By: Luke Hopkins, Mayor 1 Introduced: 03/26/2015 2 Adopted: 03/26

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By:
Luke Hopkins, Mayor
Introduced:
03/26/2015
Adopted:
03/26/2015
FAIRBANKS NORTH STAR BOROUGH
RESOLUTION NO. 2015 - 10
A RESOLUTION RATIFYING THE MONETARY TERMS OF THE NEGOTIATED
COLLECTIVE BARGAINING AGREEMENT BETWEEN THE ALASKA STATE
EMPLOYEES ASSOCIATION AMERICAN FEDERATION OF STATE, COUNTY AND
MUNICIPAL EMPLOYEES, LOCAL 52, AFL-CIO AND THE FAIRBANKS NORTH
STAR BOROUGH
WHEREAS, the Fairbanks North Star Borough (Borough) has reached a
tentative three-year agreement (Fiscal Year 2016 through Fiscal Year 2018) with the
Alaska State Employees Association American Federation of State, County and
Municipal Employees, Local 52, AFL-CIO (ASEA); and
WHEREAS, although the monetary terms are ultimately subject to funding
through assembly appropriation, FNSB 2.24.462 requires the assembly to vote to either
ratify or reject the monetary terms of a proposed labor agreement; and
WHEREAS, financial impacts of this agreement for FY16 have been
incorporated in the Mayor’s FY16 budget; and
WHEREAS, many changes were made to the collective bargaining
agreement for clarification purposes, administrative processing simplicity and as cost
containment measures; and
WHEREAS, the agreed upon terms of the ASEA contract include the
following monetary terms that are significant and/or differ from the previous contract:
The cost-of-living is set at 1.6 percent for FY 16, based upon Anchorage CPI-U
for calendar year 2014, for FY17 cost-of-living is set at a minimum of 1 percent
and a maximum of 1.6 percent, based upon Anchorage CPI-U for calendar year
2015, and for FY18 cost-of-living is set at a minimum of 1 percent and a
maximum of 2.0 percent, based upon Anchorage CPI-U for calendar year 2016,
with COLA inflation language.
Step increases have been changed to merit-based, and step movement of 1.9
percent per year will be contingent upon satisfactory performance, as noted on a
written performance evaluation. Employees achieving step “T” shall not be
eligible for additional step movement.
Fairbanks North Star Borough, Alaska
RESOLUTION NO. 2015-10
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The Union shall pay up to 200 hours of wages for members of the ASEA
negotiation team and all contract negotiation preparation time from the Business
Leave Bank. The Union and Borough shall split negotiation cost exceeding those
initial 200 hours, up to a maximum of 400 hours equally for not more than three
(3) union bargaining unit team members.
Health care benefit plan changes include: incorporating any change required by
law; effective January 1, 2016 separating dental/vision/audio from health benefits
and allowing for a separate deduction (that will reduce standard employee
deductions by like amount); implementation of preventative benefits as required
under ACA when grandfather status is surrendered; adding required appeal
rights; increasing prescription annual out of pocket from $600 to $800;
implementation of Specialty Step Therapy prescription drug process; providing
steerage incentives to Alaska Regional Hospital and other facilities outside
Alaska; possible removal of same-sex domestic partner benefit.
To address the Cadillac Tax scheduled to be implemented in 2018, this contract
requires reductions of the level of benefits afforded under the Health Plan to be
reduced in order to avoid payment of the Cadillac Tax. The Labor Management
Committee will address this once federal regulations are available.
Increases to
amount of:
dependents;
dependents;
dependents.
employee deductions to offset
FY16 $85.00 for employee
FY17 $95.00 for employee
FY18 $105.00 for employee
health care costs, in the bi-weekly
only; $105.00 for employee plus
only; $120.00 for employee plus
only; $135.00 for employee plus
Increases to employee deductions for spousal opt-out, in the bi-weekly amount
of: FY16 $110.00; FY17 $120.00; and FY18 $135.00.
Require review of Health Plan costs and benefit levels should the budgeted
amount exceed 5% from the prior year estimate. Existing contract language
required this only when costs exceeded 10%.
Increase wellness funding from $30,000 annually to $50,000.
Allow for budgeting at the five year rolling average of covered employees, not
body count as reflected in the budget.
The Health Care Contingency Reserve Fund (HCCRF) will be used to offset
current year health costs in the amount of $50 per employee per month (PEPM),
provided that the balance of the HCCRF is more than 75% of the target amount.
Reduce maximum leave accrual limit from 520 hours to 480 hours.
Fairbanks North Star Borough, Alaska
______________
RESOLUTION NO. 2015 -10
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WHEREAS, many other changes were made to the contract that will result
in administrative efficiency and contract language clarity, however identifying a cost or
savings at this time is not practicable.
NOW, THEREFORE, BE IT RESOLVED that the Assembly of the
Fairbanks North Star Borough approves and ratifies the monetary terms of the FNSBEA
contracts.
PASSED AND APPROVED THIS 26TH DAY OF MARCH, 2015.
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_____________________________
Karl Kassel
Presiding Officer
ATTEST:
APPROVED:
___________________________
Nanci Ashford Bingham, MMC
Borough Clerk
Ayes: Golub, Sattley, Hutchison, Lawrence, Dodge, Quist, Davies, Kassel
Noes: None
Excused: Roberts
Fairbanks North Star Borough, Alaska
______________
RESOLUTION NO. 2015 -10
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