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HomeMy WebLinkAboutCity Council - 6587 RESOLUTION NO. r r A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH APPROVING AND IMPLEMENTING A MEMORANDUM OF UNDERSTANDING WITH THE HUNTINGTON BEACH MANAGEMENT EMPLOYEES' ORGANIZATION FOR 1994 The City Council of the City of Huntington Beach does hereby resolve as follows: The Memorandum of Understanding between the City of Huntington Beach and the Huntington Beach Management Employees' Organization effective January 1, 1994, a copy of which is attached hereto and by reference made a part hereof, is hereby adopted and ordered implemented in accordance with the terms and conditions thereof, and the City Administrator is authorized to execute such Agreement. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 18th day of April , 1994. Mayor ATTEST: APPROVED AS TO FORM: City Clerk City Attorney REVIEWED AND APPROVED: INITI A PROVED: City Administrator Dep i Administra r s1MEOMOU104/14/94 HUNTINGTON BEACH MANAGEMENT EMPLOYEES' ORGANIZATION MEMORANDUM OF UNDERSTANDING TABLE OF CONTENTS Page Preamble i ARTICLE I TERM OF MOU 1 ARTICLE II REPRESENTATIONAL UNITICLASSIFICATIONS 1 ARTICLE III (ARTICLE NUMBER RESERVED) ARTICLE IV EXISTING CONDITIONS OF EMPLOYMENT 2 ARTICLE V SEVERABILITY 2 ARTICLE VI SALARY SCHEDULE 3 ARTICLE VII SPECIAL PAY A. Education Tuition Reimbursement 3 B. Certification/Skill Pay 1 . Plan Checker/Building Senior 3 ARTICLE VIII UNIFORMS 4 ARTICLE I% HOURS OF WORK/OVERTIME A. Overtime 4 B. Overtime/Time Off — Division/Battalion Chiefs 4 ARTICLE X HEALTH AND OTHER INSURANCE BENEFITS A. Health 4 1 . Medical 4 2. Dental 6 3. Optical 6 4. Eligibility Criteria and Cost 7 B. Life and Accidental Death and Dismemberment $ C. Long Term Disability Insurance 8 D. Miscellaneous 9 ARTICLE XI RETIREMENT BENEFITS 10 A. Benefits 10 1 . Self Funded Supplemental Retirement Benefit 10 2. Medical Insurance for Retirees 10 B. PERS Reimbursement and Reporting 11 1 . Employee's Contribution 11 2. Rollover 11 a. PERS Pickup 11 b. Vacation Accrual 12 c. Vehicle Allowance 12 6587 HUNTINGTON BEACH MANAGEMENT EMPLOYEES' ORGANIZATION MEMORANDUM OF UNDERSTANDING TABLE OF CONTENTS Page ARTICLE XII LEAVE BENEFITS 12 A. Vacation 12 1 . Annual Vacation 12 2. Vacation Allowance 12 3. Eligibility and Permission 12 4 Vacation, When Taken 12 5. Receipt of Vacation Pay 13 6. Conversion to Cash 13 B. Holidays 13 C. Sick Leave 14 D. Bereavement Leave 15 ARTICLE XIII CITY RULES 16 A. Personnel Rules 16 B. Implementation of Revised Rules 16 1 . Rule 5-14, Promotional Examinations 16 2. Rule 8-3, Layoff 16 3. Rule 8-11 , Re-employment 17 4. Rule 18-19, Maternity Leave 17 5. Rule 18-20, Leave of Absence Without Pay 17 6. Rule 19-5, Step 4 Grievance, Administrator 17 7. Rule 19-5, Step 5(b) - Hearing 18 8. Rule 21-7, Hearing Officers 18 9. Rule 21-13, Time Extension/Grievances 19 10. Grievances 19 a) Representation 19 b) Procedure 19 c) Arbitrator 19 ARTICLE XIV MISCELLANEOUS 19 A. Physical Examination 19 B. Vehicle Policy 20 ARTICLE XV CITY COUNCIL APPROVAL 21 6587 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF HUNTINGTON BEACH AND THE HUNTINGTON BEACH MANAGEMENT EMPLOYEES' ORGANIZATION 1994 This Memorandum of Understanding is entered into by and between the CITY OF HUNTINGTON BEACH, a Municipal Corporation of the State of California, herein called "CITY", and the HUNTINGTON BEACH MANAGEMENT EMPLOYEES' ORGANIZATION, a California Association, herein called "ASSOCIATION." PREAMBLE WHEREAS, pursuant to California law, the CITY, acting by and through its designated representatives, duly appointed by the governing body of said city, and the representatives of the ASSOCIATION, a duly recognized employee ASSOCIATION have met and conferred in good faith and have fully communicated and exchanged information concerning wages, hours, and other terms and conditions of employment for the period January 1 , 1991 994 through December 31 , 1993 1994. WHEREAS, except as otherwise expressly provided herein, all terms and conditions of this Agreement shall apply to all employees represented by the ASSOCIATION, and WHEREAS, the representatives of the CITY and the ASSOCIATION desire to reduce their agreements to writing, NOW THEREFORE, this Memorandum of Understanding is made, to become effective January 1 , 1991 1994, and it is agreed as follows. i 6587 ARTICLE I — TERM OF MOO This Agreement shall be in effect for a period of one year commencing January 1 i99.1- 1994, and ending at midnight, December 31 , ~' 1994. ARTICLE II — REPRESENTATIONAL UNIT/CLASSIFICATIONS A. It is recognized that ASSOCIATION is the employee ASSOCIATION which has the right to meet and confer in good faith with the CITY on the behalf of employees whose classifications are listed in Exhibit A, attached hereto and incorporated by reference herein. B. The City and the ASSOCIATION agree to implement for the term of this agreement the following change to the Employee/Employer Relations Resolution and accordingly revise Section 7 of said resolution as described herein: 7-3. Personnel Director Motion for Unit Modification — The Personnel Director may propose, during the same period for filing a petition for decertification, that an established unit be modified in accordance with the following procedure: 1 . The Personnel Director shall give written notice of the proposed modification(s) , to any affected employee organization and any affected employees. 2. The Personnel Commission shall hold a meeting concerning the proposed modification(s) at which time all affected employee organizations and employees shall be heard; 3. Thereafter, the Personnel Commission shall determine the composition of the appropriate unit or units and shall give written notice of such determination to the affected employee organizations and any affected employees. The City Administrator, employee organization or employee aggrieved by an appropriate unit determination of the Personnel Commission may, —l— NPADSERP:55 6587 within ten (10) days of notice thereof, request a review of such determination by the City Council . Within thirty (30) days of receipt of a request to review a unit determination of the Personnel Commission the City Council shall review the matter. The City Council ' s decision shall be final . 4. Except as provided otherwise in this MOU, the salary, benefit and working conditions specified by this MOU shall be provided to employees in classifications listed in Exhibit A and have completed or are in the process of completing a probationary period in a permanent position in the competitive service in which the employee regularly works twenty hours or more per week. ARTICLE III - ARTICLE NUMBER RE ERVED ARTICLE IV - EXISTING CONDITIONS OF EMPLOYMENT Except as otherwise expressly provided herein, the adoption of this Memorandum of Understanding shall not change existing benefits and terms and conditions of employment which have been established in prior Memoranda of Understanding, and/or provided for in the Personnel and Departmental Rules of the City of Huntington Beach. ARTICLE V - SEVERABILITY If any section, subsection, sentence, clause, phrase or portion of this MOU or any additions or amendments thereof, or the application thereof to any person, is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this resolution or its application to other persons. The City Council hereby declares that it would have adopted this MOU and each section, subsection, sentence, clause, phrase or portion, and any additions or amendments thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases or portions, or the application thereof to any person, be declared invalid, or unconstitutional . -2- WPADSERP:55 6587 ARTICL VI - SALARY SCHEDULE_ - Employees shall be compensated at monthly salary rates by classification title and salary range during the term of this Agreement as set out in Exhibit A. attached hereto and incorporated herein. Article VII - SPECIAL PAY A. Education Tuition Reimbursement 1 . Education costs shall be paid to employees on the basis of full refund for tuition, fees, books and supplies;. provided, however, that maximum reimbursement shall be at the rates currently in effect in the University of California system or the California State Fire Academy. 2. Upon approval of the Department Head and the Deputy City Administrator Administrative Services, employees may be compensated for actual cost of tuition, books, fees, at accredited educational institutions that charge higher rates than the University of California, if it can be demonstrated by the employee that said educational institution presents the only accredited course or program within a reasonable commuting distance of the employee. 3. Tuition reimbursement shall be limited to job related courses or approved degree objectives and require prior approval by the Department Head and the Personnel Director. 4. Refunds shall be made when the employee presents proof to the Deputy City Administrator/Administrative Services that he/she has paid such costs and successfully completed the course. B. Certification/Skill Pay 1 . Plan Checker/Building Senior - To receive $250 per month upon attainment of a Civil Engineer' s or Architect' s license by the State of California and completion of the probationary period. (Qualifying employees that possess a Civil Engineer's license may use the title of Senior Engineer). -3- WPADSERP:55 6587 ARTICLE VIII - UNIFORMS - CITY agrees to provide uniforms to employees on active duty who are required to wear uniforms to the same extent as in the past. ARTICLE IX - HOURS OF WORK/OVERTIME A. Overtime - Except for the provisions of paragraph B below, employees represented herein shall not be eligible for overtime compensation. However, time off for such employees may be granted by their respective department heads. B. Overtime/Time Off - Division/Battalion Chiefs - When a Division Chief or Battalion Chief of the Fire Department is required to fill a full , or partial , 24 hour 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' shall be compensated at the Battalion Chief pay rate of straight time for each hour worked in the form of pay or compensatory time off. Any regularly scheduled hours worked and paid on such days of assignment shall be deducted from straight time overtime hours paid pursuant to this provision. ARTICLE X - HEALTH AND OTHER INSURANCE BENEFITS A. Health 1 . Medical a. The CITY shall continue to provide group medical benefits to all employees with coverage and benefits comparable to the group medical plans currently in effect. b. The CITY' s indemnity medical plan shall include the following provisions: 1 ) i4eet4ye OaRoafy 4 , 1992 The maximum out-of-pocket expenses for covered expenses for employees under the Employee Health Plan shall be $1 ,000 per person and $2,000 per family per year after the deductible has been met. -4- WPADSERP:55 6587 S 2) Effective damuery 1 , 1992, The maximum out-of-pocket expenses for covered expenses for retirees under the Retiree Medical Health Plan (subsidized plan) shall be $1 ,500 per person and $3,000 per family per year after the deductible has been met. 3) The PC5 Card co-payments shall be five dollars ($5) per prescription for generic drugs and eight dollars ($8) per prescription for non-generic drugs. The PCS Card prescription dispensing limit shall be thirty-four (34) days per prescription. Nail order per prescription cost of $4 for generic brand and $6 for non-generic prescriptions. 4) Elective outpatient surgery - Plan to pay 100% of covered expenses (anesthesia, outpatient surgery, facility use, surgeon and pre-admission) for PPO providers. Plan to pay seventy percent (70%) after the deductible is met for non--PPO providers. �Fhai l be :•7 W Rate a Hoa l th Rlan- 5) Coverage for In-patient Hospitalization and Major Medical shall be: a) Preferred Provider Organizations (PPG' s) - Effective When using Preferred Provider Organizations (PPO's) the Employee Health Plan will pay 90% of the covered expenses after the deductible is met for In-patient Hospitalization and Major Medical and 100% of the covered expenses after the employee has reached the maximum out-of-pocket expense up to the Plan's aggregate maximum of One Million dollars ($1 ,000,000). b) Nora-Preferred Provider Organizations (Non-PPO' s) - Effeetive When using Non-Preferred Provider Organizations (Non-PPG's), the Employee Health Plan will pay 49* 70% of the _..._. _d _::penscc usual , customary and reasonable charges after the deductible is met for -5- WPADSERP:55 6587 In-Patient Hospitalization and Major Medical and 100% of the covered expenses after the employee has reached the maximum out-of-pocket expense up to the Plan' s aggregate maximum of One Million dollars ($1 ,000,000) . However, in the event of emergency services, the plan will pay 90% of usual , customary and reasonable charges for non-PPO providers. Emergency services is defined as following: services which are immediately required to treat a sudden illness, including services to alleviate severe pain associated with sudden, serious and unexpected illness or injury. 6) Effective January 1 , 1992, the chiropractic benefit limit shall be a maximum of Two Thousand dollars ($2,000) per person pax- yeap or 24 treatments per year. 7) Preventive Medical Care benefits as provided in the Plan Document (Part IXFl) shall not be subject to annual deductibles or co-payment provisions of this plan. 2. Dental - The CITY shall provide an indemnity, dental insurance plan comparable to Delta Dental Plan (Group Policy #4729 - Exhibit B) and a prepaid dental insurance plan comparable to the Delta Care Plan (Group Policy #4002 - Exhibit B) . Effective January 1 , 1992, the Delta Plan (#4729) shall include a twenty-five dollar ($25) deductible per person, per year. Effective January 1 , 1994, the City shall pay dental premiums to a maximum of ninety nine dollars ($99) per month 3. Optical - The CITY shall implement provide provide a Vision Care Plan for employees and their dependents at an approximate a maximum composite cost of twelve�dollars thirteen dollars ($13) per month, per employee, to be paid by the CITY. , Optical Plan benefits will provide for one (1 ) pair of eyeglasses every twelve (12) months, subject to the terms and conditions of the current policy. _5_ WPADSERP:55 6587 4. Eligibility Criteria and Cost a. City Paid Medical and Dent l In rance — Dependents — The CITY will assume payment, subject to the limitations set forth in Article X.4.b. for dependent health and dental insurance effective the first of the month following the month during which the employee completes one (1 ) year of full time continuous service with the CITY. For purposes of determining continuous service, there shall be no accrual of hours for the period of time an employee is on a non—pay status for a complete pay period. b. Cit ' s Contribution to Medical In urance Premiums — The CITY'S obligation to pay for medical insurance premiums shall be up to a maximum of $544 a month. meRth} s . Lae agree to ?. Iee"m the meet and confer pree. purpose of discussing the eITY'S contribution towaids premiums, plan coverage, and plan cost eentetimmem+- measidres— c. The Medical Insurance Plan deductible shall be One Hundred Fifty Dollars ($150) per person; and the maximum deductible per family shall be Four Hundred fifty ($450) during any period of benefit entitlement as described in the City' s Employee Health Plan. d. The elective surgeries listed in the Employee Health Plan Document will require a second opinion from a list of authorized physicians. The CITY shall provide such list of physicians mutually agreeable to CITY and the ASSOCIATION. It is understood that should an employee or covered dependent elect a listed surgical procedure without a second opinion, such employee shall receive no benefit. The listed surgical procedures shall be considered elective unless the attending physician certifies that the procedure was performed on an emergency basis without reasonable time for a second opinion. —7— WPADSERP:55 6587 B. Life n Accidental Death and Dismemberment - Each employee under age sixty-five (65) shall be provided with $45,000 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. C. Long Term Disability Insurance - This program provides, for each incident of illness or injury, a waiting period of ninety (90) calendar days, during which the employee may use accumulated sick leave, vacation pay, or the employee may elect to be in a non-pay status. Subsequent to the ninety (90) day waiting period, the employee will be covered by an insurance plan paid for by the CITY, providing 66-2/3 percent of the first $10,000 of the employee's basic monthly earnings. The maximum benefit period for disability due to accident or sickness shall be to age 65. Days and months refer to calendar days and months. Benefits under the plan are integrated with sick leave, Worker' 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 two years, and thereafter the inability to engage in any employment or occupation for which he is fitted by reason of education, training or experience." Rehabilitation benefits are provided in the event the individual , due to disability, must engage in another occupation. Survivor' s benefits continues plan payment for three months beyond death. A copy of the plan is on file in the Administrative Services Department. -8- WPADSERP:55 6587 D. Miscellaneous 1 . When an employee is off work without pay for reason of medical disability, the CITY shall maintain the CITY paid employee's insurance premiums during the period the employee is in a non-pay status for the length of said leave, not to exceed twenty-four (24) months. 2. The CITY and the ASSOCIATION agree to establish and participate in a city-wide joint labor and management insurance benefits advisory committee to discuss and study issues relating to insurance benefits available for employees. 3. Health Plan Over-Pa n - Unit members shall be responsible for accurately reporting the removal of ineligible dependents from health plan coverage. The City shall have the right to recover any premium paid by the City, including premiums to its self-insured plan, on behalf of ineligible dependents. Recovery of such overpayments shall be made as follows: a. The employee's bimonthly salary warrant shall be reduced by one-half of the amount of the bimonthly overpayment. (e.g. , if the overpayment is $150.00 a month, the bimonthly contribution would be $75.00. The employee's bimonthly salary payment shall be reduced by $37.50). Such reduction shall continue until the entire amount of the overpayment is recovered. b. The City shall use its best efforts to advise all unit members of their obligation to report changes in the status of dependents which affect their eligibility. c. The City shall be entitled to recover a maximum of 12 months of premium overpayments. Neither the employee nor the dependent shall be liable to the City other than as provided herein. -9- WPADSERP:55 6587 4. Federal Health Plan - In the event the Federal Government enacts a Federal Health Plan that includes public employees and becomes effective during the life of this agreement, the parties agree to reopen the Health and Welfare article and meet and confer regarding the impact of that plan implementation. These discussions shall include the possible applicability of an IRS125 plan to this situation. ARTICLE XI - RETIREMENT BENEFITS A. Benefits 1 . Self Funded Supplemental Retirement Benefit - In the event a member elects Option #2 (Section 21333) or Option #3 (Section 21334) of the Public Employees' Retirement law, the CITY shall pay the difference between such elected option and the unmodified allowance which the member would have received for his or her life alone. This payment shall be made only to the member, shall be payable by the CITY during the life of the member, and upon that member' s death, the CITY's obligation shall cease. The method of funding this benefit shall be at the sole discretion of the CITY. This benefit is vested for employees covered by this agreement. (Note: The options provide that the allowance is payable to the member until his or her death, and then either the entire allowance (Option #2) or one-half of the allowance (Option #3) is paid to the beneficiary for life.) 2. Medical Insurance for Reti_reu: a) Upon retirement, whether service or disability, each employee shall have the following options in regards to medical insurance under CITY sponsored plans: 1 . With no change in benefits, retirees can stay in any of the plans offered by the CITY, at the retiree' s own expense, for the maximum time period required by Federal Law (COBRA) , or -10- WPADSERP:55 6587 2. Retirees retiring after approval of this MOU may participate in the Retiree Medical Plan, attached hereto as Exhibit E, or either of the HMO plans currently being offered to retirees, based upon the eligibility requirements described in Exhibit E. Any employee who retired between October 1 , 1987 and September 14, 1988 or on September 14, 1988 and is reporting his/her PERS pickup as compensation pursuant to Article XI .8.2, shall receive benefit payments under this plan identical to benefit payments provided to employees retiring after October 1 , 1989. b) 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 due and owing them under the terms of this agreement for unused sick leave benefits upon retirement. B. Public Employees' Retirement m Reimbursement & Reporting 1 . Employee' s Contribution - Each employee covered by this Agreement shall continue to be reimbursed once every two weeks in an amount equal to 7% of the employee's base salary (9% for safety employees) 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. 2. Rollover No unit employee shall be allowed to continue the rollover benefit provided Article XI, B. 2 of the 1991-93 M.O.U. beyond January 31, 1994. a) PERS PjekyR Each empleyee. e ,=-et-4-eme,.t., mu;; hty@ hisiher PERS piekup reported as eemvemsat4em for all or any part eF the twelve (12) month period -his-ghe-r. s;ap. i - - -11- WPAQSERP:55 6587 retirement date-upon written request to the Pir-eeter- ef Finance-. mew. may have jisjIlej optional reperted-*sr— ARTICLE XII - LEAVE BENEFITS A. Vacation 1 . Annual Vacation - Vacation leave shall be accrued as follows: Years of Servipe Vacation Allowance First through Fourth Year 112 hours Fifth through Ninth Year 136 hours Tenth through Fourteenth Year 160 hours Fifteenth Year and Thereafter 192 hours 2. Vacation Allowance - The maximum vacation accumulation shall be 400 hours. 3. Eligibility and Permission - Vacation (and sick leave) accrued time are to be computed from hiring date anniversary. 4. Vacation - When Taken - All accrued vacation may be taken after six (6) months' service. -12- WPADSERP:55 6587 5. Receipt of_Vacation Pay - Upon one (1) week's written notification to the Chief of Administrative Services, an employee represented herein shall be entitled to receive vacation pay, less deductions, in advance, prior to his regularly scheduled annual vacation. Such advancements are limited to one during each calendar year. 6. Conversion to Cash - Once during each fiscal year, each employee shall have the option to convert into a cash payment or deferred compensation up to a total of eighty (80) hours of earned vacation benefits. The employee shall give two (2) weeks' advance notice of his/her desire to exercise such option. B. Holidays - The following are paid holidays: I . New Year's Day 2. Martin Luther King, Jr. , (third Monday in January) 3. Presidents Day (third Monday in February) 4. Memorial Day (last Monday in May) S. 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 by the Governor of the State of California to be a state holiday and adopted as an employee holiday by the City Council of Huntington Beach. Holidays which fall on Sunday shall be observed the following Monday, and those falling on Saturday shall be observed the preceding Friday. -13- WPADSERP:55 6587 C. Sick Leave 1 . 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 seventy-five percent (75%) of all unused sick leave accumulated as of July 1 , 1972, plus fifty percent (50%) of unused sick leave accumulated subsequent to July 1 , 1972, up to a maximum of 720 hours of unused, accumulated sick leave, except as provided in paragraph 4 below. Upon termination for any other reason, employees shall be compensated at their then current rate of pay for fifty percent (50%) of all unused accumulated sick leave, up to a maximum 720 hours of such accumulated sick leave. 2. 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, except as provided in paragraph 4 below. 3. Except as provided in paragraph 4 below, no employee shall be paid at termination for more than 720 hours of unused, accumulated sick leave. However, employees may utilize accumulated sick leave on the basis of "last in, first out," meaning that sick leave accumulated in excess of the maximum for payoff may be utilized first for sick leave, as defined in Personnel Rule 18-8. -14- WPADSERP:55 6587 4. Employees who had unused, accumulated sick leave in excess of 720 hours as of July 5, 1980, shall be compensated for such excess sick leave remaining on termination under the formulas described in paragraphs 1 and 2 above. In no event shall any employee be compensated upon termination for any accumulated sick leave in excess of the "cap" established by this paragraph (i .e. , 720 hours plus the amount over 720 hours existing on July 5, 1980) . Employees may continue to utilize sick leave accrued after that date in excess of such "cap" on a "last in, first out" basis. 5. To the extent that any "capped" amount of excess sick leave over 720 hours is utilized, the maximum compensable amount shall be correspondingly reduced. (Example: Employee had 1 ,000 hours accumulated. Six months after July 5, 1980, employee has accumulated another 48 hours. Employee is then sick for 120 hours. Employee's maximum sick leave "cap" for compensation at termination is now reduced by 72 hours to 928 hours.) 6. 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 due and owing them under the terms of this agreement for unused sick leave benefits upon retirement. Sick leave may be used for an absence due to the illness of the employee's spouse or child when the employee's presence is required at home, provided that such absences shall be limited to five (5) days per calendar year. D. Bereavement Leave -- Employees shall be entitled to bereavement leave not to exceed three (3) working days per calendar year in case of death in the immediate family. "Immediate family" is defined as spouse, father, stepfather, mother, stepmother, sisters, brothers, stepsisters, stepbrothers, mother-in-law, father-in-law, children, stepchildren, and grandparents of the employee or spouse. -15- WPADSERP:55 6587 ARTICLE XIII - CITY RULES A. Personnel Rules - The ASSOCIATION agrees to meet and confer during the term of this agreement, when requested by the CITY, on modification and/or revision of the CITY Personnel Rules and/or Departmental Rules. B. The CITY and the ASSOCIATION agree to implement the following rules and accordingly revise the Personnel Rules as described herein: I . Rule 5-14 - Promotional Examinatio - Promotional examinations may be conducted whenever, in the opinion of the Personnel Director, after consultation with the department head, the need of the service so requires; provided, however, a promotional examination may not be given unless there are two (2) or more candidates eligible for each position to be filled. Only employees who meet the requirements for the vacant position may compete in promotional examinations. Promotional examinations may include any of the selection techniques, or any combination thereof, mentioned in Section 5-13. Additional factors including, but not limited to, performance rating and length of service may be considered. A promotional employment list shall be established after the administration of a promotional examination. 2. Rule 8- - Layoff In Accord4nCe with Lpngth of rvi Determination of Length of Service Professional , Scientific and Executive Classes - Layoff shall be made in accordance with the relative length of the last period of continuous service of the employees in the class of layoff, provided, however, that no permanent employee shall be laid off until all temporary, acting and probationary employees in the competitive service holding positions In the same class in the same department are first laid off. Except as otherwise provided in this part, in determining length of service, scores, one point shall be allowed for each complete month of full-time service in the class of layoff or demotion and in classes that, at the time notice of layoff is given, have the same or a higher maximum salary. One-half point shall be allowed for each complete month of full-time service in all other classes. -16- WPADSERP:55 6587 3. Rule 8-11 - Re-employment - With the approval of the Personnel Director, an employee who has resigned in good standing from the competitive service may be re-employed to his. former position, if vacant, or to a vacant position in the same or a comparable class within one (1) year from date of resignation in accordance with Rule 5-12. If such re-employment commences within ninety (90) days of the effective date of resignation, the employee shall not be considered a new employee for vacation and seniority purposes. 4. Rule 18-19 - Maternity Leave - A permanent employee shall be entitled to a leave of absence without pay due to inability to work due to pregnancy. The employee will be entitled to use available sick leave during this period. Said leave must be requested in writing from the Department Head and must include written notification from the employee's attending physician must state the last date the employee may work and estimated duration of leave. The employee must obtain written authorization to return to work from the attending physician. Said authorization must be filed with the Department Head and the Personnel Director. 5. Rule 18-20 - Leave of Absence Without Pa - Sub-Section (c) - Leave of Absence Without Pay. Leave of absence without pay, for medical disability reasons, shall be restricted to six (6) months. 6. Rule 19-5. Step 4 Grievance - City Administrator - If the grievance Is not settled under Step 3, the grievance may be presented to the City Administrator in accordance with the following procedure: Within five (5) days after the time the decision is rendered under Step 3 above, a written statement of the grievance shall be filed with the Personnel Director who shall act as hearing officer and shall set the matter for hearing within fifteen (15) days thereafter and shall cause notice to be served upon all interested parties. -17- WPADSERP:55 6587 The Personnel Director, or his representative, shall hear the matter de novo and shall make recommended findings, conclusions and decisions in the form of a written report and recommendation to the City Administrator within five (5) days following such hearing. The City Administrator may, in his discretion, receive additional evidence or argument by setting the matter for hearing within ten (10) days following his receipt of such report and causing notice of such hearing to be served upon all interested parties. Within five (5) days after receipt of report, or the hearing provided for above, if such hearing is set by the City Administrator, the City Administrator shall make written decision and cause such to be served upon the employee or employee organization and the Personnel Director. 7. Rule 19-5, Step 5(b) - Hearing - As soon as practicable thereafter, the Personnel Director shall set the matter for hearing before a hearing officer either selected by mutual consent of the parties or from a list provided by the Personnel Commission. The hearing officer shall hear the case and shall make recommended findings, conclusion and decision in the form of a written report and recommendation to the Personnel Commission. If the Personnel Commission agrees to hear the case in lieu of a hearing officer, its decision shall be final . 8. R 1 21-7 - Hearing Officers - The hearing officer provided for in Rules 19 and 20 shall be selected by mutual consent of the parties. If the parties are unable to agree upon a hearing officer, the Personnel Director shall select a hearing officer from a list provided by the Personnel Commission. The Personnel Director shall make the selection from the list on a rotation basis. 9. Rule 21-12 - Time. Extension of - Upon written consent of the parties, the time limitation imposed upon procedures set forth in these rules may be extended a reasonable time. The City and the employee, or employee organization may, by mutual consent, extend the time periods within which an act must occur in the processing of grievances. -18- WPADSERP:55 6587 10. Rule 21-13 Time Extension/Grievances - The City and the employee, or employee organization may, by mutual consent, extend the time periods within which an act must occur in the processing of grievances. 11 . Grievances: a) Representation. In an effort to encourage the resolution of employee grievances at the level closest to their point of origin, and to further encourage an equitable handling of employee grievances, it is agreed that in any grievance proceeding the aggrieved employee may appear in person and/or by his representative or counsel . Administrator or his desi b) Procedure. The Citynee shall act as g hearing g proceedings officer and shall conduct all hearings and roceedin s in non-disciplinary grievances pursuant to Step 4 of Rule 19 of the Personnel Rules of the City of Huntington Beach. c) Arbitrator. In lieu of the hearing noted in Personnel Rules 19 and 20, the CITY and the ORGANIZATION may by mutual agreement submit a grievance to a neutral arbitrator whose decision shall be final and binding on the parties. ARTICLE XIV - MISCELLANEOUS A. Physical Examination - Employees covered by this agreement shall be provided once every two years with a city paid physical examination. Said exam shall be comprehensive in nature and shall include: I . A complete medical history, physical exam, laboratory testing and review of results by a physician. (See Exhibit G, Physical Exam Description.) 2. A stress EKG will be provided for employees forty years of age or older. No more than one-half of the eligible employees shall receive examinations in any one fiscal year. -19- WPADSERP:55 6587 B. Vehicle Policy 1 . The auto allowance for non-department heads shall be at least $350 per month. 2. The automobile allowance for non-department heads shall be $50 per month less than the automobile allowance for department heads during any month of this MOU. 3. The monthly automobile allowance for non-department heads shall not be reduced during the term of this agreement. 4. Eligibility for automobile allowance shall be determined in accordance with Exhibit F, Vehicle Use Policy. -20- WPADSERP:55 6587 ARTICLE XV — CITY COUNCIL APP_R VEAL It is the understanding of the CITY and ORGANIZATION that this Memorandum of Understanding is of no force or effect 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 /4 4'f' of , 19 � y . CITY OF HUNTINGTON BEACH HUNTINGTON BEACH MANAGEMENT A Municipal Corporation EMPLOYEES ORGANIZATION REVIEWED AND APPROVED: Michael T. Uberuaga Ward K nsman, President City Administrator Management Employees Organization INITIATED AND APPROVED: /'Z. �� William H . Osness P onnel Dir for a Paul Crost MEO Negotiator APPROVED 9AS TO FORM: I 5�ail Hutt n, City Attorney 6587 MEO LIST OF MOU EXHIBITS Exhibits b ect A Salary Schedule B Delta Dental - Dental Plan C Delta Care/PMi - Dental Plan D Physical Exam Description Y p E Retiree Medical Plan F Vehicle Use/Assignment G Physical Examination Description 6587 EXHIBIT A CITY OF HUNTINGTON BEACH MANAGEMENT EMPLOYEES' ORGANIZATION SALARY SCHEDULE EFFECTIVE DECEMBER 20, 1992 JANUARY 1 , 1994 Steps Job Code Classification Range A B C D E 0226 Accountant Prin 487 4288 4524 4774 5035 5313 0259 Accounting Officer 522 5108 5389 5685 5997 6327 1208 Art/Cult Affair Mgr. 490 4351 4590 4843 5110 5391 0234 Beach Services Manager 547 5782 6101 6438 6791 7166 1263 Bldg Official/Strc. Eng. 521 5084 5363 5658 5968 6295 0204 Building Official 542 5644 5954 6282 6627 6991 0210 City Engineer 570 6490 6847 7223 7620 8039 1260 Civic Engineer Prin. 515 4931 5202 5488 5789 6108 1209 Civil Engineer Assoc 500 4576 4827 5093 5373 5668 1255 Claims Supervisor 482 4183 4413 4656 4912 5183 1245 Contract Adminr 476 4058 4281 4517 4765 5027 1210 Criminalist Chief 530 5314 5607 5916 6242 6585 0265 Criminalist Supvr. 496 4488 4734 4994 5268 5557 1249 Dept Analyst Sr 467 3881 4094 4319 4557 4808 1235 Deputy Attorney I 484 4228 4460 4704 4963 5235 1233 Deputy Attorney II 522 5108 5389 5685 5997 6327 1230 Deputy Attorney III 549 5843 6164 6503 6861 7238 1250 Deputy City Treasurer Sr. 522 5108 5389 5685 5997 6327 0220 Director Hsg/Redev. 536 5476 5777 6094 6429 6783 0262 Director Real Estate 531 5342 5635 5945 6273 6618 0209 Director of Finance 552 5931 6257 6602 6965 7348 0213 Division Chief 552 5931 6257 6602 6965 7348 0245 Economic Dev Spec 473 3999 4219 4451 4696 4954 1264 Engineer Senior 493 4418 4661 4917 5188 5474 1262 Engineering Manager 515 4931 5202 5488 5789 6108 0231 Fire Battalion Chief 531 5342 5635 5945 6273 6618 2201 Fire Protect Anal 481 4163 4392 4633 4888 5157 2203 Firemed Coordinator 464 3824 4033 4255 4489 4735 0247 Info Systems Manager 531 5342 5635 5945 6273 6618 1215 Insp Combin Chief 478 4099 4325 4562 4813 5079 1212 Insp Electrical Chief 478 4099 4325 4562 4813 5079 1214 Insp Plb/Mech Chief 478 4099 4325 4562 4813 5079 1213 Insp Structural Chf 478 4099 4325 4562 4813 5079 5210 Investigator 428 3195 3370 3555 3751 3957 3210 Landscape Arch 476 4058 4281 4517 4765 5027 1258 Law Office Manager 467 3881 4094 4319 4557 4808 1218 Librarian Senior 434 3293 3474 3664 3865 4079 1204 Library Svcs Manager 471 3957 4176 4406 4649 4905 0230 Maint Operation Mgr. 537 5503 5807 6126 6462 6817 0233 Marine Safety Captain 515 4931 5202 5488 5789 6108 1266 Plan Checker Bldg Sr. 493 4418 4661 4917 5188 5474 1211 Planner Associate 473 3999 4219 4451 4696 4954 0243 Planner Senior 499 4553 4803 5067 5346 5460 WPADSERT:55 6587 EXHIBIT A CITY OF HUNTINGTON BEACH MANAGEMENT EMPLOYEES' ORGANIZATION SALARY SCHEDULE EFFECTIVE DECEMBER 20, 1992 JANUARY 1 , 1994 CONTINUED Stens Job Code Classification Ranpe A B C D E 0206 Planning Director 555 6020 6351 6699 7069 7457 1265 Public Claims Coord 472 3980 4198 4429 4673 4930 0235 Public Info Officer 493 4418 4661 4917 5188 5474 0271 Public Works Insp Ch 493 441E 4661 4917 5188 5474 1239 Purchasing Svcs Mgr. 494 4441 4685 4943 5216 5502 0242 Rdvl Project Manager 499 4553 4803 5067 5346 5460 0249 Rdvl Spec Principal 514 4905 5176 5460 5760 6077 0246 Rdvl Specialist 473 3999 4219 4451 4696 4954 1257 Records Adminr 488 4309 4547 4796 5060 5339 0266 Recreation Supvr Sr. 480 4143 4370 4611 4864 5131 0286 Risk Manager 525 5184 5469 5769 6086 6420 1261 Street Design Manager 515 4931 5202 5488 5789 6108 0257 Supt Pks/Trs/Ldscp 515 4931 5202 5488 5789 6108 0260 Supt Rec/Human Svcs. 515 4931 5202 5488 5789 6108 0261 Supt Rec/Park Devel 515 4931 5202 5488 5789 6108 0264 Supvr Beach Oprns 493 4418 4661 4917 5188 5474 0272 Supvr Bldg Maint. 493 4418 4661 4917 5188 5474 0273 Supvr Mech Maint. 493 4418 4661 4917 5188 5474 0274 Supvr Parks 493 4418 4661 4917 5188 5474 0277 Supvr St Tree Maint. 493 4418 4661 4917 5188 5474 0275 Supvr Street Sewer 493 4418 4661 4917 5188 5474 1237 Supvr Sys & Prog 502 4619 4874 5143 5425 5723 0279 Supvr Water Distrib 493 4418 4661 4917 5188 5474 0280 Supvr Water Prod 493 4418 4661 4917 5188 5474 0229 System Analyst Sr 474 4018 4238 4472 4718 4978 1242 Telecomm Coord 502 4619 4874 5143 5425 5723 0237 Traffic Engineer 531 5342 5635 5945 6273 6618 0239 Traffic Engineer Assoc. 500 4576 4827 5093 5373 5668 0258 Water Superintendent 556 6049 6382 6734 7105 7495 WPADSERT:55 6587 EXHIBIT E 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 mi-nimum 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. 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. 6587 EXHIBIT E 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: Ye4,r5_Qf Service 1 /0 l/87 1 /0 l/88 10/1 /8 10 O1/ 2 10 $ 40 $ 80 $121 $121 11 44 88 132 136 12 48 97 145 151 13 53 105 158 166 14 57 113 170 181 15 61 122 182 196 16 65 130 195 211 17 69 138 207 226 18 73 146 220 241 19 77 155 232 256 20 81 163 244 271 21 86 171 257 286 22 90 179 269 300 23 94 188 282 315 24 98 196 294 330 25 102 204 306 344 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. WPADSERP:55 6587 EXHIBIT E CITY OF HUNTINGTON BEACH Indemnity Health Plan Employees and Retirees January 1 , -1-992 1994 City Plan — Employees Non—Subsidized Retirees City Plan/Subsidized *Benefits COBRA—Eligibles Retiree Plan Inpatient Hospital 90% — (PPO) of. UCR Benefits After Deductible 80% (Nan—PPO) 80% of UCR After After Deductible After Deductible Deductible Per Person $150 / $450 $200 / $500 Maximum Per Family Maximum Out—of--Pocket $1 ,000/2,000 $1 ,500/3,000 Expenses (Excludes Deductible) Per Person/Per Family Accident Benefit (Medical) None (Covered Same None (Covered Same as as Other Expenses) Other Expenses) Prescription Drugs PCs PCs Deductible Generic/Non—Generic $5 / $8 $5 / $8 Prescription Drugs (Mail Order Only) PCs PCs Deductible Generic/Non—Generic $4/ $6 $4/ $6 Major Medical 90% (PPO) of UCR After Deductible 80% (Non—PPO) of UCR 80% of UCR After Deductible 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. WPADSERP:55 6587 EXHIBIT E 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 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 "4a" above. 0 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. 6587 Miscellaneous Provisions of the Retiree Subsidy Medical Plan Continued 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 (OCPP0) 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: Qctober 1 ,� 1987 - MEO, MEA, POA, MSOA, FA, PMA July 1 . 12 - 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. WPA©SERP:55 6587 Miscellaneous Provisions of the Retiree Subsidy Medical Plan Continued 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. 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. WPAOSERP:55 6587 Res. No. 6587 STATE OF CALIFORNIA ) COUNTY OF ORANGE 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 therof held on the 18th day of April, 1994, by the following vote: AYES: Councilmembers: Silva, Bauer, Robitaille, Moulton-Patterson, Winchell, Leipzig, Sullivan NOES: Councilmembers: None ABSENT: Councilmembers: None City Clerk and ex-officio Ark of the City Council of the City of Huntington Beach, California