IFPTE, Local 21
Cupertino
Employees’
Association
2019 – 2022 MOU
Side
Letter
Agreement
- 1 -
SIDE LETTER AGREEMENT TO THE
2019 – 2022 CUPERTINO EMPLOYEES’ ASSOCIATION
MEMORANDUM OF UNDERSTANDING
CONCERNING ADOPTION OF IRS SECTION 125
PREMIUM ONLY PLAN
DATE: April 20, 2021
The City of Cupertino (“City”) and the City of Cupertino Employees’ Association (“Employee Association”) enter into this Side Letter Agreement and hereby agree to amend the existing MOU provisions as follows:
SECTION 13.1: MAXIMUM WORKING HOURS AND FATIGUE TIME
13.1. Health - Medical and Dental Insurance
City agrees to pay an amount as set forth herein for medical coverage for employee and dependents through the Meyers -Geddes State Employees Medical and Hospital Care Act. For each participating employee, the City shall contribute the maximum toward premium cost per month for health and dental during the term of this agreement as follows:
Effective January 1,
2020
City Max Health
Contribution
City Max Dental
Contribution*
City Total Max
Contribution
Employee 848.87 126.78 975.65
Employee +1 1,443.09 126.78 1,569.87
Employee +2 1,876.01 126.78 2,002.79
January 1, 2021 City Max Health
Contribution
City Max Dental
Contribution
City Total Max
Contribution
Employee 891.32 126.78 1,018.10
Employee+ 1 1,515.24 126.78 1,642.02
Employee +2 1,969.81 126.78 2,096.59
IFPTE, Local 21
Cupertino
Employees’
Association
2019 – 2022 MOU
Side
Letter
Agreement
- 2 -
January 1, 2022 City Max Health
Contribution
City Max Dental
Contribution
City Total Max
Contribution
Employee 935.88 126.78 1062.660
Employee +l 1,591.01 126.78 1,717.79
Employee +2 2,068.31 126.78 2,195.09
Required contribution amounts exceeding the premium contribution of the City are the responsibility of the employee. The City no longer pays medical in surance cash back (excess of the monthly premium les s the cost of the medical coverage) for any employees.
Effective July 1, 2010, employees that retire or re sign from service with the City of Cupertino and who are not eligible for retiree medical benefits as defined in the Summary of Ben efits can continue on the Cupertino medical and dental plans provided that they pay the premiums in full.
The City reserves the right of selection and administration as to deferred compensation and Section 125 plan(s).
If during the term of this agreement, modifications are made to the Federal tax code which would result in any of the medical insurance prov ided be subject to taxation, t he contract will be re -opened for the purposes of adjusting the salary and medical benefit s so long as it does not result in an increase or decrease in the total compensation.
If during the term of this agreement, new medical plans are identified that will be beneficial to the City and CEA, the contract will be reopened to discuss these plan option s.
Health deductions for employee payments towards PEMHCA premiums shall occur on a bi -monthly basi s consistent with Ca lPERS required PEMHCA payment schedule.
IFPTE, Local 21
Cupertino
Employees’
Association
2019 – 2022 MOU
Side
Letter
Agreement
- 3 -
To the extent any City premium contributions or employee out -of- pocket costs for premiums are eligible for pre -tax treatment under Section 125 of the Internal Revenue Code, the City and all participating employees shall pay their respective share of the cost of medical, dental, vision, and short and long term disability insurance through a City- sponsored Section 125 Premium Only Plan (POP).
13.2 Health In Lieu Payments
City agrees to pay a monthly amount of three hundred seventy- five ($375.00) per month to bargaining unit employee who can demonstrate that they have equivalent health coverage through their spouse, parent, or other group coverage and who request this cash payment in lieu of health insurance coverage . Employees waiving City- sponsored health coverage must provide proof of other satisfying coverage for the employee and other eligible dependents (if applicable) and submit the applicable election forms to Human Resources annually. Enrollment in City-sponsored health coverage shall be required (consisting of at least the lowest cost s employee only health plan) unless the employee meets the requirements to waive coverage.
13.3 Life Insurance
City shall provide life in surance and accidental death and dismemberment coverage for each employee in the amount of two and one half times annual salary to a maximum benefit of $250,000. Employees may be eligible to purchase additional life insurance subject to the provisions of the insurance policy.
13.4 Short Term and Long Term Disability Insurance
CEA employees will participate in California State Di sability Insurance (SDI). SDI weekly benefits are determined by the State of California and information is available on the State of California Employment Development Department website. Employees may use leave banks to supplement lost salary during the 7 day elimination period.
Bargaining unit members shall pay the 1% cost of CA SDI, which will be deducted from their biweekly paycheck s. Until full enrollment in CA SDI becomes effective, bargaining unit members will continue to be covered by the current Short Term Disability plan during the transition. Integration of SDI with the City's current Short Term Disability plan will be in accordance
IFPTE, Local 21
Cupertino
Employees’
Association
2019 – 2022 MOU
Side
Letter
Agreement
- 4 -
with SDI rules and regulations.
The City shall provide Long Term Disability (LTD) insurance for employees. LTD income protection coverage shall be up to $7,000 of covered monthly salary. Employees may use sick leave and/or vacation leave to supplement lost salary during the 90 day elimination period.
13.5 Vision Care Insurance
The City shall provide Vision Care Insurance for employees and their dependents at a cost of$14.94 monthly.
Unless otherwise stated, the provisions of this Side Letter Agreement shall supersede any inconsistent or conflicting provisions of the parties' Memorandum of Understanding, effective July 16, 2019 – June 30, 2022 ("MOU") as well as the terms of the Novemb er 26, 2019 Side Letter of Agreement between the parties regarding Section 13.2 . All other provisions of the parties' MOU shall otherwise remain in full force and effect. This Side Letter Agreement shall only become binding and effective upon the City Council’s approval and adoption of this Side Letter Agreement.
The parties further agree that the contents and terms of this Side Letter Agreement shall be incorporated into the successor MOU s unless modified otherwise in successor MOU negotiations, and t he terms of this Side Letter Agreement shall remain in force beyond the expiration of the 2019 – 2022 MOU.
The parties' signatures below signify that they have met and conferred in good faith in accordance with California Government Code Section 3500, et seq. Agreed to on this ____th day of April 2021, by the parties’ authorized representatives.
For the City For the Employee Association
___________________ _________ ___________________ _________ Christopher Boucher Date Stanley Young Date Stanley A. Young (May 21, 2021 18:48 PDT)
Stanley A. Young
May 21, 2021
May 23, 2021
Operating Engineers,
Local No. 3 Union,
AFL-CIO
2019 – 2022 MOU
Side
Letter
Agreement
- 1 -
SIDE LETTER AGREEMENT TO THE
2019 – 2022 OPERATING ENGINEERS, LOCAL NO. 3 UNION,
AFL-CIO MEMORANDUM OF UNDERSTANDING
CONCERNING ADOPTION OF IRS SECTION 125
PREMIUM ONLY PLAN
DATE: April 20, 2021
The City of Cupertino (“City”) and the Operating Engineers, Local No. 3 Union, AFL - CIO (“Union”) enter into this Side Letter Agreement and hereby agree to amend the existing MOU provisions as follows:
SECTION 12: HEALTH AND WELFARE BENEFITS
The City agrees to make available a plan of comprehensive health and welfare benefits for eligible employees, as well as those provided by the Operating Engineers Health and Welfare Trust Fund for Northern California. Any such benefits program must have the continued approval of the Board of Administration, Public Employees Retirement System. For each participating employee, the City shall contribute toward premium cost the following amount per month during the term of this agreement.
January 1, 2020
City Max Health
Contribution
City Max Dental
Contribution
City Total Max
Contribution
Employee 848.87 126.78 975.65
Employee + l 1443.09 126.78 1,569.87
Employee +2 1876.01 126.78 2,002.79
January 1, 2021 City Max Health
Contribution
City Max Dental
Contribution
City Total Max
Contribution
Employee 891.32 126.78 1,018.10
Operating Engineers,
Local No. 3 Union,
AFL-CIO
2019 – 2022 MOU
Side
Letter
Agreement
- 2 -
Employee +l 1.515.24 126.78 1,642.02
Employee +2 1.969,81 126.78 2,096.59
January 1, 2022 City Max Health
Contribution
City Max Dental
Contribution
City Tota l Max
Contribution
Employee 935.88 126.78 1,062.66
Employee + l 1.591.01 126.78 1,717.79
Employee +2 2.068.31 126.78 2,195.09
City-sponsored health coverage shall be required (consisting of at least the lowest costs employee only health plan) unless the employee meets the requirements to waive coverage. Required contribution amounts exceeding the premium contribution of the City are the responsibility of the employee. The City will no longer pay medical insurance cash back (excess of the monthly premium less the cost of the medical coverage) for any employees.
Effective July 1, 2010, employees that retire or resign from service with the City of Cupertino and who are not eligible for retiree medical benefits, as defined in the summary of benefits, can continue on the Cupertino medical and dental plans provided that they pay the premiums in full.
Dental Coverage: Effective the first month after OE3 ratification and Council adoption of MOU, dental coverage is capped at $2,500.00 per dependent per annual plan year for the term of this contract.
To the extent any City premium contributions or employee out-of-pocket costs for premiums are eligible for pre-tax treatment under Section 125 of the Internal Revenue Code, the City and all participating employees shall pay their respective share of the cost of medical, dental, vision, and short and long term disability insurance through a City-sponsored Section 125 Premium Only Plan (POP). The City reserves the right of selection and administration as to the Section 125 Premium Only Plan (POP).
Operating Engineers,
Local No. 3 Union,
AFL-CIO
2019 – 2022 MOU
Side
Letter
Agreement
- 3 -
SECTION 13: INSURANCE
13.1 Long Term Disability
The City shall provide Long Term Disability (LTD) insurance for employees.
LTD income protection coverage shall be up to $7,000 of covered monthly salary.
Employees may use sick leave and/or vacation leave to supplement lost salary during the 60 day elimination period.
13.2 Life Insurance
The City shall provide life insurance and accidental death and dismemberment coverage for each employee in the amount of five times the annual salary to a maximum benefit of $250,000. Employees may be eligible to purchase additional life insurance subject to the provisions of the insurance policy.
13.3 Vision Care Insurance
The City provides Vision Care Insurance for employees and their dependents at a cost of $14.94 monthly.
Unless otherwise stated, the provisions of this Side Letter Agreement shall supersede any inconsistent or conflicting provisions of the parties' Memorandum of Understanding, effective July 1, 2019 – June 30, 2022 ("MOU"). All other provisions of the parties' MOU shall otherwise remain in full force and effect. This Side Letter Agreement shall only become binding and effective upon the City Council’s approval and adoption of this Side Letter Agreement.
The parties further agree that the contents and terms of this Side Letter Agreement shall be incorporated into the successor MOU s unless modified otherwise in successor MOU negotiations, and the terms of this Side Letter Agreement shall remain in force beyond the expiration of the 2019 – 2022 MOU.
Operating Engineers,
Local No. 3 Union,
AFL-CIO
2019 – 2022 MOU
Side
Letter
Agreement
- 4 -
The parties' signatures below signify that they have met and conferred in good faith in accordance with California Government Code Section 3500, et seq . Agreed to on this ____th day of April 2021, by the parties’ authorized representatives.
For the City For the Union
___________________ _________ ___________________ _________ Christopher Boucher Date Michael Moore Date Michael Moore (May 21, 2021 14:59 PDT)
Michael Moore
May 21, 2021
May 23, 2021
2021-04-20 Final CEA Side Letter Agreement
Final Audit Report 2021-05-24
Created: 2021-05-07
By: Vanessa Guerra ([email protected])
Status: Signed
Transaction ID: CBJCHBCAABAASRH0-4aXm2l81Kf_YIPcB5maZn2xHiNT "2021-04-20 Final CEA Side Letter Agreement" History
Document created by Vanessa Guerra ([email protected]) 2021-05-07 - 6:36:01 PM GMT- IP address: 108.213.70.66
Document emailed to Michael Moore ([email protected]) for signature 2021-05-07 - 6:38:22 PM GMT
Email viewed by Michael Moore ([email protected])
2021-05-07 - 8:19:06 PM GMT- IP address: 174.194.192.6
Email viewed by Michael Moore ([email protected])
2021-05-21 - 6:56:38 PM GMT- IP address: 174.194.143.32 Document e-signed by Michael Moore ([email protected])
Signature Date: 2021-05-21 - 9:59:32 PM GMT - Time Source: server- IP address: 50.255.26.73 Document emailed to Stanley A. Young ([email protected]) for signature 2021-05-21 - 9:59:34 PM GMT
Email viewed by Stanley A. Young ([email protected])
2021-05-22 - 1:47:33 AM GMT- IP address: 24.6.57.154
Document e-signed by Stanley A. Young ([email protected]) Signature Date: 2021-05-22 - 1:48:59 AM GMT - Time Source: server- IP address: 24.6.57.154 Document emailed to Christopher Boucher ([email protected]) for signature 2021-05-22 - 1:49:00 AM GMT
Email viewed by Christopher Boucher ([email protected]) 2021-05-22 - 3:35:50 PM GMT- IP address: 207.246.66.17
Document e-signed by Christopher Boucher ([email protected]) Signature Date: 2021-05-24 - 0:59:49 AM GMT - Time Source: server- IP address: 143.110.156.249
Agreement completed.
2021-05-24 - 0:59:49 AM GMT