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RES-2006-115RESOLUTION NO. 2006- 115. .. ~, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM APPROVING A LETTER OF UNDERSTANDING BETWEEN THE ANAHEIM MUNICIPAL EMPLOYEES ASSOCIATION, CLERICAL UNIT, AND THE CITY OF ANAHEIM WHEREAS, the City of Anaheim and the Anaheim Municipal Employees Association, General Unit, have met and conferred and reached an understanding to amend Article 52 (Post Retirement Medical Benefits) of the Memorandum of Understanding; and WHEREAS, the Anaheim Municipal Employees Association, Clerical Unit, is in agreement with the recommendation contained in said Letter of Understanding; and WHEREAS, as a result thereof, the Letter of Understanding dated May 22, 2006 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 May 22, 2006 between the Anaheim Municipal Employees Association, Clerical Unit 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 effective date of this Resolution shall be June 13, 2006. THE FOREGOING RESOLUTION is approved and adopted by the City Council of the City of Anaheim this 13th day of June , 2006, by the following roll call vote: AYES: Mayor Pringle, Couacil Members Sidhu, Hernandez, Galloway, Chavez NOES: None .-~• ABSENT: None ABSTAIN: None ATTEST: ITY CL K OF T E CITY OF EIM APPROVED AS TO FORM: JACK L. WHITE, CITY ATTORNEY BY: MAYOR OF THE F ANAHEIM F:10T3653CS.DOC LETTER OF UNDERSTANDING between the ANAHEIM MUNICIPAL EMPLOYEES ASSOCIATION, CLERICAL EMPLOYEES and the CITY OF ANAHEIM The Anaheim Municipal Employees Association (AMEA), Clerical Employees, and the City of Anaheim (ANAHEIM) after meeting and conferring have agreed to amend certain sections of the Memorandum of Understanding that is in effect from July 1, 2005 through January 8, 2009. Article 52 of the Memorandum of Understanding is hereby amended as follows: ARTIGYE52 52. i Retired employees who are receiving apart-retirement medics/ benefit from ANAHEIM on the date the (Sty Cound/ approves this Memorandum of Understanding shall continue to receive sash benefit in acrordanc~e with the provisions of ttre Memorandum of Understanding between ANAHEIM and AMEA that was in etTict at the time oftheir retirement. 52.2 Regular, fu//-time employees in itre dassiRed servic7e in dassilrcations listed in Appendix "A ; who are enrn/led as subsa-iber in an ANAHEIM sponsored health plan at the time of separation from ANAHEIM ser~c~ shall be eligibVe to poartidpate in any ANAHEIM sroonsored health ,clan (medics/ and dents/) as a retiree sublet to the fol%wing terms and conditions.• 52.2.1 The employee must be aedited with at least ten (10) years of continuous, fu//time ANAHEIMservice on the date ofretiremen~ and 52.2.2 The ~ employee must have been awarded a retirement from the Public Employees' Retirement System ("PERS") as the reason for seyaaratian from ANAHEIM service, and 52.2.3 PIERS retirement benefits must commend no later than the first day of the month fallowing ttre date of separation from ANAHEIM services, OR 52.2.4 The employee must have been awarded a disability retirement (Ordinary or Indusiria/) from PERS as 6he reason Jfir seaaration from ANAHEIM s~erviae. 52.2.5 ANAHEIM sha// provide separate cnniribubons lbwards dre premium cis of the ANAHEIM sponsia~d medics/ and/or dents/ plans a%rted by Ghe employee amw~ding to Ghe fiv//owing sd~du/e: 52.2.5.1 For Service Retirements, the contributions sha// be a pemeniage of the annual contributions made by ANAHEIM on behalf of aclme employees, tine percentage aqua/ t, one and one-half (1.5) rimes the miscellaneous 2% at 60 PERS retirement schedule to a maximum conbibution of 9596 based on the empMyees age and awrsecut~ve yeears ofAnaheim service at the time of retirement ANAHEIM service and the retirees age she/l be calculated to the nearest complete one-quarter year. 52.2.5.2 l nor ~sabi/ity Retirements, tfie mniribution shall be a perrc~ntage of the annual coniribcrt'ons made by ANAHEIM on behalf of active employees, the percentage equal to 296 for each yeear of servicae to a ma~dmum contribution of 9596 bid on the employees cnnsecuahve years of Anaheim service shall be calculated t, the nearest complete one quarter y+ean 52.2.5.3 In the event an employee is e/igib/e for boar a Service and a Disability Retinerrrent benefit under this ARTIGYty the employee she//receive tine Services Retirement benefit. 52.2.5.4 The ANAHEIM carhibution she// be biased on the Tway party or Family rate only for chase employees who properly enroll a dependent spouse anc(/or other (amity members prior to retinernena;, and shall continue only as long acs the retirrge mainta/ns coverage for srxa~r deoendenLs in ANAHEIM rored health p/arns Nothing in this ARTIaCLE shall prevent a retiree from properly enrolling new depena~en~ at the retirees ciast: 52.2.5.5 The full value of any Medicare rnedits provided to ANAHEIM or Medicare surcharges impaled on ANAHEIM by virtue of a retirees pan3apatorr or non partiapaat~on /n Medicare she// be passed on to the ra°tiree in the form of reduced or increased premium casa"s 52.2.5.6 The surviving spouse or registered domestic partner of the retiree may continue coverage under the same terms and rnndrtions provided that the surviving spouse was properly enrolled at .the time of the employees retirement and that dependent coverage w~ continuously maintained during the employees retineynent 52.2.6 Employees who reline on or after January 1, 2006 shall be credited wits ANAHEIM service accrued through Diecember 3i, 2005 for the purpose of determining eligibylity and benefit levels under the provrsions of Section 52.2 abotie No employee who has less than ten (10) complete years of credited ANAHEIM service as of December 31, 2005 she// be provided benefits under Section 52.2 above. 52.2.7 The fo/%wing provisions she// apply to employees who retire on or a1~r January 1, 20106 and who are receiving post-retirement medics/ benefits under the provisions of Section 52.2: 52.2.7.1 Only ANAHEIM service aoaved through Dieaember 31, 2005 steal/ be credited to the employee in determining ANAHEIMs peroeniage contribution towards the premium ao~s of the plan(s) e%ted by the retiree. 52.2.7.2 Retirees steal/ be required !b enro/l in Medicare parts A and B upon establishing eligibility. Failure to enroll when eligible will result in cancellation of c~vverage. ~~ 52.2.8 The fol%wing aatdib%ons steal/ apply to all redrew rwho have past retirement medical benefit cnverdge under this Section: 52.2.8.1 Once canc~e%d for any reason, coverage shall not be reinstates! 52.2.8.2 Coverage sha// be cane/ed for non ,payment of fees agar tfiree months in arrears 52.2.8.3 There sha// be Coordination of Benefits where other in~suranc~e eadsts 52.2.8.4 Retirees may change plans and add devendents only during the annual open enrollment period, except that the surviving spouse or registered domestic partner of a retiree may not enroll a new spouse or registered domes6'c partner: 52.3 Regular, fu//-time employees in the domed s~evvic~e in dassiTications listed in Appendbr 'A ; hired on or after January 1, 1996 sha// p~artidpate in an Intagia/ Part Trust ("RHS plan ~ designed to puvvide reimbursement of qualifted medics/ expenses upon retirement or sepoaration from Gify service "Qualifted medical expenses"are thane expenses authonied under the provisrons of Totems/Revenue Code Section 213, excepting only those expenses the p~arb'es mutually agree to exclude. 52.3.1 When an employee is hired into a classification represented by the AMEA, ANAHEIM sha// make an initial employer cnniril~an of three thousand do//ars ($3,OOI0) into die employees Retirement Hea/bh Savings ("RHS~ account: 52.3.2 On L7iec~ember 26, 20108, and annua//y thereaRer; die Gty sha// make a rnniribution to the individual aaapunt of each employee in dassificatwn represented by the AMEA who has an established RHS account. The contribution sha// be equal to one percent (1.09b) of the average annual base avmpensation of all fu// time employ in the mis~c~e/laneous service, excepting emp/oyeees in classifications re~wesented by the IBEW. The average annual base compensation steal/ be ca/c~ulated by annualizing tt~e includable biweekhr payroll for the pay period that includes the first of Derember each year, and dividing by the number of includable employees 52.3.3 Employees sha/l be fully vested for all ANAHEIM avniributions made on ifr~r behalf including contributions made pursuant to Section 52.6 be%w, aRer five (5) full years ofcontinuousANAHEIMservice: 52.3.4 Except as modified by Section 52.4 be%w, ANAHEIM and AMEA agree that; et~Ctive January 13, 101016, eacah eligible employee sha// be required in contribute three percent (3.096) of his//her gross bid pay io his/her individual RHSAccouni: 52.3.5 Employees shall be given an opportunity eacah year try e%t to aontribule (in increments of ~z hour) sick leave hours to be earned prospectively in the up~.oming calendar year. Emp/oyees shall be required to aarue a minimum of one (1) hour of earned Sick Leave time per pay period. The remaining bia/ante earned per paY period shall be available for deferral to tfie individual employees RHS Amount as designated by the employee. Suc/i deferrals shall be converted in cash at the employees regular hourly late of pay, and deoosited to the employees individual RHS Amount as they are earned. Contributions under the provisions of this paragraph shall be designated as p+re-tax contributions: 52.3.6 Employeessteal/ be given an opportunity eadt year tro e%t fo contribute (in increments of rz hour) vacation leave hours in be earned prospectively in the upcoming calendar }mar. Employees shall be required tb aarue a minimum of ifiree (3) hours of earned Iacation Leave time per pray perio~o! The remaining ba/anc~e earned per p~aY period shall be available f~ defenal to the indiv/dua/ employees RHS Amount as designated by the empmloy+ee Such deferrals shall be converted to cash at the employees regular hourly rate ofpay, and deposited to the employees individual RHSAmvuntas they are eame~d Contributions under the provisions of this paragraph shall be designated aspre-tax contributions 52.3.7 Any emp/oyee who separates aty service for any reason will be eligible in withdraw funds for reimbursement of eligible medical expenses without regard to the employees age or years of service. Employee premium contributions for employer-provided group hea/bh insurance provided by other emp/oyers are not an eligible medical expense 52.3.8 Employees hired on or alterJanuary 1, 19~ who have comp/etLd ten (10) years of conseruGve ANAHEIM service, and who are awarded a retirement from PERS as the reason for separation from ANAHEIM service sha// be a/lowed acres to ANAHEIM sponsored group hea/Gh plans as a rebre~e 52.4 Employees hired on or alter January 1, 19~ and before January i, 2002 steal/ make an emp/oyee cioniribution to their individual RHS Amount according to die fo/%wing srhedu/e: 52.4.1 Effective January 13, ZOIQ6, suds employees shall contribute one percent (i.0%) ofhis/hergrass biweeklypay to his/herindividua/ RHSAcirount. 52.4.2 El9~ctive January 1~ Z007, such emp/off sha/l contribute twn percent (Z.0%) of his/her grass biweekly pay Mhis/her individual RHS Ac~avunt. 52.4.3 Ef>ecriv+e February 8, 2008, soli employees shall contribute tfiree percent (3.0%) ofhis/hergrass biweekly pay fo his/her individual RHSAarount. SZ.S Employees hired prior to January i, 1996 may e%t to pariidpate in a voluntary Retirement Health Savings plan. An e%tion to partidpate shall be irrevocable. Al/ provisions of Section 52.3 of this Artide shall apply to the voluntary plan, exalt that employees shall be required in contribute one percent (1.0%) of their grays biweekly pay to their individual RHS Aanunt. SZ.6 In addition tv the employer obligations outlined in Section SZ.3 above, ANAHEIM sha/l make a one lime employer contribution trr tfie RHS Aaavunt of each employee in a dassiFication in Appendix 'A"who was hired on or aRer January 1, 19~ and prior to January 1, 2002 and who is an alive employee on January 13, 201016. The contributions required by this Section sha// be ~ to eacafi eligible employees account no later than January Z0, Z006. The contribution sha// be seventy dollars ($70.010) for each complete monifi of roll tme service ca/cu/ated fmm the employee s date of hire try December 31, 2005; except that under no droumstanaes sha// tfie contribution be leis than three ttrousand dollars (.$3,0OO.OIO). STAFF OFFICIALS of the CITY OF ANAHEIM, a Municipal Corporation By By. By: ANAHEIM MUNICIPAL EMPLOYEES ASSOCIATION, Cle ca E oyees By: •.• F gy; .,/ By. By: By: By: Dated. ~"'~~ By: By: Dated: ~S ~- •~