94-211 RESOLUTION NO. 94R- 211
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ANAHEIM APPROVING A LETTER OF UNDERSTANDING
BETWEEN THE CITY OF ANAHEIM AND THE ANAHEIM
POLICE ASSOCIATION.
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, and Article 59, Post-Retirement Medical
Benefits, of the current Memorandum of Understanding; and
WHEREAS, a Letter of Understanding, between the parties dated August 16, 1994,
has been prepared and signed amending Article 58, Insurance, and Article 59, Post-
Retirement Medical Benefits, 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, between the City of Anaheim and the Anaheim
Police Association, dated August 15, 1994, 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 2~rcl day of August, 1994.
ATI'EST:
CITY CLERK OF THE CITY OF ANAHEIM
APPROVED AS TO FORM:
CITY ATTORNEY E CITY OF ANAHEIM
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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-211 was introduced and adopted at a regular meeting provided by law, of the Anaheim City Council
held on the 23rd day of August, 1994, by the following vote of the members thereof:
AYES: COUNCIL MEMBERS: Feldhaus, Simpson, Pickler, Hunter, Duly
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
AND I FURTHER CERTIFY that the Mayor of the City of Anaheim signed said Resolution No. 94R-211 on
the 24th day of August, 1994.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Anaheim
this 24th day of August, 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-211 was duly passed and adopted by the City Council of the City of Anaheim on
August 23, 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 (ANAHEIM) and the Anaheim Police Association (UNION) have met
and conferred on health benefits and have agreed to the following changes, to be effective
January 1, 1995 through December 31, 1997.
1 UNION agrees to ratify this Letter of Understanding by August 31, 1994.
2 ANAHEIM and UNION agree that Article 58 Insurance is amended as attached
effective January 1, 1995.
3 ANAHEIM and UNION agree that Article 59 Post-Retirement Medical Benefits is
amended as attached effective the date the City Council adopts this Letter of
Understanding. ANAHEIM agrees that this amendment shall apply to employees
who retire on or after July 1, 1985.
4 ANAHEIM agrees to offer effective January 1, 1995 the Kaiser Foundation Health
Plan, PacifiCare and Health Net (Health Maintenance Organization) plans as
currently recommended by the Health Council, and the self-funded Employee
Medical Plan.
5 ANAHEIM and UNION agree that the Employee Medical Plan shall be replaced
by an acceptable alternative plan on or before January 1, 1997.
6 UNION shall appoint one (l) Health Council representative to serve on a Health
Council task force to identi~ appropriate alternative plans that can provide adequate
benefits at reasonable cost to both ANAHEIM and enrollees. The service of the
Health Council task force representative shall be considered a part of the ongoing
duties and responsibilities of each employee in their respective job class. Each
employee shall receive their regular compensation for any regularly scheduled
working hours spent in actual performance of such service. The Health Council task
force shall submit their recommendations through the Health Council to the City
Manager for approval, rejection, or referral back to the task force for further action
by January 1, 1996. If a recommendation has not been approved by the City
Manager by April 1, 1996, the Health Council task force may use mediation services
to mediate differences among members of the task force, and if so shall submit the
results of the mediation to the City Manager and all recognized employee
organizations by May 1, 1996.
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7 ANAHEIM and UNION agree to submit any agreement reached on alternative plans
to the City Council for determination no later than July 1, 1996.
8 ANAHEIM and UNION agree that any alternative plan approved by the City
Council shall include Vision coverage for all retirees.
9 ANAHEIM agrees that UNION shall be offered the opportunity to accept in lieu of
the provisions of this Letter of Understanding any agreement ANAHEIM may reach
with any other recognized employee organization on or before December 31, 1996,
regarding health plan benefit levels, providers, or contribution structures.
STAFF OFFICIALS OF THE ANAHEIM POLICE ASSOCIATION
CITY of ANAHEIM, a
Municipal Corporation
By:
Dated: ~ - ],~ - ~' q Dated: x-~-
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ARTICLE 58
INSURANCE
58.0 Active Employees
58.01 Health Plans
58.011 ANAHEIM agrees to ~pon~or ~6~i~11~ the prepaid and/or
insurance health plans recommended by the Joint Committee
on Medical Progranls and .spoasored approved by the Anaheim
Ci[) Council. Ilcalth Maintenance Orgallizzltion (lIMO)
bcncl'it schedules shall be staudardizcd to the extent possible,
and shall require a $5 coimynlent liar m~pmient tmd ph>sician
services. and l~}r prescription drugs.
58.012 ~EIM shall contribute towards the monthly cost of health
coverage to the various medical plans as follows:
July 3, 1992 through June 30, 1994
Employee Medical Plan not to exceed 110% of
~i~r monthly rate
~1 Other Health Plans not to exceed 100% of
Kaiser month~,[ rate
I':mph~yees who are covered hy other health plans may present
pmol' of such coverage in order to receive SI00 per month in
lieu of heahh benel'its provided herein. This ~ha11 apply to
dependent spouse of ntarricd Anaheim employee couples.
the event 811 ctnployec xxho has clCClC{I this optimt loses health
coverage For m~y reas~m. and nolil'icn ANAII!(IM o1' such loss
a it]fin five (5) working days, he/she may enroll immediately
tin) phm offered by ANAIII'2tM. Etnplo~ces may re-elect the
"opt-out" option mmually durh~g open enrolhncnt, or may enroll
in a City ~ptmsored health plan.
July 1, 1994 through remainder of the term of this
memorandum ~EIM and the ~A agree to re open the
provisions of ~ticlc 58.01 no later than April 1, 1994 with
agreed upon changes to be effective July 1, 1994.
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58.013 The '":*" ~E:i:!~:'ii~id']:.:i~i~ Medical Plan shall be described in a
booklet which shall become a part of this Memorandum by
reference. Changes recommended by the Joint Committee on
Medical Programs and approvcd by the City Council shall also
bec~m~e pm't-oi' this Memorundum by reference: ANAIIEIM
and the APA agree that the Employee Medical Plan shal[ be
replaced b) an acceptable alternative plan ~Jn or heft)re January
I, 199'7.
58.014 For all medical plans, married ANAHEIM employee couples
shall be allowed only one medical plan and only one dental
plan to cover all family members, and married ANAHEIM
employee couples covered by one plan shall pay no health
insurance premium while both spouses are employed by
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58.015 Proof of marriage will be required of all employees enrolled in
any City Medical plan to enroll a dependent spouse.
58.016 The Master contract between ANAHEIM and the plan
administrator shall govern in the event of any disputes over any
matter within the provisions of the contract.
58.017 The benefit schedules for the p:repaid HMO health plans will
not be modified unilaterally by ANAHEIM, except that each
company may, from time to time, make revisions to master
contract language or impose minor benefit modifications. If an
imposcd benefit modification results in a monthly fee increase,
thc cost sharing provisions of this Memorandum in effect on the
date the fec increase is effective shall be applied to the ncw
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ARTICLE 59
POST RETIREMENT MEDICAL BENEFITS
59.0 Regular, full-time employees in the classified service in classifications listed in
Appendix "A", who are enrolled as a subscriber in an ANAHEIM sponsored health plan at
the time of separation from ANAHEIM service shall be eligible to participate in any
ANAIII~IM sponsured health (medical honefits onl.~) plan a~ a retiree. A.s cff JanL]ary I,
1995, regul;tr, full-time employees in the cla,~sificd service in classil'icaLions listed in
Appet~di~ "A", wl~o arc enrolled as a subscrii)cr in an ANAliEIM sponsored dental plan at
Ihc time of separation I'ron~ ANAl tEIM ~crvice and all retirees who were actively employed
on or al'ler July 1, 1985 ~ho are enrolled as a subscriber in any ANAHEIM sponsored
heallh pkm shall be eligible to participate in any ANAHEIM sponsored dental plan as a
rcqiree.
59.01 Employees who retired prior to July 1, 1985, who were eligible for post
retirement health benefits at the time of their separation from ~EIM
se~ice and who maintain continuous membership in good standing shall pay
monthly premiums in accordance with the following schedule:
Single coverage $15.00 monthly
Two party coverage $15.00 monthly
Family coverage $45.00 monthly
59.02 ~e su~iving spouse of the retiree may continue coverage under the s~e
terms and conditions.
59.03 Employees who were hired prior to Februa~ 1, 1984, and who retire on or
after July 1, 1985, and prior to Febma~ 1, 1994, and who meet the
requirements described below shall be eligible to participate in any
~EIM sponsored ~eatS :;:.;~:::~:~'~:~?~g~:;O~;~j~:'~g{~:;:~:;~ plan.
59.031 %e employee must have completed at least five (5) years of
continuous, full-time ~EIM se~ice on the date of
retirement, and
59.032 %e employee must have been awarded a retirement from the
Public Employees' Retirement System CPERS") as the reason
for separation from ~EIM se~ice, and
59.033 PERS retirement benefits must commence no later than the
first day of the month following the date of separation from
AN~EIM se~ice.
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towards the premium costs of any ANAHEIM sponsored hca!tk
~:~:~.~:~gg"~'~::iO:~.:~i/t~g(~ plan elected by the employee as follows:
Employees hired prior to February 1, 1984
Service Retirements ANAHEIM Years of Service
At Age 60 Under Age 60
10-14 40% 20%
15-19 60% 30%
20-24 80% 40%
25 + 90% 45%
Industrial Disability Retirements
WCAB Rating greater than or equal to 70% - ANAHEIM
contribution percent shall be equal to 100% of the WCAB
rating to a maximum contribution of 90%.
WCAB Rating less than 70% - ANAHEIM contribution percent
shall be equal to 50% of the WCAB rating until age 60, then
100% of the WCAB rating.
If the retiree participates in a ANAHEIM sponsored
Rehabilitation Plan, ANAHEIM contribution shall be 90% for
one year or until rehabilitation plan ends, then ANAHEIM
contribution reverts to the 50% or 100% standard.
Employees hired February 1, 1984 or later
Service Retirements
ANAHEIM Years of Service
At Age 60 Under Age 60
10-14 20% 10%
15-19 30% 15%
20-24 40% 20%
25 + 45% 22
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Industrial Disability Retirements
WCAB Rating greater than or equal to 70% - ANAHEIM
contribution percent shall be equal to 50% of the WCAB
rating.
WCAB Rating less than 70% - ANAHEIM contribution percent
shall be equal to 25% of the WCAB rating until age 60, then
50% of the WCAB rating.
If the retiree participates in a ANAHEIM sponsored
Rehabilitation Plan, ANAHEIM contribution shall be 45% for
one year or until rehabilitation plan ends, then ANAHEIM
contribution reverts to the 25% or 50% standard.
59.035 The surviving spouse of the retiree may continue coverage
under the same terms and conditions.
59.04 Employees who retire on or after July 1, 1985, and who meet the
requirements described below shall be eligible to participate in any
ANAHEIM sponsored hca!th ~ed~f~:~:~!~i:i::!i~i~::~'~'~i~ii~ff~:~i~ plan.
59.041 The employees must have completed at least ten (10) years of
continuous, full time ANAHEIM service on the date of
retirement, and
59.042 The employee must have been awarded a retirement from
PERS as the reason for separation from ANAHEIM service,
and
59.043 PERS retirement benefits must commence no later than the
first day of the month following the date of separation from
ANAHEIM service, OR
59.044 The employee must have been awarded a disability retirement
(Ordinary or Industrial) from PERS as the reason for
separation from ANAHEIM service.
59.045 ANAHEIM shall contribute :i~:ii!i~'~:~i i~
towards the premium costs of the ANAHEIM sponsored hethtth
mctlical and/~)r denial I)lanii:~ elected by the employee according
m the t'ollowing ~cl~edule:
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59.0451 For Service Retirements, the contribution shall be a
percentage of the annual Singlc or Two Party
contributioff:~ made by ANAHEIM on behalf of active
employees, the percentage equal to 1.2 times the Safety
PERS retirement schedule, to a maximum contribution
of 95% based on the employee's age and consecutive
years of Anaheim service at the time of retirement.
ANAHEIM service shall be calculated to the nearest
complete one quarter year.
59.0452 For Disability Retirements, the contribution shall be a
percentage of the annual Single or Two Party
contributio~ made by ANAHEIM on behalf of active
employees, the percentage equal to 2% for each year of
service to a maximum contribution of 95% based on the
employee's consecutive years of Anaheim service at the
time of retirement. ANAHEIM service shall be
calculated to the nearest complete one quarter year.
59.0453 In the event an employee is eligible for both a Service
and a Disability Retirement benefit under this Article,
the employee shall receive the Service Retirement
benefit.
59.046 The ANAHEIM contribution shall be based on the Two Party
i~.~i?~i~?..~iJ;~ rate only for those employees who properly enroll a
dependent spouse ~f?~/:jor other family members prior to
retirement, and shall continue only as long as the retiree
maintains coverage for such dependents in ANAHEIM
sponsored health plans. Nothing in this article shall prevent a
retiree from properly enrolling new dependents at the retiree's
cost.
59.047 The full value of any MediCare credits provided to ANAHEIM
or MediCare surcharges imposed on ANAHEIM by virtue of a
retiree's participation or non-participation in MediCare shall be
passed on to the retiree in the form of reduced or increased
premium costs.
59.048 The surviving spouse of the retiree may continue coverage
under the same terms and conditions provided that the
surviving spouse was properly enrolled at the time of the
employee's retirement and that dependent coverage was
continuously maintained during the employee's retirement.
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59.05 Any employee who retires form ANAHEIM service and who is eligible to
receive a benefit under this Article may elect either benefit at the time of
retirement. Such election shall be irrevocable.
59.06 The following conditions shall apply to all retirees who have post retirement
medical benefit coverage under this article:
59.061 Once cancelled for any reason, coverage shall not be reinstated.
59.062 Coverage shall be cancelled for non payment of fees after three
months in arrears.
59.063 There shall be Coordination of Benefits where other insurance
exists.
59.064 Retirees may change plans and add dependents only during the
annual open enrollment period, except that the surviving spouse
of a retiree may not enroll a new spouse.
59.065 Vision Care benefits provided under the Employee Medical
plan are excluded from benefits for retired employees.
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