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LETTER OF AGREEMENT
BETWEEN
THE CITY OF ARCADIA
AND
THE ARCADIA FIREFIGHTERS' ASSOCIATION
The City of Arcadia (hereinafter the "City") and the Arcadia Firefighters' Association
(hereinafter the "Association"),jointly referred to as the "Parties", agree to amend Article
IX by adding section "C" in the Memorandum of Understanding.
Article IX, Section C. Retiree Medical Trust (RMT).
A. The Association will establish participation in a retiree medical plan
administered by the PORAC Retiree Medical Trust, and the cost of establishing the Trust
shall be at no cost to the City. The City is not a party to the Trust, aside from transferring
funds, and has no obligations to the management, regulatory compliance or performance
of the Trust.
B. Contributions to the PORAC Retiree Medical Trust
1) Employer Contributions. The City will transfer to the PORAC Retiree
Medical Trust a monthly pre-tax employer contribution of one hundred
fifty-one dollars ($151.00) beginning the first pay period on or after
October 1St 2019 (check date of October 18, 2019) for each employee
working in the bargaining unit represented by the Association, on an
ongoing twice monthly(24 times per year)basis of seventy-five dollars
and fifty cents ($75.50) twice monthly, in perpetuity.
2) Employee Contributions. The City will deduct from each paycheck
(24 times per year) and remit to the Trust a pre-tax employee
contribution for each employee working in the bargaining unit
represented by the Association. The amount will be specified in
writing to the City by the Association, and each employee will
contribute the same predetermined dollar amount.
C. The City will comply with reasonable rules set by the Trust Office with
regard to reporting and transferring the required contributions set forth above, typically
involving providing the Trust Office with the name, social security number and amount
paid for each employee. In the event the reporting requirement of the Trust requires
reporting beyond that which the City typically provides for other similar purposes (health
insurance),the City may require the Association to pay for any costs related to programing
or producing such reports. Prior to engaging in any activity that could result in such an
expense, the City will secure the Association's authorization.
D. The Association agrees to indemnify and hold the City harmless from any
liabilities of any nature which may arise as a result of the operating of the PORAC RMT,
except for the obligation of the City to make and report the non-elective transfer of
employee contributions and employer contributions as described above.
E. The monies contributed to the Trust fund shall only be used for retiree health
insurance premiums or health care expenses, as allowed by law. There shall be no
employee election/option available to take such amount in unrestricted cash.
F. The purpose of this Trust shall be to provide for retiree health care expense
reimbursement benefits. The Trust shall be and remain separate and apart from any of the
City health insurance funding programs, unless changed by mutual written agreement of
the parties.The contributions made by the employer as set forth above shall not be included
as salary for purpose of calculating pension benefits.
G. Employer contributions can only be increased by mutual written
recommendation between the City and the Association.
The City hereby acknowledges receipt of the Trust Agreement governing
the Trust and will comply with rules set by the Trust Office in regard to reporting and
depositing the required contributions set forth above. The City will cooperate with the
Trust in allowing a payroll audit only for the purpose of ascertaining if the proper amount
of contributions has been made.
/ c'/ / 7 (')4.4,oaE2.1,2)19
Ursettie Date Dominic Laz o Date
AFFA President City Manager
gi-frge,l) ps-ii9
Stephen Deitsch Date
City Attorney