2005-233RESOLUTION N0.2005 - 233
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF.
ANAHEIM APPROVING A LETTER OF UNDERSTANDING
BETWEEN THE INTERNATIONAL BROTHERHOOD OF ELECTRICAL
WORKERS, LOCAL 47 AND THE CITY OF ANAHEIM
WHEREAS, the City of Anaheim and the International Brotherhood of Electrical Workers,
Local 47, have met and conferred and reached an agreement concerning a defined contribution
Post-Retirement Medical Plan (Retirement Health Savings Account, or "RHSA"} for employees
in classifications represented by the IBEW, The PARTIES have reached an understanding:
WHEREAS, the Gity Council of the City of Anaheim does find that approving the Post-
Retirement Media! Plan Retirement Health Savings Account, or "RHSA") Letter of
Understanding for the International Brotherhood of Electrical Workers, Local 47, is in agreement
with the recommendationscontained insaid Letter of Understanding; and
WHEREAS, as a result thereof, the Letter of Understanding dated December 9, 2005
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 December 9, 2005, between the International Brotherhood of
Electrical Workers, Local 47, 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 ~Qth day of Tlecember 2005, by the following roil call vote:
AYES: Mayor Pringle, Council Members Sidhu, Hernandez, Galloway, Chavez
NOES: None
ABSENT: None
ABSTAIN: None
MAYOR OF THE ANAHEIM
ATTEST:
i
CLER OFT E CITY OF ANAHEIM
APPROVED AS TO FORM:
JACK L. WHITE, CITY ATTORNEY
F:10T7296Sl.DOC
LETTER OF UNDERSTANDING
between the
INTERNATIONAL BROTHERHOOD of ELECTRICAL WORKERS, Local 4l
and the
CITY OF ANAHEIM
The International Brotherhood of Electrical Workers, Local 47 (IBEW}, and the City of
Anaheim (ANAHEIM have met and conferred and have reached an agreement concerning a
defined contribution Post-Retirement Medical Plan (Retirement Health Savings Account, or
"RHSA' for employees in classifications represented by the IBEW. The PARTIES have reached
an understanding, as follows:
1. IBEW and ANAHEIM agree that an Integral Part Trust ("Plan"} for reimbursement of qualified
medical expenses shall be established. IBEW and ANAHEIM agree that the City of Anaheim
Deferred Compensation Committee members shall serve as trustees on behalf of
participating employees. IBEW and ANAHEIM further agree that qualified medical expenses
are those expenses authorized under the provisions of Internal Revenue Code Section 213,
excepting only those specific expenses the parties mutually agree to exclude.
2. IBEW and ANAHEIM agree that any employee in a classification represented by the IBEW
shall be allowed the opportunity to elect to partiapate in the Plan. Such election may be
made prospectively at any time. A mandatory pre-tax contribution of one percent (1 ~O) of an
employee's gross biweekly pay shall be deposited to the individual employee Retirement
Health Savings Account (RHSA}. Once made, such election shall be irrevocable.
3. IBEW and ANAHEIM agree that employees shall be given an opportunity each year to elect
to contribute (in increments of '/Z hour) sick leave hours to be earned prospectively in the
upcoming calendar year. Employees shall be required #o accrue a minimum of one (1} hour
of earned Sick Leave time per pay period. The remaining balance earned per pay period shall
be available for deferral to the individual em~oyee's Retirement Health Savings Account as
designated by the employee. Such deferrals shall be converted to cash at the employee's
base rate of pay and deposited into the em~oyee's individual RHSA as they are earned.
IBEW and ANAHEIM further agree that employees shall be given an opportunity each year to
elect to contribute {in increments of/: hour) vacation leave hours to be earned prospectively
in the upcoming calendar year. Employees shall be required to accrue a minimum of three
(3) hours of earned Vacation Leave #ime per pay period. The remaining balance earned per
pay period shall be available for deferral to the indiv~ual em~oyee's Retirement Health
Savings Account as designated by the employee. Such deferrals shall be converted to cash
at the employee's base rate of pay and deposited into the employee's individual RHSA as
they are earned.
4. IBEW and ANAHEIM agree that any employee who separates City service for any reason will
be eligible to withdraw funds for reimbursement of eligible medicaal expenses without regard
to the employee's age or years of service.. IBEW and ANAHEIM acknowledge that employee
premium contributions for employer'•provided group health insurance provided by other
employers are not an eligible medical expense for the purpose of this plan.
5. IBEW and ANAHEIM agree that upon the death of an employee, surviving spouse andlor
eligible dependents are immediately eligible to maintain the individual member account and
to utilize it to fund eligible medical benefits.
6. IBEW and ANAHEIM agree that the Plan Document shall establish the medical benefits that
are reimbursable to participating employees and shall establish benefit eligit~lity.
7. IBEW and ANAHEIM agree that either party may regeest at any time to meet and confer
regarding plan provisions, and may propose plan amendments to be effective the first day of
the calendar year following agreement, except that ANAHEIM shall not be obligated to meet
and confer at any time regarding employer contributions. Any agreements reached shall be
incorporated in a written Letter of Understanding, signed by the City Management
Representative and the IBEW Representatives and presented to the Anaheim City Council
for determination.
8. If any provision of this Letter of Understanding is at any time or in any way expressly
prohibited by Private Letter Ruling or held to be contrary to any law by any court of proper
jurisdic#ion, the remainder of this Letter of Understanding shall not be effected thereby, and
shall remain in full force and effect.
9. Disputes regarding the interpretation or application of the terms of this Letter of
Understanding shall be resolved between authorized representatives of ANAHEIM and the
IBEW. In the event the parties cannot resolve the dispute, it shall be submitted for review
through the grievance procedure.
STAFF OFFICIALS of the CITY OF INTERNATIONAL BROTHERHOOD of
ANAHEIM, a Municipal Corporation ELECTRICAL WORKERS, Local 47
By:
By:
By:
By:
By:
By:
Dated: