December, 2002

Explanation of BCEA Contract Proposal for 2002-2003 MOU

Robert A. Kaczmarek - President

TERM - The contract term will be for one year. It is the intention of the BCEA to begin preparing to negotiate for next year's contract immediately following the ratification of this MOU.

COLA

All Classifications will receive a minimum 1% Cost of Living Adjustment (COLA) effective July 1, 2002. This is in addition to the elimination of the 3.544% deduction on July 1, 2002, nine years ahead of the contract scheduled end date.

SALARY SURVEY

Considering the current economic conditions, the BCEA is pleased to bring salary survey adjustments of 85% of the average for benchmark positions that were under market. We will be surveying salaries again next year with modification to the methodology and using additional Cities which we believe will enhance our bargaining position.

MEDICAL OUT OF POCKET

Due tot he large increases in medical insurances for 2003, the BCEA felt it vital to negotiate additional money to offset out of pocket medical insurance premiums for those affected members. We negotiated up to $130.00 additional per month for medical premiums. This should ease the burden of these higher premiums for the coming year, and help our members who are insuring their family. This issue caused the City Council to add one half of a percent (1/2%) to our package.

RETIREE MEDICAL

For the past year, the BCEA has spearheaded a drive to design, implement, and fund a much needed Retiree Medical Trust. This benefit has been near the top of every negotiations list. The new benefit will help offset some, if not all, of Retiree premiums for medical, dental, and vision insurance, as well as deductibles and co-payments. At the strong urging of the BCEA, a coalition was formed with the IBEW and BMA to put this plan together. It is considered comparable to many of the other plans in comparative Cities and ahead of many others.

LEVEL IV 1959 SURVIVOR

At the insistence of the BCEA's advisor, during the coalition meetings, the group reached agreement on increasing the 1959 survivors benefit from PERS. The new level IV is a greatly increased benefit from $430/mo to $2,280/mo allowance payable upon a member's premature death.

PERS PRE RETIREMENT OPTION 2

In order to protect surviving families of members who die prior to retirement, a substantial benefit will now be paid to survivors, from PERS, at no cost to the member. Again this bring us inline with other Cities in California. This is at no cost to the contract package.