033-16 - 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 Public Works Employees)
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 Public Works Employees), 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
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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.
CITY OF PORT ORCHARDTEAMSTERS LOCAL NO. 589
X --------------------------------Mark Fuller, Teamsters Representative Robert PutaanSuu, Mayor
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Date Date
1; seal :■ I
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