % Increase N/A N/A N/A 7.29% 0.00% 7.29% LIFE AND AD&D Life Rate/$1000 $0.00 $0.26 $0.26 $0.00 $0.31 $0.31 ADD Rate/$1000 $0.00 $0.03 $0.03 $0.00 $0.03 $0.03 Total Life & ADD $0.00 $0.29 $0.29 $0.00 $0.34 $0.34 Estimated Life/AD&DVolume $7,800,100.00 $7,800,100.00 $7,800,100.00 $7,800,100.00 $7,800,100.00 $7,800,100.00 Monthly Premium $0.00 $2,262.03 $2,262.03 $0.00 $2,652.03 $2,652.03 Annual Premium $0.00 $27,144.35 $27,14435 $0.00 $31,824.41 $31,824.41 $ Increase N/A N/A N/A $0.00 $4,680.06 $4,680.06 % Increase N/A N/A N/A 0.00% 17.24% 17.24% GRAND TOTAL Monthly Premium $14,432.78 $68,585.87 $83,018.65 $15,233.29 $73,75437 $88,987.65 Annual Premium $173,19333 $823,030.46 $996,223.79 $182,799.42 $885,052.43 $1,067,851.85 $ increase N/A N/A N/A $9,606.09 $62,021.97 $71,628.06 % Increase N/A N/A N/A 5.55% 7.54% 7.19% �P��'�i� �- Reid, Merlene From: Reid, Merlene Sent: Tuesday, September 03, 2013 3:41 PM To: Couzzo, Michael Cc: 'Lucille Turner' Subject: FW: Status Quo during negotiations -- Affect on health insurance provisions Mike FYI. This will be attached as an Appendix to the Health Insurance Agenda Item. Merlene � _ ___ _ _ _ - ___ _- -_ _-- __ - _ _ ___ _ _ _ From: Lucille Turner [mailto:LETurner@carson-adkinslaw.com] Sent: Monday, August 12, 2013 1:29 PM To: Reid, Merlene Subject: Status Quo during negotiations -- Affect on health insurance provisions Merlene — This will confirm our discussion about collective bargaining issues related to the health insurance benefits offered to Village of Tequesta bargaining unit employees. �,_; We understand that the Village has started collective bargaining negotiations with the PBA, the IAFF, and the CWA for - agreements that will go into effect after the September 30, 2013 expiration of the current agreements. You have asked what will happen with respect to the existing agreements (and particularly the health insurance provisions), if the parties have not ratified a successor agreement by October 1, 2013. Under Florida law, when a public sector employer has not reached agreement on a successor collective bargaining agreement at the time that the existing agreement ends, the parties are generally obligated to maintain the "status quo" until a new agreement is established through the statutory collective bargaining process. That is, the wages, benefits, and terms and conditions of employment that are included in the currently existing collective bargaining agreement remain in effect until a new agreement is negotiated, (or resolved through the impasse process if the parties are unable to negotiate an agreement.) Specific Information About Health lnsurance Police Benevolent Association -- In 2012, the Village entered into a memorandum of agreement with the PBA that provided a one-time contribution to participating employee's health savings plans, and allowed employees to make a one-time sell-back of accrued leave in order to transfer funds to their health savings account. The terms of the memorandum specifically state that it is applicable only in the fiscal year 2012-13, and the that contribution and sellback provisions are "one-time" only. International Association of Firefighters —The existing IAFF collective bargaining agreement provides that the IAFF bargaining unit employees will be provided the same insurance benefits as those offered to non-union employees of the Village. That provision would carry forward, and whatever the Village provides to its non-union employees in 2013-14, would generally be the applicable "status quo." Communication Workers of America -. There was no memorandum of agreement with CWA last year, so the existing contract provisions remain in effect until changed through negotiations or impasse. 1 Please let us know if you need any additional information about this. Lucille E . T'urner LETurner@carson Carson & Adkins 850-894-1009 293o Wellington Circle, Suite 2oi 850-894-i6�� faar Tallahassee, FL 32309 850-322-�063 cell This transmission is intended to be delivered only to the named addressee(s) and may contain information that is confidential, proprietary, attorney work-product, or attorney-client privileged. If this transmission is received by anyone other than the named addressee(s), the recipient should immediately notify the sender by e-mail or telephone at (850) 894 and obtain instructions as to the disposal of the transmitted material. 2 Reid, Merlene From: Keith Davis [KeithC�3corbettandwhite.com] Sent: Wednesday, September 04, 2013 12:09 PM To: Reid, Merlene Subject: RE: Agenda Item - Health & Dental Insurance 2013-14 Merlene: Approved for legal sufficiency. My e-mail address has changed. The new e-mail address is keith@cwd-le�al.com. Please be sure to update your records accordingly. Thanks! Keith W. Davis, Esquire �.�f,�, G�� ; O .'� Tel: (561) 586-7116 Fax: (561) 586-9611 Email: keith@cwd-le�al.com From: Reid, Merlene [mailto:mreid@tequesta.org] Sent: Tuesday, September 03, 2013 4:03 PM To: Keith Davis; Forsythe, Jody Cc: Mayo, Deanna; McWilliams, Lori Subject: Agenda Item - Health & Dental Insurance 2013-14 Jody — Original has been placed in your box for review Keith — Please review for legal sufficiency Thanks Merlene Merlene Reid, M5, SPHR, Human Resources Director Village of Tequesta I 345 Tequesta Drive I Tequesta, FL 33469 Tel: (561) 768-0415 � Fax: (561) 768-0697 �tv,�,,��. ��. This email has been scanned for email related threats and delivered safely by Mimecast. For more information please visit http://www.mimecast.com � This email has been scanned for email related threats and delivered safely by Mimecast. For more information please visit http://www.mimecast.com 2