94-103 RESOLUTION NO. 94R-3~__
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ANAHEIM APPROVING A LETTER OF UNDERSTANDING
BETWEEN THE ANAHEIM POLICE ASSOCIATION AND THE
CITY OF ANAHEIM.
WHEREAS, on March 8, 1994 the City Council adopted Resolution
No. 94R-29 approving a Memorandum of Understanding between the
Anaheim Police Association and the City of Anaheim; and
WHEREAS, the Human Resources Director met and conferred with
officials and employee representatives of the Anaheim Police
Association to discuss specific concerns relative to amending
Article 58 - Insurance, Section 58.064 of said Memorandum of
Understanding; and
WHEREAS, a Letter of Understanding dated June 8, 1994, between
the parties has been prepared and signed, amending Article 58 -
Insurance, Section 58.064 of the current Memorandum of
Understanding; and
WHEREAS, the City Council of the City of Anaheim does find
that it is in the best interests 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 June 8, 1994,
between the Anaheim Police Association and the City of Anaheim, a
copy of which is attached hereto and incorporated by reference
herein, is approved, and said Memorandum of Understanding is hereby
amended in accordance with the terms of said Letter of
Understanding.
THE FOREGOING RESOLUTION is approved and adopted by the City
Council of the City of Anaheim this 21st day of June, 1994.
MA OF THE ~M
ATTEST~ ~~
CITY CLERK OF THE CITY OF ANAHEIM
APPROVED AS TO FORM:
CITY ATTORNEY OF ~HE OTTY OF ANAHEIM
93190.Resolution
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF ANAHEIM )
I, LEONORA N. SOHL, City Clerk of the City of Anaheim, do hereby certify that the foregoing Resolution
No. 94R-103 was introduced and adopted ;at a regular meeting provided by law, of the Anaheim City
Council held on the 21st day of June, 1994, by the following vote of the members thereof:
AYES: COUNCIL MEMBERS: :Feldhaus, Simpson, Pickler, Hunter, Daly
NOES: COUNCIL MEMBERS: ~1one
ABSENT: COUNCIL MEMBERS: .',lone
AND I FURTHER CERTIFY that the Mayor 3f the City of Anaheim signed said Resolution No. 94R-103
on the 22rid day of June, 1994.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of
Anaheim this 22nd day of June, 1994.
CITY CLERK OF THE CITY Of ANAHEIM
(SEAL)
I, LEONORA N. SOHL, City Clerk of the City of Anaheim, do hereby certify that the foregoing is the
original of Resolution No, 94R-103 was d~.lly passed and adopted by the City Council of the City of
Anaheim on June 21, 1994.
CITY CLERK OF THE CITY OF ANAHEIM
LETTER OF UNDERSTANDING
Between the
CITY OF ANAHEIM
and the
ANAHEIM POLICE ASSOCIATION
The City of Anaheim and the Anaheim Police Association after meeting and conferring, have
reached an understanding to amend Article 58 - Insurance, Section 58.064 as follows:
58.064 Employees covered by this Article may elect to receive additional
compensation In the form of taxable wages and contribute up to a maximum
of two per cent (2%) of the cost of employee retirement benefits until June 16,
1994. Such election shall be irrevocable and the employee must be within
three (3) years of his anticipated retirement date.
58.0641 The additional compensation available under ARTICLE 58.064
shall be such that the total cost to ANAHEIM for the
employee's wage and pension benefits is equal to the cost
ANAHEIM would have paid if the employee had not elected to
receive additional compensation.
58.0642 This option shall not be available subsequent to June 16, 1994.
On June 17, 1994, employees who previously exercised this
option shall stop receiving the additional compensation and
stop making their own retirement contributions pursuant to
that election.
58.0643 Effective June 17, 1994, ANAHEIM shall implement the
provisions of Section 414(h)(2) of the Internal Revenue Code
to establish an "employer pickup" program for the purpose of
providing favorable tax treatment for statutorily required
employee retirement contributions to PERS.
58.0644 In accordance with that program, the base salary of each
employee shall be increased by an amount equal to the value
of 2% of the statutorily required 9% employee retirement
contribution to PERS (i.e. 2/9 of the entire required employee
retirement contribution to PERS). This remuneration paid out
of funds controlled by ANAHEIM for services performed during
normal working hours, including time during which the
employee is excused because of a paid leave of absence, shall
be regarded as part of the normal monthly rate of pay or base
pay of the employee, and therefore, his or her "pay rate" within
the meaning of Sections 20022 and 20023 of the California
Government Code, as amended effective July 1, 1994. As
such, this additional base salary shall be reported to PERS as
"compensation earnable," and shall be treated as base salary,
or wages, for all purposes, including, but not limited to,
calculating overtime compensation, bonuses and assignment
pay, except that it shall not be included in the calculations
for determining the value of payments for cashing out
accumulated leave balances. In addition, the salary Increase
shall be regarded as deferred income, not ordinary Income, for
federal and state income tax purposes, both withholding and
reporting.
Coincidental with this salary increase, each employee shall
pay 2% of the statutorily required 9% employee retirement
contribution to PERS (i.e. 2/9 of the entire required employee
retirement contribution to PERS). However, pursuant to
section 414(h)(2) of the Internal Revenue Code, those
employee payments shall be "picked up" by ANAHEIM and,
thus, regarded as employer contributions.
58.0645 The remaining 7% of the statutorily required 9% employee
retirement contribution to PERS (i.e. 7/9 of the entire required
employee retirement contribution to PERS) shall continue to be
paid by ANAHEIM as employer paid member contributions
authorized by Section 20615 of the California Government
~ Code. These contributions shall not be included in the wages
of the employees for any purposes, including reporting the
compensation earnable of employees to PERS, calculating
overtime payments, bonuses, assignment pay or cash out of
accumulated leave balances, or for any other purpose.
58.0646 The "employer pickup" program implemented effective June 17,
1994, shall apply uniformly to all employees covered by this
agreement and no individual shall have any option to deviate
from this arrangement.
58.0647 ANAHEIM and APA agree that ANAHEIM has exercised
reasonable diligence in researching and implementing the
employer pickup program. ANAHEIM shall not be held
responsible for any changes in state or federal tax law, any
public or private rulings, or any interpretations of existing law
~,~ or regulation that may affect the tax treatment of pension
contributions authorized under this agreement.
STAFF OFFICIALS OF THE CITY OF ANAHEIM POLICE ASSOCIATION
ANAHEIM, a Municipal Corporation