Date: November 4, 2025
To: Mayor and City Council
From: John Perry, Human Resources
Jim Schaad, City Manager
Subject: Ratification of a Side Letter for both Teamster’s and Fire Teamster’s for medical parity Recommendation:
Pass a Motion ratifying the proposed Side Letter with 1) Teamsters Local 137 and 2) Teamsters Local 137 Fire for medical parity as required by Teamsters.
Rationale for Recommendation:
The City and both Teamsters reached an agreement and jointly prepared the attached Side Letter committing to the terms and conditions outlined in the attached agreements.
Background:
As required by state law, the City and both Teamsters’ groups met and conferred on other conditions of employment. As a result of those meetings, the parties have reached the attached Side Letter agreements.
Discussion & Analysis:
The attached Side Letter reflects hard work and collaboration between both Teamsters’ groups and City Management to develop these Side Letters.
The major highlights of the Teamsters’ Side Letter include:
Effective January 1, 2026, the City will cover each medical (category) tier at 100%.
Effective January 1, 2027, and each year thereafter the City and employee shall share the cost of annual medical premium increases on a 50% / 50% basis. The employees’ share of any annual premium increases shall not exceed 5% of the total premium cost for their respective tier (category) for any given year. Overall employee cost sharing shall be capped at a maximum of 10% of the total premium cost by tier (category), resulting in a 90% / 10% city to employee contribution ration.
Fiscal Analysis:
There is a fiscal impact of approximately $30K in year one which will be offset by the cost savings associated with the MPOA transitioning to Teamsters medical coverage. The fiscal impact in year two will be directly associated with medical plan increases only.
Attachment (Available at the Council Meeting):
Teamsters’ Local 137 Side Letter Agreement.
Teamsters’ Local 137 Fire Side Letter Agreement.
Item #06