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TO: Mayor Richard C. Irvin
FROM: Alisia Lewis
DATE: March 21, 2018
SUBJECT:
A resolution Authorizing Execution of a Rollover Agreement Between the City of Aurora and Local 3298, Council 31 American Federation of State, County and Municipal Employees AFL/CIO October 1, 2017 through December 31, 2019.
PURPOSE:
To obtain authorization to execute a Rollover Agreement Between the City of Aurora and Local 3298, Council 31 American Federation of State, County and Municipal Employees AFL/CIO collective bargaining agreement October 1, 2017 through December 31, 2019.
BACKGROUND:
Local 3298, Council 31 American Federation of State, County and Municipal Employees AFL/CIO collective bargaining agreement expired 9/30/17. The last agreement was a one year rollover agreement which addressed the issue of wages only.
DISCUSSION:
The city began negotiations with the union in 2017 and shortly after initial meetings, the union inquired about going into another rollover agreement. In consideration of the uncertainties still looming regarding the new repeal and replace health care law, American Health Care Act (AHCA), it was imperative that an agreement with the union would need to address the growing cost of health insurance coverage to the city. The changes from the AHCA may have a significant impact on the city's health care cost, plan design and other determined obligations.
This rollover agreement primarily is focused on wages and insurance. One provision of the agreement was to change the duration of the agreement to a calendar year expiration date. The parties agreed to a .6% wage increase to cover the last quarter of 2017 and a 2.5% wage increase for 2018 and 2019. The city negotiated an increase in employee contribution to 17.5% for both HMO and OAP coverage across all tiers to be reached by the end of the agreement. For illustration purposes, the current employee contribution for single OAP coverage is 12.75%. The user fees which include deductibles, ...
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