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HomeMy WebLinkAbout08-013 - Resolutions RESOLUTION NO. FD 08-013 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE RANCHO CUCAMONGA FIRE PROTECTION DISTRICT, RANCHO CUCAMONGA, CALIFORNIA, FIXING THE EMPLOYER'S CONTRIBUTION UNDER THE PUBLIC EMPLOYEE'S MEDICAL AND HOSPITAL CARE ACT WHEREAS, Government Code Section 22892(a) provides that a local agency contracting under the Public Employees' Medical and Hospital Care Act (the "Act") shall fix the amount of the employer's contribution at an amount not less than the amount required under Section 22892(b) of the Act; and WHEREAS, the Rancho Cucamonga Fire Protection District is a local agency under the Act; NOW THEREFORE, BE IT RESOLVED THAT: 1. The employer's contribution for each employee or annuitant shall be the amount necessary to pay the full cost of his/her enrollment, including the enrollment of family members in a health benefits plan up to the minimum amount required under Section 22892(b) of the Act, plus administrative fees and Contingency Reserve Fund assessments. Please see the following page for formal adoption,certification and signatures Resolution No. FD 08-013 Page 2 of 23 PASSED, APPROVED, AND ADOPTED this 2nd day of April 2008. AYES: Gutierrez, Kurth, Michael, Spagnolo, Williams NOES: None ABSENT: None ABSTAINED: None Donald J. Kurth, ., President ATTEST: AaAw Q &-Ia� Debra J. Ada6g*"Secretary I, DEBRA J. ADAMS, SECRETARY of the Rancho Cucamonga Fire Protection District, do hereby certify that the foregoing Resolution was duly passed, approved, and adopted by the Board of Directors of the Rancho Cucamonga Fire Protection District, at a Regular Meeting of said Board held on the 2"d day of April, 2008. Executed this 3`d day of April 2008 at Rancho Cucamonga, California. ebra J. Adams, Oe etary Resolution No. FD 08-013 Page 3 of 23 AGREEMENT BETWEEN REPRESENTATIVES OF THE RANCHO CUCAMONGA FIRE PROTECTION DISTRICT AND THE RANCHO CUCAMONGA FIREFIGHTERS LOCAL 2274 WHEREAS, the Rancho Cucamonga Fire Protection District("District") and the Rancho Cucamonga Professional Firefighters' Association ("RCPFA") have entered into a Memorandum of Understanding("MOU") covering the period of July 1, 2006 through June 30, 2009; WHEREAS, Article II, Section 5 (A) (2) of the MOU provides for a fully paid employee and family health insurance program for all existing full-time continuous employees and retirees as of November 17, 1994; WHEREAS, Article R, Section 5 (A) (2) also provides that"such health benefits are vested for all full time continuous and retired employees as of November 17, 1994"; WHEREAS, Article II, Section 5 (A) (3) of the MOU sets forth that the District will provide fully paid employee and family health insurance for all full-time continuous employees hired after November 17, 1994, at the lowest fully paid family insurance plan offered through the Public Employees' Medical and Hospital Care Act (PEMHCA") program; WHEREAS, Article II, Section 5 (A) (4) of the MOU provides that employees hired after November 17, 1994, shall be responsible for paying all premiums for medical insurance through PEMHCA, upon their retirement (i.e., the District shall not provide retiree insurance to employees hired after November 17; 1994); WHEREAS, the District learned that the existing structure of its medical insurance benefit is potentially suspended or superseded by provisions of the Government Code; WHEREAS, Article X of the MOU provides for the District and employees "to reopen negotiations regarding the suspended or superseded [...] provision with the understanding that the total compensation to employees under [the] MOU shall not be reduced or increased [...]; WHEREAS, the District and RCPFA engaged in negotiations concerning medical insurance benefits and have agreed to modify the MOU to reflect the mutual agreement of the parties as set forth herein; and WHEREAS, both the District and RCPFA wish to avoid and resolve all actual or potential grievances, disputes, controversies, claims, and actions between them regarding the level and mechanism of providing contracted medical insurance benefits owed to pre and post November 17, 1994, employees and retirees in order to make their peace and avoid the uncertainties of litigation, investigation or review, and the expenses and costs incident thereto; 1 of 7 Resolution No. FD 08-013 Page 4 of 23 NOW, THEREFORE, THE PARTIES do hereby agree as follows: For emplovees and retirees hired on or before 11/17/94: 1. Employees and retirees hired on or before November 17, 1994 have a vested right to fully paid medical insurance for the employee/retiree an any eligible dependents according to whatever plan is selected by the employee/retiree. 2. The Parties have agreed that the District shall amend it's resolution under PEMHCA to provide that the District shall pay on behalf of all active employees, retirees and eligible dependents the statutory minimum contribution for medical insurance mandated under PEMHCA. 3. In addition to paying the PEMHCA statutory minimum set for in paragraph 2, above, the District and RCPFA have agreed to establish a flexible benefit package that will reimburse to each eligible active employee and retiree hired on or before November 17; 1994, the difference between the PEMHCA statutory minimum contribution and one hundred percent (100%) of the cost of the health insurance plan selected by the employee/retiree for the employee/retiree and eligible dependents. The flexible benefit package will be effective coincident with the effective date of the change outlined in paragraph 2, above. 3.1 The District's payments for medical insurance benefits are intended to be non-taxable,to the extent permitted by law. 3.2 If, as a result of modifying the delivery mechanism of the insurance benefits set forth in paragraph 1, above, from one wherein the District paid CaIPERS directly for 100% of the cost of insurance benefits for employees/retirees and eligible dependents, it is determined at any time in the future there are adverse tax consequences to the employee/retiree the District shall be required to augment its reimbursement by whatever amount is necessary to cause the employee/retiree to be made whole, as if the reimbursement were delivered in a tax-exempt manner. 4. The reimbursement set forth in paragraph 3, above, shall be accomplished by paying the employee or retiree at the beginning of each calendar month the difference between the PEMHCA statutory minimum and the amount of the health insurance premium for the employee or retiree and eligible dependents. The parties intend that, to the extent possible, the employee/retiree be reimbursed prior to the time payment is due to the insurance carrier. The District will use records available from Ca1PERS to verify employee or retiree enrollment in health insurance and to ascertain the amount it owes to each employee and/or retiree. If the District cannot obtain sufficient information from Ca1PERS to determine the enrollment and premium amounts, it may require employees and retirees to provide appropriate proof of enrollment and premium payments. 2 of 7 Resolution No. FD 08-013 Page 5 of 23 5. The right of a surviving spouse and/or dependents of a deceased active employee or retiree to continue to receive District paid retiree medical benefits described in paragraphs 1-4, above, is dependent upon either(1) the Ca1PERS pension option selected by the retiree, or(2) the continued right of such persons to participate in PEMHCA upon the death of an active employee: The surviving spouse or dependents of a retiree that selects a pension option that does not provide for continuing benefits to be paid to the retiree's surviving spouse/dependents will not be entitled to receive District paid retiree medical benefits upon the death of the retiree. The surviving spouse or dependents of a retiree that selects a pension option that does provide for a survivors continued pension, will receive District paid benefits for life. Should the District no longer participate in PEMHCA, the rights of a surviving spouse or dependents to District paid retiree medical benefits is likewise premised upon the retirement option selected by the retiree or the survivors continued right to a pension allowance from CaIPERS. 6. The right to receive fully paid medical insurance for employees/retirees and their eligible dependents may be modified only by the mutual written agreement of the District and the individual employee or retiree affected. Other aspects of the health insurance benefits for employees and retirees, including but not limited to the District's continued participation in PEMHCA and the structure of the District's insurance plans, are matters controlled by the MOU and the collective bargaining process and, accordingly, may be modified in a subsequent MOU or as otherwise permitted by law. For emalovees and retirees hired after 11/17/94: 7. Employees hired after November 17, 1994 have a right while employed by the District to fully paid medical insurance for the employee and any eligible dependents, not to exceed the cost of the least expensive family plan offered. Upon retirement, such employees have no right to District paid health benefits, except as may be mandated under PEMHCA. 8. The Parties have agreed that the District shall amend its resolution under PEMHCA to provide that the District shall pay on behalf of all active employees, retirees and eligible dependents the statutory minimum contribution for medical insurance mandated under PEMHCA. 9. In addition to paying the PEMHCA statutory minimum set forth in paragraph 8, above, the District and RCPFA have agreed to establish a flexible benefit package that will reimburse to each eligible active employee hired after November 17, 1994, the difference between the PEMHCA statutory minimum contribution and one hundred percent (100%) of the cost of the plan selected by the employee and eligible dependents, not to exceed the cost of the least expensive family health insurance plan offered by the District. The flexible benefit package will be effective coincident with the effective date of the change outlined in paragraph 8, above. 3 of 7 Resolution No. FD 08-013 Page 6 of 23 9.1 The District's payments for medical insurance benefits are intended to be non-taxable, to the extent permitted by law. 9.2 If, as a result of modifying the delivery mechanism of the insurance benefits set forth in paragraph 7, above, from one wherein the District paid CalPERS directly for 100% of the cost of insurance benefits for employees/retirees and eligible dependents, it is determined at any time in the future there are adverse tax consequences for the employee, the District shall be required to augment its reimbursement by . whatever amount is necessary to cause the employee/retiree to be made whole, as if the reimbursement were delivered in a tax-exempt manner. 10. The reimbursement set forth in paragraph 9, above, shall be accomplished by paying the employee at the beginning of each calendar month the difference between the PEMHCA statutory minimum and the amount of the health insurance premium for the employee and eligible dependents. The parties intend that, fo the extent possible, the employee shall be reimbursed prior to the time payment is due to the insurance carrier. The District will use records available from Ca1PERS to verify employee or retiree enrollment in health insurance and to ascertain the amount it owes to each employee. If the District cannot obtain sufficient information from Ca1PERS to determine the enrollment and premium amounts, it may require employees and retirees to provide appropriate proof of enrollment and premium payments. 11. The right of an active employee hired after November 17, 1994 to receive a District contribution for fully paid medical insurance for the employee and eligible dependents may be modified only by (1) the mutual written agreement of the District and RCPFA, or(2) a health insurance mandate providing for contribution levels for active employees and dependents that are equal to, or exceed, the level provided herein. The District acknowledges that the right of an active employee hired after November 1.7, 1994 to receive a District contribution for fully paid medical insurance for the employee and eligible dependents not to exceed the cost of the least expensive family plan offered is not subject to unilateral modification by the District, including under Government Code Section 3505.4 or rules and regulations adopted under Government Code Section 3507. 12. Other aspects of the health insurance benefits for employees and retirees, including but not limited to the District's continued participation in PEMHCA and the structure of the District's insurance plans, are matters controlled by the MOU and the collective bargaining process and, accordingly, may be modified in a subsequent MOU or as otherwise permitted by law. 4of7 Resolution No. FD 08-013 Page 7 of 23 Provisions applicable to all employees and retirees regardless of hire date: 13. The parties acknowledge that the decision to participate in PEMHCA is subject to the duty to meet and confer in good faith. In the event the District unilaterally implements a change in health insurance benefit providers or plans (in compliance with its meet-and-confer obligations and after exhausting applicable impasse procedures, if any), any such subsequent provider or plan must offer a lowest-cost family plan that has benefit levels that are, at a minimum, substantially similar to the benefit levels of the then-current plan available through PEMHCA. 14. No waiver by any party of any breach of any term or provision of this Agreement shall be construed to be, nor be, a waiver of any preceding, concurrent or succeeding breach of the same or any other term or provision hereof. No waiver shall be binding unless in writing and signed by the party to be charged or held bound. 15. Should any provision of this Agreement be declared or determined by any court to be illegal or invalid, the validity of the remaining parts, terms or provisions shall not be affected thereby and said illegal or invalid part, term or provisions shall be deemed not to be part of this Agreement. Neither the District nor RCPFA shall take or support any action to declare any part, provision or benefit herein to be illegal, invalid or unenforceable. 16. The recitals herein shall be deemed an integral part of this Agreement. 17. The parties and individuals executing this Agreement represent and warrant that each of them has the authority to execute this Agreement on behalf of the party on whose behalf said person is purporting to execute this Agreement. 18. There shall be no modification of this Agreement except in writing signed by the parties affected thereby. This agreement is independent of the existing MOU, or any subsequent MOUs and its terms shall survive expiration of such MOUS. 19. This Agreement is binding upon, and shall insure to the benefit of, the heirs, executors, administrators, officers, elected officials, representatives, successors and assigns of the respective parties hereto and each of them. 20. The above Agreement shall be effective as of the date of the last signature on the Agreement. 5 of 7 Resolution No. FD 08-013 Page 8 of 23 IT IS AGREED: RANCHO CUCAMONGA RANCHO CUCAMONGA FIRE FIGHTERS LOCAL 2274 FIRE PROTECTION DISTRICT )Irfi7� anurns, Vice Pres'16ee Dae Jack Lam Date f eryl Roberts Chief Executive Officer Representative APPROVED AS TO FORM ATTEST James Markman Date Debra J. Adams, CMC Date City Attomey City Clerk 6of7 Resolution No. FD 08-013 Page 9 of 23 Rick Clabby Date Susan DeAntonio Date Mike Ploung Date Vic Rodriguez Date Steve Campbell Date Paul Lenze Date Jim Dague Date Steve Kilmer Date Bob Eggers Date Gerry Campbell Date Mike Redmond Date Bill Kirkpatrick Date i Pat Proulx Date Kevin Walton Date Jim Townsend Date Jeff Roeder Date Scott Sorensen Date Brent Roberts. Date Tim Fejeran Date Mike Jerkins Date Dave Larkin Date Pete Magnuson Date Eric Noreen Date Rich Toll Date Danny Holt Date Jay Davenport Date Cheryl Roberts Date Tom O'Brien Date Ivan Rojer Date 7of7 Resolution No. FD 08-013 Page 10 of 23 AGREEMENT BETWEEN REPRESENTATIVES OF THE RANCHO CUCAMONGA FIRE PROTECTION DISTRICT AND THE RANCHO CUCAMONGA FIRE PROTECTION DISTRICT FIRE MANAGEMENT EMPLOYEES BARGAINING GROUP WHEREAS,the Rancho Cucamonga Fire Protection District ("District") and the Rancho Cucamonga Fire Protection District Fire Management Employees Bargaining Group ("Fire MEG")have entered into a Memorandum of Understanding("MOU") covering the period of July 1, 2006 through June 30, 2009; WHEREAS,Article II, Section 5 (A) (2) of the MOU provides for a fully paid employee and family health insurance program for all existing full-time continuous employees and retirees as of November 17, 1994; WHEREAS,Article II, Section 5 (A) (2) also provides that "such health benefits are vested for all full time continuous and retired employees as of November 17, 1994"; WHEREAS, Article 11, Section 5 (A) (3) of the MOU sets forth that the District will provide fully paid employee and family health insurance for all full-time continuous employees hired after November 17, 1994, at the lowest fully paid family insurance plan offered through the Public Employees' Medical and Hospital Care Act (PEMHCA") program; WHEREAS,Article II, Section 5 (A) (4) of the MOU provides that employees hired after November 17, 1994, shall be responsible for paying all premiums for medical insurance through PEMHCA, upon their retirement (i.e., the District shall not provide retiree insurance to employees hired after November 17, 1994); WHEREAS,the District learned that the existing structure of its medical insurance benefit is potentially suspended or superseded by provisions of the Government Code; WHEREAS, Article X of the MOU provides for the District and employees"to reopen negotiations regarding the suspended or superseded [...] provision with the understanding that the total compensation to employees under [the] MOU shall not be reduced or increased [...]; WHEREAS, the District and Fire MEG engaged in negotiations concerning medical insurance benefits and have agreed to modify the MOU to reflect the mutual agreement of the parties as set forth herein; and WHEREAS,both the District and Fire MEG wish to avoid and resolve all actual or potential grievances, disputes, controversies, claims, and actions between them regarding the level and mechanism of providing contracted medical insurance benefits owed to pre and post November 17, 1994, employees and retirees in order to make their peace and avoid the uncertainties of litigation, investigation or review, and the expenses and costs incident thereto; 1 of 7 Resolution No. FD 08-013 Page 11 of 23 NOW,THEREFORE,THE PARTIES do hereby agree as follows: For emalovees and retirees hired on or before 11/17/94: 1. Employees and retirees hired on or before November 17, 1994 have a vested right to fully paid medical insurance for the employee/retiree an any eligible dependents according to whatever plan is selected by the employee/retiree. 2. The Parties have agreed that the District shall amend it's resolution under PEMHCA to provide that the District shall pay on behalf of all active employees, retirees and eligible dependents the statutory minimum contribution for medical insurance mandated under PEMHCA. 3. In addition to paying the PEMHCA statutory minimum set for in paragraph 2, above,the District and Fire MEG have agreed to establish a flexible benefit package that will reimburse to each eligible active employee and retiree hired on or before November 17, 1994, the difference between the PEMHCA statutory minimum contribution and one hundred percent (100%) of the cost of the health insurance plan selected by the employee/retiree for the employee/retiree and eligible dependents. The flexible benefit package will be effective coincident with the effective date of the change outlined in paragraph 2, above. 3.1 The District's payments for medical insurance benefits are intended to be non-taxable, to the extent permitted by law. 3.2 If, as a result of modifying the delivery mechanism of the insurance benefits set forth in paragraph 1, above, from one wherein the District paid Ca1PERS directly for 100%of the cost of insurance benefits for employees/retirees and eligible dependents, it is determined at any time in the future there are adverse tax consequences to the employee/retiree the District shall be required to augment its reimbursement by whatever amount is necessary to cause the employee/retiree to be made whole, as if the reimbursement were delivered in a tax-exempt manner. 4. The reimbursement set forth in paragraph 3, above, shall be accomplished by paying the employee or retiree at the beginning of each calendar month the difference between the PEMHCA statutory minimum and the amount of the health insurance premium for the employee or retiree and eligible dependents. The parties intend that, to the extent possible, the employee/retiree be reimbursed prior to the time payment is due to the insurance carrier. The District will use records available from CalPERS to verify employee or retiree enrollment in health insurance and to ascertain the amount it owes to each employee and/or retiree. If the District cannot obtain sufficient information from Ca1PERS to determine the enrollment and premium amounts, it may require employees and retirees to provide appropriate proof of enrollment and premium payments. 2of7 Resolution No. FD 08-013 Page 12 of 23 5. The right of a surviving spouse and/or dependents of a deceased active employee or retiree to continue to receive District paid retiree medical benefits described in paragraphs 1-4, above, is dependent upon either(1) the Ca1PERS pension option selected by the retiree, or(2) the continued right of such persons to participate in PEMHCA upon the death of an active employee. The surviving spouse or dependents of a retiree that selects a pension option that does not provide for continuing benefits to be paid to the retiree's surviving spouse/dependents will not be entitled to receive District paid retiree medical benefits upon the death of the retiree. The surviving spouse or dependents of a retiree that selects a pension option that does provide for a survivors continued pension,will receive District paid benefits for life. Should the District no longer participate in PEMHCA, the rights of a surviving spouse or dependents to District paid retiree medical benefits is likewise premised upon the retirement option selected by the retiree or the survivors continued right to a pension allowance from CalPERS. 6. The right to receive fully paid medical insurance for employees/retirees and their eligible dependents may be modified only by the mutual written agreement of the District and the individual employee or retiree affected. Other aspects of the health insurance benefits for employees and retirees, including but not limited to the District's continued participation in PEMHCA and the structure of the District's insurance plans, are matters controlled by the MOU and the collective bargaining process and, accordingly, may be modified in a subsequent MOU or as otherwise permitted by law. For emplovees and retirees hired after 11/17/94: 7. Employees hired after November 17, 1994 have a right while employed by the District to fully paid medical insurance for the employee and any eligible dependents, not to exceed the cost of the least expensive family plan offered. Upon retirement, such employees have no right to District paid health benefits, except as may be mandated under PEMHCA. 8. The Parties have agreed that the District shall amend its resolution under PEMHCA to provide that the District shall pay on behalf of all active employees, retirees and eligible dependents the statutory minimum contribution for medical insurance mandated under PEMHCA. 9. In addition to paying the PEMHCA statutory minimum set forth in paragraph 8, above, the District and Fire MEG have agreed to establish a flexible benefit package that will reimburse to each eligible active employee hired after November 17, 1994, the difference between the PEMHCA statutory minimum contribution and one hundred percent(100%) of the cost of the plan selected by the employee and eligible dependents,not to exceed the cost of the least expensive family health insurance plan offered by the District. The flexible benefit package will be effective coincident with the effective date of the change outlined in paragraph 8, above. 3 of 7 Resolution No. FD 08-013 Page 13 of 23 9.1 The District's payments for medical insurance benefits are intended to be non-taxable,to the extent permitted by law. 9.2 If, as a result of modifying the delivery mechanism of the insurance benefits set forth in paragraph 7, above, from one wherein the District paid Ca1PERS directly for 100% of the cost of insurance benefits for employees/retirees and eligible dependents, it is determined at any time in the future there are adverse tax consequences for the employee, the District shall be required to augment its reimbursement by whatever amount is necessary to cause the employee/retiree to be made whole, as if the reimbursement were delivered in a tax-exempt manner. 10. The reimbursement set forth in paragraph 9, above, shall be accomplished by paying the employee at the beginning of each calendar month the difference between the PEMHCA statutory minimum and the amount of the health insurance premium for the employee and eligible dependents. The parties intend that, to the extent possible, the employee shall be reimbursed prior to the time payment is due to the insurance carrier. The District will use records available from Ca1PERS to verify employee or retiree enrollment in health insurance and to ascertain the amount it owes to each employee. If the District cannot obtain sufficient information from Ca1PERS to determine the enrollment and premium amounts, it may require employees and retirees to provide appropriate proof of enrollment and premium payments. 11. The right of an active employee hired after November 17, 1994 to receive a District contribution for fully paid medical insurance for the employee and eligible dependents may be modified only by(1) the mutual written agreement of the District and FIRE MEG, or(2) a health insurance mandate providing for contribution levels for active employees and dependents that are equal to, or exceed, the level provided herein. The District acknowledges that the right of an active employee hired after November 17, 1994 to receive a District contribution for fully paid medical insurance for the employee and eligible dependents not to exceed the cost of the least expensive family plan offered is not subject to unilateral modification by the District, including under Government Code Section 3505.4 or rules and regulations adopted under Government Code Section 3507. 12. Other aspects of the health insurance benefits for employees and retirees, including but not limited to the District's continued participation in PEMHCA and the structure of the District's insurance plans, are matters controlled by the MOU and the collective bargaining process and, accordingly,may be modified in a subsequent MOU or as otherwise permitted by law. 4of7 Resolution No. FD 08-013 Page 14 of 23 Provisions applicable to all emplovees and retirees regardless of hire date: 13. The parties acknowledge that the decision to participate in PEMHCA is subject to the duty to meet and confer in good faith. In the event the District unilaterally implements a change in health insurance benefit providers or plans (in compliance with its meet-and-confer obligations and after exhausting applicable impasse procedures, if any), any such subsequent provider or plan must offer a lowest-cost family plan that has benefit levels that are, at a minimum, substantially similar to the benefit levels of the then-current plan available through PEMHCA. 14. No waiver by any party of any breach of any term or provision of this Agreement shall be construed to be, nor be, a waiver of any preceding, concurrent or succeeding breach of the same or any other term or provision hereof. No waiver shall be binding unless in writing and signed by the party to be charged or held bound. 15. Should any provision of this Agreement be declared or determined by any court to be illegal or invalid, the validity of the remaining parts, terms or provisions shall not be affected thereby and said illegal or invalid part, term or provisions shall be deemed not to be part of this Agreement. Neither the District nor FIRE MEG shall take or support any action to declare any part, provision or benefit herein to be illegal, invalid or unenforceable. 16. The recitals herein shall be deemed an integral part of this Agreement. 17. The parties and individuals executing this Agreement represent and warrant that each of them has the authority to execute this Agreement on behalf of the party on whose behalf said person is purporting to execute this Agreement. 18. There shall be no modification of this Agreement except in writing signed by the parties affected thereby. This agreement is independent of the existing MOU, or any subsequent MOUS and its terms shall survive expiration of such MOUS. 19. This Agreement is binding upon, and shall insure to the benefit of, the heirs, executors, administrators, officers, elected officials,representatives, successors and assigns of the respective parties hereto and each of them. 20. The above Agreement shall be effective as of the date of the last signature on the Agreement. 5 of 7 Resolution No. FD 08-013 Page 15 of 23 IT IS AGREED: RANCHO CUCAMONGA RANCHO CUCAMONGA FIRE M.E.G FIRE PROTECTION DISTRICT Mi ce Bell, Date Jack Lam Date Representative Chief Executive Officer APPROVED AS TO FORM ATTEST James Markman Date Debra J. Adams, CMC Date City Attorney City Clerk 6of7 Resolution No. FD 08-013 Page 16 of 23 David Be Date E C atalo 7Date Mic a�,l Bell Date Don loughesy Mike Costello Date 6of6 Resolution No. FD 08-013 Page 17 of 23 AGREEMENT BETWEEN REPRESENTATIVES OF THE RANCHO CUCAMONGA FIRE PROTECTION DISTRICT AND THE RANCHO CUCAMONGA FIRE SUPPORT SERVICES ASSOCIATION WHEREAS,the Rancho Cucamonga Fire Protection District ("District") and the Rancho Cucamonga Fire Support Services Association ("RCFSSA")have entered into a Memorandum of Understanding("MOU") covering the period of July 1, 2006 through June 30, 2009; WHEREAS,Article II, Section 5 (A) (2) of the MOU provides for a fully paid employee and family health insurance program for all existing full-time continuous employees and retirees as of November 17, 1994; WHEREAS,Article II, Section 5 (A) (2) also provides that"such health benefits are vested for all full time continuous and retired employees as of November 17, 1994"; WHEREAS, Article II, Section 5 (A) (3) of the MOU sets forth that the District will provide fully paid employee and family health insurance for all full-time continuous employees hired after November 17, 1994, at the lowest fully paid family insurance plan offered through the Public Employees' Medical and Hospital Care Act (PEMHCA") program; WHEREAS,Article II, Section 5 (A) (4) of the MOU provides that employees hired after November 17, 1994, shall be responsible for paying all premiums for medical insurance through PEMHCA,upon their retirement (i.e., the District shall not provide retiree insurance to employees hired after November 17, 1994); WHEREAS, the District learned that the existing structure of its medical insurance benefit is potentially suspended or superseded by provisions of the Government Code; WHEREAS,Article X of the MOU provides for the District and employees "to reopen negotiations regarding the suspended or superseded [...] provision with the understanding that the total compensation to employees under [the] MOU shall not be reduced or increased [...1; WHEREAS, the District and RCFSSA engaged in negotiations concerning medical insurance benefits and have agreed to modify the MOU to reflect the mutual agreement of the parties as set forth herein; and WHEREAS,both the District and RCFSSA wish to avoid and resolve all actual or potential grievances, disputes, controversies, claims, and actions between them regarding the level and mechanism of providing contracted medical insurance benefits owed to pre and post November 17, 1994, employees and retirees in order to make their peace and avoid the uncertainties of litigation, investigation or review, and the expenses and costs incident thereto; I of 7 Resolution No. FD 08-013 Page 18 of 23 NOW, THEREFORE, THE PARTIES do hereby agree as follows: For emnlovees and retirees hired on or before 11/17/94: 1. Employees and retirees hired on or before November 17, 1994 have a vested right to fully paid medical insurance for the employee/retiree an any eligible dependents according to whatever plan is selected by the employee/retiree. 2. The Parties have agreed that the District shall amend it's resolution under PEMHCA to provide that the District shall pay on behalf of all active employees, retirees and eligible dependents the statutory minimum contribution for medical insurance mandated under PEMHCA. 1 3. In addition to paying the PEMHCA statutory minimum set for in paragraph 2, above, the District and RCFSSA have agreed to establish a flexible benefit package that will reimburse to each eligible active employee and retiree hired on or before November 17, 1994, the difference between the PEMHCA statutory minimum contribution and one hundred percent (100%) of the cost of the health insurance plan selected by the employee/retiree for the employee/retiree and eligible dependents. The flexible benefit package will be effective coincident with the effective date of the change outlined in paragraph 2, above. 3.1 The District's payments for medical insurance benefits are intended to be non-taxable,to the extent permitted by law. 3.2 If, as a result of modifying the delivery mechanism of the insurance benefits set forth in paragraph 1, above, from one wherein the District paid CalPERS directly for 100%of the cost of insurance benefits for employees/retirees and eligible dependents, it is determined at any time in the future there are adverse tax consequences to the employee/retiree the District shall be required to augment its reimbursement by whatever amount is necessary to cause the employee/retiree to be made whole, as if the reimbursement were delivered in a tax-exempt manner. 4. The reimbursement set forth in paragraph 3, above, shall be accomplished by paying the employee or retiree at the beginning of each calendar month the difference between the PEMHCA statutory minimum and the amount of the health insurance premium for the employee or retiree and eligible dependents. The parties intend that,to the extent possible, the employee/retiree be reimbursed prior to the time payment is due to the insurance carrier. The District will use records available from Ca1PERS to verify employee or retiree enrollment in health insurance and to ascertain the amount it owes to each employee and/or retiree. If the District cannot obtain sufficient information from Ca1PERS to determine the enrollment and premium amounts, it may require employees and retirees to provide appropriate proof of enrollment and premium payments. 2 of 7 Resolution No. FD 08-013 Page 19 of 23 5. The right of a surviving spouse and/or dependents of a deceased active employee or retiree to continue to receive District paid retiree medical benefits described in paragraphs 1-4, above, is dependent upon either(1)the Ca1PERS pension option selected by the retiree, or(2) the continued right of such persons to participate in PEMHCA upon the death of an active employee. The surviving spouse or dependents of a retiree that selects a pension option that does not provide for continuing benefits to be paid to the retiree's surviving spouse/dependents will not be entitled to receive District paid retiree medical benefits upon the death of the retiree. The surviving spouse or dependents of a retiree that selects a pension option that does provide for a survivors continued pension, will receive District paid benefits for life. Should the District no longer participate in PEMHCA, the rights of a surviving spouse or dependents to District paid retiree medical benefits is likewise premised upon the retirement option selected by the retiree or the survivors continued right to a pension allowance from CalPERS. 6. The right to receive fully paid medical insurance for employees/retirees and their eligible dependents may be modified only by the mutual written agreement of the District and the individual employee or retiree affected. Other aspects of the health insurance benefits for employees and retirees, including but not limited to the District's continued participation in PEMHCA and the structure of the District's insurance plans, are matters controlled by the MOU and the collective bargaining process and, accordingly, may be modified in a subsequent MOU or as otherwise permitted by law. For emplovees and retirees hired after 11/17/94: 7. Employees hired after November 17, 1994 have a right while employed by the District to fully paid medical insurance for the employee and any eligible dependents,not to exceed the cost of the least expensive family plan offered. Upon retirement, such employees have no right to District paid health benefits, except as may be mandated under PEMHCA. S. The Parties have agreed that the District shall amend its resolution under PEMHCA to provide that the District shall pay on behalf of all active employees, retirees and eligible dependents the statutory minimum contribution for medical insurance mandated under PEMHCA. 9. In addition to paying the PEMHCA statutory minimum set forth in paragraph 8, above, the District and RCFSSA have agreed to establish a flexible benefit package that will reimburse to each eligible active employee hired after November 17, 1994, the difference between the PEMHCA statutory minimum contribution and one hundred percent (100%) of the cost of the plan selected by the employee and eligible dependents,not to exceed the cost of the least expensive family health insurance plan offered by the District. The flexible benefit package will be effective coincident with the effective date of the change outlined in paragraph 8, above. 3 of 7 Resolution No. FD 08-013 Page 20 of 23 9.1 The District's payments for medical insurance benefits are intended to be non-taxable, to the extent permitted by law. 9.2 If, as a result of modifying the delivery mechanism of the insurance benefits set forth in paragraph 7, above, from one wherein the District paid Ca1PERS directly for 100%of the cost of insurance benefits for employees/retirees and eligible dependents, it is determined at any time in the future there are adverse tax consequences for the employee, the District shall be required to augment its reimbursement by whatever amount is necessary to cause the employee/retiree to be made whole, as if the reimbursement were delivered in a tax-exempt manner. 10. The reimbursement set forth in paragraph 9, above, shall be accomplished by paying the employee at the beginning of each calendar month the difference between the PEMHCA statutory minimum and the amount of the health insurance premium for the employee and eligible dependents. The parties intend that, to the extent possible, the employee shall be reimbursed prior to the time payment is due to the insurance carrier. The District will use records available from Ca1PERS to verify employee or retiree enrollment in health insurance and to ascertain the amount it owes to each employee. If the District cannot obtain sufficient information from Ca1PERS to determine the enrollment and premium amounts, it may require employees and retirees to provide appropriate proof of enrollment and premium payments. 11. The right of an active employee hired after November 17, 1994 to receive a District contribution for fully paid medical insurance for the employee and eligible dependents may be modified only by(1) the mutual written agreement of the District and RCFSSA, or(2) a health insurance mandate providing for contribution levels for active employees and dependents that are equal to, or exceed,the level provided herein. The District acknowledges that the right of an active employee hired after November 17, 1994 to receive a District contribution for fully paid medical insurance for the employee and eligible dependents not to exceed the cost of the least expensive family plan offered is not subject to unilateral modification by the District, including under Government Code Section 3505.4 or rules and regulations adopted under Government Code Section 3507. 12. Other aspects of the health insurance benefits for employees and retirees, including but not limited to the District's continued participation in PEMHCA and the structure of the District's insurance plans, are matters controlled by the MOU and the collective bargaining process and, accordingly, may be modified in a subsequent MOU or as otherwise permitted by law. 4of7 Resolution No. FD 08-013 Page 21 of 23 Provisions applicable to all employees and retirees regardless of hire date: 13. The parties acknowledge that the decision to participate in PEMHCA is subject to the duty to meet and confer in good faith. In the event the District unilaterally implements a change in health insurance benefit providers or plans (in compliance with its meet-and-confer obligations and after exhausting applicable impasse procedures, if any), any such subsequent provider or plan must offer a lowest-cost family plan that has benefit levels that are, at a minimum, substantially similar to the benefit levels of the then-current plan available through PEMHCA. 14. No waiver by any party of any breach of any term or provision of this Agreement shall be construed to be, nor be, a waiver of any preceding, concurrent or succeeding breach of the same or any other term or provision hereof. No waiver shall be binding unless in writing and signed by the party to be charged or held bound. 15. Should any provision of this Agreement be declared or determined by any court to be illegal or invalid, the validity of the remaining parts, terms or provisions shall not be affected thereby and said illegal or invalid part, term or provisions shall be deemed not to be part of this Agreement. Neither the District nor RCFSSA shall take or support any action to declare any part,provision or benefit herein to be illegal, invalid or unenforceable. 16. The recitals herein shall be deemed an integral part of this Agreement. 17. The parties and individuals executing this Agreement represent and warrant that each of them has the authority to execute this Agreement on behalf of the party on whose behalf said person is purporting to execute this Agreement. 18. There shall be no modification of this Agreement except in writing signed by the parties affected thereby. This agreement is independent of the existing MOU, or any subsequent MOUS and its terms shall survive expiration of such MOUS: 19. This Agreement is binding upon, and shall insure to the benefit of, the heirs, executors, administrators, officers, elected officials, representatives, successors and assigns of the respective parties hereto and each of them. 20. The above Agreement shall be effective as of the date of the last signature on the Agreement. 5 of 7 Resolution No. FD 08-013 Page 22 of 23 IT IS AGREED: RANCHO CUCAMONGA RANCHO CUCAMONGA FIRE SUPPORT SERVICES ASSOC. FIRE PROTECTION DISTRICT aWjo 4Y fiche le Seckler, Date Jack Lam Date Representative Chief Executive Officer APPROVED AS TO FORM ATTEST James Markman Date Debra J. Adams, CMC Date City Attorney City Clerk 6of7 Resolution No. FD 08-013 Page 23 of 23 Sam Dominick Date Robin Brock Date Tony Varney Date 7of7 C 6 rD AGREEMENT BETWEEN REPRESENTATIVES OF THE RANCHO CUCAMONGA FIRE PROTECTION DISTRICT AND THE RANCHO CUCAMONGA FIREFIGHTERS LOCAL 2274 WHEREAS, the Rancho Cucamonga Fire Protection District ("District") and the Rancho Cucamonga Professional Firefighters' Association ("RCPFA") have entered into a Memorandum of Understanding ("MOU") covering the period of July 1, 2006 through June 30, 2009, WHEREAS, Article II, Section 5 (A) (2) of the MOU provides for a fully paid employee and family health insurance program for all existing full-time continuous employees and retirees as of November 17, 1994, WHEREAS, Article II, Section 5 (A) (2) also provides that "such health benefits are vested for all full time continuous and retired employees as of November 17, 1994", WHEREAS, Article II, Section 5 (A) (3) of the MOU sets forth that the District will provide fully paid employee and family health insurance for all full-time continuous employees hired after November 17, 1994, at the lowest fully paid family insurance plan offered through the Public Employees' Medical and Hospital Care Act (PEMHCA") program, WHEREAS, Article II, Section 5 (A) (4) of the MOU provides that employees hired after November 17, 1994, shall be responsible for paying all premiums for medical insurance through PEMHCA, upon their retirement (i e , the District shall not provide retiree insurance to employees hired after November 17, 1994), WHEREAS, the District learned that the existing structure of its medical insurance benefit is potentially suspended or superseded by provisions of the Government Code, WHEREAS, Article X of the MOU provides for the District and employees "to reopen negotiations regarding the suspended or superseded [ ] provision with the understanding that the total compensation to employees under [the] MOU shall not be reduced or increased [ ], WHEREAS, the District and RCPFA engaged in negotiations concerning medical insurance benefits and have agreed to modify the MOU to reflect the mutual agreement of the parties as set forth herein, and WHEREAS, both the District and RCPFA wish to avoid and resolve all actual or potential grievances, disputes, controversies, claims, and actions between them regarding the level and mechanism of providing contracted medical insurance benefits owed to pre and post November 17, 1994, employees and retirees in order to make their peace and avoid the uncertainties of litigation, investigation or review, and the expenses and costs incident thereto, 1 of 7 NOW, THEREFORE, THE PARTIES do hereby agree as follows For employees and retirees hired on or before 11/17/94: 1 Employees and retirees hired on or before November 17, 1994 have a vested right to fully paid medical insurance for the employee/retiree an any eligible dependents according to whatever plan is selected by the employee/retiree 2 The Parties have agreed that the District shall amend it's resolution under PEMHCA to provide that the District shall pay on behalf of all active employees, retirees and eligible dependents the statutory minimum contribution for medical insurance mandated under PEMHCA. 3 In addition to paying the PEMHCA statutory minimum set for in paragraph 2, above, the District and RCPFA have agreed to establish a flexible benefit package that will reimburse to each eligible active employee and retiree hired on or before November 17, 1994, the difference between the PEMHCA statutory minimum contribution and one hundred percent (100%) of the cost of the health insurance plan selected by the employee/retiree for the employee/retiree and eligible dependents The flexible benefit package will be effective coincident with the effective date of the change outlined in paragraph 2, above 3 1 The District's payments for medical insurance benefits are intended to be non-taxable, to the extent permitted by law 32 If, as a result of modifying the delivery mechanism of the insurance benefits set forth in paragraph 1, above, from one wherein the District paid CalPERS directly for 100% of the cost of insurance benefits for employees/retirees and eligible dependents, it is determined at any time in the future there are adverse tax consequences to the employee/retiree the District shall be required to augment its reimbursement by whatever amount is necessary to cause the employee/retiree to be made whole, as if the reimbursement were delivered in a tax-exempt manner 4 The reimbursement set forth in paragraph 3, above, shall be accomplished by paying the employee or retiree at the beginning of each calendar month the difference between the PEMHCA statutory minimum and the amount of the health insurance premium for the employee or retiree and eligible dependents The parties intend that, to the extent possible, the employee/retiree be reimbursed prior to the time payment is due to the insurance carrier The District will use records available from CalPERS to verify employee or retiree enrollment in health insurance and to ascertain the amount it owes to each employee and/or retiree If the District cannot obtain sufficient information from CalPERS to determine the enrollment and premium amounts, it may require employees and retirees to provide appropriate proof of enrollment and premium payments 2of7 5 The right of a surviving spouse and/or dependents of a deceased active employee or retiree to continue to receive District paid retiree medical benefits described in paragraphs 1-4, above, is dependent upon either(1) the Ca1PERS pension option selected by the retiree, or (2) the continued right of such persons to participate in PEMHCA upon the death of an active employee The surviving spouse or dependents of a retiree that selects a pension option that does not provide for continuing benefits to be paid to the retiree's surviving spouse/dependents will not be entitled to receive District paid retiree medical benefits upon the death of the retiree The surviving spouse or dependents of a retiree that selects a pension option that does provide for a survivors continued pension, will receive District paid benefits for life Should the District no longer participate in PEMHCA, the rights of a surviving spouse or dependents to District paid retiree medical benefits is likewise premised upon the retirement option selected by the retiree or the survivors continued right to a pension allowance from CalPERS 6 The right to receive fully paid medical insurance for employees/retirees and their eligible dependents may be modified only by the mutual written agreement of the District and the individual employee or retiree affected Other aspects of the health insurance benefits for employees and retirees, including but not limited to the District's continued participation in PEMHCA and the structure of the District's insurance plans, are matters controlled by the MOU and the collective bargaining process and, accordingly, may be modified in a subsequent MOU or as otherwise permitted by law For emplovees and retirees hired after 11/17/94: 7 Employees hired after November 17, 1994 have a right while employed by the District to fully paid medical insurance for the employee and any eligible dependents, not to exceed the cost of the least expensive family plan offered Upon retirement, such employees have no right to District paid health benefits, except as may be mandated under PEMHCA 8 The Parties have agreed that the District shall amend its resolution under PEMHCA to provide that the District shall pay on behalf of all active employees, retirees and eligible dependents the statutory minimum contribution for medical insurance mandated under PEMHCA 9 In addition to paying the PEMHCA statutory minimum set forth in paragraph 8, above, the District and RCPFA have agreed to establish a flexible benefit package that will reimburse to each eligible active employee hired after November 17, 1994, the difference between the PEMHCA statutory minimum contribution and one hundred percent (100%) of the cost of the plan selected by the employee and eligible dependents, not to exceed the cost of the least expensive family health insurance plan offered by the District The flexible benefit package will be effective coincident with the effective date of the change outlined in paragraph 8, above 3 of 7 9 1 The District's payments for medical insurance benefits are intended to be non-taxable, to the extent permitted by law 9 2 If, as a result of modifying the delivery mechanism of the insurance benefits set forth in paragraph 7, above, from one wherein the District pard CalPERS directly for 100% of the cost of insurance benefits for employees/retirees and eligible dependents, it is determined at any time in the future there are adverse tax consequences for the employee, the District shall be required to augment its reimbursement by whatever amount is necessary to cause the employee/retiree to be made whole, as if the reimbursement were delivered in a tax-exempt manner 10 The reimbursement set forth in paragraph 9, above, shall be accomplished by paying the employee at the beginning of each calendar month the difference between the PEMHCA statutory minimum and the amount of the health insurance premium for the employee and eligible dependents The parties intend that, to the extent possible, the employee shall be reimbursed prior to the time payment is due to the insurance carrier The District will use records available from CalPERS to verify employee or retiree enrollment in health insurance and to ascertain the amount it owes to each employee If the District cannot obtain sufficient information from CalPERS to determine the enrollment and premium amounts, it may require employees and retirees to provide appropriate proof of enrollment and premium payments I 1 The right of an active employee hired after November 17, 1994 to receive a District contribution for fully paid medical insurance for the employee and eligible dependents may be modified only by (1) the mutual written agreement of the District and RCPFA, or (2) a health insurance mandate providing for contribution levels for active employees and dependents that are equal to, or exceed, the level provided herein The District acknowledges that the right of an active employee hired after November 17, 1994 to receive a District contribution for fully paid medical insurance for the employee and eligible dependents not to exceed the cost of the least expensive family plan offered is not subject to unilateral modification by the District, including under Government Code Section 3505 4 or rules and regulations adopted under Government Code Section 3507 12 Other aspects of the health insurance benefits for employees and retirees, including but not limited to the District's continued participation in PEMHCA and the structure of the District's insurance plans, are matters controlled by the MOU and the collective bargaining process and, accordingly, may be modified in a subsequent MOU or as otherwise permitted by law 4of7 Provisions applicable to all employees and retirees, regardless of hire date: ' 13 The parties acknowledge that the decision to participate in PEMHCA is subject to the duty to meet and confer in good faith In the event the District unilaterally implements a change in health insurance benefit providers or plans (in compliance with its meet-and-confer obligations and after exhausting applicable impasse procedures, if any), any such subsequent provider or plan must offer a lowest-cost family plan that has benefit levels that are, at a minimum, substantially similar to the benefit levels of the then-current plan available through PEMHCA 14 No waiver by any party of any breach of any term or provision of this Agreement shall be construed to be, nor be, a waiver of any preceding, concurrent or succeeding breach of the same or any other term or provision hereof No waiver shall be binding unless in wnting and signed by the party to be charged or held bound 15 Should any provision of this Agreement be declared or determined by any court to be illegal or invalid, the validity of the remaining parts, terms or provisions shall not be affected thereby and said illegal or invalid part, term or provisions shall be deemed not to be part of this Agreement Neither the Distnct nor RCPFA shall take or support any action to declare any part, provision or benefit herein to be illegal, invalid or unenforceable 16 The recitals herein shall be deemed an integral part of this Agreement 17 The parties and individuals executing this Agreement represent and warrant that each of them has the authonty to execute this Agreement on behalf of the party on whose behalf said person is purporting to execute this Agreement 18 There shall be no modification of this Agreement except in wnting signed by the parties affected thereby This agreement is independent of the existing MOU, or any subsequent MOUs and its terms shall survive expiration of such MOUs 19 This Agreement is binding upon, and shall insure to the benefit of, the heirs, executors, administrators, officers, elected officials, representatives, successors and assigns of the respective parties hereto and each of them 20 The above Agreement shall be effective as of the date of the last signature on the Agreement 5 of 7 IT IS AGREED: RANCHO CUCAMONGA RANCHO CUCAMONGA FIRE FIGHTERS LOCAL 2274 FIRE PROTECTION DISTRICT /Z494; -""Ya Yj�anfiurns, Vice Press Dae Jack Lam at MLC,Aeryl Roberts Chief Executive Officer Representative APPROVED AS TO FORM ATTEST Ja�n�� s Markman Date Debra J Adams, CMC Date City Attorney City Clerk 6of7 4 1"7 b� Rick a by D.to S an De tomo Date ]ou����� � Date '�j o nguez ate 4 Steve Campbell Date alit Lenze Date up-08 N,I j_ Y f e Jim ague Date St r D to 6 d-t f „ y-/&-�5 't L6 os Bob Eggers p Date > Ge pb dte 2- 08 Mike Redmond / Dat Bil Kir atric Date Pat Prou]x Date Ke,,in Walton Date x 4 17 v 8 , Q I -s� VT wns to Je Date j . , _ '-I X105 or Date Brent Ro s Dat ¢ �� /? 02) Tim eran / Date Mike Jer s ate X6 Dave Larkin Date Pete Magnuso Dale el \ - / is r n ate Rich Toll Date tiny o t Date Da Date Che oberts Date oin O'Brien Date y � van RoJer Date 7of7 fQ 66,2- AGREEMENT BETWEEN REPRESENTATIVES OF THE RANCHO CUCAMONGA FIRE PROTECTION DISTRICT AND THE RANCHO CUCAMONGA FIRE SUPPORT SERVICES ASSOCIATION WHEREAS, the Rancho Cucamonga Fire Protection District ("District") and the Rancho Cucamonga Fire Support Services Association ("RCFSSA") have entered into a Memorandum of Understanding("MOU") covering the period of July 1, 2006 through June 30, 2009, WHEREAS, Article II, Section 5 (A) (2) of the MOU provides for a fully paid employee and family health insurance program for all existing full-time continuous employees and retirees as of November 17, 1994, WHEREAS, Article II, Section 5 (A) (2) also provides that"such health benefits are vested for all full time continuous and retired employees as of November 17, 1994", WHEREAS, Article II, Section 5 (A) (3) of the MOU sets forth that the District will provide fully paid employee and family health insurance for all full-time continuous employees hired after November 17, 1994, at the lowest fully paid family insurance plan offered through the Public Employees' Medical and Hospital Care Act (PEMHCA") program, WHEREAS, Article H, Section 5 (A) (4) of the MOU provides that employees hired after November 17, 1994, shall be responsible for paying all premiums for medical insurance through PEMHCA, upon their retirement (i e , the District shall not provide retiree insurance to employees hired after November 17, 1994), WHEREAS, the District learned that the existing structure of its medical insurance benefit is potentially suspended or superseded by provisions of the Government Code, WHEREAS, Article X of the MOU provides for the District and employees "to reopen negotiations regarding the suspended or superseded [ ] provision with the understanding that the total compensation to employees under [the] MOU shall not be reduced or increased [ ], WHEREAS, the District and RCFSSA engaged in negotiations concerning medical insurance benefits and have agreed to modify the MOU to reflect the mutual agreement of the parties as set forth herein, and WHEREAS,both the District and RCFSSA wish to avoid and resolve all actual or potential grievances, disputes, controversies, claims, and actions between them regarding the level and mechanism of providing contracted medical insurance benefits owed to pre and post November 17, 1994, employees and retirees in order to make their peace and avoid the uncertainties of litigation, investigation or review, and the expenses and costs incident thereto, 1 of 7 NOW, THEREFORE, THE PARTIES do hereby agree as follows For emplovees and retirees hired on or before 11/17/94: 1. Employees and retirees hired on or before November 17, 1994 have a vested right to fully paid medical insurance for the employee/retiree an any eligible dependents according to whatever plan is selected by the employee/retiree 2 The Parties have agreed that the District shall amend it's resolution under PEMHCA to provide that the District shall pay on behalf of all active employees, retirees and eligible dependents the statutory mimmum contribution for medical insurance mandated under PEMHCA. 3 In addition to paying the PEMHCA statutory minimum set for in paragraph 2, above, the District and RCFSSA have agreed to establish a flexible benefit package that will reimburse to each eligible active employee and retiree hired on or before November 17, 1994, the difference between the PEMHCA statutory minimum contribution and one hundred percent (100%) of the cost of the health insurance plan selected by the employee/retiree for the employee/retiree and eligible dependents The flexible benefit package will be effective coincident with the effective date of the change outlined in paragraph 2, above 3 1 The District's payments for medical insurance benefits are intended to be non-taxable, to the extent permitted by law 32 If, as a result of modifying the delivery mechanism of the insurance benefits set forth in paragraph 1, above, from one wherein the District paid Ca1PERS directly for 100% of the cost of insurance benefits for employees/retirees and eligible dependents, it is determined at any time in the future there are adverse tax consequences to the employee/retiree the District shall be required to augment its reimbursement by whatever amount is necessary to cause the employee/retiree to be made whole, as if the reimbursement were delivered in a tax-exempt manner 4 The reimbursement set forth in paragraph 3, above, shall be accomplished by paying the employee or retiree at the beginning of each calendar month the difference between the PEMHCA statutory minimum and the amount of the health insurance premium for the employee or retiree and eligible dependents The parties intend that, to the extent possible, the employee/retiree be reimbursed prior to the time payment is due to the insurance carver The District will use records available from CaIPERS to verify employee or retiree enrollment in health insurance and to ascertain the amount it owes to each employee and/or retiree If the District cannot obtain sufficient information from Ca1PERS to determine the enrollment and premium amounts, it may require employees and retirees to provide appropriate proof of enrollment and premium payments 2 of 7 5 The right of a surviving spouse and/or dependents of a deceased active employee or retiree to continue to receive District paid retiree medical benefits described in paragraphs 1-4, above, is dependent upon either (1) the Ca1PERS pension option selected by the retiree, or (2) the continued right of such persons to participate in PEMHCA upon the death of an active employee The surviving spouse or dependents of a retiree that selects a pension option that does not provide for continuing benefits to be paid to the retiree's surviving spouse/dependents will not be entitled to receive District paid retiree medical benefits upon the death of the retiree The surviving spouse or dependents of a retiree that selects a pension option that does provide for a survivors continued pension, will receive District paid benefits for life Should the District no longer participate in PEMHCA, the rights of a surviving spouse or dependents to District paid retiree medical benefits is likewise premised upon the retirement option selected by the retiree or the survivors continued right to a pension allowance from Ca1PERS 6 The right to receive fully paid medical insurance for employees/retirees and their eligible dependents may be modified only by the mutual written agreement of the District and the individual employee or retiree affected Other aspects of the health insurance benefits for employees and retirees, including but not limited to the District's continued participation in PEMHCA and the structure of the District's insurance plans, are matters controlled by the MOU and the collective bargaining process and, accordingly, may be modified in a subsequent MOU or as otherwise permitted by law For emplovees and retirees hired after 11/17/94: 7 Employees hired after November 17, 1994 have a right while employed by the District to fully paid medical insurance for the employee and any eligible dependents, not to exceed the cost of the least expensive family plan offered Upon retirement, such employees have no right to District paid health benefits, except as may be mandated under PEMHCA 8 The Parties have agreed that the District shall amend its resolution under PEMHCA to provide that the District shall pay on behalf of all active employees, retirees and eligible dependents the statutory minimum contribution for medical insurance mandated under PEMHCA 9 In addition to paying the PEMHCA statutory minimum set forth in paragraph 8, above, the District and RCFSSA have agreed to establish a flexible benefit package that will reimburse to each eligible active employee hired after November 17, 1994, the difference between the PEMHCA statutory minimum contribution and one hundred percent (100%) of the cost of the plan selected by the employee and eligible dependents, not to exceed the cost of the least expensive family health insurance plan offered by the District The flexible benefit package will be effective coincident with the effective date of the change outlined in paragraph 8, above 3 of 7 9 1 The District's payments for medical insurance benefits are intended to be non-taxable, to the extent permitted by law 9 2 If, as a result of modifying the delivery mechanism of the insurance benefits set forth in paragraph 7, above, from one wherein the District paid CalPERS directly for 100% of the cost of insurance benefits for employees/retirees and eligible dependents, it is determined at any time in the future there are adverse tax consequences for the employee, the District shall be required to augment its reimbursement by whatever amount is necessary to cause the employee/retiree to be made whole, as if the reimbursement were delivered in a tax-exempt manner 10 The reimbursement set forth in paragraph 9, above, shall be accomplished by paying the employee at the beginning of each calendar month the difference between the PEMHCA statutory minimum and the amount of the health insurance premium for the employee and eligible dependents The parties intend that, to the extent possible, the employee shall be reimbursed prior to the time payment is due to the insurance carrier The District will use records available from CalPERS to verify employee or retiree enrollment in health insurance and to ascertain the amount it owes to each employee If the District cannot obtain sufficient information from CalPERS to determine the enrollment and premium amounts, it may require employees and retirees to provide appropriate proof of enrollment and premium payments 11 The right of an active employee hired after November 17, 1994 to receive a District contribution for fully paid medical insurance for the employee and eligible dependents may be modified only by (1) the mutual written agreement of the District and RCFSSA, or (2) a health insurance mandate providing for contribution levels for active employees and dependents that are equal to, or exceed, the level provided herein The District acknowledges that the right of an active employee hired after November 17, 1994 to receive a District contribution for fully paid medical insurance for the employee and eligible dependents not to exceed the cost of the least expensive family plan offered is not subject to unilateral modification by the District, including under Government Code Section 3505 4 or rules and regulations adopted under Government Code Section 3507 12 Other aspects of the health insurance benefits for employees and retirees, including but not limited to the District's continued participation in PEMHCA and the structure of the District's insurance plans, are matters controlled by the MOU and the collective bargaining process and, accordingly, may be modified in a subsequent MOU or as otherwise permitted by law 4of7 Provisions applicable to all employees and retirees, regardless of hire date: 13 The parties acknowledge that the decision to participate in PEMHCA is subject to the duty to meet and confer in good faith In the event the District unilaterally implements a change in health insurance benefit providers or plans (in compliance with its meet-and-confer obligations and after exhausting applicable impasse procedures, if any), any such subsequent provider or plan must offer a lowest-cost family plan that has benefit levels that are, at a minimum, substantially similar to the benefit levels of the then-current plan available through PEMHCA 14 No waiver by any party of any breach of any term or provision of this Agreement shall be construed to be, nor be, a waiver of any preceding, concurrent or succeeding breach of the same or any other term or provision hereof No waiver shall be binding unless in writing and signed by the party to be charged or held bound 15 Should any provision of this Agreement be declared or determined by any court to be illegal or invalid, the validity of the remaining parts, terms or provisions shall not be affected thereby and said illegal or invalid part, term or provisions shall be deemed not to be part of this Agreement Neither the District nor RCFSSA shall take or support any action to declare any part,provision or benefit herein to be illegal, invalid or unenforceable 16 The recitals herein shall be deemed an integral part of this Agreement 17 The parties and individuals executing this Agreement represent and warrant that each of them has the authority to execute this Agreement on behalf of the party on whose behalf said person is purporting to execute this Agreement 18 There shall be no modification of this Agreement except in writing signed by the parties affected thereby Tlus agreement is independent of the existing MOU, or any subsequent MOUs and its terms shall survive expiration of such MOUS 19 This Agreement is binding upon, and shall insure to the benefit of, the heirs, executors, administrators, officers, elected officials, representatives, successors and assigns of the respective parties hereto and each of them 20 The above Agreement shall be effective as of the date of the last signature on the Agreement 5 of 7 IT IS AGREED: RANCHO CUCAMONGA RANCHO CUCAMONGA FIRE SUPPORT SERVICES ASSOC. FIRE PROTECTION DISTRICT Michelle Seckler, Date ack Lam L/ to Representative Chief Executive Officer APPROVED AS TO FORM ATTEST '1-2 -Og C: nrr�t r � ` �CC7l, CMO l LI-7 Jqo6s Markman Date Debr�ams, CMC Date City Attorney City Clerk 6of7 Sam Dominick Date /obinBrock Date Ton a y 7 Dat 7of7