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022-22 - Teamsters Local No. 589-Municipal Court - Contract Amendment MOU No. 2Memorandum of Understanding Amending the AGREEMENT by and between CITY OF PORT ORCHARD, WASHINGTON and TEAMSTERS LOCAL NO. 589 (Representing the Municipal Court Employees dated January 1, 2022 through December 31, 2025 THIS AMENDMENT is supplemental to the COLLECTIVE BARGAINING AGREEMENT by and between the CITY OF PORT ORCHARD, WASHINGTON (the "City") and the TEAMSTERS LOCAL NO. 589 (the "Union") (representing Municipal Court Employees), dated January 1, 2022, through December 31, 2025. WHEREAS, the 2022-2025 collective bargaining agreement between the parties provides for benefits for part-time employees; and WHEREAS, the Municipal Court has determined that it is in the best interests of the City to reduce a current full-time employee's hours to 20 hours per week; and WHEREAS, City policy provides that the City will pay 50% of the cost of medical insurance for employee -only coverage for those part-time employees working between 20 and 30 hours a week; and WHEREAS, the City desires to treat part-time employees of the Municipal Court in a consistent manner; and WHEREAS, the current title of Article 16.4.3 implies that the Municipal Court employee would need to work more than 20 hours a week for such coverage; NOW THEREFORE, the City and the Union agree as follows: On the effective date of this MOU, Article 16.4 of the collective bargaining agreement ("CBA") between the City and the Union representing Municipal Court Employees shall be modified to read as follows: 16.4 The Employer shall have the right to change the health and welfare insurance company and/or plan so long as the medical premium impacts to the employee are cost neutral and the benefits in the new plan are substantially the same as the benefits in the plan in effect at the time the plan change is to be implemented. The term "cost neutral" is to be used in the context of employee monthly medical premiums. Employee medical premium amounts are listed in Appendix B of this Agreement. "Cost neutral" means that the employee medical premiums will not be increased above the fixed amounts that would have been calculated under the previous plan's allocation in the event the Employer elects to change health and welfare insurance plans or companies. 10853947.1 - 366922 - 0001 16.4.1 Employees shall be responsible for paying a portion of the total monthly premium for the subject medical plan by payroll deduction as shown in Appendix B. 16.4.2 The parties acknowledge the Employer's current health and welfare plans. If the total cost of monthly premiums for said plan increase by more than twenty-five percent (25%), the parties shall meet and confer. The Employer and the Union each reserve the right to reopen negotiations relating to health care to bargain over the impact of any changes to Article 16 of this Agreement, whether such changes are necessitated by the requirements of the Affordable Care Act, or any changes thereto, or otherwise. 16.4.3 MEDICAL BENEFITS FOR PART-TIME EMPLOYEES WORKING MORE T AN 20 HOURS A WEEK OR MORE AND AN AVERAGE OF LESS THAN 30 HOURS PER WEEK= Subject to the remaining terms of this Article 16, for part-time employees the Employer will pay 50% of the medical insurance premium as specified above for the employee only if the employee elects to pay 50% of the premium by payroll deduction. The employee may elect to purchase medical insurance coverage for their spouse and/or dependents at their own expense by payroll deduction. 2. This MOU is effective when signed by both parties. No modification to this MOU is valid unless in writing and signed by the parties. CITY OF PORT ORCHARD Robert Putaansuu Mayor -4 Date PORT ORCHARD MUNICIPAL COURT Hon. Tim Dfiry Municipal Jourt Judge i 1 22 2aZ Da TEAMSTERS LOCAL #589 r Robert Driskell Secretary Treasurer _U,11 1 Zd2 D to 10853947.1 - 366922 - 0001