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RES-2010-021RESOLUTION NO. 2010- 021 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM APPROVING A LETTER OF UNDERSTANDING BETWEEN THE ANAHEIM MUNICIPAL EMPLOYEES ASSOCIATION, GENERAL AND CLERICAL UNITS, AND THE CITY OF ANAHEIM WHEREAS, the Human Resources Department met and conferred with officials and employee representatives of the Anaheim Municipal Employees Association, General and Clerical Units, and reached an agreement intended to mitigate the impact of pending labor force reductions on employees in classifications represented by the Anaheim Municipal Employees Association; and WHEREAS, as a result thereof, a Letter of Understanding dated January 29, 2010 between the parties has been prepared and signed; and WHEREAS, the Union is in agreement with the recommendations contained in said Letter of Understanding; and as a result thereof, the Letter of Understanding dated January 29, 2010, has been 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 January 29, 2010 between the Anaheim Municipal Employees Association, General and Clerical Units 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 9th day of February 2010, by the following roll call vote: AYES: Mayor Pringle, Council Members sidhu, Hernandez, Galloway, Kring NOES: NONE ABSENT: NONE ABSTAIN: NONE ATT LERK OF TH Y OF ANAHEIM APPROVED AS TO FORM: CRISTIN TALLEY, CITY ATTORNEY I FAOT1022C .DOC LETTER OF UNDERSTANDING between the ANAHEIM MUNICIPAL EMPLOYEES ASSOCIATION and the CITY OF ANAHEIM The Anaheim Municipal Employees Association, General & Clerical Employees (AMEA), and the City of Anaheim (ANAHEIM) have met and conferred in good faith and reached an agreement intended to mitigate the impact of pending labor force reductions on employees in classifications represented by the AMEA. The PARTIES acknowledge ANAHEIM's need for immediate and sustained reductions in its labor costs, and agree that it serves the best interests of ANAHEIM to accomplish such labor force reductions, whenever possible, through voluntary separations. The PARTIES agree that ANAHEIM will establish an "Accelerated Separation Program" that may be offered, at the discretion of the Anaheim City Manager, to encourage selected groups of employees to voluntarily separate from City service. It is ANAHEIM's intent that each separation under the terms of this Letter of Understanding shall support its efforts to reduce ongoing labor costs through 1) the immediate elimination of the resulting vacant position; or 2) the resulting vacant position will be filled by an employee otherwise subject to layoff due to the elimination of a position elsewhere in the City. When offered to employees in classifications represented by the AMEA, the program shall include the following terms and conditions: 1. The determination of those employees eligible for participation shall be made by ANAHEIM based upon consideration of the classifications and lines of business most likely to be effected by a planned reduction in force. Interested employees shall be required to provide appropriate notice to the Human Resources Director in the form of an application. ANAHEIM reserves the right to deny any application, and to close the application period at any time. Any decision by ANAHEIM to deny an application, or to close the application period with or without notice, shall not be subject to review through the grievance procedure. 2. An employee who separates service under the terms of this Letter of Understanding shall receive a lump sum cash payment at separation of twenty-five percent (25 %) of their current annual base pay, up to a maximum cash payment of $25,000. 3. An employee who retires from ANAHEIM service under the terms of this Letter of Understanding and who is eligible for a Post- retirement medical benefit shall receive, in addition to the lump sum cash payment provided for in paragraph 2 above, a City contribution towards their Post- retirement medical benefits at active employee rates through December 31, 2011. From January 1, 2012 forward, those employees shall receive a City contribution towards their Post - retirement medical benefits as provided for in the Memorandum of Understanding at the time of their retirement. STAFF OFFICIALS of the CITY of ANAHEIM, a Municipal Corporation By: ANAHEIM MUNICPAL EMPLOYEES ASSOCIATION, General Employees By: By: Dated: oo ""W/ By: YV