2003-223RESOLUTION NO. 03R-223
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF ANAHEIM APPROVING A LETTER OF
UNDERSTANDING BETWEEN THE ANAHEIM MUNICIPAL EMPLOYEES
ASSOCIATION, GENERAL UNIT, AND THE CITY OF ANAHEIM
WHEREAS, the City of Anaheim and the Anaheim Municipal Employees
Association, General Unit, have met and conferred and reached an understanding to
amend Article 50.1 of the Memorandum of Understanding regarding employee Health
Insurance; and;
WHEREAS, the Anaheim Municipal Employees Association, General and
Unit is in agreement with the recommendation contained in said Letter of
Understanding; and
WHEREAS, as a result thereof, the Letter of Understanding dated
November 20,2003 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 ,z0_, 2003 between the
Anaheim Municipal Employees Association, General Unit 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 2,/¢ d~ecember 2003.
MAYOR OF THE CiT~ANAHEIM
ATTEST:
?
.CITY CLEFtK OF THE C/ITY OF ANAHEIM
APP~I~::)V~D AS T~RM: /'
¢I~tTdRN~F THE ~ITY OF ANA~IM
/
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LETTER OF UNDERSTANDING
between the
ANAHEIM MUNICPAL EMPLOYEES ASSOCIATION, General Unit
and the
CITY OF ANAHEIM
The Anaheim Municipal Employees Association, General Unit (AlVlEA), and the City of
Anaheim (ANAHETM) have met and conferred and have reached an agreement concerning
employer contributions towards the costs of medical benefits for calendar year 2004 and
thereafter.
AMEA and ANAHEIM agree that, for calendar year 2004, ANAHETM shall contribute
towards the monthly cost of health coverage to the various medical plans as
follows:
Single Two-Party Family
Kaiser HMO $232.26 $464.52 $657.30
Blue Shield HMO $265.71 $536.30 $746.65
Blue Shield PPO $274.49 $543.74 $750.65
Blue Shield High Deductible $273.41 $541.30 $747.29
50.1
AMEA and ANAHEIM agree to amend Article 50.1 of the Memorandum of
Understanding to reflect the following:
Hea/th Insurance
ANAHEIM agrees to offer the Kaiser Foundation Health P/an and other prepaid and/or insured
health plans recommended by the Joint Committee on Pled/cai Programs and approved by the
City Council. Health Maintenance Organization (HMO) benefit schedules shall be standardized to
the extent possible, and shall require a ~ $10 co-payment for outpatient and physician services.
50.1.1 ANAHEIM and Employee Contributions
50.1.1.1 Effective 2005, ANAHEII~I shall increase its contribution to the
premiums for the various health plans each January. Thi~
contribution shah be based on the Consumer Price Index, AH
Items Index- Urban Waqe Earners and Clerical Employees [CPI-
W), for the area identified as los Anqeles - Riverside - Oranq~,
County. The increase in ANAHEII~'~ contribution shah be equal
to the percent chanqe for the year endinq I~ay of the prior
caIendar year plus seventy five percent [15% ) of any amount
above the CPI-W. ~For exampIe, the City's increase in
contribution for caIendar year 2005 shah equaI the percent
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50.1.1,2
50.1.1.3
chanqe in the CPI-W for the year endinq May 2004 p/us 75% of
the amount of the health premium increase that exceeds the
percent chanqe in the CPI-W for the year endinq May 2004).
cost of the plan and the C/b/ contr/but/on schedule out#ned above.
Em/~lovees shall be required to pay any difference between th~
total monthly cost of the health plan selected and the ANAHEIM
contribution set forth in Section 50.1.1.1. For -"--~
,,, ..,,.,..,..., ,..,,.,,-,,,-, /.,,,.,o .,.,.,,.,,,., ,.,,,..
Effect~ye Ju/y !, 2001 2004, ANAHEIM and AMEA agree to meet and confer
concern/n9 a cafeter/a p/an for employee benefi~ to Do e~ct/ve Januaq/
2004 2006. ANAHEIM and AM6A agree that any agreement reached shall
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50.1.2
50.1.3
50.1.4
50.1.5
be reached shall be created Letter of Understanding and submitted to the
City Council for determination.
50.1.1.4 Employees who are covered by other health plans may present proof of
such coverage in order to receive $100 $12$ per month in lieu of health
benefits provided herein. In the event an employee who has elected this
option loses health coverage for any reason, and notifies ANAHEIM of such
loss within five (5) working days, he/she may enroll immediately in any plan
offered by ANAHEIM. Employees may re-elect the "opt-out# option annually
during open enrollment, or may enroll in a City sponsored health plan.
50.1.1.5 ANAHEIM shall during the term of this Memorandum pay an amount equal
to 100% of the current monthly Safeguard rate. In the event the Safeguard
Dental Plan is canceled during the term of this agreement, ANAHEIM shall
during the remaining term of this agreement pay the rate in effect at the
time of cancellation.
50.1.1.5.1 Employees who select a dental plan other than Safeguard will
be required to contribute an amount equal to 100% of the
excess amount over the 1984 Safeguard monthly rate.
For all medical plans, married Anaheim employee couples shall be allowed only one
medical plan and only one dental plan to cover all family members, and married Anaheim
employee couples covered by a single enrollment shall pay no health insurance premium
while both spouses are employed by ANAHEIM, or may alternatively elect the "opt-out"
payment provided in section 50.1.1.5.
Proof of marriage w/Il be required of ali employees enrolled in any City Medical plan to
enroll a dependent spouse.
The Master contract between ANAHEIM and the plan administrator shall govern in the
event of any disputes over any matter within the provisions of the contract.
7-he benefit schedules for the prepaid HMO health plans will not be modified
unilaterally by ANAHEIM, except that each company may, from time to time, make
revisions to master contract language or impose minor benefit modifications.
STAFF OFFTCTALS of the CLTY OF
ANAHETM, a Municipal Corporation
ANAHE?M MUNTCTPAL EMPLOYEES
ASSOCI~cal Unit~
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STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF ANAHEIM )
I, SHERYLL SCHROEDER, City Clerk of the City of Anaheim, do hereby cedify that the foregoing
Resolution No. 2003R-223 was introduced and adopted at a regular meeting provided by law, of
the Anaheim City Council held on the 2nd day of December 2003, by the following vote of the
members thereof:
AYES:
MAYOR/COUNCIL MEMBERS:
Pringle, Tait, Chavez, Hemandez, McCracken
NOES: MAYOR/COUNCIL MEMBERS: None
ABSTAINED: MAYOR/COUNCIL MEMBERS:
None
ABSENT: MAYOR/COUNCIL MEMBERS: None
?CITY CLE---"~ OF ~-~E CI'I:Y Of ANAHEIM
(SEAL)