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2002-230RESOLUTION NO. 2002R-_z3.0__ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM APPROVING RETIREMENT HEALTH SAVINGS PLAN ADOPTION AGREEMENTS FOR FULL-TIME EMPLOYEES REPRESENTED BY THE ANAHEIM POLICE ASSOCIATION AND THE INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS, LOCAL 47; AMENDING ADOPTION AGREEMENTS FOR CERTAIN FULL-TIME NON-REPRESENTED CONFIDENTIAL AND MANAGEMENT EMPLOYEES AND EMPLOYEES REPRESENTED BY THE ANAHEIM FIREFIGHTERS ASSOCIATION; APPROVING LETTERS OF UNDERSTANDING BETWEEN THE CITY OF ANAHEIM AND THE ANAHEIM POLICE ASSOCIATION AND INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS, LOCAL 47; AND AMENDING THE CITY OF ANAHEIM HEALTH SAVINGS AND REIMBURSEMENT PLAN WHEREAS, the Human Resources Director has recommended in a staff report dated November 5, 2002, that the City Council approve Retirement Health Savings Plan Adoption Agreements for certain employees represented by Anaheim Police Association and the International Brotherhood of Electrical Workers, Local 47, approve amendment to the Adoption Agreements for certain non-represented Confidential and Management employees and employees represented by the Anaheim Firefighters Association; approve Letters of Understanding between the City of Anaheim and the Anaheim Police Association and the International Brotherhood of Electrical Workers, Local 47; and approve amendments to the City of Anaheim Health Savings and Reimbursement Plan; and WHEREAS, the City Council of the City of Anaheim does find that approving the Retirement Health Savings Plan Adoption Agreements for certain employees represented by Anaheim Police Association and the International Brotherhood of Electrical Workers, Local 47, approving amendment to the Adoption Agreements for certain non-represented Confidential and Management employees and employees represented by the Anaheim Firefighters Association, approving Letters of Understanding between the City of Anaheim and the Anaheim Police Association and the International Brotherhood of Electrical Workers, Local 47, and amendments to the City of Anaheim Health Savings and Reimbursement Plan, serves the interests of the City by enabling it to provide reasonable security regarding such employees' health needs during retirement and by assisting in the attraction and retention of competent personnel; and WHEREAS, the City of Anaheim and the Anaheim Police Association have met and conferred to reach an agreement concerning a defined contribution Post-Retirement Medical Plan; and WHERI~Ag, the Anaheim Police Association is in agreement with the recommendation contained in said Letters of Understanding; and WHEREAS, as a result thereof, the Letters of Understanding dated October 10, 2002 between the parties have been prepared and signed, and WHEREAS, the City of Anaheim and the International Brotherhood of Electrical Workers, Local 47 have met and conferred to reach an agreement concerning a defined contribution Post-Retirement Medical Plan; and WHEREAS, the International Brotherhood of Electrical Workers, Local 47 is in agreement with the recommendation contained in said Letter of Understanding; and F:\OT2720VK WHEREAS, as a result thereof, the Letter of Understanding dated October 15, 2002, 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 Letters of Understanding with the Anaheim Police Association and the International Brotherhood of Electrical Workers, Local 47. BE IT FURTHER RESOLVED by the City Council of the City of Anaheim, that Section VI (A)(1) of the Adoption Agreement for Plan Numbers 800219 and 800221 covering certain non- represented Confidential and Management employees approved by City Council on August 27, 2002, be amended to read as follows: "VI. Contribution Sources and Amounts 1. Direct Employer Contributions The Employer shall contribute on behalf of each Participant a one-time lump sum of $3,000 for employees hired on or after January 1, 2002. Through July 15, 2005, the City shall also make annual Vacation contributions on behalf of employees. Such contributions are in addition to those accruals provided for in Section 16.01.01 of Personnel Rule 16, and shall be converted to cash at the employee's base rate of pay and deposited into the employee's individual RHS account as they are contributed. Contributions shall be made in accordance with the following schedule: · 24 hours at the close of the pay period including January 1, 2003 · 24 hours at the close of the pay period including January 1, 2004 · 24 hours at the close of the pay period including January 1, 2005" BE IT FURTHER RESOLVED by the City Council of the City of Anaheim, that Section XI (A) of the Adoption Agreements for Plan Numbers 800218, 800219, 800220 and 800221, covering certain non-represented Confidential and Management employees, and Plan Number 800217 covering certain employees represented by the Anaheim Firefighters Association, approved on August 27, 2002, be amended to read as follows: "Xl. Death Benefit In the event of a Participant's death, the following shall apply: Account Transfer: The surviving spouse and other Covered Persons with respect to a deceased participant (as defined in the City of Anaheim Health Savings and Reimbursement Plan) are immediately eligible to maintain the account and utilize it to fund eligible medical benefits specified in Section X above. Upon notification of a Participant's death, the Participant's account balance will be transferred into the Vantagepoint Money Market Fund*. The account balance may be allocated by the surviving spouse or dependents. F:\OT2720VK *Please read the current prospectus carefully prior to investing. An investment in this fund is neither insured nor guaranteed and there can be no assurance that the Fund will be able to maintain a stable net asset value of $1.00 per share. Vantagepoint Mutual Funds are distributed by ICMA-RC Services, LLC, a controlled affiliate of ICMA Retirement Corporation. Member NASD/SIPC. In the event of an Account Transfer, if a Participant's account balance has not been fully utilized upon the death of the eligible spouse, the account balance may continue to be utilized to pay benefits of eligible dependents, as outlined in the City of Anaheim Health Savings and Reimbursement Plan. Upon the death of all eligible dependents, the balance will be available for medical benefits for the designated beneficiary of the last dependent or spouse to die. Assets remaining upon the death of a designated beneficiary shall be available for medical benefits of the beneficiary's designated beneficiary. If there is no living beneficiary(ies), the account will revert to the Plan to be applied as specified in Section VIII. There will be no elective withholding of federal, state or local taxes for medical benefit payments to the Participant's spouse's or dependent's designated beneficiary(ies). If there are no living spouse or dependents at the time of death of the Participant, the account will be available for medical benefits for the designated beneficiary(ies) of the Participant. Assets remaining upon the death of all designated beneficiaries shall be available for medical benefits of the beneficiary's beneficiary. If there are no living beneficiary(ies), the account will revert to the Plan to be applied as specified in Section VIII. There will be no elective withholding of federal, state or local taxes for death benefit payments to the Participant's beneficiary(ies), or any beneficiary's beneficiary(ies)." BE IT FURTHER RESOLVED by the City Council of the City of Anaheim, that Article II, Section 205 and Section 2.11 (b)and Article III, Section 3.01 of the City of Anaheim Health Savings and Reimbursement Plan, adopted by City Council on August 27, 2002, be amended to read as follows: "2.05 "Covered Dependent" includes a Dependent of a Covered Participant, a person who is a child of a Covered Participant at the date of the Covered Participant's death, or a person who, in accordance with the Adoption Agreement for the Integral Part Trust (referred to in Section 4.01), is otherwise a designated Beneficiary following the death of a Covered Person." "2.11 (b) with respect to a Covered Participant described in Section 2.06(b), the term "Eligible Medical Expenses" shall only include the cost of premium payments and/or employee contributions that are required as a condition of such person being covered under a group health care plan of the Employer; and" F:\OT2720VK "3.01 Participation (a) Each Eligible Employee shall become a Participant in this Plan at the time that a credit is made to the Account of such person under this Plan. A Participant's participation in the Plan shall cease at the earliest of (i) the date that the Participant's Account balance is either exhausted or forfeited, or (ii) the date of the Participant's death. (b) After the death of a Participant, Covered Persons shall be eligible to utilize the Account balance in the following order: i) The Account may be used by any persons who are, at the date of the Participant's death, either the Covered Spouse or a Covered Dependent. If there is no Covered Spouse or Covered Dependents at the date of the Participant's death, the Account may be used by a beneficiary designated by the deceased Participant. ii) If there is a Covered Spouse and no Covered Dependents at the date of the Participant's death, after the death of a Covered Spouse who is entitled to use the Account, the Account may be used by a beneficiary designated by the deceased spouse. iii) If there is a Covered Spouse and Covered Dependents at the date of the Participant's death, after the death of the last to die among them, the Account may be used by a beneficiary designated by the last person to die. iv) If there is no Covered Spouse and there are Covered Dependents at the date of the Participant's death, after the death of the last to die among the Covered Dependents, the Account may be used by a beneficiary designated by the last person to die. If a beneficiary has been designated to use the Account after the death of a Participant, Covered Spouse and/or Covered Dependents, that beneficiary shall be entitled to elect to have the Account used by another beneficiary in the case of his or her death. If there are no beneficiaries that have been designated after the deaths of all persons who have become entitled to use an Account, the remaining amount in the Account shall be forfeited and used to offset Plan expenses. (c) A Participant shall be an Active Participant in the Plan as long as the Participant is an Eligible Employee. Active Participation in the Plan shall cease of the date that a Participant ceases to be an Eligible Employee." BE IT FURTHER RESOLVED by the City Council of the City of Anaheim, that the City hereby approves the Adoption Agreements and amendments to Adoption Agreements, copies of which are attached hereto and incorporated by reference herein. F:\OT2720VK NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Anaheim that the Letters of Understanding dated October 10, 2002 between the Anaheim Police Association and the City of Anaheim, a copy of which is attached hereto and incorporated by reference herein, is hereby approved. BE IT FURTHER RESOLVED by the City Council of the City of Anaheim that the Letter of Understanding dated October 15, 2002, 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. BE IT FURTHER RESOLVED that the City Treasurer, as Plan Administrator, is authorized to sign the Adoption Agreements and Amendments to Adoption Agreements on behalf of the City. BE IT FURTHER RESOLVED by the City Council of the City of Anaheim, that the City hereby approves amendments to the City of Anaheim, Health Savings and Reimbursement Plan, copy of which is attached hereto and incorporated by reference herein. BE IT FURTHER RESOLVED that this Resolution shall be effective upon the date of adoption by the City Council. THE FOREGOING RESOLUTION is approved and adopted by the City Council this _ ~,~-h day of ~r~,,.,c,~--r~- ,2002. ATTEST: ~,ltY CLERK ¢[:'I'HE CITY Of ANAHEIM APPROVED AS TO FORM: JACK L. WHITE, CITY ATTORNEY F:\OT2720VK LETTER OF UNDERSTAND1~NG between the ANAHE[r4 POL]~CE ASSOC,[AT[ON and the CITY OF ANAHE?M The Anaheim Police Association (APA), and the City of Anaheim (ANAHEIM) have met and conferred and have reached an agreement concerning a defined contribution Post- Retirement Medical Plan for employees hired prior to .~uly 6, 2001. The PART~ES have reached an understanding, as follows: 1. APA and ANAHEIM agree that for employees hired prior to .luly 6, 2001, an Tntegral Part Trust ("Plan") for reimbursement of qualified medical expenses shall be established. 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. APA and ANAHEIM agree that employees hired prior to .luly 6, 2001 shall be allowed the opportunity to elect to participate in the Plan. Such election may be made prospectively at any time. Once made, such election shall be irrevocable. 3. APA and ANAHEIM agree that those employees who elect to participate in the Plan, shall be required to contribute one half of one percent (0.5%) of his or her gross biweekly pay to the employee's individual RHSA 4. APA and ANAHE]~M agree that employees shall be given an opportunity each year to elect to contribute (in increments of 1/2 hour) paid leave hours to be earned prospectively in the upcoming calendar year. Employees shall be required to accrue a minimum of six (6) hours of earned Paid Leave time per pay period; the remaining balance earned per pay period shall be available for deferral to the individual employee's RHSA 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. 5. APA and ANAHE~[M agree that employees will be eligible to withdraw funds for reimbursement of eligible medical expenses at age 50. 6. APA and ANAHETM agree that any employee who separates City service for any reason will be eligible to withdraw funds for reimbursement of eligible medical expenses without regard to the employee's age or years of service. APA and ANAHEIM acknowledge that employee contributions for employer-provided group health insurance provided by other employers are not an eligible medical expense for the purpose of this plan. 7. APA and Anaheim agree that upon the death of an employee, surviving spouse and/or eligible dependents are immediately eligible to maintain the individual member account and to utilize it to fund eligible medical benefits. C:\LR_DATA~PA\LOUPRMed^APAcurrent.doc 10/08/02 AIO 8. APA and Anaheim agree that the Plan Document shall establish the medical benefits that are reimbursable to participating employees and shall establish benefit eligibility. 9. APA and ANAHEIM agree that either party may request 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 during the term of the current Memorandum of Understanding between the PARTIES dated .lanuary 19, 2001 through .lanuary 13, 2005 regarding employer contributions. Any agreements reached shall be incorporated in a written Letter of Understanding, signed by the City Management Representative and the APA Representatives and presented to the Anaheim City Council for determination. 10. 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 jurisdiction, the remainder of this Letter of Understanding shall not be effected thereby, and shall remain in full force and effect. 11. Disputes regarding the interpretation or application of the terms of this Letter of Understanding shall be resolved between authorized representatives of ANAHEIM and the APA. 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 ANAHEIM, a Municipal Corporation ANAHEIM POLICE ASSOCIATION C: \LR-DATA~,PA\LOU PRMed ^APAcu rrent.doc 10/08/02 LE~-~ER OF UNDERSTANDING between the INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS. Local 47 and the CITY OF ANAHEIM The International Brotherhood of Electrical Workers, Local 47 (UNION) and the City of Anaheim (ANAHEIM) have met and conferred and have reached an agreement concerning defined contribution Post-Retirement Medical Plan for employees hired on or after .lanuary 2002. The PARTIES have reached an understanding, as follows: :1. UNION and ANAHEIIVl agree that for employees hired on or after ,lanuary :1, 2002, an Integral Part Trust ("Plan'~ for reimbursement of qualified medical expenses shall be established. Qualified medical expenses are those expenses authorized u.nder the provisions of Internal Revenue Code Section 213, excepting only those specific expenses the parties mutually agree to exclude. 2. UNION and ANAHEIM agree that the Plan will require a five-year vesting period (cliff vesting) for any ANAHEIM provided contributions. 3. ANAHEIM shall make a one-time lump sum employer contribution of three thousand dollars ($3,000) into an employee's individual Retirement Health Savings Account (RHSA) upon the employee's appointment to a classification represented by the UNION. 4. UNION and ANAHEIM agree that ANAHEIM shall make a three thousand dollar ($3,000) per employee contribution to the Plan no later than the last day of the pay period following City Council approval of this Letter of Understanding for each employee hired between January 1, 2002, and the effective date of this Agreement. 5. UNION and ANAHEIM agree that, effective the first pay period following approval of this Letter of Understanding by the Anaheim City Council, each employee hired on or after 3anuary 1, 2002 shall be required to contribute 1.9% of his or her gross biweekly pay to the employee's individual RHSA. Such contributions shall be in lieu of, and not in addition to, contributions required under the provisions of Article 63.1.7 of the Memorandum of Understanding. UNION and ANAHEIM further agree that this contribution shall be periodically adjusted to match those contributions established in accordance with the provisions of Article 63.1.7 for employees hired prior to .lanuary 1, 2002; however, in no event shall the contribution herein be less than one percent (1%) nor more than three percent (3%) of an employee's gross biweekly pay. 6. UNION and ANAHEIM agree that employees shall be given an opportunity each year to elect to contribute (in increments of 1/2 hour) Sick Leave hours to be earned prospectively in the upcoming calendar year. Such deferrals shall be converted to cash at the employee's base rate of pay and deposited into the employee's individual C:\LR_DATA\IBEW\LOUPRMed^ibewnew.doc 10/10/02 RHSA as they are earned. following restrictions: Contributions under this section shall be subject to the · For the first four (4) years of continuous, full time service, employees shall be required to accrue a minimum of one-and-one-half (11/2) hours of earned Sick Leave time per pay period; the remaining balance earned per pay period shall be available for deferral to the individual employee's RHSA as designated by the employee. · Upon completion of four (4) years of continuous, full time service, employees shall be required to 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 employee's RHSA as designated by the employee. · Any employee who, during the pay period that includes November 1, has an accrued Sick Leave balance of one hundred seventy five (175) hours or more shall not be required to accrue any earned Sick Leave time per pay period; the full balance earned per pay period shall be available for deferral to the individual employee's RHSA as designated by the employee. 7. ANAHEIM further agrees, during the term of the Memorandum of Understanding dated 3uly 1, 2000 through _luly 27, 2005, to make annual Vacation contributions on behalf of employees covered by this Letter of Understanding. Such contributions are in addition to those accruals provided for in Article 41.1.1.1. of the IvlOU and shall be converted to cash at the employee's base rate of pay and deposited into the employee's individual RHSA as they are contributed. Contributions shall be made in accordance with the following schedule: · 24 hours at the close of the pay period including 3anuary 1, 2003 · 24 hours at the close of the pay period including .lanuary 1, 2004 · 24 hours at the close of the pay period including 3anuary 1, 2005 UNION and ANAHEIM agree that the provisions of this Section shall remain in effect through .luly 27, 2005. UNION acknowledges that contributions made under the provisions of this Section are employer contributions, and subject to the vesting requirements of paragraph 2 of this Letter of Understanding. 8. UNION and ANAHEIM agree that employees will be eligible to withdraw funds for reimbursement of the employee's share of medical insurance premiums for plans provided by the City at age 50 and after five years of service with the City of Anaheim. 9. UNION and ANAHEIH agree that any employee who separates City service for any reason will be eligible to withdraw funds for reimbursement of eligible medical expenses without regard to the employee's age or years of service. UNION and ANAHEIM acknowledge that employee contributions for employer-provided group health insurance provided by other employers are not an eligible medical expense for the purpose of this plan. 10. UNION and ANAHEIIVl agree that employees hired on or after 3anuary 1, 2002, who have completed at least ten (10) years of consecutive ANAHEIM service, and who are C:\LR_DATA\! BEW\LOUPRMed ^ i bewnew.doc '2 ~0/~0/02 awarded a retirement from PERS as their reason for separation from ANAHEIM service shall be allowed access to ANAHEIM sponsored group health plans as one of their coverage options. :[1. UNION and ANAHEIM agree that upon the death of an employee, surviving spouse and/or eligible dependents are immediately eligible to maintain the individual member account and to utilize it to fund eligible medical benefits. :[2. UNION and ANAHEIM agree that the Plan Document shall establish the medical benefits that are reimbursable to participating employees and shall establish benefit eligibility. :[3. UNION and ANAHEIM agree that either party may request 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 during the term of the current Nlemorandum of Understanding between the PART/ES dated .]uly 21, 2000 through 3uly 27, 2005 regarding employer contributions. Any agreements reached shall be incorporated in a written Letter of Understanding, signed by the City Management Representative and the UNION Representatives and presented to the Anaheim City Council for determination. :[4. 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 jurisdiction, the remainder of this Letter of Understanding shall not be effected thereby, and shall remain in full force and effect. 15. Disputes regarding the interpretation or application of the terms of this Letter of Understanding shall be resolved between authorized representatives of ANAHEIM and the UN]ON. In the event the parties cannot resolve the dispute, it shall be submitted for review through the grievance procedure. STAFF OFFICIALS of the C1TY of ANAHEIM, a Municipal Corporation By: By: By: INTERNATIONAL BROTHERHOOD of ELECTRICAL WORKERS, Local 47 By: Dated: lO/l~/~O0.~ C:\LR_DATA\] BEW\LOUPRt4ed^ibewnew.doc 10/! 0/02 LETi'ER OF UNDERSTANDZNG between the ANAHETH POLTCE ASSOC[ATZON and the CZTY OF ANAHEIM The Anaheim Police Association (APA), 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 hired on or after 3uly 6, 2001. The PART~ES have reached an understanding, as follows: APA and ANAHEIM agree that for employees hired on or after ]uly 6, 2001, an Integral Part Trust ("PLAN'~ for reimbursement of qualified medical expenses shall be established. 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. APA and ANAHEIM agree that the PLAN will require a five-year vesting period (cliff vesting) for any ANAHEIM provided contributions. ANAHEIM shall make a one-time lump sum employer contribution of three thousand dollars ($3,000) into an employee's individual RHSA upon the employee's appointment to a classification represented by the APA. ANAHEIM shall make an additional one-time lump sum employer contribution of one- half (1/2) of the amount contributed in accordance with paragraph 3 above into an employee's individual RHSA upon the employee's appointment to a classification represented by the APA for any such employee who has at least three (3) years of prior service as a sworn Police Officer with another California law enforcement agency. ANAHEIM and APA agree that this provision shall remain in effect through January 13, 2005. ANAHEIM shall make an additional one-time lump sum employer contribution of two thousand dollars ($2,000) on behalf of each employee hired during the term of the current Memorandum of Understanding between the PARTIES dated January 19, 2001 through' January 13, 2005, such contribution to be made upon the employee's completion of probation. ANAHEIM shall make an additional one-time lump sum employer contribution of one thousand dollars ($1,000) for any such employee who has at least three (3) years of prior service as a sworn Police Officer with another California law enforcement agency. ANAHEIM and APA agree that this provision shall remain in effect through January 13, 2005. APA and ANAHEIM agree that each employee shall be required to contribute a portion of his or her gross biweekly pay to the employee's individual RHSA in accordance with C: \LR_DATA~PA\LOUPRMed^APAnew^option2.doc ! ! 0/08/02 the following schedule: · 11/2% effective the first pay period following adoption of this Letter of Understanding · 21/4% effective ]anuary 17, 2003 · 3% effective .~anuary 16, 2004. 7. APA and ANAHETM agree that employees shall be given an opportunity each year to elect to contribute (in increments of 1/2 hour) paid leave hours to be earned prospectively in the upcoming calendar year. Employees shall be required to accrue a minimum of six (6) hours of earned Paid Leave time per pay period; the remaining balance earned per pay period shall be available for deferral to the individual employee's RHSA 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. 8. APA and ANAHEIM agree that employees will be eligible to withdraw funds for reimbursement of the employee's share of medical insurance premiums for plans provided by the City at age 50 and after five years of service with the City of Anaheim. 9. APA and ANAHE:[M agree that any employee who separates City service for any reason will be eligible to withdraw funds for reimbursement of eligible medical expenses without regard to the employee's age or years of service. APA and ANAHE:[M acknowledge that employee contributions for employer-provided group health insurance provided by other employers are not an eligible medical expense for the purpose of this PLAN. 10. APA and ANAHETM agree that employees hired on or after ~luly 6, 2001, who have completed at least ten (10) years of consecutive ANAHETM service, and who are awarded a retirement from PERS as their reason for separation from ANAHETFvl service shall be allowed access to ANAHE1~Ivl sponsored group health plans as one of their coverage options. 11. APA and ANAHE:[M agree that upon the death of an employee, the surviving spouse and/or eligible dependents are immediately eligible to maintain the individual member account (RHSA) and to utilize it to fund eligible medical benefits. APA and ANAHE:[M agree that the PLAN Document shall establish the medical benefits that are reimbursable to participating employees and shall establish benefit eligibility. 13. APA and ANAHE]:M agree that ANAHETIVl shall make a three thousand dollar ($3,000) per employee contribution to the PLAN no later than the last day of the pay period following City Council approval of this Letter of Understanding for each employee hired between .luly 6, 2001, and the effective date of this Agreement. 14. APA and ANAHE:[M agree that either party may request 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 ANAHE:[M shall not be obligated to meet and confer regarding employer contributions at any time during the term of the current Memorandum of Understanding between the PART~ES dated .lanuary 19, 2001 through ~lanuary 13, 2005. Any agreements reached shall be incorporated in a written Letter of Understanding, signed by the City Management C:\LR_DATA~PA\LOUPRMed^APAnew^ option2.doc 2 i0/08/02 15. 16. Representative and the APA Representatives and presented to the Anaheim City Council for determination. l~f 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 jurisdiction, the remainder of this Letter of Understanding shall not be effected thereby, and shall remain in full force and effect. Disputes regarding the interpretation or application of the terms of this Letter of Understanding shall be resolved between authorized representatives of ANAHEIM and the APA. ]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 ANAHEIM, a Municipal Corporation By: ~ Dated: ~-~' ANAHEIM POLICE ASSOCIATION C: \LR-DATA~'PA\LOUPRMed ^APAnew^ oPtion2.doc 3 10/08/02 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF ANAHEIM ) I, SHERYLL SCHROEDER, City Clerk of the City of Anaheim, do hereby certify that the foregoing Resolution No. 2002R-230 was introduced and adopted at a regular meeting provided by law, of the Anaheim City Council held on the 5th day of November, 2002, by the following vote of the members thereof: AYES: MAYOR/COUNCIL MEMBERS: Feldhaus, Kring, McCracken, Daly NOES: MAYOR/COUNCIL MEMBERS: None ABSTAINED: MAYOR/COUNCIL MEMBERS: Tait ABSENT: MAYOR/COUNCIL MEMBERS: None Ci'T~ CLERI~OF TItlE CITY OF ANAHEIM (SEAL)