2005-165RESOLUTION N0.2005 -165
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ANAHEIM APPROVING A LETTER OF UNDERSTANDING
BETWEEN THE INTERNATIONAL BROTHERHOOD OF ELECTRICAL
WORKERS, LOCAL 4l 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 with respect to retirement benefits
provided to employees in classifications represented by the UNION with the Memorandum of
Understanding between the Parties in effect from July 28, 2005 through January 9, 2009; and
WHEREAS, the International Brotherhood of Electrical Workers, Local 47, is in
agreement with the recommendationscontained in said Letter of Understanding; and
WHEREAS, as a result thereof, the Letter of Understanding dated August 12, 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 August 12, 2005, between the International Brotherhood of
Electrical Workers, Local 47, and the City of Anaheim, a Dopy 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 23rd day of Au~st 2005, by the following roll call vote:
AYES: Mayor Pringle, Council Members Sidhu, Hernandez, Galloway, Chavez
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
i"
C i CLE K OF THE CITY OF ANAHEIM
MA OF HE CI O NAHEIM
APPROVED AS TO FORM:
JACK L. WHITE, CITY ATTORNEY
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F:IOT7296SL.DOC
LETTER OF UNDERSTANDING
INTERNATIONAL BROTHERHOOD of ELECTRICAL WORKERS, Local #47
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 reached agreement pursuant to Article
63.2 of the Memorandum of Understanding between the parties dated July 28, 2005
through January 8, 2009. These changes to Post-Retirement Medical benefits are part of a
comprehensive agreement negotiated between the parties that include increasing employee
CaIPERS retirement benefits from the " 2%@55" formula to the " 2.7°/0@55"formula
(Government Code §21354.5}, and by reporting statutorily required PERS employee
contribution paid by ANAHEIM to CaIPERS as compensation earned in accordance with
Government Code §20636(c)(4). This Letter of Understanding sets forth the specific
understanding of the parties relating to the establishment of an IBEW Retiree Medical Trust
Fund.
1, IBEW shall establish a trust (Trust) to be effective not later than October 1, 2005
("Transfer Date"}, for the sole and exclusive purpose of providing post-retirement
medical benefits to IBEW bargaining unit employees employed by ANAHEIM on October
1, 2005 ("IBEW Employees', and their eligible surviving spouses and dependents.
2. Upon declaration of a Trust acceptable to Anaheim and execution of a concurrent
Memorandum of Understanding establishing the respective rights and obligations of the
IBEW, the Trust, and ANAHEIM, ANAHEIM shall pay into the Trust those post-retirement
medical reserve allocations, including a proportionate share of the IBEW Special
Reserve, which ANAHEIM has allocated to eligible active employees of the IBEW
bargaining unit.
3. The Trust shall be solely responsible to provide payments toward post retirement
medical benefits for all eligible IBEW Employees. Benefit levels and eligibility for
coverage shall be determined by the Trustees.
4. In the event that the Trust desires to discharge its obligation to provide retiree medical
benefits to IBEW Employees by purchasing such medical coverage from medical benefit
plans contracted for by the ANAHEIM, the Trust shall remit to ANAHEIM monthly, in
advance, the full amount required to fund benefits through such plans contracted far by
ANAHEIM. In the event such payments are not delivered within five (5) working days of
the due date, ANAHEIM may withhold its negotiated contribution to the Trust, until such
time the monthly payment is paid in full, If the Trust utilizes plans contracted for by
ANAHEIM to discharge its obligation to provide retiree health coverage to IBEW
Employees, ANAHEIM'S participation in making such benefits available to the Trust shall
be as an independent contractor to the Trust and shall in no way obligate ANAHEIM to
provide any benefit, funding or financial support for any obligation of the Trust or the
IBEW to provide medical benefits to IBEW Employees, or to undertake or assume any
responsibility whatsoever for any other obligation assumed by the Trust and the IBEW
through acceptance of the reserve allocations and the execution of this Agreement.
5, The Trust shall inform ANAHEIM in writing of the benefit and eligibility schedules it may
adopt and any subsequent changes thereto. The agreement of Anaheim with such
schedules shall not be implied from such notification.
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6. Effective upon the Transfer Date, Anaheim shall remit to the Trust for each employee in
the IBEW bargaining unit such sums as agreed to in the Memorandum of Understanding
between the parties dated July 28, 2005 through January 8, 2009, and any successor
agreements.
7. In addition to the contribution by Anaheim set forth above, IBEW and Anaheim agree
that the sum of four percent (4%) of base biweekly pay shall be withheld from each
employee in the IBEW bargaining unit commencing on the transfer date which shall be
remitted, as soon as practicable, to the Trust. Such remittance shall be on a biweekly
basis.
8. The transfer of reserves set forth in Section 2 and the payments and withholding
established in Sections 8 and 9, and as provided by Article 63.6 of the Memorandum of
Understanding, shall be the sole contributions to the Trust or participants in the Trust by
Anaheim, regardless of any increases in medical care costs or the diminution or failure
of benefits to be provided by the Trust, unless otherwise agreed by the parties through
the collective bargaining process.
9. Anaheim shall have the right to periodically perform audifis of the Trust at Anaheim's
expense, at reasonable times and places and upon reasonable notice. The Trustees and
the IBEW will cooperate with any reasonable audit request which may be undertaken
solely at Anaheim's discretion, with or without cause, by auditors designated solely by
Anaheim. Any such audit shall be conducted according to auditing standards and
practices prevailing among audits of employee benefit trusts, and shall encompass, but
not be limited to, all income, expenses, benefit payments, administrative costs,
earnings, fees and charges paid or received by the Trust. Anaheim shall promptly
inform the Trustees of the result of the audit, and deliver to the Trustees a copy of any
audit report, prepared for Anaheim. Nothing in this section shall relieve the Trustees of
any obligation, requirement or practice to conduct their own audits of the Trust as
required by the Trust documents or by law,
10. In the event the Trust desires to discharge its obligation to provide retiree medical
benefits to IBEW Employees by purchasing such medical coverage from medical benefit
plans contracted for by the ANAHEIM, ANAHEIM shall provide the Trust access to City of
Anaheim sponsored medical plans at the same rate structures provided for all other
active and retired employees of ANAHEIM.
STAFF OFFICIALS of the CITY OF ANAHEIM,
a Municipal Corporation
By:
By:
Date: ~ -~ f ~ ~ }~
INTERNATIONAL BROTHERHOOD of
ELECTRICAL WORKERS, Local 47
By:
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