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HomeMy WebLinkAbout~Master - IUOE Blue Collar Contract Modification RESOLUTION NO. 11-488 RESOLUTION AUTHORIZING AN AMENDMENT TO IUOE,BLUE COLLAR UNIT, CONTRACT FOR THE CITY OF AMES,IOWA WHEREAS, a current labor contract with the International Union of Operating Engineers (IUOE), Blue Collar Unit, took effect on July 1, 2011; and, WHEREAS,one provision within that contract is scheduled to take effect on January 1,2012, and would change the maximum annual out-of-pocket cost for prescription drugs from $750 per covered member and$1,500 per covered family unit to $1,000 per covered member and$2,000 per covered family unit; and, WHEREAS, staff recently learned that this change to the out-of-pocket maximum would cause the health insurance plan for the Blue Collar Unit to lose its grand fathered status under the Patient Protection and Affordable Care Act of January 1, 2012; and, WHEREAS, this unintended change would create a separate plan that is subject to certain Health Care Reform requirements that are not required of the other City plans,which do not contain this increase and will maintain their grand fathered status; and, WHEREAS, bringing the Blue Collar health insurance plan under these terms was an unintended consequence of this negotiated change; and, WHEREAS,on balance,the cost savings from this increase in the maximum annual out-of- pocket amount is not worth the loss of the plan's grand fathered status, including the continuing uncertainty of how this aspect of the federal health care law will ultimately be implemented; and, WHEREAS, all health insurance plans will lose their grand fathered status on January 1, 2014,when the provisions of the Affordable Care Act will take effect,therefore,it seems appropriate to delay implementation of this Blue Collar contract provision until that date; and, WHEREAS, the IUOE has given its approval to this amendment. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that the amendment to the International Union of Operating Engineers (IUOE), Blue Collar Unit, delaying implementation of the aforementioned provision until January 1,2014,is hereby approved. ADOPTED THIS 25`h day of October, 2011. `�d& ��. Diane R. Voss, City Clerk Ann H. Campbell, Mayor Introduced by: Goodman Seconded by: Wacha Voting aye: Davis, Goodman, Larson, Mahayni, Orazem, Wacha Voting nay: None Absent: None Resolution declared adopted and signed by the Mayor this 25'day of October, 2011.