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HomeMy WebLinkAboutCity Council - 2002-3 RESOLUTION NO. 2002-3 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH MODIFYING BENEFITS AND SALARY FOR CALENDAR YEAR 2002 FOR THE ELECTED CITY CLERK WHEREAS, the City Council of the City of Huntington Beach desires to establish the salary level and benefit changes for the elected City Clerk for calendar year 2002; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Huntington Beach as follows: SECTION 1_ Benefits for the elected City Clerk shall be as reflected in Attachment "A" hereto. SECTION 2. The salary for the elected City Clerk shall be set as reflected in Attachment "B"hereto. SECTION 3. Any existing provisions in conflict with the foregoing, whether by minute action or resolution of the City Council, are hereby repealed. SECTION 4. All benefits and salary ranges established herein shall continue at their highest levels until further modified by City Council action. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 22nd day of 14nuary002. 104k4 q C"A.W.- Mayor ATTEL �� p APPROVED AS TO FORM: ' / y— E� '%-1/—/ � —02-- City Clerk Ql- -02 ,i Ci y Attorney INITIATED AND APPROVED: City Clerk Res. No. 2002-3 ATTACHMENT "A" All benefits provided non-associated officers, officials, and employees shall be granted to the elected City Clerk during the periods reflected herein. NON-ASSOCIATED EMPLOYEE BENEFITS RESOLUTION Res.No.2002-3 TABLE OF CONTENTS Attachment Page EXHI&IT A -NON-ASSOCIA T ED EMPLOYEES BENEFIT PROVISIONS 3 SECTION —SPECIAL PAY 3 A. Education Reimbursement 3 B. Shorthand Skill Pay 3 C. Assigned Vehicle/Auto Allowance 3 1. Department Heads 3 2. Designated Division Heads _ 3_ 3. Others 4 D. City Paid Physical Examinations 4 E. Bilingual Skill 4 F. Process Owner Assignment Pay 4 SECTION H—HO URS OF IVORIUO VERTWEITIME OFF ' 5 A. Administrative Leave/Executive Leave 5 B. Direct Deposit 5 SECTION III—HEAL THAND OTHER INSURANCE BENEFITS 5 A. Health Insurance 5 B. Life and Accidental Death and Dismemberment Insurance 7 C. Long Term Disability_Insurance 7 D. Miscellaneous S SECTION IV—RETIREMENT 8 A. Benefits 8 1. Public Employees' Retirement System 8 2. Self-Funded Supplemental Retirement Benefit 8 3 Medical Insurance for Retirees 8 4. Two Percent(2%)at Age 55 Formula 10 B Public Emplovees' Retirement System Reimbursement and Reporting 10 1. Employees'Contribution 10 SECTION V—LEAVE BENEFITS 10 A. General Leave 10 1. Accrual 10 2. Eligibility and Approval _ 10 3. Conversion to Cash 11 B. Holidays 12 C. Sick Leave 12 D. Bereavement Leave 13 E. Paternity Leave 14 0I-02 NA MOU Draft i 12/19/01 1:04 PM NON-ASSOCIATED EMPLOYEES BENEFIT RESOLUTION Res.No.2002,3 TABLE OF CONTENTS AttachmentA Page SECTION VI—RETIREE SUBSIDYIIIEDICAL PLAN I4 1. Minimum Eligibility for Benefits 15 2. Disability Retirees 15 3. Maximum Monthly Subsidy Payments 16 Subsidy . 16 SECTION VII--RULES GOVERNING LAYOFF,REDUCTIONINLIEU OF LAYOFF AND RE-EMPLOYMENT 17 A. Part 1 -Layoff Procedures 17 I. General Provisions: 17 2. Service Credit: 17 3. Transfer or Reduction to Vacancies in Lieu of Layoff: 18 4. Order of Layoff: 19 5. Notification of Employees: 19 B. Part 2 -Bumping Rights 20 1. Voluntary Reduction or Bumping in Lieu of Layoff: 20 2. Reinstatenient/Reemployment Lists 21 3. Qualifications Appeal 21 4. Qualifications Appeal Hearing: 21 C. Part 3-Reemployment 21 1. Reemployment: 21 2. Status on Reemployment: 22 EXHIBIT B-NON-ASSOCIATED SALARY SCHEDULE 24 ,EXHIBIT C-RETIREE MEDICAL PLAN -2S ho Le Kok 0 71170 LEA l6�Af g RIM[i - _MMW 01-02 NA MO[/ Draft ii 12/19/01 1:04 PM Res.No.2002.3 Attachment A EXHIBIT A - IATED=EMPLOYEES-BENEFIT-PROVISiONS SECTION l -- SPECIAL PAY A. Education Reimbursement UdUG9911 GGStS shall be reimbuFsed to NOR Asiso-r-alated empleyeer, on the basis, of full refuRd f4 tuition, I es, beGks and sUpplies if related to job. AppFeval b�., the prieF to in . - I Gests. Refund shall be Fnade when the employee pfeae44ts Upon approval of the Department Head and the Human Resources Officer, permanent employees may be compensated for courses from accredited educational institutions. Tuition reimbursement shall be limited to job related courses or job related educational degree objectives and requires prior approval by the Department Head and Human Resources Officer. Education costs shall be reimbursed to permanent employees on the basis of a full refund for tuition, books, parking (if a required fee) and any other required fees upon presentation of receipts. However, the maximum reimbursement shall. be not more than one thousand two hundred and fifty dollars ($1,250) in any fiscal year period. Reimbursements shall be made when the employee presents proof to the Human Resources Officer that he/she has successfully completed the course with a grade of"C" or better; or a "Pass" if taken for credit. B. Shorthand Skill Pay Employees who have successfully passed a shorthand skills test and who are required to use shorthand regularly in their jobs shall receive additional compensation in the amount of one hundred dollars ($100) per month. Shorthand skill may be required for selected positions classified as Executive Assistant, Administrative Assistant, and Administrative Secretary (Confidential). C. Assigned Vehicle/Auto Allowance 1. Department Heads Appointed Department Heads and the City Clerk, City Treasurer and City Attorney shall have the option of an assigned city vehicle or an automobile allowance of fn„r WRGIFed 'dGllars ($40 ) per mn th two hundred thirty dollars and seventy-seven cents ($230.77) bi-weekly plus reimbursement of out-of-town travel at the approved mileage rate. 2. Designated Division Heads Non-Associated employees who were Division Heads assigned a city vehicle as of July 2, 1983 shall have the option of an assigned city vehicle or an 01-02 NA MOU Draft 3 12/19/01 1:04 PM EXHIBIT A Res.No.2002-3 NON-ASSOCIATED EMPLOYEES Attachment A BENEFIT PROVISIONS automobile allowance of}three hundred fifty dollars ($350) one hundred sixty one dollars and fifty-four cents ($161.54) bi-weekly per month plus reimbursement for out-of-town travel at the approved mileage rate. 3. Others Non-Associated employees who are regularly required to travel to perform official city business but do not have an assigned vehicle or automobile allowance shalt be provided with a vehicle for such business. D. City Paid Physical Examinations Non-Associated employees shall be provided, once every two years, with a city paid physical examination comparable to the current class physical examination or reimbursed the amount authorized for said physical examination. No more than one-half of the eligible employees shall receive examinations in any one fiscal year. Department Heads shall be required to take the scheduled physical examination. Said exam shall be comprehensive in nature and shall include: .1: . A complete medical history, physical exam and review of results by physician. 2. Health testing including vision, hearing, breathing, chest x-ray and stress EKG. 3. Laboratory test including standard chemical test, blood count, HDL, urinalysis and stool test for blood. E. Bilingual Skill paid an additional five PeFGeRt Employees thiat utilize theiF biliRgual skill as paFt of their job assignment shall be Permanent employees who are required by their Department Head to use Spanish, Vietnamese, or Sign Language skills as part of their job assignment, shall be paid an additional five-percent (5%) of their basic hourly rate in addition to their regular bi-weekly salary. Permanent employees may accept assignments utilizing bilingual skills in other languages on a short-term assignment with approval by the City Administrator. Such employees shall receive the additional five percent(5%) for every bi-weekly pay period that the assignment is in effect. In order to . be eligible for said compensation, employee's language proficiency will be tested and certified by the Human Resources Officer or designee. F. Process Owner Assignment Pay Those employees performing assignments designated by the City as "process owner" assignments shall receive premium pay equal to ten percent (10%) of the employee's base hourly rate. 01-02 NA MOU Draft 4 12/19/01 1:04 PM EXHIBIT A Res,No.2002-3 NON-ASSOCIATED EMPLOYEES AttachmentA BENEFIT PROVISIONS Process owner assignments are designated by the employee's department head and approved by the City Administrator or his designee. Designated employees are responsible for JDEdwards applications setup, design, troubleshooting and training. Process owners. have system coordination responsibilities as distinguished from users of the system. SECTION 11 - HOURS OF WORKIOVERTiMEITIME OFF A. Administrative Leave/Executive Leave Non-Associated employees shall not be eligible for overtime compensation. However, Non-Associated employees designated as "non-exempt" (NE) may be granted paid or compensatory time off at time and one half for hours worked over 40 hours in a workweek. "Exempt" Non-Associated employees, other than department heads, shall be credited with (40) hours of administrative leave upon working 40 hours beyond their normal work schedule in each calendar year. Department heads may grant additional administrative leave to "Exempt" Non-Associated employees who work more than 75 hour% of overtime per year. "Exempt" department heads .shall be credited with 80 hours of administrative leave per year. B. Direct Deposit All Non-Associated employees shall be required to utilize direct deposit of payroll checks effective March 29, 2002. SECTION 111- HEALTH AND OTHER INSURANCE BENEFITS A. Health Insurance 1. Medical a. The City shall continue to provide group medical benefits to all Non- Associated employees with coverage and other benefits comparable to the group medical plan currently in effect. The City Administrator is authorized to modify the benefits described in this Section to reflect changes necessary to make benefits comparable to those benefits provided other managers in the City. b. Te-GoveFage at.d beRefits V.0-vided rndeF the City Self insured and Self Admii;istered Indemnity Plan, as- provided in the Employee Hea#4-P4an r1nnUment, shall he modified effcr-ti a _Japuary 4, . T4) Znnaai"D'ed'CnRihTle" reLse annual deduGta le frern $450 to $200 per indiyid al and Q450 to $500 pe3_FfG m ily_ 2) 0 rrt work Gei6krJra n G.e Reduve--the out Gf netYtrGFk ruin ir.+nr+ From 7 Of_ to 60 frtr_aGtiye employees and 70 to 60% feFmtiree� 01-02 NA MOU Draft 5 12/19101 1:04 PM EXHIBIT A Res.No.2002-3 NON-ASSOCIATED EMPLOYEES_ Attachment A BENEFIT PROVISIONS c. Eligibility Criteria and Cost 1) City Paid Medical and Dental Insurance- Dependents The City will assume payment, subject to.the limitations set forth in Article III.A.1.c.2-4 for dependent health and dental insurance e month effective the first of the month following the-+,T. h durii'-rg-whiGh the.�}h Wan A+'SeGia+ tad a l9yee-� f:-tes six (6) months f full trc'm�r��$ GORtinuo'us sei iGe with the City. FoF puFpes s- of�fr'te Fn ITTTITis �nnfintini- sewir e there challvbee R�ar+nru{al of hours far the perinrl ef-time-a'n-employee-rran a non pay status fQF a G9Mplete pay pnr� 30 days of employment. jan aFy 4 20000 the Gi+�shnl TGal dental and riisioR in ir•+nn premiums by enter ne and plan as follews- Monthly Delta Delta VSP Premium- City Plan . Health Net Ps Dental Care :Safeguard (Vision) wee $283.28 $465.06 $165.96 9 $22.-12 $46.2 $47.59 04y 280.51 236.31 41.31 23.00 16.20 17.58 Single E p 8 361-6ra 3ia1-56 70.65 37.64 12 17- One 654.70 517.79 78.92 39.11 29.16 17.58 Two- Party. a3 eWi AR 476.69 476:69 198.37 57.54 37.22 47.58 ljF 679.15 682.46 112.10 69.81 37.22 17.58 Famely (3 or more} laneean+ 4, 20,00, the City's contribution tntiA+v�rara-medieal i TsuFa � shall e so mere n the rate se r (4) employee en y pr�.ussr ctnrnrcrrt, rr-s-rc-rcr vcc-r�r-Z-rl-"'''f""7�''�Tr7, fee plus ene nr f2 employee plus family in Dither of u�'V�1-1'y4��4T�-��(V+�}� ".ram+.�Q,�v HMO plans nffefed b he Git,7.ShGulid the employee alont fn_h ��ed }��r C + Plan heti7he sir ll y an a„rnNcnun t equal to t highest 14.410 rate in the Gateg._,GFY of Gayerage rz'electe4 b trtc The a Fnp!G ee shall pay the v ifferenve The City' rent ibuti n toward dental and yisinn�nc+er�r-eGe shall be crrtu�"cxrrcr'-r7o'rvt-r shall Month! 041ta ❑ram 'Dental cafe SafeguaF4 (' isiG ) Cmnl 5 9e Cln1y $ a $222 -22 `� $ 01-02 NA MOU Draft 6 12/19/01 1.04 PM EXHIBIT A Res.No.2002-3 NON-ASSOCIATED EMPLOYEES Attachment A BENEFIT PROVISIONS EmploLi e 70.66 37.6 1- 24 47- �6 Employee r. + mil. 7 3�2 $-1-f-�@ 4) Year=4 2002 Premiums-The city will nnn}ribute We thirds of the incFea a in }hea +-r r.+ii im to the Gity me di sl plan and fi#y pemenl n{ the innroaoa in i es HMO. In the esVe Rt that all ether emnlayee groups fan to nnp Llh4Q fry- the year+� `20-(1_1•e f�'_ the i'hi chill rnn}rih�ita nr�o }�.,,,, hn re3rl ne#Gef1} tr-cuiicT kttL7-Prer���r c 6e iR the year 2091 vision fnr the trcar '7f1f1'1 The City "caps" its contributions toward employee monthly health insurance premiums by category (single, two-party, family) and plan (medical, dental, vision) at the rate in effect January 1, 2002 for the year ending December 31, 2002. - -_ 5) Medical Cash Out - E#esti�; -�-1, '- r00; if an employee is covered by a medical program outside of a City-provided program (evidence of which must be supplied to the PersGs;mil Employee Benefit Division), they may elect to discontinue City medical coverage and receive $200 nor month ninety-two dollars and thirty-one cents ($92.31) bi-weekly to deposit into their Deferred Compensation account or any other pre-tax program offered by the City. 6) Section 125 Plan - UPOR adoption-ef a "SeGtien 425 RaR' This plan allows employees to may use pre-tax salary to pay for regular childcare, adult dependent care and/or medical expenses. B. Life and Accidental Death and Dismemberment Insurance Each Non-Associated employee under age sixty-five (65) shall be provided with $45,000 life insurance and $45,000 accidental death and dismemberment insurance paid for by the City. Each employee shall have the option, at his/her own expense, to purchase an additional amounts of life insurance i-n-the-arneuRt o 6, and accidental death and dismemberment insurance to the extent provided by the City's current providers in the amount of $25,000, $60,009 or $ 00,090. 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 thirty (30) calendar days during which the Non-Associated employee may use accumulated sick leave and genera[ leave pay. Subsequent to the thirty (30) day waiting period, the employee will be covered by an insurance plan paid for by the City providing sixty-six and two-thirds percent (66 2/3%) of the first$4 0,000 $12,500 of the employee's basic monthly earnings up to a maximum monthly benefit of $6,666.6 $8,332.60. 01-02 NA Mau Draft 7 12/19/01 1:04 PM EXHIBIT A Res.No.2002-3 NON-ASSOCIATED EMPLOYEES Attachment A BENEFIT PROVISIONS The maximum benefit period for disability due to injury or illness shall be to age sixty-five (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/she is fitted by reason of education, training or experience." Rehabilitation benefits are provided in the event the individual, due to disability, must engage in other occupation. Survivor's benefits continue the plan payment for three (3) months beyond death. A copy of the plan is on file in the Administrative Services Department, Personnel Employee Benefits Division. D. Miscellaneous When a Non-Associated employee is on a leave of absence without pay for reason of-medical disability, the City shall maintain the City paid 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. SECTION IV — RETIREMENT A. Benefits 1. Public Employees' Retirement System Non-Associated employees shall be entitled to retirement benefits appropriate to his/her class as defined in the contract between the Board of Administration, Public Employees' Retirement System and the City Council of the City of Huntington Beach. 2. Self-Funded Supplemental Retirement Benefit In the event a Non-Associated employee 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 (Non- Associated employee), shall be payable by the City during the life of the member, and upon that member's death, the City's obligation shall cease. Unless previously excluded by employment or resolution, eligibility for this benefit is limited to employees hired before December 27, 1997. 3. Medical Insurance for Retirees a. Upon retirement, whether service or disability connected, each non- associated employee shall be entitled to cause himself or herself, spouse and dependents to participate fully in the City's group health insurance 01-02 NA MOU Draft 8 12/19/01 1:04 PM EXHIBIT A Res.No.2002-3 NON-ASSOCIATED EMPLOYEES AttachmentA BENEFIT PROVISIONS program at the equivalent of the City's group premium rate in accordance with the provisions specified by COBRA (Federal Law). Such participation shall be at employee's expense and upon terms, conditions and restrictions currently in effect. b. As an alternative to the benefit described in paragraph VI.A.34.a above, the City will provide a financial contribution towards the cost of retiree medical premiums as described in Section VII. c. Retired employees exercising either option (per paragraph a or b above) may cause any premiums not paid by the City to be paid for retiree medical insurance out of any available funds due and owing them for unused sick leave benefits upon retirement, provided; however, that whenever any such retired employee does not have any such available funds with which to cause the premiums,to be paid, he or she shall have the opportunity to provide the City with sufficient funds to pay the premiums. At retirement, the sick leave hours remaining may, at the employee's option, be converted to a dollar figure and an estimate shall be provided by the City to the retired employee as to the approximate number of months the group insurance can be paid by such sick leave dollars. The calculation of such sick leave dollars shall be in accordance with Section V.Cz V.A.3.d. The City shall notify any retired employee whose .funds available for unused sick leave benefits are about to be exhausted of such fact in writing by certified mail, return receipt requested, at the retired employee's most recent address of record with the City no later than three (3) months prior to the date upon which there will not be sufficient funds to pay premiums. It shall be the individual retiree's responsibility either to insure that there are sufficient sick leave dollars available to pay premiums or to make premium payments at least one (1) month in advance to continue the group insurance in effect. If, following exhaustion of sick leave funds, a retired employee fails to provide the City with sufficient additional funds to pay premiums, the City shall have the right to notify said retired employee in the manner prescribed above that it intends to cause his or her coverage to be terminated for non-payment of premiums, and the further right to terminate such coverage if such default has not been cured within thirty- five (35) days after mailing such notice. Any retired employee electing to obtain such medical insurance coverage after retirement shall have the further option to terminate such coverage following the provision of thirty (30) days written notice to the City, whereupon any funds due and owing him or her for unused sick leave benefits that have not been exhausted to pay these health insurance premiums shall be paid in a lump sum to the retired employee within thirty 01-02 NA MOU Draft 9 12/19/01 1:04 PM EXHIBIT A Res.No.2002-3 NON-ASSOCIATED EMPLOYEES Attachment A BENEFIT PROVISIONS (30) days following receipt by the City of such notice; provided, however, that once such retired employee elects to terminate such coverage, he or she shall be precluded from securing it at a later date at the group rate. 4. Two Percent (2%) at Ape 55 Formula ploy-ees,the-GitT-shall-initiate GORtFaGt amendment with t;^e-Pu € yee- Reti.ement System te-pr4ovide-t benemt Non-Associated Employees shall be covered by the two percent at age 55 formula (2% @ 55) as identified in Section 21354. B Public Employees' Retirement System Reimbursement and Reporting 1. Employees' Contribution Non-Associated employees shall be reimbursed ence ever bNe (2) wee bi- weekly 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 14(h)(2) of the Internal Revenue Code. SECTION V - LEAVE BENEFITS A. General Leave 1. Accrual vacation leave, and the Long TeFFn Disability !RsuraRGe waiting pei;iad be redUG d from 60 to 30 days. instead o Employees will begin accrue General Leave at the accrual rates outlined below. General leave may be used for any purpose, including vacation, sick leave, and personal leave. VaGation time aGGrued thmuq� December 24, 1999 will be added to-the .employee's General-Leave aGcount ofF Gtive December 25, 19997 General leave for non associated employees shall be accrued as follows: Years of Service General Allowance First through.Fourth Year 176 hours Fifth through Ninth Year 200 hours Tenth through Fourteenth Year 224 hours Fifteenth Year and Thereafter 256 hours 2. Eligibility and Approval AssGGiated emplayees shall nat be peFmitted to take geneFal leave in excess 01-02 NA MOU Draft 10 12119/01 1:04 PM EXHIBIT A Res.No.2ou2-3 NON-ASSOCIATED EMPLOYEES Attachment A BENEFIT PROVISIONS time-earned.F=#ect-ive--De"eember- 25, 1999, Nen A&s•,, ( -€m pl_}ees- may not use their general leaveto advaRse-their sepai:a�ien date oR Fefi%eme;# or other separation from ernployment. General rn•+v ra 4 . a nhy airiaRFastatement for appvo ni General leave must be pre-approved except for illness, injury or family sickness, which may require a physician's statement for approval. Accrued general leave may not be taken prior to six (6) months' service except for illness, injury or family sickness. General leave accrued time is to be computed from hiring date anniversary. Members shall not be permitted to take general leave in excess of actual time earned. Members shall not accrue general leave in excess of six hundred hours (600). Employees may not use their general leave to advance their separation date on retirement or other separation from employment. ---3. .. Conversion to Cash earned vac;at1 R ran}, less deduGtians, ice-adyaRre, prier. to - his1heF during each employee's anniyerswy year. l- a. Pay Off at Termination - An employee shall be paid for unused general leave upon termination of employment at which time such terminating employee shall receive compensation at his/her current salary rate for all unused, earned general leave to which he/she is entitled up to and including the effective date of his/her termination. s- b. Conversion to Cash - Once during each fiscal year, each permanent employee shall have the option to convert into a cash payment or deferred compensation up to a total of one hundred-twenty (120) of general leave benefits. The employee shall give two (2) weeks advance notice of his or her decision to exercise such option. c. Medical Premium Conversion - Employees electing to participate in the City's group medical plan after retirement may cause the premiums to be paid by the City out of any available funds due and owing them under terms of the agreement for unused sick leave or general leave benefits upon retirement. d. One Week Minimum Vacation Requirement The City Administrator may require certain positions which handle money or transfer funds to take a minimum of one week, (i.e., five consecutive work days) paid vacation each calendar year. 01-02 NA MOU Draft 11 12/19/01 1:04 PM EXHIBIT A Res.No.2002-3 NON-ASSOCIATED EMPLOYEES Attachment BENEFIT PROVISIONS B. Holidays The following are paid eight(8) hour holidays: 1. New Year's Day 2. Martin Luther King Day (third Monday in January) 3. Presidents Day (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, unless designated as a different date by City Council) 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 the City of Huntington Beach. For Civic Center holiday closure purposes, holidays which fall on Sunday shall be observed the following Monday, and those failing on Saturday shall be observed the preceding Friday. C. Sick Leave 1. Accrual -- No employee shall accrue sick leave after December 24, 1999. 2. Credit-- im p!Gy' no hipe l pFier to QeGembeF 25 1999 shall be rFedited w41 their-sick-leave-ass--1ed as of. —Pecernber2Q, 1999.1 Employees assigned to Non-Associated shall carry forward their sick leave balance and shall no longer accrue sick leave credit. 3. Usage — Employees may use accrued sick leave for the same purposes for which it was used prior to December 25, 1999. 4. Family Sick Leave -- Sick leave may be used for an absence due to 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. 5. Pay Off at Termination a. Non Associated employees with continuous service with the City since November 20, 1978 shall be entitled to the following sick leave payoff plan: 01-02 NA MOU Draft 12 12/19/01 1:04 PM EXHIBIT A Res.No.2002-3 NON-ASSOCIATED EMPLOYEES Affachment A BENEFIT PROVISIONS 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 seven hundred and twenty hours (720) of unused, accumulated sick leave, except as provided in paragraph V.C.25.d 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 of 720 hours of such accumulated sick leave. b. Non-Associated 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 V.A.0..4 V.C.2.cbelow. c. Except as provided. in paragraph V.C.25.d below, no Non-Associated employee shall be paid at termination for more than 720 hours of unused, accumulated sick lave. 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. d. Non-Associated 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 V.C.25.a and b 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. To the extent that any such "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 had 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.) D. Bereavement Leave 01-02 NA MOU Draft 13 12/19/01 1:04 PM EXHIBIT A ices.No.2002-3 NON-ASSOCIATED EMPLOYEES Attachment BENEFIT PROVISIONS , Employees shall be entitled to bereavement leave not to exceed twenty-four (24) hours in each instance of death in the immediate family. Immediate family is defined as father, mother, sister, brother, spouse, children, grandfather, grandmother, stepfather, stepmother, step grandfather, step grandmother, grandchildren, stepsisters, stepbrothers, mother-in-law, father-in-law, son-in- law, daughter-in-law, brother-in-law, sister-in-law, stepchildren, or wards of which the employee is the legal guardian. E. Paternity Leave E #es#+ue danuapy 1;2000 f Fathers may utilize accumulated sick leave in addition to compensatory, general and administrative leave, or take unpaid leave, to care for their newborn or adopted child (or children if more than one is born or adopted at the same time) up to a total of 160 hours, within one year of said birth or adoption. SECTION VI — 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. Fallowing 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 01-02 NA MaU Draft 14 12/19/01 1.04 PM EXHIBIT A Res.No.2002.3 NON-ASSOCIATED EMPLOYEES attachment A BENEFIT PROVISIONS occurred, the retiree will be responsible for reimbursement of those amounts inappropriately expended and the retiree's 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. 2. In the event the FedeFal Government nr State Government mandn+on an emn�leyer-f ehealth plan nr nregrem fnr retirees, of mandate-s e the Gity'S GOntFibUtiGn rate as set forth in this plaR well first hie applied to The mandatory plan. if i ess,tha exGess may he applied tewaid the City medical plan as s pplementa overage nrmrirledl t--Ithe employee yee-p,ays the balanre�r.e�nn�-.n a nr f�F s fi-GGver-age,-�,T G��T�I`'� h 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 hislher 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. D. Schedule of Benefits 1. Minimum Eligibility for Benefits With the exception of an industrial disability retirement, eligibility for benefits 'begin 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. 2. _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 $121. 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. 01-02 NA MOU Draft 15 12/19/01 1:04 PM EXHIBIT A Res.No.2002-3 NON-ASSOCIATED EMPLOYEES Attachment A BENEFIT PROVISIONS 3. Maximum Monthly SubsidV Pa ments 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 Subsidy 10 $ 121 11 136 12 151 13 166 14 181 15 196 16 211 17 226 18 241 19 256 20 271 21 286 22 300 23 315 24 330 25 344 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. 01-02 NA MOU Draft 16 12119/01 1:04 PM EXHIBIT A Res.No,2002-3 NON-ASSOCIATED EMPLOYEES Attachment A BENEFIT PROVISIONS SECTION VII — RULES GOVERNING LAYOFF, REDUCTION IN LIEU OF LAYOFF AND RE-EMPLOYMENT The following procedures shall not apply to Department Heads and the Assistant City Administrator. A. Part 1 - Layoff Procedures 1. General Provisions: a.) Whenever it is necessary because of lack of work or funds to reduce the staff of a City department, employees may be laid off pursuant to these rules. b. Whenever an employee is to be separated from the competitive service because the tasks assigned are to be eliminated or substantially changed due to management-initiated changes, including but not limited to automation or other technological changes, it is the policy of the City that steps be taken by the Human Resources Division on an interdepartmental basis to assist such employee in locating, preparing to qualify for, and being placed in other positions in the competitive service. This shall not be construed as. a restriction on the City government in effecting economies or in making organizational or other changes to increase efficiency. c. A department shall reduce staff by identifying which positions within the department are to be eliminated. d. The employee who has the least City-wide service credit in the class within the department shall have City-wide transfer rights in the class pursuant to.Part 1., Section 3., Transfer or Reduction to Vacancies in Lieu of Layoffs, or within the occupational series pursuant to Part 2, Bumping Rights. e. If a deadline within this procedure falls on a day the City Hall is closed, the deadline shall be the next day City Hall is open. 2. Service Credit: a. Service credit means total time of full-time continuous service within the City at the time the layoff is initiated, including probation, paid leave or military leave. Permanent part-time employees earn service credit on a pro rata basis. b. Except as required by law, leaves of absence without pay shall not earn service credit. 01-02 NA MOU Draft 17 12/19/01 1:04 PM EXHIBIT A Res.No.2002-3 NON-ASSOCIATED EMPLOYEES Attachment A BENEFIT PROVISIONS c. As between two or more employees who have the same amount of service credit, the employee who has the least amount of service in class shall be deemed to be the least senior employee. 3. Transfer or Reduction to Vacancies in Lieu of Layoff: a. In lieu of layoff, a transfer within class shall be offered to an employee(s) with the least amount of service credit in the class designated for staff reduction within a department subject to the following: 1) The employee has the necessary qualifications to perform the duties of the position. 2) The employee shall be given the opportunity, in order of service credit, to accept a transfer to a vacant position in the same class within the City, provided the employee has the necessary qualifications to.perform the duties of the position. 3) If no position in the same class is vacant, the employee shall be given the opportunity, in order of service credit, to transfer to the position in the same class that is held by an incumbent in another department with the least amount of service credit whose position the employee has the necessary qualifications to perform. a) If an employees) is not eligible for transfer within the employee's class, the employee shall be offered, in order of service credit, a reduction to a vacant position in the next lower class within the City in the occupational series in lieu of layoff provided the employee has the necessary qualifications to perform the duties of the position. b) If the employee refuses to accept a transfer or reduction pursuant to A. or B., above, the employee shall be laid off. c) If the employee(s) in the class with the least amount of service credit is in the position(s) to be eliminated or displaced by transfer, the employee shall be offered bumping rights, pursuant to Part 2. d) Any employee who takes a reduction to a position in a lower class within the occupational series in lieu of layoff shall be placed on the reinstate ment/reempioyment list(s) pursuant to Part 3., Reemployment. 01-02 NA MOU Draft 18 12/19101 1.04 PM EXHIBIT A Res.No.2002-3 NON-ASSOCIATED EMPLOYEES Attachment A BENEFIT PROVISIONS 4. Order of Layoff: a. Prior to implementing a layoff, vacant positions that are authorized to be filled shall be identified by City-wide occupational series. if the employee refuses to accept a position pursuant to Section 3., above, the employee shall be laid off. b. No promotional probationary employee or permanent employee within a class in the department shall be laid off until all temporary, nQn-permanent part-time and non promotional probationary employees in the class are laid off. Permanent employees whose positions have been eliminated may exercise City-wide bumping rights to a lower class in the occupational series pursuant to Part 2. c. When a position in a class and/or occupational series is eliminated, any employee in the class who is on authorized leave of absence or is holding a temporary acting- position in another class shall be included for determining order of service credit and be subject to these layoff procedures as if the employee was in his or her permanent position. 5. Notification of Employees: a. The Human Resources Division shall give written notice of layoff to the employee by personal service or by sending it by certified mail to' the last known mailing address at least fifteen (15) days prior to the effective date of the layoff. Normally notices will be served on employees personally at work. b. Layoff notices may be initially issued to all employees who may be subject to layoff as a result of employees exercising voluntary reduction/bumping rig hts. p. The notice of layoff shall include the reason for the layoff, the effective date of the layoff, the employee's hire date and the employee's service credit ranking. The notice shall also include the employee's right to bump the person in a lower class with the least service credit within the occupational series provided the employee possesses the necessary qualifications to successfully perform the duties in the lower class and the employee has more service credit than the incumbent in the lower class. d. The written layoff notice given to an employee shall include notice that he or she has seven (7) calendar days from the date of personal service, or date of delivery of mail if certified, to notify the Human Resources Officer in writing if the employee intends to exercise the employee's bumping rights, if any, pursuant to Part 2., Bumping Rights. 01-02 NA MOU Draft 19 12/19/01 1:04 PM EXHIBIT A Res.No.2002-3 NON-ASSOCIATED EMPLOYEES Attachment A BENEFIT PROVISIONS e. Whenever practicable, any employee with the least amount of service credit in a lower class within an occupational series which is identified for work force reduction shall also be given written notice that such employee may be bumped pursuant to Part I This notice shall include the items referred to in 3., above. f. If an employee disagrees with the City's computation of service credit or listed date of hire, the employee shall notify the Human Resources Officer as soon as possible but in no case later than five (5) calendar days after the. personal service or certified mail delivery. Disputes regarding date-of hire or service credit shall be jointly reviewed by the Human Resources Officer and the employee and/or the employee's representative as soon as possible, but in no case later than five (5) calendar days from the date the employee notifies the Human Resources Officer of the dispute. Within five(5) calendar days after the dispute is reviewed, the employee shall be notified in writing of the decision. B.--Part 2 - Bumping Rights 1. Voluntary Reduction or Bumping in Lieu of Layoff: a. A promotional probationary employee or permanent employee who receives a layoff notice may request a reduction to a position in a lower class within the occupational series provided the employee possesses the necessary qualifications to perform the duties of the position. b. Employees electing reduction under A. above, shall be reduced to a position authorized to be filled in a lower class within the employee's occupational series. The employee may reduce to a lower class in his/her occupational series by 1) filling a vacancy in that class, or 2) if no vacancy exists, displacing the employee in the class with the least service credit, whose position the employee has the necessary qualifications to perform. A displaced employee shall have bumping rights. c. An employee who receives a layoff notice must exercise bumping rights within seven (7) calendar days of receipt of the notice as specified in Part 1. Failure to respond within the time limit shall result in a reputable presumption that the employee does not intend to exercise any right of reduction or bumping to a lower class. The employee must carry the burden of proof to show that the employee's failure to respond within the time limits was reasonabje. If the employee establishes that failure to respond within the time limit was reasonable, to the Human Resources Officer's satisfaction, the . employee shall be permitted to exercise bumping rights but shall not be reinstated to a paid position until the employee to be bumped has vacated the position. If the employee disagrees with the Human Resources Officer's decision, the employee may appeal pursuant to the provisions of Sections 3 and 4 below. 01-02 NA MOU Draft 20 12I19101 1.04 PM EXHIBIT A Res.No.2002-3 NON-ASSOCIATED EMPLOYEES Attachment BENEFIT PROVISIONS 2. Reinstatement/Reemployment Lists Any employee who takes a reduction to a position in a lower class within the occupational series in lieu of layoff shall be placed on the reinstatement/reemployment list pursuant to Part 3. Reemployment 3. Qualifications Appeal Any employee who is denied a reduction to a position in a lower class within the occupational series on the basis that the employee does not possess the necessary qualifications to successfully perform the duties of the lower position may appeal the decision. The appeal shall be fled with the Human Resources Officer within five (b) calendar days of the employee's receipt of written notice of the decision and reason(s) for denial. The employee's appeal shall be in writing and shall include supporting facts or documents supporting the appeal. 4. Qualifications Appeal Hearinq: a. Upon receipt of an appeal, the Human Resources Officer shall contact a mediator from the California State Mediation and Conciliation Service to schedule a hearing within two (2) weeks after receipt of the appeal If the California State Mediation and Conciliation Service is not available within that time frame, the parties shall mutually select a person who is available within the time frame. If the California State Mediation and Conciliation Service and the person mutually selected are not available within the time frame, the parties shall select the earliest date either is available to conduct the hearing. The parties shall split the cost, if any, of the hearing officer. In addition, the parties shall meet within three (3) work .days to attempt to resolve the dispute. if the dispute remains unresolved, the parties shall" endeavor in good faith to submit to the hearing officer a statement of all agreed upon facts relevant to the hearing. b. Appeal hearings shall be limited to two (2) hours, except as otherwise agreed by the parties or directed by the hearing officer. c. The hearing officer shall attempt to resolve the dispute by mutual agreement if possible. If no agreement is reached, the hearing officer shall render a decision at the conclusion of the hearing which shall be final and binding. C. Part 3 - Reemployment 1. Reemployment: a. Employees who are laid off or reduced to avoid layoff shall have their names placed upon a reemployment list, for each class in the 01-02 NA MOIL Draft 21 12/19/01 1:04 PM EXHIBIT A Res.No.2002-3 NON-ASSOCIATED EMPLOYEES Attachment A BENEFIT PROVISIONS occupational series, in seniority order at or below the level of the class from which laid off or reduced. b. Names of persons placed on the reemployment lists shall remain on the list for two (2) years from the date.of layoff or reduction. c. Vacancies shall be filled from the reemployment list for a class, starting at the top of the list, providing that the person meets the necessary qualifications for the position. d. Names of persons are to be removed from the reemployment list for a class if on two (2) occasions they decline an offer of employment or on two (2) occasions fail to respond to offers of employment in a particular class within five (5) calendar days of receipt of written notice of an offer. Any employee who is dismissed from the,City service for cause shall have his or her name removed from all reemployment lists. e. Reemployment lists .shall be available to Non-AssaGiated and affected employees upon reasonable request. f. Qualifications appeals involving reemployment rights shall be resolved in the same manner as that identified in Part 2., Section 4. 2. Status on Reemployment: a. Persons re-employed from layoff within a two (2) year period from the date of layoff shall receive the following considerations and benefits: 1) Service credit held upon layoff shall be restored, but no credit shall be added for the period of layoff. 2) Prior service credit shall be counted toward sick leave and vacation accruals. 3) Employees may cash in sick leave upon layoff or at any time after layoff in the manner and amount set forth in existing Marna-randa_.sf i RdeFstandinq for that employee's unit Non-Associated Employees Benefit Provision. Sick leave shall be paid to an employee when the reemployment list(s) expire(s), if not previously paid. 4) Upon reinstatement the employee may have his or her sick leave re- credited by repayment to the City the cashed amount. Sick leave accumulation of less, than 480 hours shall be restored upon reemployment. 01-02 NA MOU Draft 22 12/19/01 1:04 PM EXHIBIT A Res.No.2002-3 NON-ASSOCIATED EMPLOYEES Aktachrnent A BENEFIT PROVISIONS 5) The employee shall be returned to the salary step of the classification held at the time of the layoff and credited with the time previously served at that step prior to being laid off. 6) The probationary status of the employee shall resume if incomplete. b.) Employees who have reduced to avoid layoff and are returned within two (2) years to their former class shall be placed at the salary step of the class they held at the time of reduction and have their merit increase eligibility date recalculated 01-02 NA MOU Draft 23 12/19101 1:04 PM Res.No.2002-3 Attachment A EXHIBIT B - NON-ASSOCIATED SALARY SCHEDULE Job Typel Description Pay Grade A B C D E 0279 Personnel Assistant 408 16.68 17.60 18.57 19.59 20.67 0278 Admin Assistant 436 19.19 20.25 21.36 22.53 23.77 0061 Executive Assistant 464 22.06 23.27 24.55 25.90 27.32 0005 Admin Analyst 491 25.24 26.63 28.09 29.63 31.26 0063 Admin Analyst, Sr 519 29.03 30.63 32.31 34.09 35.95 0064 Budget Analyst, Sr 519 29.03 30.63 32.31 34.09 35.96 0060 Personnel Analyst Principal 524 29.75 31.39 33.12 34.94 36.86 0062 Admin Analyst, Principal 538 31.91 33.67 35.52 37.47 39.53 0004 Director of Comm&Spec Proj 586 40.55 42.78 45.13 47.61 50.23 0012 Director of Org Effectiveness 586 40.55 42.78 45.13 47.61 50.23 0006 Human Resources Officer 587 40.76 43.00 45.36 47.85 60.48 0007 Director of Library Services 605 44.56 47.01 49.60 52.33 55.21 0009 Director of Building &Safety 616 47.09 ' - 49.68 52A1 55.29 58.33 0008 Director of Econ Development 623 48.76 51.44 54.27 57.25 60.40 0013 Director of Admin Services 623 48.76 51.44 54.27 57.25 60.40 0014 Director of Community Services 623 48.76 51.44 54.27 57.25 60.40 0021 Director of Planning - 623 48.76 51.44 54.27 57.25 60.40 0010 {3ifector of Public Works 639 52.82 55.72 58.78 62.01 65.42 0015 Fire Chief/IS Director 647 54.97 57.99 61.18 64.54 68.09 0011 Police Chief 647 54.97 57.99 51.18 64.54 68.09 0020 Assistant City Administrator 652 56.35 59.45 62.72 66.17 69.81 01-02 NA MOU Draft 24 12119/01 1:04 PM Res.No.2002.3 Attachment A EXHIBIT C - RETIREE MEDICAL PLAN INDEMNITY HEALTH PLAN, EMPLOYEES/RETIREES This summary lists only those benefit 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. YEAR 2002 Benefits City Plan - Employees City Plan - Subsidized Non-Subsidized Retirees Retirees COBRA-eligibles Deductible per person $ 9 $200 $200 Deductible per family $460 $500 $500 Maximum Out of Pocket $1000 per person $1500 per person $2000 per family $3000 per family YEAR 2002 Coinsurance PPO 90% of UCR 90% of UCR Non-PPO 50% of UCR 69% 50% of UCR Maximum Out of Pocket $1000 per person $1509.$1,000 per person $2000 per family $�9 $2,000 per family Note: Retirees who elect to participate in Health Net oF Pas shall be entitled to benefits of the program chosen. This summary has been used to list only those benefit provisions that differ between active and subsidized Retiree Plans. Currently, there are no differences, however, this exhibit is not intended to require that future changes to active employee benefits be applied to retirees as well. 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. 01-02 NA MOU Draft 25 1211910.1 1:04 PM EXHIBIT C - - Res.No.2002-3 RETIREE MEDICAL PLAN Attachment A RETIREE SUBSIDY MEDICAL PLAN/MISCELLANEOUS PROVISIONS A. Eli ibili : 1. The effective start-up date of the Retiree Subsidy Medical 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. Derr eT Employee Benefits 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 in-patient hospitalization coverage. 2) No major medical benefits 3) Annual deductible is $1,500 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: 01-02 NA MOU Draft 26 12/19/01 1:04 PM EXHIBIT C Res.No.2002-3 RETIREE MEDICAL PLAN Attachment A 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 the 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. 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. B. Benefits: 1. Retiree Subsidy Medical Plan includes Managed Health Network (MHN), Prescription Card System (PCS), Orange CountyPfa Foundation for Medical Care 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. C. Subsidies: 1. The subsidy payments will pay for: a. Retiree Subsidy Medical Plan. b. Health Net. 6. D�nifrT`�ro. d: c. Part A of Medicare for those retirees not eligible for paid Part A. 01-02 NA MOU Draft 27 12/19/01 1:04 PM EXHIBIT C Res.No.2002-3 RETIREE MEDICAL PLAN Attachment 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. Ernp!Gyees whe mature en or Racer the fellG ng dates shall be eligible f`n•r• the subsidy based ran yeaF of nompleterd_s 7nnrinn tirith the f ity + N. , r i i FA and FWA Qefirees, whe retire prior to the ebGy e datesare not eligible for any subsidy benefit D. Medicare: 1. All persons are eligible for Medicare coverage at age 65. Those with sufficient credit 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 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. E. Cancellation: I. 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 01-02 NA MOU Draft 28 12/19/01 1:04 PM EXHIBIT C Res.No.2002-3 RETIREE MEDICAL PLAN Attachment 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 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 PeF69 Employee Benefits in accordance with provisions of the . MeMgFandums of Understanding Non-Associated Employees Benefit Resolution. 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. 01-02 NA MOU Draft 29 12/19/01 1:04 PM Res.No.2002-3 *1 ! L R f Attachment B Salary Range for City Clerk: Range Step Hourly Calendar Year 2002 (effective December 22, 2001) 563 E $44.78 Res. No. 2002-3 STATE OF CALIFORNIA ) 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 22nd day of January, 2002 by the following vote: AYES: Green, Dettloff, Bauer, Cook, Boardman NOES: None ABSENT: Houchen ABSTAIN: None City Clerk and ex-officio C erk of the City Council of the City of Huntington Beach, California