94-210 RESOLUTION NO. 94R- 21Q
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ANAHEIM APPROVING A LETTER OF UNDERSTANDING
BETWEEN THE CITY OF ANAHEIM AND THE ANAHEIM
FIREFIGHTERS ASSOCIATION.
WHEREAS, the Human Resources Director met and conferred with officials and
employee representatives of the Anaheim Firefighters Association, to discuss specific
concerns relative to Amending Article 54, Insurance, and Article 55, Post-Retirement
Medical Benefits, of the current Memorandum of Understanding; and
WHEREAS, a Letter of Understanding between the parties dated August 22, 1994,
has been prepared and signed, amending Article 54, Insurance, and Article 55, 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
Firefighters Association, dated August 22, 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 23rd day of August, 1994.
ATFEST:
CITY CLERK OF THE CITY OF ANAHEIM
APPROVED AS TO FORM:
CITY ATFORNEY ~F THE 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-210 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, Daly
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-210 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-210 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 FIRE ASSOCIATION
The City of Anaheim (ANAHEIM) and the Anaheim Fire 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 54 Insurance is amended as attached
effective January 1, 1995.
3 ANAHEIM and UNION agree that Article 55 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 January 1, 1988.
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 (1) Health Council representative to serve on a Health
Council task force to identify 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
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results of the mediation to the City Manager and all recognized employee
organizations by May 1, 1996.
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 FIRE ASSOCIATION
CITY of ANAHEIM, a
Municipal Corporation
By: /~~ y~
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ARTICLE 54
INSURANCE
54.1 Active Employees
54.11 Health Plans
54.111 ANAHEIM agrees to sponsc, r '~11~ the prepaid and/or
insurance health plans recommended by the Joint Committee
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54.1111 ANAHEIM shall contribute towards the monthly cost of
health coverage to the various medical plans as follows:
Employee Medical Plan not to exceed 110% of
Kaiser monthly rate through
June 30, 1994
All Other Health Plans not to exceed 100% of
Kaiser monthly rate through
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'.h..;:'. ,. 'l~ '.u : ,% \\ \JJJlIM {;' .~t,~'2l ::,~;~ ~G J:i'~ "i;'e
(~'! ,;O1.-,.';'~ ~, J,ij~ % '.',,' '.;'.,' I':'..) ,'1 ",;'.: I.l't;l"l.!Jl..,~.'}~, I.i
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ANAHEIM and the AFA agree to re open the
provisions of Article 54.1 no later than April 30, 1994
with agrccd upon changes to bc cffcctivc July 1, 1994
through the rcmaindcr of the term of this Memorandum.
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54.112 The ,-,:._ ~i~:./:~:~::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 approved by the City Council shall also
be~,ome part of this Memorandum by
and the AFA agree that the Employee Medical Plan shall be
replaced by ~[11 acceptable alle['nat/vc phm on or before January
1, 1907.
54.113 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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54.114 Proof of marriage will be required of all employees enrolled in
any City Medical plan to enroll a dependent spouse.
54.115 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.
54.116 The benefit schedules for the prepaid 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
imposed bcncfit modification rcsults in a monthly fcc increase,
the cost sharing provisions of this Memorandum in effect on the
date the fee increase is effective shall be applied to the ncw
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ARTICLE 55
POST RETIREMENT MEDICAL BENEFITS
55.1 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
..'\N,\III~IM sponsored hcallh (mcdical benel'its only) plan :rs a retiree. As ~ff Jarmary l,
1995, regular full-time employees in the cl:ts4fied .~ervice in classit'icalions listed in Appendix
o1' separation from ANAl II.'.IM service and all rclire~', ,. 'a, 4e'.' ;:c:ixel5 ,'mp.oScd o,~ o:'
phins ~hall also be eligible to particilmte in an~ AN.M II IM ~:',m,o:'.:d ce:'u,: p:~..~' ~:, a
retiree.
55.11 Employees who retired prior to Janua~ 1, 1988, 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
55.12 ~e sumlying spouse of the retiree may continue coverage under the
same terms and conditions.
55.13 Employees who were hired prior to Janua~ 1, 1984, and who retire on
or after Janua~ 1, 1988, and prior to Janua~ 1, 1994, and who meet
the requirements described below shall be eligible to participate in any
55.131 The employee must have completed at least five (5) years of
continuous, full time AN~EIM se~ice on the date of
retirement, and
55.132 ~e employee must have been awarded a retirement from the
Pnblic Employees' Retirement System ("PERS") as the reason
for separation from ~EIM seaice, and
55.133 PERS retirement benefits must commence no later than the
first day of the month following the date of separation from
~EIM seaice.
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55.134 ANAHEIM shall contribute towards the premium costs of any
ANAHEIM sponsored hcalt5 i~i:~i~:t:i~:i~:.: plan elected by the
employee up to the amount contributed by ANAHEIM towards
the cost of the Employee Medical Plan Option I in the year
prior to the employee's retirement.
,xx,x nZlXa .,hah c. om,-it,,tc to ,ards the premium costs of tiny
ANA!II~IM sponsored dental plan elected by the employee up
to the amount contributed by ANAIIEIM towards the cost of
Ihe S, fCgLl~ rd Denial Plm~ in tim year prior to the cmployee's
retirement.
55.13~ ~e sumlying spouse of the retiree may continue coverage
under the same terms and conditions.
55.14 Employees who retire on or after Janua~ 1, 1988, and who meet the
requirements described below shall be eligible to participate in any
~EIM sponsored health plan.
55.141 ~e employees must have completed at least ten (10) years of
continuous, full time ~EIM se~ice on the date of
retirement, and
55.142 ~e employee must have been awarded a retirement from
PERS as the reason for separation from ~EIM se~ice,
and
55.143 PERS retirement benefits must commence no later than the
first day of the month following the date of separation from
~EIM se~ice, OR
55.144 ~e employee must have been awarded a disability retirement
(Ordina~ or Industrial) from PERS as the reason for
separation from ~EIM se~ice.
55.145 ~EIM shall .... :~ ....
towards the premium costs of the ~EIM sponsored ~
'::~>.~.~}?'~'~:~:~g}~:{~[~:~.~ plan:~ elected by the employee according
to the following schedule:
55.1451 For Se~ice Retirements, the contribution:~ shall
be a percentage of the annual Singlc or Two
. ,,,y contributio~ made by ~EIM on
behalf of active employees the percentage equal
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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 consistent with the provisions of Article
55.17.
55.14511 An employee who retires on or after
January 1, 1993, may also use the seventy
five percent (75%) portion of sick leave
hours transferred to an employee's Sick
Leave Trust Fund Account on December
19, 1980 to calculate additional
ANAHEIM service credit. Such sick leave
hours shall be converted to additional
service credit in accordance with the
service credit conversion formula used by
the Public Employees Retirement System
at date of retirement. The additional
service credit shall be added to
ANAHEIM service and then calculated to
the nearest complete one quarter year.
Additional ANAHEIM service credit
received under this provision shall
increase the contribution made by
ANAHEIM up to a maximum of five
percent (5%) above the benefit provided
under Article 55.1451 to a maximum
combined total contribution of 95%.
55.1452 For Disability Retirements, the contributio~
shall be a percentage of the annual Single or Two
Part;,' contributioni~ 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 consistent with the provisions of Article
55.17.
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55.1453 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.
55.1454 An employee who retires on or after January 1,
1994 and prior to December 31, 1995 may upon
his/her request receive three years of additional
ANAHEIM service credit.
55.146 The ANAHEIM contribution shall be based on the Two Party
:,:~i:~i~ rate only for those employees who properly enroll a
dependent spouse i~:.~:~:'~j~or 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.
55.147 The full value of any MediCare credits provided to ANAHEIM
or MediCare surcharges imposed on ANAHEIM by virtue of a
retiree's participation or nonparticipation in MediCare shall be
passed on to the retiree in the form of reduced or increased
premium costs.
55.148 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.
55.15 Any employee who retires from 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.
55.16 The following conditions shall apply to all retirees who have post
retirement medical benefit coverage under this Article:
55.161 Once cancelled for any reason, coverage shall not be reinstated.
55.162 ANAHEIM agrees to notify the AFA when coverage may be
cancelled for nonpayment of fees. Coverage shall be cancelled
for non payment of fees after three months in arrears.
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55.163 There shall be Coordination of Benefits where other insurance
exists.
55.164 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.
55.165 Vision Care benefits provided under the Employee Medical
plan are excluded from benefits for retired employees.
55.17 Employees who have completed five or more years of continuous
full-time ANAHEIM service and who terminate employment with
ANAHEIM and are subsequently reinstated within three years of their
date of separation shall be credited with prior service for the purpose
of calculating continuous full-time ANAHEIM service upon completion
of all of the vesting requirements in Article 55.14.
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