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HomeMy WebLinkAboutCity Council - 6265 RESOLUTION NO. 6265 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH APPROVING AND IMPLEMENTING THE MEMORANDUM OF UNDERSTANDING BETWEEN THE HUNTINGTON BEACH POLICE MANAGEMENT ASSOCIATION AND THE CITY OF HUNTINGTON BEACH The City Council of the City of Huntington Beach does resolve as follows: The Memorandum of Understanding between the City of Huntington Beach and the Huntington Beach Police Management Association, dated January 1 ., 991 a copy of which is attached hereto and by reference made a part hereof, is hereby approved and ordered implemented in accordance with the terms and conditions thereof, and the City Administrator is authorized to execute this agreement. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 1st day o ril 1991. ",-Mayor ATTEST: APPROVED AS TO FORM: City Clerk�v__ 3-S'-5 t City Attorney C APP VED S T ' NTEN APPROVED: f � Deput$ Cit Admin' atom` City Administrator Chief Police TABLE OF CONTENTS TITLE PAGE Table of Contents i Preamble 1 Article I Representational Unit 1 Article II Existing Conditions of Employment 1 Article III Salary Schedules and PERS Pickup 1 Article IV Basic Benefits 2 Article V Insurance 3 Article VI Auto Allowance 4 Article VII Income Protection Plan 4 Article Vill Vacations 5 Article IX Sick Leave Pay 6 Article X Ten Plan 6 Article XI Holidays 6 Article XII Overtime/Time Off 7 Article XIII Education Pay 7 Article XIV Retiree Medical Program 7 Article XV Management Rights 7 Article XVI Term of Memorandum of Understanding 8 Article XVII City Council Approval 8 Exhibit A - Salary Schedule Exhibit B - Retiree Medical Program 6265 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF HUNTINGTON BEACH, CALIFORNIA (Hereinafter Called CITY) AND THE HUNTINGTON BEACH POLICE MANAGEMENT ASSOCIATION (Hereinafter Called ASSOCIATION) PREAMBLE WHEREAS the designated representatives of the City of Huntington Beach and the Huntington Beach Police Management Association have met and conferred in good faith with respect to salaries, benefits and other terms and conditions of employment for the employees represented by the Association; NOW THEREFORE, this Memorandum of Understanding is made, to become effective January 1, 1991 and it is agreed as follows: ARTICLE I REPRESENTATIONAL UNIT It is recognized that the Huntington Beach Police Management Association is the employee organization which has the right to meet and confer in good faith with the CITY on behalf of represented employees of the Huntington Beach Police Department within the classification titles of Police Captain and Police Lieutenant, as outlined in Exhibit A attached hereto and incorporated herein. ARTICLE H EXISTING CONDITIONS OF EMPLOYMENT Except as expressly provided herein, the adoption of this Memorandum of Understanding shall not change existing terms and conditions of employment which have been established for the classification represented by the Huntington Beach Police Management Association. ARTICLE III SALARY SCHEDULES AND PERS PICKUP A. Employees shall be compensated at monthly salary rates by classification title and salary ranges during the term of this Agreement as set out in Exhibit A attached hereto and incorporated herein unless expressly provided for in other articles of this Memorandum of Understanding. B. Each employee covered by this Agreement shall be reimbursed once every two weeks in an amount equal to 9% of the employee's base salary and special pay as a pickup of the employee's contribution, or portion of such contribution, to the Public Employees' Retirement System. The above PERS pickup is not base salary but is done pursuant to Section 414(h)(2) of the Internal Revenue Code. 6265 C. Each employee, eligible for service retirement, may have his/her 9% PERS pickup reported as compensation for all or any part of the twelve month period prior to his/her service retirement date upon written request to the Director of Finance. Such modified reporting shall not be retroactive and shall be for a maximum of twenty-four months (Government Code Section 20022). D. Each employee, eligible for service retirement, may have his/her optional vehicle allowance reported as compensation for all or any part of the twenty-four month period prior to his/her service retirement date upon written request to the Director of Finance. Such modified reporting shall not be retroactive and shall be for a maximum of twenty-four months. E. Each employee, eligible for service retirement may have his/her vacation accrual and uniform allowance converted to salary for all or any part of the twelve month P prior rior to his/her service retirement date upon written request to the Director of Finance. Such modified reporting shall be for a maximum of twenty-four (24) months. F. >During the terms of this agreement the differential between the salary ranges of Police Captain and Police Lieutenant shall be no less than 32 ranges. G. During the term of this agreement, the differential between the salary range of Police Lieutenant and the salary range plus holiday compensation f the Police Sergeant eant shall be no less than 37 ranges. H. The City and the ASSOCIATION recognize that the salaries of employees represented by ASSOCIATION are determined, pursuant to paragraph III.F and III.G above, by the salary range of Police Sergeant, a classification represented by the Huntington Beach Police Officers Association (POA). While the City and the POA have met and conferred on proposals to increase the salary range for the classification of Police Sergeant to be effective October 1, 1990, there is no guarantee that an increase in the salary range of Police Sergeant will be effective October 1, 1990. Therefore, the CITY and PMA agree to meet and confer on the subject of the effective date of any adjustment, pursuant to paragraph III.F and III.G above, only in the event that the effective date of the increase in the salary range for Police Sergeant, pursuant to a Memorandum of Understanding between the CITY and POA, is later than January 1, 1991. ARTICLE IV BASIC BENEFITS The City and the Police Management Association acknowledge that most of the basic benefits currently provided for employees represented by the Police Management Association were implemented during the time these employees were represented by the Police Officers' Association. The City and the Police Management Association desire to maintain these basic benefits at their current levels for employees represented by the -2- 0573J 6265 Police Management Association and to provide to these employees with any changes to such basic benefits that result from the meet and confer process between the City and the Police Officers' Association. The following benefits for employees represented by the Police Management Association, therefore, shall, except as provided in other articles of this Memorandum of Understanding, be identical to those benefits provided for employees represented by the Police- Officers' Association. In the event any provisions of such benefits are modified as result of the meet and confer process with the Police Officers' Association, such modifications shall automatically modify the benefits provided for employees represented by the Police Management Association except that either party hereto may void such automatic modification by providing notice to the other party within thirty (30) days of the conclusion of the meet and confer process with the Police Officers' Association. Such notice shall serve to require the City and Police Management Association to meet and confer on the modification prior to its extension to apply to the Police Management Association. Benefits covered by this article: 1. Retirement benefits under the City's contract with PERS. 2. Group medical benefits under the City's self funded indemnity plan and HMO plans. This shall include all provisions such as city payment of premiums, coverage of dependents, retiree coverage, deductibles, etc. 3. Dental Plan 4. Educational Incentive Plan 5. Vacation benefits 6. Family illness leave 7. Bereavement leave 9. Uniform Allowance 9. Meal allowance, per diem, mileage allowance 10. Vision Care Plan ARTICLE V LIFE INSURANCE Each employee shall be provided with $40,000 life insurance and $40,000 accidental death and dismemberment insurance paid for by the City. Each employee shall have the option, at his or her own expense, to purchase an additional amount of life insurance in the amount of $25,000, and accidental death and dismemberment insurance in the amount of $25,000, $50,000 or $100,000. Evidence of insurability is contingent upon total participation in additional amounts. -3- 0573J 6265 ARTICLE VI AUTO ALLOWANCE The provisions of Administrative Regulation 407: Auto Allowance, shall apply to employees represented by the Police Management Association. Any modifications to Administrative Regulation 407, either by the City or through implementation of an MOU with the MEO, shall automatically modify the auto allowance benefit provided for employees represented by the Police Management Association. Auto allowance for employees represented by the Police Management Association shall be no less than $350 per month during the term of this agreement. ARTICLE VII INCOME PROTECTION PLAN The existing long term disability program provided by the City shall remain in effect for all personnel. This program provides, for each incident, pay up to sixty (60) calendar days at the employee's salary rate (excluding overtime but including any special pay in effect at the time of illness or injury). After the sixty calendar day period, the employee will be covered by an insurance plan paid for by the City which will provide 66-2/3 percent of the employee's salary rate (excluding overtime and any special pay) in accordance with the following: Disability Due Disability Due to Accident to Illness First 60 Days Regular Pay Regular Pay Next 24 Months 66-2/3% of base pay 66-2/3% of base pay To Age 65 66-2/3% of base pay None A. Days and months refer to calendar days and months. Benefits under the Plan are integrated with Workmen's Compensation, Social Security and other non private program benefits to which the employee may be entitled. Disability is defined as the inability to perform all of the duties of regular occupation during the first two years of disability and thereafter the inability to engage in any employment or occupation for which he is fitted by reason of education, training or experience. B. Rehabilitation benefits are provided in the event the individual, due to disability, must engage in other occupation. Plan will provide 66-2/3% of difference between regular pay and pay of other occupation. C. Survivors benefit continues plan payment for three months beyond death. -4- 0573J 6265 ARTICLE VIII VACATIONS A. No employee shall be permitted to take a vacation in excess of actual time earned. Employees covered by this agreement who have accrued more than 320 hours may not use the additional accrual to advance their separation date on retirement. Vacations shall be taken only with permission of the department head; however, the department head shall schedule all vacations with due consideration for the wish of the employee and particular regard for the need of the department. B. Terminal Vacation Pay: An employee shall be paid for unused vacation upon termination of employment at which time such terminating employee shall receive compensation at his current salary rate for all unused, earned vacation to which he is entitled up to and including the effective date of his termination provided, however, that there shall be no compensation for unused vacation hours accrued in excess of 320 hours. ARTICLE IX SICK LEAVE PAY A. Employees covered by this agreement and on the payroll on November 20, 1978 shall be entitled to the following sick leave payoff plan: At involuntary termination by reason of disability, or by death, or by retirement, employees shall be compensated at their then current rate of pay for fifty percent (50%) of unused sick leave, up to a maximum of 720 hours of unused, accumulated sick leave. B. Employees hired after November 20, 1978 shall be entitled to the following sick leave payoff plan: Upon termination, all employees shall be paid, at their then current salary rate, for twenty-five percent (25%) of unused, earned sick leave to 480 hours accrued, and for thirty-five percent (35%) of all unused, earned sick leave in excess of 480 hours, but not to exceed 720 hours. C. No employee shall be paid at termination for more than 720 hours of unused, accumulated sick leave. D. All employees represented by PMA as of January 1, 1991 shall be credited with 480 hours of sick leave. E. Upon promotion to the position of Lieutenant, on any date after January 1, 1991, the promoted employee shall be credited with 480 hours of sick leave. In the event that the sick leave program for employees represented by the Huntington Beach Police Officers' Association (POA), as it exists pursuant to Resolution 5889, -5- 0573J 6265 Memorandum of Understanding dated October 1, 1987, is modified to provide a "traditional" system of sick leave accrual and payoff, no sick credit shall be provided under this paragraph. F. Employees electing to participate in the City's group health insurance program after retirement may cause the premiums to be paid by the City out of any available funds f due and owing them under the terms of this agreement for unused sick leave benefits upon retirement. ARTICLE X TEN PLAN A. The work schedule agreed to by the City and the Association during negotiations has been fully implemented and shall remain in effect during the life of this agreement unless changes are agreed to by the Association and the City. B. Effective January 1, 1984, all employees are entitled to work four (4) days per week, ten (10) hours each day, meal times to be included during the ten hour shift. ARTICLE XI HOLIDAYS All unit employees shall have the following legal holidays with pay: 1. New Year's Day (January 1) 2. Martin Luther King Day (third Monday in January) 3. Washington's Birthday (third Monday in February) 4. Memorial Day (last Monday in May) 5. Independence Day (July 4) 6. Labor Day (first Monday in September) 7. Veteran's Day (November 11) 8. Thanksgiving Day (fourth Thursday in November) 9. The Friday after Thanksgiving 10. Christmas Day (December 25) 11. Any day declared by the President of the United States to be a national holiday, or the Governor of the State of California to be a state holiday and adopted as an employee holiday by the City Council of the City of Huntington Beach. Compensation for legal holidays shall be provided as follows: I. If a day the city observes as a legal holiday designated above falls on an employee's regular work day, the employee will receive the day off; 2. If a day the city observes as a legal holiday designated above falls on an employee's regular day off, the employee will be compensated with eight (8) hours of compensatory time; -6- 0573J 6265 3. Employees who are required to work on a day the City observes as a legal holiday designated above shall be compensated in accordance with Article XII. 4. The City observes legal holidays which fall on Sunday on the following Monday, and those falling on Saturday on the preceding Friday. ARTICLE XII OVERTIME/TIME OFF Employees represented herein shall not be eligible for overtime compensation except in the following instances. A. When such employees are required to fill a full, or partial, work shift that is not part of the employee's regular work schedule. Partial work shift shall mean five (5) hours or more of a work shift. In such an instance, the employee may be compensated at the rate of 1 1/2 hours for each hour worked in the form of pay or compensatory time off. B. Time off for such employees, to compensate for other overtime hours worked, may be granted by the department head. It is understood by both parties of this Agreement that police captains and lieutenants will be entitled to the City policy of granting four days' administrative time off per year to compensate the captains and lieutenants for their previous (when authorized) time and one-half overtime benefit. ARTICLE XIII EDUCATION PAY In addition to benefits members are eligible for pursuant to Article IVA, $30 per month additional Education Pay shall be provided to those members who have received certification that they have completed the FBI Academy or POST Command College. The monthly pay shall be increased to $35 per month effective January 1, 1992 and to $40 per month effective January 1, 1993. ARTICLE XIV RETIREE MEDICAL PROGRAM Medical benefits for retired members shall be provided as described in Exhibit B subject to modification pursuant to the process described in Article IV herein. ARTICLE XV MANAGEMENT RIGHTS Except as expressly abridged or modified herein, the Chief of Police retains all rights, powers and authority with respect to the management and direction of the performance of police services and the work forces performing such services, provided that nothing herein shall change the City's obligation to meet and confer as to the effects of any such management decision upon wages, hours and terms and conditions of employment or be construed as granting the Chief of Police or the City the right to make unilateral changes in wages, hours, and terms and conditions of employment. Such rights include, but are not limited to, consideration of the merits, necessity, level or organization of police services, including establishing manning requirements, overtime -7- 6265 assignments, number and location of work stations, nature of work to be performed, contracting for any work or operation, reasonable employee performance standards, including reasonable work and safety rules and regulations in order to maintain the efficiency and economy desirable for the performance of City services. ARTICLE XVI TERM OF MEMORANDUM OF UNDERSTANDING This Memorandum of Understanding shall be in effect for a term commencing on January 1, 1991, and ending at midnight on December 31, 1993. Except as expressly provided herein, no further improvements or changes in the salaries and monetary benefits of the employees represented by the Association shall take effect during the term of this Agreement unless agreed upon by the CITY and the ASSOCIATION. It is understood that the parties are continuing to meet and confer regarding non—monetary matters such as Personnel Rules, the unit modification procedures. Any matters agreed upon resulting from such meeting and conferring will be the subject of a separate addendum to this Agreement. ARTICLE XVII CITY COUNCIL APPROVAL It is the understanding of the City and the Association that this Memorandum of Understanding is of no force or effect whatsoever unless and until adopted by Resolution of the City Council of the City of Huntington Beach. IN WITNESS WHEREOF, the parties hereto have executed this Memorandum of Understanding this 12th day of March , 1991. HUNTINGTON BEACH POLICE CITY OF HUNTINGTON BEACH MANAGEMENT ASSOCIATION C G" y Ail tr r De y Cit Adr inist t r i. Chief of P e APPROVED AS TO FORM: ,&47City Attorney —�" 0573J 6265 EXHIBIT "A" POLICE MANAGEMENT ASSOCIATION SALARY SCHEDULE Effective April 1, 1990 Classification Ranee Steps A B C D E Police Captain 522 $ 5,108 5,389 5,685 5,997 6,327 Police Lieutenant 490 $ 4,351 4,590 4,843 5,110 5,391 -9- 0573J 6265 EXHIBIT B CITY OF HUNTINGTON BEACH Retiree Subsidy Medical Plan An employee who has retired from the City shall be entitled to participate in the City sponsored medical insurance plans and the City shall contribute toward monthly premiums for coverage in an amount as specified in accordance with this Plan, provided: A. At the time of retirement the employee has a minimum of ten (10) years of continuous City service or is granted an industrial disability retirement; and B. At the time of retirement, the employee is employed by the City; and C. Following official separation from the City the employee is granted a retirement allowance by the California Public Employees' Retirement System. The City's obligation to pay the monthly premium as indicated shall be modified downward or cease during the lifetime of the retiree upon the occurrence of any one of the following: 1. During any period the retired employee is eligible to receive or receives health insurance coverage at the expense of another employer, the payment will be suspended. "Another employer" as used herein means private employer or public employer or the employer of a spouse. As a condition of being eligible to receive the premium contribution as set forth in this plan, the City shall have the right to require any retiree to annually certify that the retiree is not receiving or eligible to receive any such health insurance benefits from another employer. If it is later discovered that a misrepresentation has occurred, the retiree will be responsible for reimbursement of those amounts inappropriately expended and the retirees' eligibility to receive further benefits will cease. g Y 2. On the first of the month in which a retiree or dependent reaches age 65 or on the date the retiree or dependent can first apply and become eligible, automatically or voluntarily, for medical coverage under Medicare (whether or not such application is made) the City's obligation to pay monthly premiums may be adjusted downward or eliminated. Benefit coverage at age 65 under the City's medical plans shall be governed by applicable plan document. 3. In the event the Federal Government or State Government mandates an employer—funded health plan or program for retirees, or mandates that the City make contributions toward a health plan (either private or public) for retirees, the City's contribution rate as set forth in this plan shall first be applied to the mandatory plan. If there is any excess, that excess may be applied toward the City medical plan as supplemental coverage provided the retired employee pays the balance necessary for such coverage, if any. 4. In the event of the death of any employee, whether retired or not, the amount of the retiree medical insurance subsidy benefit which the deceased employee was receiving at the time of his/her death would be eligible to receive if he/she were retired at the time of death, shall be paid on behalf of the spouse or family for a period not to exceed twelve (12) months. —10- 0573J 6265 EXHIBIT B SCHEDULE OF BENEFITS I. Minimum Eligibility for Benefits - With the exception of an industrial disability retirement, eligibility for benefits begins after an employee has completed ten (10) years of continuous service with the City of Huntington Beach. Said service must be continuous unless prior service is reinstated at the time of his/her rehire in accordance with the City's Personnel Rules. II. Disability Retirees Industrial disability retirees with less than ten (10) years of service shall receive a maximum monthly payment toward the premium for health insurance of 40 for retirements after 10/l/87 80 after 10/l/88, and $121 after 10/l/89. Payments-shall be in accordance with the stipulations and conditions which exist for all retirees. Payment shall not exceed dollar amount which is equal to the full cost of premium for employee only. III. All retirees, including those retired as a result of disability whose number of years of service prior to retirement exceeds ten (10), shall be entitled to maximum monthly payment of premiums by the City for each year of completed City service as follows: Maximum Monthly Payment for Retirements After: Years of Service 10/l/87 10/1/88 10/1/89 10 $ 40 $ 80 $121 11 44 88 132 12 48 97 145 13 53 105 158 14 57 113 170 15 61 122 182 16 65 130 195 17 69 138 207 18 73 146 220 19 77 155 232 20 81 163 244 21 86 171 257 22 90 179 269 23 94 188 282 24 98 196 294 25 102 204 306 26 106 213 319 27 110 221 331 28 115 229 344 Note: The above payment amounts may be reduced each month as dependent eligibility ceases due to death, divorce or loss of dependent child status. However, the amount shall not be reduced if such reduction would cause insufficient funds needed to pay the full premium for the employee and the remaining dependents. In the event no reduction occurs and the remaining benefit premium is not sufficient to pay the premium amount for the employee and the eligible dependents, said needed excess premium amount shall be paid by the employee. -11- 0573J 6265 EXHIBIT B CITY OF HUNTINGTON BEACH Indemnity Health Plan Employees and Retirees January 1, 1990 City Plan - Employees Non-Subsidized Retirees City Plan - Subsidized *Benefits COBRA-Eligibles Retiree Plan Inpatient Hospital Benefits 100% - After Deductible 80% After Deductible Deductible Per Person/Maximum $150 / $450 $200 / $500 Per Family Maximum Out-of-Pocket $750 $1,000 Expenses (Excludes Deductible) Accident Benefit (Medical) $500/No Deductible None (Covered Same as Other Expenses) Prescription Drugs PCs PCs Deductible Generic/Non-Generic $4 / $6 $4 / $6 Major Medical 80% of UCR After Deductible 80% of UCR After Deductible * This summary list only those benefits provisions that differ between active and subsidized Retiree Plans. The Employee Health Plan document should be consulted for detailed questions about specific benefits. Benefits are subject to modification through the meet and confer process. Note: Retirees who elect to participate in HealthNet or Family Health Plan (FHP) shall be entitled to benefits of the program chosen. -12- 6265 EXHIBIT B CITY OF HUNTINGTON BEACH Miscellaneous Provisions of the Retiree Subsidy Medical Plan Eligibility: 1. The effective start-up date of the Retiree Subsidy Medical Plan (80% Plan) for the various employee groups shall be the first of the month following retirement date. 2. A retiree may change plans, add dependents, etc., during annual open enrollment. Personnel shall notify covered retirees of this opportunity each year. 3. Years of service computed for the Retiree Subsidy Medical Plan are actual years of completed service with the City of Huntington Beach. 4. When a retiree is eligible for medical plan coverage at the expense of another employer due to post-retirement employment of the retiree or spouse of the retiree, the retiree and his/her spouse must take that coverage regardless of cost or benefit level and shall be deleted from any City.Plan coverage. Exceptions to this requirement are limited to the following: a) A retiree is not required to enroll in such "other" medical plan coverage if there is significant disparity between the benefits provided by the 'other medical plan and the Retiree Subsidy Medical Plan as defined below. "Significant disparity" means coverage available under the 'other" medical plan is restrictive or limited in one or more of the following ways: 1. No inpatient hospitalization coverage. 2. No major medical benefits. 3. Annual deductible is $1,000 or greater per person. 4. Major medical benefits are paid at 60% or less of covered expenses. b) The Risk Manager will have the authority to provide additional exceptions following review of the "other" medical plan policy. Exceptions will be made only if the "other" medical plan benefit provisions are comparable to the guidelines under "B" above. c) Miscellaneous Provisions: 1. Benefits provided under the Retiree Subsidy Medical Plan will be coordinated with the 'other" medical plan as the primary carrier. 2. The City shall have the right to require any retiree to provide a copy of the "other" medical plan policy for review by the Risk manager. 5. When a retiree becomes eligible for other group coverage and then becomes no longer eligible, he/she may have the subsidy reinstated and regain Retiree Subsidy Medical Plan coverage. 6. Dependents of a retiree may follow him/her into the Retiree Subsidy Medical Plan or they may choose to exercise COBRA rights along with the retiree. -13- 0573J 6265 7. When a retiree becomes 65 and has eligible dependents under 65, said dependents are eligible to exercise COBRA rights. 8. When a retiree is under 65 and his/her spouse is over 65, the spouse is not covered. Benefits: 1. Retiree Subsidy Medical Plan includes California Psychological Health Plan (CPHP), Prescription Card System (PCS), Orange County Preferred Provider Organization (OCPPO) and Medical Stop Loss insurance. 2. City Plans are the primary payer for active employees age 65 and over, with Medicare the secondary payer. Retirees age 65 and over have no City Plan options and are eligible only for Medicare. 3. Premium payments are to be received at least one month in advance of the coverage period. Subsidies: 1. The subsidy payments will pay for: a) Retiree Subsidy Medical Plan b) HealthNet c) Family Health Plan (FHP) d) Part A of Medicare for those retirees not eligible for paid Part A 2. Subsidy payments will not pay for: a) Part B Medicare b) Regular City Employee Indemnity Plan c) Any other employee benefit plan d) Any other commercially available benefit plan. e) Medicare supplements 3. Employees who retire on or after the following dates shall be eligible for the subsidy based on years of completed service with the City: October 1. 1987 - MEO, MEA, POA, MSOA, FA, PMA July 1, 1988 - Non-Represented Retirees who retire prior to the above dates are not eligible for any subsidy benefit. Medicare: 1. All persons are eligible for Medicare coverage at age 65. Those with sufficient credited quarters of Social Security will receive Part A of Medicare at no cost. Those without sufficient credited quarters are still eligible for Medicare at age 65, but will have to pay for Part A of Medicare if the individual elects to take Medicare. In all cases Part B of Medicare is paid for by the participant. 2. When a retiree and his/her spouse are both age 65 or over, and neither is eligible for paid Part A of Medicare, the subsidy shall pay for Part A for each of them or the maximum subsidy, whichever is less. 3. When a retiree at age 65 is eligible for paid Part A of Medicare and his/her spouse is not eligible for paid Part A, the spouse shall not receive subsidy. When a retiree at age 65 is not eligible for paid Part A of Medicare and his/her spouse who is also age 65 is eligible for paid Part A of Medicare, the subsidy shall be for the retiree's Part A only. -14- 0573J 6265 Cancellation: 1. For retirees/dependents eligible for paid Part A of Medicare, the following cancellation provisions apply: a) Coverage for a retiree under the Retiree Subsidy Medical Plan will be eliminated on the first day of the month in which the retiree reaches age 65. If such retiree was covering dependents under the Plan, dependents will be eligible for COBRA continuation benefits effective as of the retiree's 65th birthday. b) Dependent coverage will be eliminated upon the whichever of the following occasions comes first: 1) After 36 months of COBRA continuation coverage, or 2) When the covered dependent reaches age 65 in the event such dependent reaches age 65 prior to the retiree reaching age 65. c) At age 65 retirees are eligible to make application for Medicare. Upon being considered "eligible to make application", whether or not application has been made for Medicare, the Retiree Subsidy Medical Plan will be eliminated. 2. See provisions under 'Benefits", "Subsidies", and "Medicare" for those retirees/dependents not eligible for paid Part A of Medicare. 3. Retiree Subsidy Medical Plan and COBRA participants shall be notified of non-payment of premium by means of a certified letter from Personnel in accordance with provisions of the Memorandums of Understanding. 4. A retiree who fails to pay premiums due for coverage and is in arrears for sixty (60) days shall be terminated from the Plan and shall not have reinstatement rights. 0706A/5437j -15- 0573J 6265 ' STATE OF CALIFORNIA Res. No. 6265 COUNTY OF ORANGE ss: CITY OF HUNTINGTON BEACH ) I, CONNIE BROCKWAY, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a regular meeting thereof held on the 1st day Of April 19 91 by the following vote: AYES: Councilmembers: MacAllister, Winchell, Green, Kelly, Robitaille, Moulton-Patterson NOES: Councilmembers: None ABSENT: Councilmembers: Silva r City er an ex-offic!gVCferk of the City Council of the City of Huntington Beach, California