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RES 2013-060CITY OF SOUTH LAKE TAHOE RESOLUTION NO. 2013 - Go Resolution Adopting & Approving Ratification Of Side Letters To The Current Memorandum Of Understanding Between The City Of South Lake Tahoe And The Following Employee Groups: International Union Of Operating Engineers (Local 39); Administrative & Confidential Association (Local 1); South Lake Tahoe Firemen's Association; South Lake Tahoe Police Association; South Lake Tahoe Police Officers' Association; South Lake Tahoe Police Supervisors' Committee WHEREAS, the City Council of the City of South Lake Tahoe and aforementioned employee labor groups have met and conferred in good faith in accordance with the provisions of the Meyers - Milias -Brown Act of the California Government Code; and WHEREAS, each of the aforementioned employee labor groups have approved the attached side letter applicable to their group on the subject of a change to the City Health Plan; and WHEREAS, such change to the City Health Plan applies to all covered benefited employees including those unrepresented by the aforementioned employee labor groups; NOW THEREFORE, IT IS HEREBY DETERMINED AND ORDERED THAT: This City Council approves the modifications to the Memorandum of Understanding between the City of South Lake Tahoe and the aforementioned employee labor groups resulting in a change to the City Health Plan as incorporated into the Side Letter to the Memorandum of Understanding and directs the City Manager to take all steps that are proper and necessary to implement this agreement. PASSED AND ADOPTED by the City Council of the City of South Lake Tahoe at a meeting on September 17, 2013 by the following vote: AYES: Councilmembers NOES: Councilmembers ABSENT: Councilmembers ABSTAIN: Councilmembers AT usan Alessi, City Clerk A If DAVIS, CONNER, LAINE & SWANSON COLE J0 y T r U 65 Tom Davis, Mayor SIDE LETTER OF AGREEMENT BETWEEN THE CITY OF SOUTH LAKE TAHOE AND THE SOUTH LAKE TAHOE FIREMEN'S ASSOCIATION The parties agree that all Medicare eligible retirees shall participate in the Medicare Exchange program (Medi -Gap) offered by the City as secondary insurance to Medicare in accordance with the following: I Employees Hired Prior to January 1, 2008 a. Retiree Medical /Dental Plan At age 65, or upon Medicare eligibility, employees who retire from City service shall be eligible for participation in City Medi- Gap /dental plans for employee only, employee and spouse, and or employee and dependents in accordance with the following: Years of Service with the City (from date of permanent hire) 25 years or more 20 years 15 years 10 years Less than 10 years of Medi- Gap /dental premium paid by the City 100% 75% plus 5% for each additional year 50% plus 5% for each additional year 25% 0% At age 65, or upon Medicare eligibility, employees hired after June 30, 2001 who retire from City service shall be eligible for participation in City Medi- Gap /dental plans for employee only coverage in accordance with the following: Years of Service with the City (from date of permanent hire) 25 years or more 20 years 15 years 10 years Less than 10 years % of Medi- Gap /dental premium paid by the City 100% 75% plus 5% for each additional year 50% plus 5% for each additional year 25% 0% b. Retiree Vision Care — Retirees may purchase, at their own expense, the City sponsored vision care plan at the same rate the city pays on behalf of employees, if the retiree elects Medi -Gap coverage. C. Retiree Death Coverage — For unit members hired prior to June 30, 2001 who have dependent retiree coverage: Upon the death of a retiree, the retiree spouse will be eligible to continue Medi -Gap coverage, at age 65 or upon Medicare eligibility, at the same percentage as that prior to the retiree's death. Upon the death of a retiree who retired prior to October 31, 1998 the following plan document provision applies: "The Employer will continue to make the same contribution for the coverage as if the retiree were still alive for the first twenty -four (24) months of that continuation. After twenty -four (24) months the Covered Dependents will be totally responsible for contributions after the Employer's contributions cease." Spousal Physical — City and Association agree that payment of $200 for the purpose of financing spousal physicals and deductibles is eliminated with the provision that, should any other bargaining unit receive it, the employees of this unit would receive the payment. e. 20 -year Separation — For the purposes of this section, a retired employee is defined as an employee who retires from the City of South Lake Tahoe under the provisions of the Public Employees' Retirement System. For employees hired prior to January 1, 2008 participating in the defined - benefit benefit: Employees leaving City service after 20 years, regardless of age, will be eligible for City retirement benefits upon receiving PERS benefits after 50 years of age. Eligibility for Medi- Gap /dental benefits will be contingent upon the individual meeting pre- existing conditions in effect at the time the individual becomes covered under insurance plan. Employees eligible for the defined benefit described in this section IA may opt -out of that benefit and choose instead to participate in the Retiree Medical Savings Account benefit described below in section IL The employee's decision to opt -out of the defined - benefit benefit will occur during an open - enrollment period and is irreversible. II Employees Hired on or After January 1, 2008 a. Retiree Medical Savings Account: Employees hired on or after January 1, 2008 will participate in a Retiree Medical Savings Account (RMSA) in lieu of the City defined benefit program above. The City will contribute $50.00 for each pay period that an employee is in a paid status to each participating employee's RMSA benefit. Upon retirement in good standing from the City, employees hired on or after January 1, 2008 may use their RMSA funds to purchase retiree health benefits through the City Medi -Gap program or from third -party providers of their choice an receive reimbursement for other incurred medical expenses as prescribed in Section 213(d) of the Internal Revenue Code. b. Vesting: City contributions are vested on the following schedule: Years of Service with the City (from date of permanent hire) 25 years 20 years 15 years 10-15 years Less than 10 years C. Legislative Changes: % of Account Vested 100% 75% plus 5% for each additional year 50% plus 5% for each additional year 25% 011/0 In the event legislation changes such that employer financed universal heath is required through the State or Federal Government; there will be an immediate re-opener to discuss the impact of the legislation on the current City plan(s) for retirees. For the Firemen's. Association: 3 Signature e: 'TN Signaturet�-- Date, Signature., Date: For the City 1 10, f S h Lake Tahoe: V Date:,......_ Signature: SIDE LETTER OF AGREEMENT BETWEEN THE CITY OF SOUTH LAKE TAHOE AND THE SOUTH LAKE TAHOE POLICE ASSOCIATION POLICE EMPLOYEE UNIT The parties agree that all Medicare eligible retirees shall participate in the Medicare Exchange program (Medi -Gap) offered by the City as secondary insurance to Medicare in accordance with the following: L Employees Hired Prior to January 1, 2008 a. Retired Medical /Dental Plan At age 65, or upon Medicare eligibility, employees who retire from City service shall be eligible for participation in City Medi- Gap /dental plans for employee only or employee and dependents in accordance with the following: Years of Service with the City % of Medi- Gap /dental (from date of permanent hire) premium paid by the City 25 years 100% 20 years 75% plus 5% for each additional year 15 years 50% plus 5% for each additional year 10 -15 years 25% Less than 10 years 0% At age 65, or upon Medicare eligibility, employees hired after June 30, 2001, who retire from City service, shall be eligible for participation in City Medi- Gap /dental plans for employee coverage only in accordance with the following: Years of Service with the City % of Medi- Gap /dental (from date of permanent hire) premium paid by the City 25 years 100% 20 years 75% plus 5% for each additional year 15 years 50% plus 5% for each additional year 10 -15 years 25% Less than 10 years 0% b. Retiree Vision Care Retirees may purchase, at their own expense, the City sponsored vision care plan at the same rate the City pays on behalf of employees, if the retiree elects Medi -Gap coverage. C. Retiree Death Coverage — For unit members hired prior to June 30, 2001 who have dependent retiree coverage: Upon the death of a retiree, the retiree spouse will be eligible to continue Medi -Gap coverage, at age 65 or upon Medicare Eligibility, at the same percentage as that prior to the retiree's death. Upon the death of a retiree who retired prior to October 31, 1998 the following plan document provision applies: "The Employer will continue to make the same contribution for the coverage as if the retiree were still alive for the first twenty -four (24) months of that continuation. After twenty -four (24) months the Covered Dependents will be totally responsible for contributions after the Employer's contributions cease." d. Employees eligible for the defined benefit described in this section IA may opt -out of that benefit and choose instead to participate in the Retiree Medical Savings Account benefit described below in section II. The employee's decision to opt -out of the defined - benefit benefit will occur during an open - enrollment period and is irreversible. Employees Hired On Or After January 1, 2008 a. Retiree Medical Savings Account: Employees hired on or after January 1, 2008 will participate in a Retiree Medical Savings Account (RMSA) in lieu of the City defined benefit program above. The City will contribute $50.00 for each pay period that an employee is in a paid status to each participating employee's RMSA benefit. Upon retirement in good standing from the City, employees hired on or after January 1, 2008 may use their RMSA funds to purchase retiree health benefits through the City Medi -Gap program or from third -party providers of their choice and receive reimbursement for other incurred medical expenses as prescribed in Section 213(d) of the Internal Revenue Code. b. Vesting: City contributions are vested on the following schedule: Years of Service with the City % of Account Vested (from date of permanent hire) 25 years 100% 20 years 75% plus 5% for each additional year 15 years 50% plus 5% for each additional year 10 -15 years 25% Less than 10 years 0% C. Legislative Changes: In the event legislation changes such that employer financed universal heath is required through the State or Federal Government; there will be an immediate re- opener to discuss the impact of the legislation on the current City plan(s) for retirees. For the Police Employee's Association: Signature: Date: Signature: Date: For the City Of South Lake Tahoe: Signature: Date: C SIDE LETTER OF AGREEMENT BETWEEN THE CITY OF SOUTH LAKE TAHOE AND THE SOUTH LAKE TAHOE POLICE OFFICERS' ASSOCIATION The parties agree that all Medicare eligible retirees shall participate in the Medicare Exchange program (Medi -Gap) offered by the City as secondary insurance to Medicare in accordance with the following: I. Employees Hired Prior to January 1, 2008 A. Retired Medical Plan At age 65, or upon Medicare eligibility, employees who retire from City service shall be eligible for particpation in City Medi -Gap /dental plans for employee only or employee and dependents in accordance with the following: Years of Service with the City (from date of permanent hire 25 years 20 years 15 years 10 -15 years Less than 10 years % of Medi- Gap /dental premium paid by City 100% 75% plus 5% for each additional year 50% plus 5% for each additional year 25% 0% At age 65, or upon Medicare eligibility, employees hired after June 1, 2001, who retire from City service shall be eligible for participation in City Medi- Gap /dental plans for employee only in accordance with the following: Years of Service with the City (from date of permanent hire 25 years 20 years 15 years 10 -15 years Less than 10 years % of Medi- Gap /dental premium paid by City 100% 75% plus 5% for each additional year 50% plus 5% for each additional year 25% 0% B. Upon the death of a retiree, the retiree spouse will be eligible to continue coverage at the same percentage as that prior to the retiree's death. For the spouses of employees hired after June 1, 2001, coverage may be extended after the death of the employee, but the spouse will continue to pay full costs of coverage. Upon the death of a retiree who retired prior to October 31, 1998 the following plan document provision applies: "The Employer will continue to make the same contribution for the coverage as if the retiree were still alive for the first twenty -four (24) months of that continuation. After twenty -four (24) months the Covered Dependents will be totally responsible for contributions after the Employer's contributions cease." C. Upon retirement, the retiree has the option to continue participation in the vision care program, if electing to participate in the Medi -Gap plan. If the retiree elects to participate in the vision plan upon retirement, such coverage will continue for as long as the retiree pays the full premium. D. Employees eligible for the defined - benefit benefit described in this section I.A. may opt -out of that benefit and choose instead to particpate in the Retiree Medical Savings Account benefit described below in section 11 below. The employee's decision to opt -out of the defined- benefit benefit will occur during an open - enrollment period and is irreversable. II Employees Hired On or After January 1, 2008 A. Retiree Medical Savings Account: Employees hired on or after January 1, 2008 will participate in a Retiree Medical Savings Account (RMSA) in lieu of being eligible to continue to participate in the City's health plan during retirement as described in Section I.A. above. The City will contribute $50.00 for each pay period that an employee is in a paid status to each participating employee's RMSA benefit. Upon retirement in good standing from the City, employees hired on or after January 1, 2008 may use their RMSA funds to purchase retiree health benefits through the City Medi -Gap program or from third -party providers of their choice and receive reimbursement for other incurred medical expenses as prescribed in Section 213(d) of the Internal Revenue Code. B. Vesting: City contributions are vested on the following schedule: Years of Service with the City (from date of permanent hire) 25 years 20 years 15 years 10 -15 years Less than 10 years of Account Vested 100% 75% plus 5% for each additional year 50% plus 5% for each additional year 25% 0% C, Legislative Changes: In the event legislation changes such that employer financed universal heath is required through the State or Federal Government, there will be an immediate re- opener to discuss the impact of the legislation on the current City plan(s) for retirees. For the Police Officers's Association: Date: Signature:__� Signature: Date: For the City Of So t#h Lake Ta e: Date: Signature: l SIDE LETTER OF AGREEMENT BETWEEN THE CITY OF SOUTH LAKE TAHOE AND THE ADMINISTRATIVE AND CONFIDENTIAL ASSOCIATION The parties agree that all Medicare eligible retirees shall participate in the Medicare Exchange program (Medi -Gap) offered by the City as secondary insurance to Medicare in accordance with the following: L Employees Hired Prior to January 1, 2008: A. Retired Medi- Gap /Dental Plan: At age 65 or upon Medicare eligibility, employees who retire from City shall be eligible for premium reimbursement for Medi- Gap /dental plans for employee only or employee and dependents in accordance with the following: Years of Service with the City % of Retiree Medi- Gap /dental (from date of permanent hire) premium paid by the City Twenty -five (25) years or more 100% Twenty (20) years or more 75% plus 5% for each additional year Fifteen (15) years or more 50% plus 5% for each additional year Ten (10) years or more 25% Less than ten (10) years 0% At age 65 or upon Medicare eligibility, employees hired after June 18, 2002 shall be eligible for premium reimbursement for Medi- Gap /dental plans for employee only in accordance with the following: Years of Service with the City % of Retiree Medi- Gap /dental (from date of permanent hire) premium paid by the City Twenty -five (25) years or more 100% Twenty (20) years or more Fifteen (15) years or more Ten (10) years or more Less than ten (10) years B. Retiree Vision Care: 75% plus 5% for each additional year 50% plus 5% for each additional year 25% 0% Retirees may purchase at their own expense the City sponsored vision care plan at the same rate the City pays on behalf of employees, if the retiree elects Medi- Gap /dental coverage. C. Retiree Death Coverage: For unit members hired prior to June 4, 2002 who have dependent retiree coverage: Upon the death of a retiree, the retiree spouse will be eligible to continue Medi -Gap coverage, at age 65 or upon Medicare eligibility, at the same percentage as that prior to the retiree's death. Upon the death of retiree who retired prior to October 31, 1998 the following plan document provision applies: "The Employer will continue to make the same contribution for the coverage as if the employee or retiree were still alive for the first twenty -four (24) months of that continuation. After twenty -four (24) months the Covered Dependents will be totally responsible for contributions after the Employer's contributions cease." D. Employees eligible for the defined - benefit described in this section ( I.A. above) may opt - out of that benefit and choose instead to participate in the Retiree Medical Savings Account benefit described below is section II. The employee's decision to opt -out of the defined - benefit will occur during an open - enrollment period and is irreversible. Employees Hired on or After January 1, 2008: A. Retiree Medical Savings Account: Employees hired on or after January 1, 2008 will participate in a Retiree Medical Savings Account (RMSA) in lieu of City defined benefit program described above. The City will contribute $50.00 for each pay period that an employee is in a paid status to each participating employee's RMSA benefit. Upon retirement in good standing from the City, employees hired on or after January 1, 2008 may use their RMSA funds to purchase retiree health benefits through the City Medi -Gap program or from third -party providers of their choice and receive reimbursement for other incurred medical expenses as prescribed in Section 213(d) of the Internal Revenue Code. B. Vesting: City contributions are vested on the following schedule: Years of Service with the City % of Account Vested (from date of permanent hire) 25 years 100% 20 years 75% plus 5% for each additional year 15 years 50% plus 5% for each additional year 10 years 25% Less than ten (10) years 0% C. Legislative Changes: In the event legislation changes such that employer financed universal health is required through the State or Federal Government or other catastrophic legislative changes occur, there will be an immediate re- opener to discuss the impact of the legislation on the current City plan(s) for retirees. For the Administrative and Confidential Association: Signaturf Signatur( For the City Of So Signature: Lake Tahoe: Date: -3-� //,-3 Date: 1-3 Date: LI SIDE LETTER OF AGREEMENT BETWEEN THE CITY OF SOUTH LAKE TAHOE AND THE SOUTH LAKE TAHOE POLICE SUPERVISORS' COMMITTEE The parties agree that all Medicare eligible retirees shall participate in the Medicare Exchange program (Medi -Gap) offered by the City as secondary insurance to Medicare in accordance with the following: I. Employees Hired Prior to January 1, 2008 A. Retired Medical Plan At age 65, or upon Medicare eligibility, employees who retire from City service shall be eligible for participation in City Medi- Gap /dental plans for employee only or employee and dependents in accordance with the following: Years of Service with the City (from date of permanent hire) 25 years 20 years 15 years 10 -15 years Less than 10 years % of Medi- Gap /dental premium paid by City 100% 75% plus 5% for each additional year 50% plus 5% for each additional year 25% 0% At age 65, or upon Medicare eligibility, employees hired after June 1, 2001, who retire from City service shall be eligible for participation in City Medi- Gap /dental plans for employee only in accordance with the following: Years of Service with the City (from date of permanent hire) 25 years 20 years 15 years 10 -15 years Less than 10 years % of Medi- Gap /dental premium paid by City 100% 75% plus 5% for each additional year 50% plus 5% for each additional year 25% 0% B. Upon the death of a retiree, the retiree spouse will be eligible to continue coverage at the same percentage as that prior to the retiree's death. For the spouses of employees hired after June 1, 2001, coverage may be extended after the death of the employee, but the spouse will continue to pay full costs of coverage. Upon the death of a retiree who retired prior to October 1, 1996 (retired prior to October 31, 1998 for non - sworn) the following plan document provision applies: "The Employer will continue to make the same contribution for the coverage as if the retiree were still alive for the first twenty -four (24) months of that continuation. After twenty -four (24) months the Covered Dependents will be totally responsible for contributions after the Employer's contributions cease." C. Upon retirement, the retiree has the option to continue participation in the vision care program, if electing to participate in the Medi -Gap plan. If the retiree elects to participate in the vision plan upon retirement, such coverage will continue for as long as the retiree pays the full premium. D. Employees eligible for the defined- benefit benefit described in section I.A. above may opt - out of that benefit and choose instead to particpate in the Retiree Medical Savings Account benefit described below in section II below. The employee's decision to opt -out of the defined- benefit benefit will occur during an open - enrollment period and is irreversable. Employees Hired On or After January 1, 2008 A. Retiree Medical Savings Account: Employees hired on or after January 1, 2008 will participate in a Retiree Medical Savings Account (RMSA) in lieu of being eligible to continue to participate in the City's health plan during retirement as described in Section I.A. above. The City will contribute $50.00 for each pay period that an employee is in a paid status to each participating employee's RMSA benefit. Upon retirement in good standing from the City, employees hired on or after January 1, 2008 may use their RMSA funds to purchase retiree health benefits through the City Medi -Gap program orfrom third -party providers of their choice and receive reimbursement for other incurred medical expenses as prescribed in Section 213(d) of the Internal Revenue Code. B. Vesting: City contributions are vested on the following schedule: Years of Service with the City (from date of permanent hire) 25 years 20 years 15 years 10 -15 years Less than 10 years % of Account Vested 100% 75% plus 5% for each additional year 50% plus 5% for each additional year 25% 0% C. Legislative Changes: In the event legislation changes such that employer financed universal heath is required through the State or Federal Government, there will be an immediate re- opener to discuss the impact of the legislation on the current City plan(s) for retirees. For the Police Supervisor's Association: Signature: A,, WZ Date: 6— 28 —(S Signature: p For the City Xout"ake Tahoe: / -D Signature: Date: ` 5 SIDE LETTER OF AGREEMENT BETWEEN THE CITY OF SOUTH LAKE TAHOE AND THE INTERNATIONAL UNION OF OPERATION ENGINEERS, STATIONARY ENGINEERS, LOCAL 39 GENERAL AND PUBLIC WORKS The parties agree that all Medicare eligible retirees shall participate in the Medicare Exchange program (Medi -Gap) offered by the City as secondary insurance to Medicare in accordance with the following: L Employees Hired Prior to January 1, 2008 A. Retired Medi- Gap /Dental Plan — At age 65 or upon Medicare eligibility, employees who retire from City service after January 1, 1992 shall be eligible for premium reimbursement for Medi- Gap /dental plans for employee only or employee and dependents in accordance with the following: Years of Service with the City % of Retiree Medi- Gap /dental (from date of permanent hire) premium paid by the City Twenty -five (25) years or more 100% Twenty (20) years or more 75% Fifteen (15) years or more 50% Ten (10) years or more 25% Less than ten (10) years 0% At age 65 or upon Medicare eligibility, employees who retire from City service after February 21, 2007 shall be eligible for premium reimbursement for Medi- Gap /dental plans for employee only or employee and dependents in accordance with the following: Years of Service with the City % of Retiree Medi- Gap /dental (from date of permanent hire) premium paid by the City Twenty -five (25) years or more 100% Twenty (20) years or more 75% plus 5% for each additional year Fifteen (15) years or more 50% plus 5% for each additional year Ten (10) years or more 25% Less than ten (10) years 0% At age 65 or upon Medicare eligibility, employees hired after June 18, 2002 shall be eligible for premium reimbursement for Medi- Gap /dental plans for employee only in accordance with the following: Years of Service with the City % of Retiree Medi- Gap /dental (from date of permanent hire) premium paid by the City Twenty -five (25) years or more 100% Twenty (20) years or more 75% plus 5% for each additional year Fifteen (15) years or more 50% plus 5% for each additional year Ten (10) years or more 25% Less than ten (10) years 0% B. Retiree Vision Care — Retirees may purchase at their own expense the City sponsored vision care plan at the same rate the City pays on behalf of employees, if the retiree elects Medi- Gap /dental coverage. C. Retiree Death Coverage - For unit members hired prior to June 18, 2002 who have dependent retiree coverage: Upon the death of a retiree, the retiree spouse will be eligible to continue Medi -Gap coverage, at age 65 or upon Medicare eligibility, at the same percentage as that prior to the retiree's death. Upon the death of retiree who retired prior to October 31, 1998 the following plan document provision applies: "The Employer will continue to make the same contribution for the coverage as if the employee or retiree were still alive for the first twenty -four (24) months of that continuation. After twenty -four (24) months the Covered Dependents will be totally responsible for contributions after the Employer's contributions cease." D. Employees eligible for the defined - benefit described in this section ( I.A. above) may opt - out of that benefit and choose instead to participate in the Retiree Medical Savings Account benefit described below is section II. The employee's decision to opt -out of the defined - benefit will occur during an open - enrollment period and is irreversible. II. Employees Hired on or After January 1, 2008 A. Retiree Medical Savings Account: Employees hired on or after January 1, 2008 will participate in a Retiree Medical Savings Account (RMSA) in lieu of City defined benefit program described above. The City will contribute $50.00 for each pay period that an employee is in a paid status to each participating employee's RMSA benefit. Upon retirement in good standing from the City, employees hired on or after January 1, 2008 may use their RMSA funds to purchase retiree health benefits through the City Medi -Gap program or from third -party providers of their choice and receive reimbursement for other incurred medical expenses as prescribed in Section 213(d) of the Internal Revenue Code. B. Vesting: City contributions are vested on the following schedule: Years of Service with the City (from date of permanent hire) 25 years 20 years 15 years 10 years Less than ten (10) years C. Legislative Changes of Account Vested 100% 75% plus 5% for each additional year 50% plus 5% for each additional year 25% 0% In the event legislation changes such that employer financed universal health is require through the State or Federal Government, there will be an immediate re- opener to discuss the impact of the legislation on the current City plan(s) for retirees. o tationar ngineers, Local 39 Date: C� Date: For th' ty of SoO4- Date: r/