HomeMy WebLinkAboutCouncil Agenda StatementCITY OF NATIONAL CITY, CALIFORNIA
COUNCIL AGENDA STATEMENT
MEETING DATE: August 5, 2014
AGENDA ITEM NO.
ITEM TITLE:
Resolution of the City Council of the City of National City ratifying a side letter to the Memorandum of
Understanding between the City and the National City Firefighters' Association, amending the agreement to
increase, by $10.00 per month, to a total of $20.00 per month, the retiree health benefit for eligible members of
the Firefighters' Association retiring on or after July 1, 2014.
PREPARED BY: Stacey Stevenson
PHONE: 336-4308
EXPLANATION:
The Memorandum of Understanding (MOU) between the City of National City and the National City Firefighters'
Association (FFA) includes a provision under Article 18, Section 4 for a retiree health benefit for bargaining
members who retire from the City of National City with at least 20 full years of service with the National City Fire
Department. The current level of benefit is $10 per month for each year of service, a benefit level granted by City
Council via a 2012 side letter. The side letter was triggered by a further provision in Section 4 that ties the FFA
benefit level to that of the National City Police Officers' Association (POA).
DEPARTMENT: Human Resources
APPROVED BY:
On June 17, 2014 the City Council approved an MOU with the POA increasing the benefit to $20 per month.
Consistent with the provisions of the FFA MOU contained in Article 18, Section 4, staff requests authorization to
execute a side letter with FFA to increase the retiree health benefit from $10.00 per month to $20.00 per month
effective July 1, 2014. This increase in benefit does not apply to former members of either FFA or POA that have
retired before the effective dates of the enhancement.
FINANCIAL STATEMENT: APPROVED: �/l/ Xa-- Finance
ACCOUNT NO.
APPROVED: MIS
There is no immediate financial impact associated with the action. Any future retiree health benefit payouts
associated with this enhancement will be paid from account 212-409-000-199.
ENVIRONMENTAL REVIEW:
[his is not a project and is therefore not subject to environmental review.
ORDINANCE: INTRODUCTION:
FINAL ADOPTION:
STAFF RECOMMENDATION:
Adopt the resolution approving the side letter agreement with the Firefighters' Association, increasing the retiree
health provision to $20 per month prospectively, effective July 1, 2014
BOARD / COMMISSION RECOMMENDATION:
N/A
ATTACHMENTS:
Side letter to the agreement between the FFA and the City: Article 18, Section 4 - Retiree Health Benefit
Resolution
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SIDE LETTER TO
MEMORANDUM OF UNDERSTANDING
BETWEEN NATIONAL CITY FIREFIGHTERS' ASSOCIATION,
AND THE CITY OF NATIONAL CITY
JULY, 2014
RETIREE HEALTH BENEFIT
Upon Council approval of this side letter, the City shall increase, by $10.00 per month, the
retiree health benefit for eligible members of the Firefighters' Association retiring on or after
July 1, 2014.
This side letter will serve both as a supplement to Article 18 of the Memorandum of
Understanding (MOU) and as the controlling document related to the City's contribution to
retiree medical premiums.
ARTICLE 18: EMPLOYEE AND DEPENDENT HEALTH & DENTAL INSURANCE
Section 4: Retiree Health Benefit
Employees covered by this MOU, who retire from the City of National City with at least 20 full
years of service with the National City Fire Department, shall receive a monthly contribution
towards their medical premium as follows:
a. For employees who retire after July 1, 2002 and before July 1, 2011: $5/month for each
year of service with National City Fire Department
b. For employees who retire on or between July 1, 2011 and June 30, 2014: $10/month for
each year of service with National City Fire Department
c. For employees who retire on or after July 1, 2014: $20/month for each year of service
with National City Fire Department
This contribution shall continue until reaching age 65. A qualifying retiree may receive these
contributions even if not enrolled in a City health plan, so long as the retiree annually provides
the City with written proof (e.g. a copy of health insurance invoice and payment) that the retiree
is using the contributions to pay for health premiums and understands that the retiree is solely
responsible for any taxes that might be due as a result of the City's contributions.
Terminal vacation pay and/or sick leave payment upon retirement or PERS adding unused sick
leave accruals toward retirement credit shall not be included in the calculation of 20 full years of
service. If the City increases this benefit for the Police Officers' Association, that increase shall
also apply to the Firefighters' Association, but not to former members of the FFA already retired
at the time the increase is made, unless the increase for the POA applies to its former members
already retired at the time the increase is implemented.
Retirees eligible for this benefit are responsible for paying the Health Insurance Premium and the
City will forward this benefit amount on a monthly basis directly to the Retiree. This benefit will
be canceled upon non-payment of premium or otherwise becoming ineligible. The Retiree is
also responsible for notification to the City of address change and health coverage from another
source.
TENTATIVE AGREEMENT
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