1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 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 Page 1 of 4 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 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 Page 2 of 4 93 94 95 96 97 98 99 100 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. 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 _____________________________ 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 Page 3 of 4