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032-16 - Teamsters Local No. 589 - Contract Amendment MOUMemorandum of Understanding Amended to the AGREEMENT by and between CITY OF PORT ORCHARD, WASHINGTON and TEAMSTERS LOCAL NO. 589 (Representing the Police Support Staff) dated January 1, 2016 through December 31, 2018 THIS AMENDMENT is supplemental to the AGREEMENT by and between the CITY OF PORT ORCHARD, WASHINGTON (the “City”) and the TEAMSTERS LOCAL NO. 589 (the “Teamsters”) (representing the Police Support Staff), dated January 1, 2016 through December 31, 2018. WHEREAS, Article 16 of the parties’ Collective Bargaining Agreement (“CBA”), relating to health care benefits, allows the City to change health care plans during the term of the CBA, and further allows either party to reopen negotiations for the purpose of bargaining the impacts to Teamsters employees of any such change; and WHEREAS, the two health insurance plans provided by the City through the Association of Washington Cities (“AWC”), specifically, the HealthFirst and Group Health $10 Co-pay plans, were terminated by AWC and replaced as of January 1, 2018; and the City changed Teamsters employees’ health coverage to the next best health insurance plans offered by AWC as of that date, specifically, the HealthFirst 250 and Kaiser Permanente 200 plans; and WHEREAS, the Teamsters requested the reopening of negotiations to bargain the impacts of this change in health insurance plans; the parties have met and conferred; and the parties have come to an agreement with regard to mitigating the impacts to Teamsters employees necessitated by the health insurance plan changes; NOW THEREFORE, the City and the Teamsters have entered into this Memorandum of Understanding (“MOU”) to memorialize the following agreement: The parties agree that, for calendar year 2018 only, each Teamsters employee who is currently enrolled in a City-provided health insurance plan will receive one-time lump sum contributions to an HRA/VEBA account in the amounts of: (a) their new initial deductible amount under the new health insurance plan (expected to be $200 or $250 for employee-only plans, depending on whether the employee is enrolled in the Kaiser 1 of 2 Permanente or AWC HealthFirst plan, and up to $750 for employee/spouse/dependents plans, depending on the type of plan as well as the number of dependents enrolled); and (b) $150 to address additional medical impacts of the health insurance plan change. The parties further agree that all other terms and conditions set forth in the current CBA will remain in full force and effect through December 31, 2018. TEAMSTERS LOCAL NO. 589 CITY OF PORT ORCHARD Mark Fuller, Teamsters Representative Robert Putaansiiti, Mayor 5/^ /1 b DateDate I fSEAL j ! 2 of 2