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COUNTY OF SACRAMENTO

VIEWS: 11 PAGES: 6

									                           COUNTY OF SACRAMENTO
                                CALIFORNIA

                                               For the Agenda of: September 9, 2003

To:             Board of Supervisors

From:           Director of Labor Relations

Subject:        Addendum #5 To 2001-06 Supervisory And Non-Supervisory Attorneys
                Units Agreement Revising County Health Contributions/Cash Back And
                Implementing Same Benefit Changes For County Counsel Attorneys

Contact:        Steve Lakich, Director of Labor Relations, 874-7095

      Overview
      This resolution and addendum replace the current language in the labor
      agreement which provides for County maximum contributions for group
      medical insurance plans; a limit on the cash back effective January 1, 2004;
      and a plan selection incentive for those employees who do not receive cash
      back and select catastrophic health insurance coverage. The same benefit
      changes will be provided to the attorneys in the County Counsel’s Office.

      Recommendation
      Approve the attached resolution authorizing implementation of the attached
      addendum to the 2001-06 Sacramento County Attorneys’ Association and to
      implement the same benefit changes for the unrepresented attorneys in the
      County Counsel’s Office.

      Measures/Evaluation
      Not Applicable

      Fiscal Impact
      Expenditures will increase by approximately $45,000 in the 2003-04 fiscal
      year and by approximately $100,000 in 2004-05 and 2005-06.


Discussion

In 2002, your Board approved County maximum contributions for group medical
insurance plans and cash payments to employees whose medical insurance premium is
less than the County contribution for most represented employees, which included these
relevant features:

         Effective January 1, 2004, the maximum County contribution will increase to $575
          per month or eight percent (80%) of the Kaiser Health Plan, whichever is greater.
Addendum #5 To 2001-06 Attorneys Agreement
September 9, 2003
Page 2


         Effective January 1, 2005, the maximum County contribution will increase to $595
          per month or eighty percent (80%) of the Kaiser Health Plan, whichever is greater.

         Effective January 1, 2006, the maximum County contribution will increase to $615
          per month or eighty percent (80%) of the Kaiser Health Plan, whichever is greater.

         A cash back payment not to exceed $535 for incumbent employees.

         A $150 plan selection incentive to non-incumbent employees who select the
          catastrophic health coverage with proof of group health insurance.

Recently, the Sacramento County Attorneys Association contacted the County to discuss
revising their health insurance benefits to correspond with the provisions described
above. In 2002, when we discussed these revisions with the Association, they decided
not to make any changes. The Association now wishes to make the revisions. We
recommend approval of the attached addendum to implement the revisions effective
January 1, 2004.

Along with the addendum for the Attorney’s Association, these same revisions need to be
implemented for all unrepresented attorneys in the County Counsel’s Office due to the
parity clause in the Attorney’s Labor Agreement.

Financial Analysis

Expenditures will increase by approximately $45,000 in the 2003-04 fiscal year and by
approximately $100,000 in 2004-05 and 2005-06. The net cost increases will be
approximately $36,000 in 2003-04 and $80,000 in the following fiscal years. The
personnel costs in the County budget included the higher insurance subsidies effective
January 1, 2004, so there is no need to make a budget adjustment due to this
agreement.

Respectfully submitted,                           Approved,



STEVE LAKICH                                      TERRY SCHUTTEN
Director of Labor Relations                       County Executive

Attachments

cc:       County Counsel, District Attorney, Public Defender, Director of Risk
          Management/Benefits, County Benefits Manager, Personnel/Payroll Training and
          Support Manager, Personnel Records and Special Services Manager,
          Sacramento County Attorneys Association
                            RESOLUTION NO. _________




      BE IT RESOLVED THAT the attached Addendum #5 to the 2001-06 Agreement
between the County of Sacramento and the Sacramento County Attorneys Association is
hereby approved.

        BE IT FURTHER RESOLVED THAT this addendum is effective January 1, 2004.

       BE IT FURTHER RESOLVED THAT these revised benefits be implemented for
the classes of County Counsel, Assistant County Counsel, Supervising Civil Attorney and
Attorney-Civil, Level I – Level 4, effective January 1, 2004.

      On motion of Supervisor __________________________, seconded by
Supervisor __________________________, the foregoing Resolution was passed and
adopted by the Board of Supervisors, of the County of Sacramento, this ____ day of
______, 2003, by the following vote:


AYES:        SUPERVISORS _______________________________________

NOES:        SUPERVISORS _______________________________________

ABSENT:      SUPERVISORS _______________________________________




                                              __________________________
                                              Chair of the Board of Supervisors
                                              of Sacramento County, California




(SEAL)

ATTEST: _____________________________
         Clerk of the Board of Supervisors
                             ADDENDUM #5
                                TO THE
                          2001-06 AGREEMENT
                               BETWEEN
                        COUNTY OF SACRAMENTO
                                  AND
              SACRAMENTO COUNTY ATTORNEYS’ ASSOCIATION
                                 IN THE
           SUPERVISORY AND NON-SUPERVISORY ATTORNEYS UNITS

This addendum is to the 2001-06 Agreement between the County of Sacramento and
Sacramento County Attorneys’ Association, covering all employees in the Supervisory
and Non-Supervisory Attorneys Units.

The parties agree to revise Section 4.1 of Article IV, Medical Insurance and Health Plans,
of the Agreement as follows:


4.1   MEDICAL INSURANCE AND HEALTH PLANS

       a.     The County shall pay, effective January 1, 2002, for each full-time regular
employee and each part-time regular employee who works forty (40) hours or more per
biweekly pay period up to $515 per month for any of the medical insurance or health
plans made available to employees pursuant to this Agreement. The County contribution
shall be applicable to either “employee and dependent” coverage or to “employee only”
coverage. If the cost of the coverage exceeds the maximum County contribution, the
employee shall pay the additional cost.

       b.    Effective January 1, 2004, the maximum County contribution shall
increase to $575 per month or eighty percent (80%) of the Kaiser Health Plan premium
based on co-payments described in Subsection k. for employee and dependent
coverage, whichever is greater.

       c.    Effective January 1, 2005, the maximum County contribution shall
increase to $595 per month or eighty percent (80%) of the Kaiser Health Plan premium
based on co-payments described in Subsection k. for employee and dependent
coverage, whichever is greater.

       d.    Effective January 1, 2006, the maximum County contribution shall
increase to $615 per month or eighty percent (80%) of the Kaiser Health Plan premium
based on co-payments described in Subsection k. for employee and dependent
coverage, whichever is greater.
      e.      The County shall provide employees with at least the following medical
plan options:

                    Kaiser Foundation Health Plan
                    A health maintenance organization (HMO) plan
                    A health plan with a point of service (POS) option
                    A catastrophic health plan

      f.       All full-time regular employees and part-time regular employees shall enroll
in one (1) of the medical and health plans listed in Subsection e. above. If such
employee fails to enroll in one (1) of these health plans, the County will take whatever
steps are necessary to enroll the employee in the least expensive plan listed, employee-
only coverage. An employee shall not be enrolled in catastrophic only coverage by the
County under this subsection.

        g.    The County may on October 1 of any year implement a three-tier premium
rate structure. The County shall announce this change prior to the annual insurance
enrollment immediately preceding the October 1 effective date so that affected
employees may change their insurance enrollment.

       h.     Each medical insurance or health plan provides for coordination with
Medicare coverage. An employee who participates in a plan is subject to the
requirements of that plan, including provisions relating to Medicare. The County is not
responsible for the replacement of benefits which may be reduced, eliminated, or made
more expensive as a result of coordination with Medicare. County contributions are not
payable toward contributions an employee is required to make to the Federal
Government for Medicare coverage.

       i.      Employees hired prior to June 20, 1999, with medical insurance or health
plan coverage whose premium rate is less than the County contribution shall receive a
cash payment not to exceed $535 per month minus the cost of the premium rate. For
such employees who are covered by social security (FICA), this cash payment will not
exceed $535 per month minus the cost of the premium rate for the employee’s medical
insurance or health plan coverage, minus a percentage equal to the County’s social
security contribution rate on FICA taxable wages, and minus any County costs (excluding
FICA) which are applicable to such cash payment, if any. For such employees who are
not covered by social security, the cash payment will be calculated in exactly the same
manner, except there will be no deduction of the percentage equal to the County’s social
security contribution rate on FICA taxable wages. Employees hired on or after June 20,
1999, shall not receive this cash payment. Current employees who receive cash-back
benefits shall be grandfathered for the duration of their continuous employment history
with the County of Sacramento. Such cash-back benefit shall be a vested right.

       j.    Employees hired on or after June 20, 1999, shall show evidence of group
health insurance at the time of insurance enrollment with the County when selecting
catastrophic health insurance coverage. Effective January 1, 2004, such employees who
select catastrophic coverage shall receive a $150 per month plan selection incentive.

        k.     The Association agrees with the Consultant’s recommendations in the
2000-01 Health and Welfare Review to increase the County-sponsored HMO’s to match
the PERS 2002 HMO office visit and prescription drugs co-payments effective January 1,
2002. The Association further agrees that the County shall have the right to implement
all or portions of the Consultant’s recommendations on the Health Plan Restructuring as
proposed in the 2002 Health and Welfare Review.

       l.     The County shall have the right to further increase the HMO office visit and
prescription drug co-payments by no more than $5 effective January 1, 2005, based on
the accumulative percentage increase of premium increases for employees with
dependent coverage for the Kaiser Foundation Health Plan for the period January 1,
2002 to January 1, 2005. (For example, if the accumulated percent increase on the
Kaiser premium for the three year period were 30% ($500 January 1, 2002 to $650
January 1, 2005), a $10 co-payment could be increased by $3 ($10 X 30%) to $13.)


This addendum shall remain in full force and effect to and including June 30, 2006.



                                 Date: ______________




__________________________________                     _________________________
Sacramento County Attorneys’ Association               County of Sacramento

								
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