City of Gainesville - File #: 110383.

• File #: 110383.
• Version: 0
• Name: COMMUNICATIONS WORKERS OF AMERICA, et al. v. CITY OF GAINESVILLE, PERC CASE NOS. CA-2009-002, CA-2009-003, CA-2009-004, and CA-2009-005: APPEAL TO FLORIDA SUPREME COURT and PERC ORDER ON REMAND (B)
• Type: Discussion Item
• Status: Passed
• File created: 10/6/2011
• In control: City Attorney
• Final action: 10/6/2011
• Title: COMMUNICATIONS WORKERS OF AMERICA, et al. v. CITY OF GAINESVILLE, PERC CASE NOS. CA-2009-002, CA-2009-003, CA-2009-004, and CA-2009-005: APPEAL TO FLORIDA SUPREME COURT and PERC ORDER ON REMAND (B)

Date	Ver.	Action By	Action	Result
10/6/2011	0	City Commission	Approved as shown above (See Motion)	Pass

title
COMMUNICATIONS WORKERS OF AMERICA, et al. v. CITY OF GAINESVILLE, PERC CASE NOS. CA-2009-002, CA-2009-003, CA-2009-004, and CA-2009-005: APPEAL TO FLORIDA SUPREME COURT and PERC ORDER ON REMAND (B)

recommendation
The City Commission (1) hear a presentation; (2) authorize management to implement the Public Employees Relations Commission's Order on Remand; (3) authorize the City Attorney to seek amicable resolution to all pending issues in the litigation; and (4) authorize management to seek legislative amendments to restore the rights of public employers in the collective bargaining process.

explanation
In response to increasing medical costs and premiums, in 1992, the City changed its payment of retirees' health insurance premiums from 100% of single coverage for the retirees to 80% of single coverage, in line with what it was paying for active employees. These changes were not bargained. The retirees filed a class action lawsuit to stop the City from doing so, arguing that they had been told the City would pay 100% of the premium for their lifetime. After years of litigation, the Court declined to certify a class of retirees, and later held that the Plaintiff retirees had abandoned their claims and dismissed the case.

While the lawsuit was ongoing, the City commissioned an actuarial study to determine the long term cost of the City's contribution of 80% of retirees and current employees' premiums. The study estimated that the City's cost to provide this benefit from 1994 forward was 76 million dollars. As a result of this study, in 1995, the City Commission adopted an ordinance changing how it would contribute to current and future retirees health insurance benefits. The ordinance provided that the City would contribute a percentage of retirees' health insurance costs that was variable based on years of service, age at retirement, and hire date. The result of these changes reduced the City's liability to 18 million dollars. The o...