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RES-2007-244A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM APPROVING A LETTER OF UNDERSTANDING BETWEEN THE ANAHEIM FIREFIGHTERS ASSOCIATION, LOCAL NO. 2899 AND THE CITY OF ANAHEIM WHEREAS, the City of Anaheim and the Anaheim Firefighters Association, Local No. 2899 have met and conferred and reached an agreement concerning Anaheim's contributions towards medical premium costs for calendar year 2008 and WHEREAS, the Anaheim Firefighters Association, Local No. 2899 is in agreement with the recommendation contained in said Letter of Understanding; and WHEREAS, as a result thereof, the Letter of Understanding dated November 28, 2007 between the parties has been prepared and signed; and WHEREAS, the City Council of the City of Anaheim does find that it is in the best interest of the City of Anaheim to approve said Letter of Understanding. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Anaheim that the Letter of Understanding dated November 28, 2007 between the Anaheim Firefighters Association, Local No. 2899 and the City of Anaheim, a copy of which is attached hereto and incorporated by reference herein, is hereby approved. THE FOREGOING RESOLUTION is approved and adopted by the City Council of the City of Anaheim this 1R t- h day of Tkc.PmhPr 2007, by the following roll call vote: AYES: Mayor Pringle, Council Members Hernandez, Sidhu, Galloway, Kring NOES: NONE ABSENT: NONE ABSTAIN: NONE ATTEST: ,I.IL A CITY K OF THE C APPROVED AS TO FORM: JACK L. WHITE, CITY ATTORNEY dr/i," fir it RESOLUTION NO. 2007- 244 F ANAHEIM Ad//) MA R OF THE CI Y O ANAHEIM I: \SLAROCHE \OT7601 SL.DOC Plan/Tier Base Upon Which 2009 Employer Contributions Will Be Calculated AETNA HMO Single $344.31 AETNA HMO Two Party S693.41 AETNA HMO Family $972.92 AETNA PPO Single $350.61 AETNA PPO Two Party $694.28 AETNA PPO Family $968.48 AETNA High Ded. Single $344.35 AETNA High Ded. Two Party $683.59 AETNA High Dec. Family $954.97 LETTER OF UNDERSTANDING between the ANAHEIM FIREFIGHTERS ASSOCIATION, Local 2899 and the CITY OF ANAHEIM The Anaheim Firefighters Association, Local 2899 "AFA and the City of Anaheim ('CITY have met and conferred, and reached agreement concerning ANAHEIM's contributions towards medical premium costs for calendar year 2008. This agreement is necessary because the Joint Committee on Medical Programs recommends, and the Human Resources Director concurs, that the Blue Shield plan be cancelled effective January 1, 2008, and be replaced by Aetna Health Plans. The Parties hereby agree to the following: 1. Effective January 1, 2008, ANAHEIM and employee monthly contributions to the various Aetna Health Plan components shall be: Plan/Tier AETNA HMO Single AETNA HMO Two Party AETNA HMO Family AETNA PPO Single AETNA PPO Two Party AETNA PPO Family AETNA High Ded. Single AETNA High Ded. Two Party AETNA High Ded. Family City Contributions $340.39 $682.98 $962.84 $346.58 $684.36 $962.59 $340.39 $677.03 $952.58 Employee Contributions $17.62 $33.04 $50.32 $124.20 $257.20 $369.72 $82.78 $169.30 $244.98 Total Monthly Premium $358.01 $716.02 $1,013.16 $470.78 $941.56 $1,332.31 $423.17 $846.33 $1,197.56 2. Effective January 1, 2009 and thereafter, ANAHEIM and employee contributions towards the cost of the Aetna Health plans shall be calculated in accordance with Article 52.1.3 of the Memorandum of Understanding between the Parties dated July 1, 2005 through June 30, 2009. For purposes of calculating the respective contribution rates of the parties pursuant to Article 52.1.3, the City's contribution upon which the mandated increase will be computed shall be as follows: The City retains its position that the MOU is silent regarding how to set contribution rates for new plans, and the City contribution rates that are applicable when new plans are added are therefore subject to be determined through meeting and conferring in good faith with AFA. Conversely, AFA retains its position that, when a new carrier is selected to provide similar coverage to that previously provided by a different carrier, the base that will be used by the parties for calculating the City's obligations to pay increased contributions pursuant to Section 52.1.3 will be the prior year's contribution by the City for the replaced plan. STAFF OFFICIALS of the CITY OF ANAHEIM FIREFIGHTERS ASSOCIATION, ANAHEIM, a Municipal Corporation Local 2899 By: By: AFA LOU CPI 2008 CLEAN 11 -14 -07 B y: By:Or 77 7 Dated: ///Z /Q 7 Dated 1 C-6