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HomeMy WebLinkAboutHBFMA - Fire Management Association - 2002-11-181V-A CITY OF,, HUNTINGTON REACH a-,-11 �-- MEETING DATE: NOVEMBER 18, 2002 DEPARTMENT ID NUMBER: 02-048 Council/Agency Meeting Held: aZ— Deferred/Continued to: C'Approved ❑ Conditionally Approved ❑ Denied City Clerk's Signature Council Meeting Date: NOVEMBER 18, 2002 Department ID Number: 02=049- (�-/ CITY OF HUNTINGTON BEACH REQUEST FOR COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS SUBMITTED BY: RAY SILVER, CITY ADMINISTRATOR~ j PREPARED BY: WILLIAM P. WORKMAN, ASSISTANT CITY ADMINISTRATORA, CLAY MARTIN, DIRECTOR OF ADMINISTRATIVE SERVICES SUBJECT: APPROVAL OF MEMORANDUM OF UNDERSTANDING BETWE THE CITY AND THE HUNTINGTON BEACH FIRE MANAGEMENT ASSOCIATION &—,5_ /0 , -'2aa�z.-- /',;� Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s) Statement of Issue: Should the City and the Huntington Beach Fire Management Association enter into a new Memorandum of Understanding covering the period of December 21, 2002 through December 19, 2003? Funding Source: Funding is included in the Fiscal Year 2002/2003. The total annual cost to implement the Memorandum of Understanding with the Huntington Beach Fire Management Association is $128,000. Recommended Action: Adopt Resolution No..�26J;z -4, a resolution of the City Council of Huntington Beach approving and implementing the Memorandum of Understanding between the Huntington Beach Fire Management Association (FMA) and the City of Huntington Beach for 12/21/02 through 12/19/03. Alternative Action(s): Reject the resolution and maintain the current salary and benefits of the Huntington Beach Fire Management Association. r" -5, 2003 FMA MOU.doc ,i 11/14/2002 4:52 PM REQUEST FOR COUNCIL ACTION MEETING DATE: NOVEMBER 18, 2002 DEPARTMENT ID NUMBER: 02-048 Analy$is: Representatives of the City and the Huntington Beach Fire Management Association (FMA) have completed the meet and confer process with agreement on a new Memorandum -of - Understanding (MOU) for the period of December 21, 2002 through December 19, 2003. Proposed modified salary and benefit changes include the following: Salary Three percent (3%) salary increase effective December 21, 2002. As a point of reference the current Consumer Price Index for Urban Wage Earners and Clerical Workers averages 2.5% for the Los Angeles -Riverside -Orange County region. This is based on the period October 1, 2001 through September 30, 2002. Health Insurance Effective January 4, 2002 employees will share in the cost for 2003 medical, dental, and vision increases. Depending on the category of coverage selected by each employee in the medical plan, employees will be contributing through a pre-tax payroll deduction between approximately $175.00 and $490.00 per year to offset the cost of 2003 health insurance increases. In addition, employees are subject to additional cost containment measures in the medical plans. Pre -Retirement Death Benefits for Survivors Upon approval of the City Council, two amendments will be submitted to CalPERS having to do with survivors. The Pre -retirement Optional Settlement 2 Death Benefit provides the surviving spouse of a member eligible for retirement who dies before retiring the benefits that they would be eligible for if the member were to have already been retired. The Fourth Level of 1959 Survivors Benefit provides a monthly allowance to eligible survivors of members who died before retirement. This will bring the 1959 Survivor Benefit to just below the equivalent Social Security benefit. The Fourth Level of 1959 Survivors Benefit is separately funded with the CalPERS system and requires an employee contribution. A summary of these and other changes are included as Attachment #1. 2003 FMA MOU.doc + 11/14/2002 4:52 PM oZ REQUEST FOR COUNCIL ACTION MEETING DATE: NOVEMBER 18, 2002 DEPARTMENT ID NUMBER: 02-048 Attachment(s): zoo 2.. RCA Author: William McReynolds 2003 FMA MOU.doc 14 11/14/2002 4:52 PM 3 ATTACHMENT #1 SUMMARY OF SALARY AND BENEFIT CHANGES FOR THE FIRE MANAGEMENT ASSOCIATION Term A one-year term from December 21, 2002 through December 19, 2003 Salary 3% increase effective December 21, 2002, (the first day of the pay period under the resolution). •I° Health Year 2003 Premiums The City's contribution to medical, dental and vision shall be no more than the premium maximum for employee only, employee plus one, and employee plus two or more. •I° Employee Cost Sharing of Benefits Year 2003 Starting January 4, 2003 employees will share in the city's total cost of providing benefits (medical, dental, vision, life, and accidental death & dismemberment) with a bi-weekly pre-tax payroll deduction in the amounts below based on the employee's category of the medical benefit. Employee Cost Pre -Tax Sharing Per Pay Annual Period EE $ 6.75 $ 175.50 EE + 1 14.00 364.00 EE + 2 or more 18.90 491.40 •.° Retirement The city proposes amending its contract with California Public Employees Retirement System (CaIPERS) to provide the following pre -retirement death benefits, which are described by CalPERS as follows: Pre -retirement Optional Settlement 2 Death Benefit The spouse of a deceased member, who was eligible to retire for service at the time of death, may elect to receive the Pre -Retirement Optional Settlement 2 Death Benefit in lieu of the lump sum Basic Death Benefit. The benefit is a monthly allowance equal to the amount the member would have received if the member had retired from service on the date of death and selected Option 2, the highest monthly allowance a member can leave a spouse. Fourth Level of 1959 Survivor Benefit The 1959 Survivor Benefit provides a monthly allowance to eligible survivors of members who were covered by this benefit program and died before retirement. This benefit coverage is available by contract amendment for those members who are not covered by federal Social Security with their employer. Covered members are required to pay a $2 Page 1 SUMMARY OF SALARY AND BENEFIT CHANGES FOR THE FIRE MANAGEMENT ASSOCIATION monthly fee that is deducted from their salary specifically to fund the 1959 Survivor Benefit Program. ❖ Professional Achievement Award ® Upon presenting a certificate of completion from the United States Fire Administration's National Fire Academy for the Executive Fire Officer Program to the Human Resources Manager, the employee will receive a one-time award of two thousand five hundred ($2,500) dollars. ❖ Management Issues • Family Sick Leave — In Compliance with Law and Standardized • Increased Education Reimbursement • Remove language regarding retiree medical premiums paid by unused leave benefits • Roll Over lawsuits settled, delete language Page 2 I ATTACHMENT #2 RESOLUTION NO. 2002 — 122 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH APPROVING AND IMPLEMENTING THE MEMORANDUM OF UNDERSTANDING BETWEEN THE HUNTINGTON BEACH FIRE MANAGEMENT ASSOCIATION (FMA) AND THE CITY OF HUNTINGTON BEACH FOR 12/21/02 THROUGH 12/19/03 The City Council of the City of Huntington Beach does resolve as follows: The Memorandum of Understanding between the City of Huntington Beach and the Huntington Beach Fire Management Association, a copy of which is attached hereto as Exhibit "A" and by reference made a part hereof, is hereby approved and ordered implemented in accordance with the terms and conditions thereof, and the City Administrator is authorized to execute this Agreement. Such Memorandum of Understanding shall be effective for the term December 21, 2002 through December 19, 2003. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 18th day of November , 2002. ATTESTCONNIE BROCKWAY ,City ierk Mayor REVIEWED AND APPROVED: APPROVED AS TO FORM: Cit Administrator City Attorney INITIAT APP VED: Director o dministrativ ervices 02reso/fma/ 11/ 14/02 FIRE MANAGEMENT ASSOCIATION Res. No. 2002-122 MEMORANDUM OF UNDERSTANDING TABLE OF CONTENTS Page PREAMBLE.................................................................................................................................................................1 ARTICLEI — TERM OF MOU.................................................................................................................................1 ARTICLE II — REPRESENTATIONAL UNIT........................................................................................................1 ARTICLEIH — SEVERABILITY..............................................................................................................................I ARTICLE IV — SALARY SCHEDULES AND RETIREMENT.............................................................................2 A. MONTHLY COMPENSATION...................................................................................................................................2 B. PUBLIC EMPLOYEES RETIREMENT SYSTEM PICKUP..............................................................................................2 C. SELF FUNDED SUPPLEMENTAL RETIREMENT BENEFIT..........................................................................................2 D. MEDICAL INSURANCE UPON RETIREMENT............................................................................................................2 E. PUBLIC EMPLOYEES' RETIREMENT SYSTEM.........................................................................................................3 1. Level IV Survivors Benefits..............................................................................................................................3 2. Pre -Retirement Optional Settlement 2 Death Benefzt......................................................................................3 F. DIRECT DEPOSIT...................................................................................................................................................3 ARTICLEV — SPECIAL PAY...................................................................................................................................3 A. EDUCATIONAL TUITION.........................................................................................................................................3 B. HOLIDAY PAY-IN-LIEU.........................................................................................................................................4 C. BILINGUAL SKILL PAY...........................................................................................................................................4 D. PROFESSIONAL ACHIEVEMENT AWARD.................................................................................................................5 ARTICLEVI — UNIFORMS......................................................................................................................................5 ARTICLE VII — WORK SCHEDULE/COMPENSATORY PAY/TINIEE OFF......................................................5 A. WORK SCHEDULE.................................................................................................................................................5 B. COMPENSATORY PAY............................................................................................................................................5 ARTICLE VIII — HEALTH AND OTHER INSURANCE BENEFITS..................................................................6 A. HEALTH................................................................................................................................................................6 B. ELIGIBILITY CRITERIA AND COST..........................................................................................................................6 1. City Paid Medical, Dental and Vision Insurance — Employee and Dependents.............................................6 2. City's Contribution to Health Insurance Premiums ................................................ ......:................................. 6 3. Section 125 Plan..............................................................................................................................................7 C. LIFE AND ACCIDENTAL DEATH AND DISMEMBERMENT.. . 7 D. LONG TERM DISABILITY INSURANCE....................................................................................................................7 1. City Paid Premiums While on Medical Disability...........................................................................................8 2. Insurance and Benefits Advisory Committee...................................................................................................8 3. Health Plan Over-Payments............................................................................................................................8 F. EMPLOYEE COST SHARING....................................................................................................................................9 G. JOINT CAFETERIA PLAN STUDY.............................................................................................................................9 2003 FMA MOU Final.doc i 11/14/02 2:26 PM FIRE MANAGEMENT ASSOCIATION Res. No. 2002-122 MEMORANDUM OF UNDERSTANDING TABLE OF CONTENTS Page ARTICLEIX - LEAVE BENEFITS..........................................................................................................................9 A. GENERAL LEAVE...................................................................................................................................................9 1. Accrual.................................................................................................................................................................9 2. Eligibility and Approval.....................................................................................................................................10 3. Conversion to Cash............................................................................................................................................10 4. Family Sick Leave..............................................................................................................................................10 B. SICK LEAVE........................................................................................................................................................11 C. BEREAVEMENT LEAVE........................................................................................................................................12 D. PATERNITY LEAVE............................................................................................................:.................................13 ARTICLE X — CITY RULES...................................................................................................................................13 A. PERSONNEL RULES..............................................................................................................................................13 ARTICLE XI — MISCELLANEOUS......................................................................................................................28 A. VEHICLE POLICY.................................................................................................................................................28 B. DEFERRED COMPENSATION LOAN PROGRAM......................................................................................................28 C. ASSOCIATION BUSINESS......................................................................................................................................28 ARTICLE XII — CITY COUNCIL APPROVAL....................................................................................................29 LIST OF MOU EXHIBITS.....................................................................:.................................................................30 EXHIBIT A - FIRE MANAGEMENT ASSOCIATION SALARY SCHEDULE................................................31 EXHIBIT B — RETIREE SUBSIDY MEDICAL PLAN.........................................................................................32 EXHIBIT C — EMPLOYEE HEALTH PLAN BROCHURE................................................................................40 EXHIBIT D — DELTA CARE (PMI) DENTAL PLAN BROCHURE..................................................................41 EXHIBIT E — DELTA DENTAL PLAN BROCHURE..........................................................................................42 EXHIBIT F — VISION (VSP) PLAN BROCHURE................................................................................................43 2003 FMA MOU Final.doc % ii 11/14/02 2:26 PM Res. No. 2002-122 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF HUNTINGTON BEACH, CALIFORNIA (Herein Called CITY) AND THE HUNTINGTON BEACH FIRE MANAGEMENT ASSOCIATION (Hereinafter Called ASSOCIATION) PREAMBLE WHEREAS, the designated representative of the City of Huntington Beach and the Huntington Beach Fire Management Association have met and conferred in good faith with respect to salaries, benefits and other terms and conditions of employment for the employees represented by the Association; Except as expressly provided herein, the adoption of this Memorandum of Understanding (MOU) shall not change existing terms and conditions of employment, which have been established for the classification represented by the Huntington Beach Fire Management Association. NOW THEREFORE, this Memorandum of Understanding is made, to become effective December 21, 2002 and it is agreed as follows: ARTICLE I — TERM OF MOU This Agreement shall be in effect for a period of one (1) year commencing December 21, 2002 and ending at midnight on December 19, 2003. ARTICLE II — REPRESENTATIONAL UNIT It is recognized that the Huntington Beach Fire Management Association is the employee organization which has the right to meet and confer in good faith with the city on behalf of represented employees of the Huntington Beach Fire Department within the classification titles of Fire Division Chief and Fire Battalion Chief as outlined in Exhibit A attached hereto and incorporated herein. ARTICLE III — 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 courtof competent jurisdiction, such decision shall'be 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. 1�� MEMORANDUM OF UNDERSTANDING Res. No. 2002-122 HUNTINGTON BEACH FIRE MANAGEMENT ASSOCIATION ARTICLE IV - SALARY SCHEDULES AND RETIREMENT A. Monthly Compensation Employees shall be compensated at hourly rates by job type and pay grade during the term of this Agreement as set out in Exhibit A attached hereto and incorporated herein unless expressly provided for in other articles of this Memorandum of Understanding. B. Public Employees Retirement System Pickup Each employee covered by this Agreement shall be reimbursed bi-weekly in an amount equal to 9% of the employee's base salary and special pay as a pickup of the employee's contribution, or portion of such contribution, to the Public Employees' Retirement System (PERS). The above PERS pickup is not base salary but is done pursuant to Section 414(h)(2) of the Internal Revenue Code. C. Self Funded Supplemental Retirement Benefit Employees hired prior to August 17, 1998 are eligible for the Self Funded Supplemental Retirement Benefit, which provides that: In the event a member elects Option #2 (Section 21456) or Option #3 (Section 21457) 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, shall be payable by the city during the life of the member, and upon that member's death, the city 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 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. Employees hired on or after August 17, 1998 shall not be eligible for this benefit referenced in A.1.a. herein above. D. Medical Insurance Upon Retirement Upon retirement, whether service or disability, each employee shall have the following options in regards to medical insurance under city sponsored plans: With no changein 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 the Consolidated Omnibus Budget Reconciliation Act (COBRA), or Retirees retiring after approval of this MOU may participate in the Retiree Medical Plan, attached hereto as Exhibit B, or the Health Maintenance 2003 FMA MOU Final.doc `� 2 04/02/02 7:54 AM MEMORANDUM OF UNDERSTANDING Res. No. 2002-122 HUNTINGTON BEACH FIRE MANAGEMENT ASSOCIATION Organization (HMO) Plan currently being offered to retirees, based upon the eligibility requirements described in Exhibit B. E. Public Employees' Retirement System 1. Level IV Survivors Benefits Unit employees shall be covered by the 1959 PERS Level IV Survivor Benefit. 2. Pre -Retirement Optional Settlement 2 Death Benefit Employees shall be covered by the Pre -Retirement Optional Settlement 2 Death Benefit as identified in Section 21548 when approved by the City Council. F. Direct Deposit All FMA represented employees shall be required to utilize direct deposit of payroll checks. ARTICLE V — SPECIAL PAY A. Educational Tuition Upon approval of the Department Head and the Human Resources Manager, 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 Manager. 2. 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 five hundred dollars ($1,500) in any fiscal year period. 3. If a permanent employee was enrolled in an a degree with approval from their Department Head and the Human Resources Manager prior to April 15, 2002. 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. Employee 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 institutional presents the only accredited course or program within a reasonable commuting distance of the employee. 2003 FMA MOU Final.doc� 3 04/02/02 7:54 AM Res. No. 2002-122 MEMORANDUM OF UNDERSTANDING HUNTINGTON BEACH FIRE MANAGEMENT ASSOCIATION 4. Reimbursements shall be made when the employee presents proof to the Human Resources Manager that he/she has successfully completed the course with a grade of "C" or better; or a "Pass" if taken for credit. B. Holiday Pay -In -Lieu Employees shall be compensated by the city in lieu of the ten listed holidays at the rate of 3.0768 hours multiplied by the employee's hourly salary rate set forth in Exhibit A, payable each and every pay period. The following are the recognized legal holidays under this MOU: 1. New Year's Day (January 1) 2. Martin Luther King's Birthday (third Monday in January) 3. President's 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) 8. Thanksgiving Day (fourth Thursday in November) 9. Friday after Thanksgiving 10. Christmas Day (December 25) 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. Employees designated by the Fire Chief who are required to work regular shifts on the above listed holidays as set forth in this Article, shall not be entitled to time off or overtime. Subject to State Law and Regulations, compensation paid as a result of Article V.B. shall be reportable to PERS as salary. C. Bilingual Skill Pay Permanent employees who are qualified to use Spanish, Vietnamese, or Sign Language skills 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 qualified for said compensation, 2003 FMA MOU Final.doc ( 4 04/02/02 7:54 AM Res. No. 2002-122 MEMORANDUM OF UNDERSTANDING HUNTINGTON BEACH FIRE MANAGEMENT ASSOCIATION employee's language proficiency will be tested and certified by the Human Resources Manager or designee. D. Professional Achievement Award Upon presenting a certificate of completion from the United States Fire Administration's National Fire Academy for the Executive Fire Officer Program to the Human Resources Manager, the employee will receive a one-time award of two thousand five hundred ($2,500) dollars. The award shall be subject to all applicable state and federal taxes. ARTICLE VI — UNIFORMS The 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 VII — WORK SCHEDULE/COMPENSATORY PAYITIME OFF A. Work Schedule Members assigned to suppression assignments shall work an average of fifty-six (56) hours per week pursuant to the current schedule of five (5) twenty-four (24) hour shifts in a fifteen (15) day period with six (6) consecutive days off. Total hours worked in a calendar year will equal 2912 hours. Members assigned to non -suppression staff assignments shall work four (4) days per week, ten (10) hours each day, meal times to be included during the ten hour shift. Total hours worked in a calendar year will equal 2080 hours. B. Compensatory Pay 1. Members working suppression duties earn compensatory pay or compensatory time off, on an hour for hour basis, for hours worked in addition to their regular schedule, subject to the limitations contained in Article VII.B.3. below. 2. Members shall work thirty-five (35) hours of non -suppression overtime in a calendar year, before earning compensatory pay or compensatory time off, on an hour for hour basis, for hours worked in excess of their regular normal work schedule. 3. Compensatory Pay a. Compensatory pay is paid at the 40 hours straight time rate for each hour. b. Compensatory time earned can be converted to cash at the member's 40-hour straight time rate. 2003 FMA MOU Final.doc4P 5 04/02/02 7:54 AM MEMORANDUM OF UNDERSTANDING Res. No. 2002-122 HUNTINGTON BEACH FIRE MANAGEMENT ASSOCIATION c. Maximum accrual shall be 120 hours. ARTICLE Vill - HEALTH AND OTHER INSURANCE BENEFITS A. Health The city shall continue to make available group medical, dental and vision benefits to all FMA employees. The City Administrator is authorized until September 30, 2003 to modify the level of contributions (e.g. the "caps" described below), the level of benefits, co -pays, out-of-pocket maximums, and/or other components (the "benefits") of the group medical, dental and vision plans to reflect changes necessary to make the benefits comparable to the benefits provided to employees in the Huntington Beach Firefighters Association at the Fire Management Associations request. B. Eligibility Criteria and Cost 1. City Paid Medical, Dental and Vision Insurance — Employee and Dependents The city will assume payment for employee and dependents medical, dental and vision insurance effective the first of the month following one complete calendar month of employment. 2. City's Contribution to Health Insurance Premiums a. Year 2003 Premiums The city "caps" its contributions for 2003 premiums at the level set forth in the chart below (subject to employee cost sharing provisions in Article VIII.F.) Monthly Premium City Plan HMO Dental (pPO) Dental (PMI) Vision EE $ 341.62 $ 225.32 $ 46.97 $ 23.00 $ 18.07 EE + 1 1 675.54 493.75 89.74 39.11 18.07 EE + 2 or more 1 827.10 1 650.80 127.46 59.81 18.07 b. Future Premiums The city "caps" pits contributions toward monthly group medical, dental and vision plan premiums, by category (EE, EE + 1, and EE + 2 or more) and plan, at the Year 2003 level (subject to employee cost sharing provisions in Article VIII.F.) 2003 FMA MOU Final.doc 6 04/02/02 7:54 AM Res. No. 2002-122 MEMORANDUM OF UNDERSTANDING HUNTINGTON BEACH FIRE MANAGEMENT ASSOCIATION c. Medical Cash -Out: Employees covered by a medical program outside of a city provided program (evidence of which must be supplied to Administrative Services Department), may elect to discontinue city medical coverage and receive 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. 3. Section 125 Plan Employees may utilize this plan, which allows employees to use pre-tax salary to pay for regular childcare, adult dependent care and/or medical expenses. C. Life and Accidental Death and Dismemberment Each employee 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 or her own expense, to purchase additional amounts of life insurance and accidental death and dismemberment insurance to the extent provided by the city's current providers. Evidence of insurability is contingent upon total participation in additional amounts. D. 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 employee may use accumulated sick leave, general leave, or the employee may elect to be in a non -pay status. Subsequent to the thirty (30) 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 $12,500 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 benefit continues plan payment for three (3) months beyond death. A copy of the plan is on file in the Administrative Services Department. 2003 FMA MOU Final.doc 7 04/02/02 7:54 AM MEMORANDUM OF UNDERSTANDING Res. No. 2002-122 HUNTINGTON BEACH FIRE MANAGEMENT ASSOCIATION E. Miscellaneous 1. City Paid Premiums While on Medical Disability 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. Insurance and Benefits Advisory Committee The city and the Association agree to participate in a citywide joint labor and management insurance and benefits advisory committee to discuss and study issues relating to insurance benefits available for employees. 3. Health Plan Over -Payments Unit members shall be responsible for accurately reporting the removal of ineligible dependents from health plan coverages. 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 over- payments shall be made as follows: a. Reduction of Employee's Bi-Weekly Salary Warrant The employee's bi-weekly salary warrant shall be reduced by one-half of the amount of the bi-weekly over -payment. Such reduction shall continue until the entire amount of the over -payment is recovered. b. Notice of Ineligible Dependents 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. Twelve Month Recovery Period The city shall be entitled to recover a maximum of twelve (12) months of premium over -payments. Neither the employee nor the dependent shall be liable to the city other than as provided herein. 2003 FMA MOU Final.doc 8 04/02/02 7:54 AM MEMORANDUM OF UNDERSTANDING Res. No. 2002-122 HUNTINGTON BEACH FIRE MANAGEMENT ASSOCIATION F. Employee Cost Sharing Starting January 4, 2003 employees will share in the city's total cost of providing benefits (medical, dental, vision, life, and accidental death & dismemberment) with a bi-weekly pre-tax payroll deduction in the amounts below based on the employee's usage category of the medical benefit. Employee Cost Sharing Per Pay Period Annual EE $ 6.75 $ 175.50 EE + 1 14.00 364.00 EE + 2 or more 18.90 491.40 Until the City Council approves a successor to this Memorandum -of - Understanding, the city's 2003 contribution caps will remain in place in 2004 and beyond, even if premium increases result in these additional costs being borne by the employee. G. Joint Cafeteria Plan Study The city and one FMA employee will convene an ad -hoc committee to study a cafeteria plan for employee benefits. The ad -hoc committee will finalize its report by June 30, 2003. The resulting report may have an effect on 2004 benefit costs. ARTICLE IX - LEAVE BENEFITS A. General Leave 1. Accrual Employees accrue general leave at the accrual rates outlined below. General leave may be used for any purpose, including vacation, sick leave, and personal leave. Employees shall accrue general leave at their appropriate assigned work schedule rate, either 40-hour or 56-hour workweek. In the event of a change in work schedules, which must be at the beginning of a pay period, payroll shall change the accrued general leave balance and accrual rate based on the new schedule using the conversion factor of .7143. Personnel who change from a fifty-six (56) hour schedule to a forty (40),,hour schedule ,shall multiply the existing general leave by .7143. Personnel who change from a forty (40) hour schedule to a fifty-six (56) hour schedule shall divide their existing general leave by .7143. 40 2003 FMA MOU Final.doc 9 04/02/02 7:54 AM MEMORANDUM OF UNDERSTANDING Res. No. 2002-122 HUNTINGTON BEACH FIRE MANAGEMENT ASSOCIATION Years of Service General Leave Accrual 40-Hour Rate General Leave IAccrual 56-Hour Rate First through Fourth Year 176 Hours 246.4 Hours Fifth through Ninth Year 200 Hours 280.0 Hours Tenth through Fourteenth Year 224 Hours 313.6 Hours Fifteenth Year and Thereafter 256 Hours T 358.4 Hours 2. Eligibility and Approval 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 on a 40-hour schedule shall not accrue general leave in excess of six hundred hours (600), 56-hour members shall not accrue general leave in excess of eight hundred and forty hours (840). Employees may not use their general leave to advance their separation date on retirement or other separation from employment. 3. 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 one hundred twenty (120) hours of earned general leave benefits. The employee shall give two (2) weeks advance notice of his/her desire to exercise such option. 4. Family Sick Leave As required by law, employees will be allowed to use up to one-half of their annual General Leave accrual for family sick leave, pursuant to the provisions of California Labor Code Section 233. The city will provide family and medical care leave for eligible employees that meet all requirements of State and Federal law. Rights and obligations are set forth in ,the Department: of Labor,: Regulations implementing the Family Medical Leave Act (FMLA), and the regulations of the California Fair Employment and Housing Commission implementing the California Family Rights Act (CFRA). 2003 FMA MOU Final.doc 10 04/02/02 7:54 AM MEMORANDUM OF UNDERSTANDING Res. No. 2002-122 HUNTINGTON BEACH FIRE MANAGEMENT ASSOCIATION B. Sick Leave 1. Accrual No employee shall accrue sick leave. 2. Credit Employees assigned to FMA 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 the employee's assignment to FMA. 4. Family Sick Leave The city will provide family and medical care leave for eligible employees that meet all requirements of State and Federal law. Rights and obligations are set forth in the Department of Labor Regulations implementing the Family Medical Leave Act (FMLA), and the regulations of the California Fair Employment and Housing Commission implementing the California Family Rights Act (CFRA). 5. Pay Off At Termination a. Employees covered by this agreement and on the payroll on November 20, 1978 shall be entitled to the following sick leave payoff plan: At involuntary termination by reason of industrial or non -industrial 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 current 40-hour equivalent rate of pay for fifty percent (50%) of all unused, accumulated sick leave. The maximum number of hours paid off at1ermination will be a total of 720 hours. Example: Employee has 1920 hours of accured sick leave. 1920 hours multiplied by 50% equals 960 hours. Maximum pay off is 720 hours. Pay off equals 720 hours multiplied by the employee's current 40-hour equivalent pay rate. 2003 FMA MOU Final.doc <� 11 04/02/02 7:54 AM Res. No. 2002-122 MEMORANDUM OF UNDERSTANDING HUNTINGTON BEACH FIRE MANAGEMENT ASSOCIATION b. Employees hired after November 20, 1978 shall be entitled to the following sick leave payoff plan: Upon termination, all employees shall be paid, at their then current 40- hour equivalent 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. c. 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. d. 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. e. 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.) C. Bereavement Leave Employees shall be entitled to bereavement leave not to exceed thirty (30) work 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. 2003 FMA MOU Final.doc 12 04/02/02 7:54 AM MEMORANDUM OF UNDERSTANDING Res. No. 2002-122 HUNTINGTON BEACH FIRE MANAGEMENT ASSOCIATION Employees assigned to suppression assignments "56-hour workweek" shall be entitled to bereavement leave not to exceed forty-eight (48) work hours in each instance of death in the immediate family, as defined above. D. Paternity Leave The city will provide family and medical care leave for eligible employees that meet all requirements of State and Federal law. Rights and obligations are set forth in the Department of Labor Regulations implementing the Family Medical Leave Act (FMLA), and the regulations of the California Fair Employment and Housing Commission implementing the California Family Rights Act (CFRA). ARTICLE X — CITY RULES A. Personnel Rules The city and the Association agree to implement the following rules and accordingly revise the Personnel Rules as described herein: 1. Rule 5 — Recruitment and Examination Procedure a) 5-4 — Order of Certification Whenever certification is to be made, the eligibility lists, if active and not exhausted shall be used in the following order' 1) Re-employment list 2) Promotional list 3) Employment List If fewer than five (5) names of persons willing to accept appointment are on the list from which certification is to be made, then additional eligibles shall be certified from the various lists next lower in order of preference until five (5) names are certified. If there are fewer than five (5) names on such lists, there shall be certified the number thereon. In such case, the appointing authority may demand certification of five (5) names and examinations shall be conducted until five (5) names may be certified. In the event the appointing authority does not choose to appoint from the five (5) names certified, a new examination may be requested. In the event another examination is conducted, those names shall be merged with others already on the list in order of scores. b) 5-14 — Promotional Exams Promotional examinations may be conducted whenever, in the opinion of the Human Resources Manager, 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. Only employees who meet the 2003 FMA MOU Final.doc 13 04/02/02 7:54 AM MEMORANDUM OF UNDERSTANDING Res. No. 2002-122 HUNTINGTON BEACH FIRE MANAGEMENT ASSOCIATION 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, and such list shall contain the name(s) of those that passed the examination. 2. Rule 7 — Discipline a) 7-2 — Causes for Discipline 12) Possession, use or sale of illegal narcotics or habit-forming drugs, while on -duty or on city property. 14) Conviction of any felony or a misdemeanor with a job nexus. A plea or verdict of guilt, or a conviction following a plea of nolo contendere, is deemed to be a conviction within the meaning of this section. 15) Participating in an unlawful strike, work stoppage, slowdown, or using or attempting to use sick leave to accomplish the same purpose as a strike, work stoppage, or slowdown. 3. Rule 8 — Termination a) 8-1 — Medical Examination. Evaluation of Employee's Work Capacity. Demotion. Transfer or Termination of Appointment At any time a department head has reasonable cause to believe that an employee may not be able to perform the duties of his/her position for physical or psychological reasons, such department head shall consult with the Human Resources Manager regarding such belief. If the Human Resources Manager concurs, the department head may order the employee to submit to a medical or psychological examination. The employee shall be offered the opportunity, in writing, to select from a panel of three to five physicians or psychologists to conduct the examination. The cost of such examination shall be paid by the city and, to the extent practicable, shall be scheduled during the work hours with no loss of pay. .n ,. The department head shall review the medical or psychological report and shall consult with the Human Resources Manager regarding the physician's assessment of the employee's ability to perform the duties of his/her position. Any decision regarding such employee shall be made in accordance with the Americans with Disabilities Act. 2003 FMA MOU Final.doc y 14 04/02/02 7:54 AM MEMORANDUM OF UNDERSTANDING Res. No. 2002-122 HUNTINGTON BEACH FIRE MANAGEMENT ASSOCIATION Notwithstanding any other provision of this rule, an employee being evaluated for medical or psychological fitness to perform the duties of his/her position may apply for another position in the competitive service for which he/she has qualified. If such employee is qualified and can perform the duties of a lower paying vacant position for which he/she has applied, he/she will be placed in such position, without competitive examination, subject to the approval of the department head. (The city and Association agree to meet biannually to discuss the 8-1 process). b) 8-3 — Layoff in Accordance with Length of Service The city and the Association agree that the first sentence in Personnel Rule 8-3 shall bemodified to read as follows: 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 are first laid off. c) 8-11 — Re -Employment With the approval of the Human Resources Manager, an employee who has resigned in good standing from the competitive service may be re-employed to his/her former position, if vacant, or to a vacant position in the same or comparable class within one (1) year from date of resignation in accordance with Rule 5-21. If such re-employment commences within ninety days of the effective date of resignation, the employee shall not be considered a new employee for vacation and seniority purposes. 4. Rule 12 — Classification Plan a) 12-10 — Temporary Employees Employment on a basis other than permanent or probationary to a permanently budgeted position not to exceed 1000 hours in any twelve (12) month period. Employees occupying temporary positions shall not be included in the competitive service and shall not be subject to these rules and regulations. 5. Rule 14._77 Additional Pay and PaVAdoustmentsi. a) 14-6 — Salary Advancements to Meet Recruiting Problems or to Give Credit for Prior Service. Application for Other Advancements The Department Head, through the Human Resources Manager and with the approval of the City Administrator may make an appointment at any step above the minimum salary rate to classes or positions in order to meet recruiting problems to obtain a person who has 2003 FMA MOU Final.doc 961 15 04/02/02 7:54 AM Res. No. 2002-122 MEMORANDUM OF UNDERSTANDING HUNTINGTON BEACH FIRE MANAGEMENT ASSOCIATION extraordinary qualifications, or to give credit for prior city service in connection with appointments, promotions, reinstatements, transfers, reclassifications, or demotions. Salary adjustments within the salary range for the class, other than merit salary adjustments authorized by Section 14-1, may be approved by the City Administrator, upon recommendation of the department head through the Human Resources Manager. Such recommendation shall include the reason(s) for the adjustment, whether the advancement is to be permanent or temporary, and an effective date. 6. Rule 18 — Attendance and Leaves a) 18-16 — Industrial Accident Leave In the event a permanent employee, who is a miscellaneous member of the Public Employees' Retirement System (PERS), is temporarily totally disabled as a result of an injury or illness arising out of and in the course of employment and covered by the State of California Workers' Compensation Insurance and Safety Act, resulting light duty assignments due to the injury or illness or absences from work shall be considered Industrial Accident Leave as that term is defined by this rule. A permanent employee eligible for Industrial Accident Leave shall receive compensation from the city in an amount equal to the employee's regular rate of salary during such period of temporary total disability. Benefits received under this rule shall be in lieu of statutory Workers' Compensation benefits. Industrial Accident Leave shall continue during all absences resulting from the injury or illness, including those absences attributable to doctor's appointments, therapy, or other follow-up medical visits, but in no case exceeding one year of accumulated absences attributable to the same injury or illness. In the event an employee is temporarily, totally disabled by coinciding qualifying injuries or illnesses, periods of absences shall be applied concurrently to all qualifying injuries or illnesses. Industrial Accident Leave compensation shall begin on the first day an eligible employee is absent due to a qualifying injury or illness as defined above. Industrial accident Leave compensation will terminate on the earliest of the following: 1) The date upon which the injury or illness giving rise to eligibility for compensation under this rule is declared permanent and stationary by a treating or examining physician; or 2003 FMA MOU Final.doc 16 04/02/02 7:54 AM MEMORANDUM OF UNDERSTANDING Res. No. 2002-122 HUNTINGTON BEACH FIRE MANAGEMENT ASSOCIATION 2) The date PERS approves an application for disability retirement benefits filed by the employee or by the city; or 3) The employee receives thirty (30) days advance notice and refuses to submit to a medical examination ordered by PERS pursuant to Government Section 21154 or otherwise refuses to cooperate with PERS in determining whether the employee is incapacitated for the performance of duty; or 4) The employee receiving Industrial Accident Leave Compensation applies for service -connected retirement benefits; or 5) The employment of the affected employee is otherwise separated. If an injured worker remains temporarily disabled after receiving one year of Industrial Accident Leave for accumulated absences or light duty work attributable to the same injury or illness, the employee will receive temporary total disability benefits as specified by the State of California Workers' Compensation Insurance and Safety Act. Any period of time during which an employee is absent from work by reason of injury or illness for which he or she is entitled to receive Industrial Accident Leave compensation will not constitute a break in continuous service for the purposes of salary adjustments, sick leave, vacation accruals, and length of service computation. In the event an employee who is receiving or has received Industrial Accident Leave compensation makes a claim or initiates legal action against a third party for allegedly causing or contributing to the injury or illness resulting in the inability to work, the employee is required to notify in writing the city's Risk Management Division of the claim or commencement of such action within ten (10) days of the claim or such commencement. The city retains its rights of subrogation in all such instances. b) 18-19 — Maternity Leave The city and the Association agree to modify the present Personnel Rule .1.8-19 Maternity Leave to read as follows: "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 employees physician stating the last day the employee may work and the estimated duration of leave. The employee must obtain written authorization to return to work from the attending physician. 2003 FMA MOU Final.doc 17 04/02/02 7:54 AM MEMORANDUM OF UNDERSTANDING Res. No. 2002-122 HUNTINGTON BEACH FIRE MANAGEMENT ASSOCIATION Said authorization must be filed with the Department Head and the Human Resources Manager." c) 18-20 — Leave of Absence without Pay The city and the Association agree that the following sub -paragraph "C" shall be added to Personnel Rule 18-20. Leave of Absence without Pay: Leave of absence without pay, for medical disability reasons, shall be restricted to six (6) months. 7. Rule 19 — Grievance Procedure Non -Disciplinary Matters a) 19-5 Grievance Procedure 1) Step 4 — 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 fifteen (15) days after the time the decision is rendered under Step 3 above, a written statement of the grievance shall be filed with the Human Resources Manager 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. The Human Resources Manager, or his representative, shall hear the matter de novo and shall make recommended findings, conclusions and decision 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 Human Resources Manager. 2) Step 5 — Personnel Board Hearing Hearing. As soon as practicable thereafter, the Human Resources Manager 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. Ratification of the hearing officer selected by mutual consent of the parties, if from a list approved by the Personnel 2003 FMA MOU Final.doc 18 04/02/02 7:54 AM MEMORANDUM OF UNDERSTANDING Res. No. 2002-122 HUNTINGTON BEACH FIRE MANAGEMENT ASSOCIATION Commission, shall not require separate approval or -ratification by the Personnel Commission. The hearing officer shall hear the case and make recommended findings, conclusions and decision in the form of a written report and recommendation to the Personnel Commission. In lieu of the hearing officer process, the Personnel Commission may agree to hear a case directly upon submission of the case by mutual consent of the parties. 8. Rule 20 — Disciplinary Procedure and Appeal a) 20-1 — Purpose The purpose of this rule is to provide a procedure for recommending and imposing discipline against city employees, and a means by which an employees may administratively appeal any such disciplinary action. b) 20-2 — Disciplinary Procedures 1) Notice of Proposed Adverse Action For disciplinary demotions, suspensions or dismissals, an employee shall be served a written Notice of Proposed Adverse Action by the employee's department head, or his/her designee, or by certified mail, prior to the proposed disciplinary action taking effect. The notice shall state the reasons for and charges upon which the proposed action is based, and the effective date of the action the right to respond and the employer's right to representation. A copy of all materials upon which the proposed action is based shall be attached to the notice. 2) Employee's Right to Respond The employee shall be given a minimum of ten (10) calendar days to respond orally and/or in writing to the charges upon which the proposed action is based. The employee's response shall be made to and/or before his/her department head. 3) Time Off The employee shall be given reasonable time off with pay to attend disciplinary meetings. 4) Final Notice of Decision After an employee has responded to or waived his/her right to respond to the proposed adverse action, the employee shall be served with a final Notice of Decision from his/her department head. The final written Notice of Decision shall state whether or 2003 FMA MOU Final.doc 19 04/02/02 7:54 AM MEMORANDUM OF UNDERSTANDING Res. No. 2002-122 HUNTINGTON BEACH FIRE MANAGEMENT ASSOCIATION not the proposed action shall be taken or modified, and the reasons therefore and effective date or the action. c) 20-3 —Appeal to Personnel Commission Disciplinary action involving the termination, suspension, demotion or other reduction in pay may be appealed to the Personnel Commission for de novo hearing and final determination in accordance with the following procedure: 1) Request for Appeal Within five (5) days after the employee's receipt of a final Notice of Discipline, a written request for an appeal to the Personnel Commission shall submitted to the Human Resources Manager. 2) Hearing As soon as practicable thereafter, the Human Resources Manager shall set the. matter for hearing before a hearing officer. The hearing officer shall hear the case without the Board and shall make recommended findings, conclusions and decision in the form of a written report and recommendation to the Board. 3) Final Decision The Board shall consider the written report and recommendations of the hearing officer and after due deliberation in executive session, shall render a decision in the matter which shall be final and binding on all parties, and from which there shall be no further appeal. d) 204 — Supplemental Hearing by Personnel Board 1) The Board may, in its sole discretion, after it has received the written report and recommendation of the hearing officer, set the matter for private hearing for the purpose of receiving additional evidence or argument. In the event the Board sets a private hearing for such purposes, the Human Resources Manager shall give written notice to all parties concerned in such matter. 2) The Board, following a consideration of the hearing officer's written report and recommendation and deliberation thereon and any supplemental hearing before the Board, shall make findings, conclusions and decisions which shall be final and binding on all parties and from which there shall be no further appeal. 2003 FMA MOU Final.doc C:� 20 04/02/02 7:54 AM MEMORANDUM OF UNDERSTANDING Res. No. 2002-122 HUNTINGTON BEACH FIRE MANAGEMENT ASSOCIATION e) 20-5 — Employee Status on Pending Appeal Notwithstanding the provisions of Rule 7, Section 7-4 (Suspension with Pay), the disciplinary action an appeal to the Personnel Commission. 9. Rule 21 — Grievance Procedures - General a) 21-7 Hearing Officer The hearing officer provided for in Rules 19 and 20 shall be from a list provided by the Personnel Commission or one selected by mutual consent of the parties. b) 21-12 Time. Extension of The city and the employee, or employee organization may, by mutual consent, extend the time period within which an act must occur in the processing of grievances. c) 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. C. Rules Governing Layoff, Reduction in Lieu of Layoff and Re -Employment 1. Part 1 — Layoff Procedure a) General Provisions 1) 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. 2) 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 Personnel 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. 3) A department shall reduce staff by identifying which positions within the department are to be eliminated. 2003 FMA MOU Final.doc jf�� 21 04/02/02 7:54 AM MEMORANDUM OF UNDERSTANDING Res. No. 2002-122 HUNTINGTON BEACH FIRE MANAGEMENT ASSOCIATION 4) 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. 5) If a deadline within this procedure falls on a day that City Hall is closed, the deadline shall be the next day City Hall is open. b. Service Credit 1) 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. 2) Except as required by law, leaves of absence without pay shall not earn service credit. 3) 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. c. Transfer or Reduction to Vacancies in Lieu of Layoff 1) 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: a) The employee has the necessary qualifications to perform the duties of the position. b) 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. c) 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. 2) If an employee(s) 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 2003 FMA MOU Final.doc 22 04/02/02 7:54 AM Res. No. 2002-122 MEMORANDUM OF UNDERSTANDING HUNTINGTON BEACH FIRE MANAGEMENT ASSOCIATION in the occupational series in lieu of layoff provided the employee has the necessary qualifications to perform the duties of the position. 3) If the employee refuses to accept a transfer or reduction pursuant to A. or B., above, the employee shall be laid off. d) 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, Service Credit. e) 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(s) pursuant to Part 3., Reemployment. 2. Order of Layoff a) Prior to implementing a layoff, vacant positions that are authorized to be filled shall be identified by citywide 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, nonpermanent part-time and non -promotional probationary employees in the class are laid off. Permanent employees whose positions have been eliminated may exercise citywide 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. 3. Notification of Employees a) The Personnel 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) calendar 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 rights. 2003 FMA MOU Final.doc 23 04/02/02 7:54 AM MEMORANDUM OF UNDERSTANDING Res. No. 2002-122 HUNTINGTON BEACH FIRE MANAGEMENT ASSOCIATION c) 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 Manager in writing if the employee intends to exercise the employee's bumping rights, if any, pursuant to Part 2, Bumping Rights. 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 2. This notice shall include the items referred to in C., 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 Manager 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 Manager 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 Manager of the dispute. Within five (5) calendar days after the dispute is reviewed, the employee shall be notified in writing of the decision. 4. Part 2 — Bumping Rights a) Voluntary Reduction or Bumping in Lieu of Layoff 1) A promotional probationary employee or permanent employee who receives a layoff notice may request a reduction to a position lower class within the occupational series provided the employee possesses the necessary qualifications to perform the duties of the position. 2) 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 2003 FMA MOU Final.doc 24 04/02/02 7:54 AM MEMORANDUM OF UNDERSTANDING Res. No. 2002-122 HUNTINGTON BEACH FIRE MANAGEMENT ASSOCIATION 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. 3) 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 reasonable. If the employee establishes that failure to respond within the time limit was reasonable, to the Human Resources Manager'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 Manager's decision, the employee may appeal pursuant to the provisions of Sections 3 and 4 below. b) Reinstatement/Re-employment 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 tile reinstatement/re-employment list pursuant to Part 3, Re-employment. c) 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 filed with the Human Resources Manager within five (5) 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. 2003 FMA MOU Final.doc 0� 25 04/02/02 7:54 AM MEMORANDUM OF UNDERSTANDING Res. No. 2002-122 HUNTINGTON BEACH FIRE MANAGEMENT ASSOCIATION d) Qualifications Appeal Hearing 1) Upon receipt of an appeal, the Human Resources Manager 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 tile 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) workdays 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. 2) Appeal hearings shall be limited to two (2) hours, except as otherwise agreed by the parties or directed by the hearing officer. 3) 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 5. Part 3 — Re-employment a) Re-employment. 1) Employees who are laid off or reduced to avoid layoff shall have their names placed .upon a reemployment list, for each class in the occupational series, in seniority order at or below the level of the class from which laid off or reduced. 2) Names of persons placed on the reemployment lists shall remain on the list for two (2) years from the date of layoff or reduction. 3) 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. 4) 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 2003 FMA MOU Final.doc 26 04/02/02 7:54 AM Res. No. 2002-122 MEMORANDUM OF UNDERSTANDING HUNTINGTON BEACH FIRE MANAGEMENT ASSOCIATION dismissed from the city service .for cause shall have his or her name removed from all re-employment lists. 5) Re-employment lists shall be available to FMA and affected employees upon reasonable request, 6) Qualification appeals involving reemployment rights shall be resolved in the same manner as that identified in Part 2., Section 4. b) Status on Re-employment 1) Persons re-employed from layoff within a two (2) year period from the date of layoff shall receive the following considerations and benefits: a) Service credit held upon layoff shall be restored, but no credit shall be added for the period of layoff. b) Prior service credit shall be counted toward sick leave and vacation accruals. c) Employees may cash in sick leave upon layoff or at any time after layoff in the manner and amount set forth in existing Memoranda of Understanding for that employee's unit. Sick leave shall be paid to an employee when the reemployment list(s) expire(s), if not previously paid. d) 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. e) 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. f) The probationary status of the employee shall resume if incomplete. 2) Employees who have been reduced in class 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. 2003 FMA MOU Final.doc 27 04/02/02 7:54 AM Res. No. 2002-122 MEMORANDUM OF UNDERSTANDING HUNTINGTON BEACH FIRE MANAGEMENT ASSOCIATION ARTICLE XI -- MISCELLANEOUS A. Vehicle Policy 1. Approval is required by the City Administrator or his designee for any city vehicle to be taken home by a FMA employee. 2. The auto allowance for qualifying members shall be one -hundred sixty-one dollars and fifty-three cents ($161.53) bi-weekly. 3. The monthly automobile allowance shall not be reduced during the term of this agreement. 4. Eligibility for automobile allowance shall be determined in accordance with the Administrative Regulation, Vehicle Use Policy and the city's Fleet Management Program. 5. Unit members agree to all provisions of the city's Fleet Management Program dated August 1999. B. Deferred Compensation Loan Program Unit members may borrow up to 50% of their deferred compensation funds for critical needs such as medical costs, college tuition, or purchase of a home, pursuant to program standards and regulations. C. Association Business An allowance of fifty (50) hours per year shall be established for the purpose of allowing authorized representatives of the Association to represent members in their employment relations. 2003 FMA MOU Final.doc <�),� 28 04/02/02 7:54 AM MEMORANDUM OF UNDERSTANDING Res. No. 2002-122 HUNTINGTON BEACH FIRE MANAGEMENT ASSOCIATION ARTICLE XII — CITY COUNCIL APPROVAL It is the understanding of the city and the Association that this Memorandum of Understanding is of no force or effect whatsoever unless and until adopted by Resolution of the City Council of the City of Huntington Beach. IN WITNESS WHEREOF, the parties hereto have executed this Memorandum of Understanding this/ Ji day of November, 2002. CITY OF HUNTINGTON BEACH Ray Silveq' City Ad inistrator William P. Workman Assistant JWAdmini Clay Marti Director,4fAdministrative Services APPROVED AS TO FORM: Gail Hutton City Attorney HUNTINGTON BEACH FIRE MANAGE NT ASSOCIATION Ja ues P. Pelletier FMA President '*'� IJ V�' - &14" R bertM. Bro Bargaining Committee 2003 FMA MOU Final.doc 29 04/02/02 7:54 AM FIRE MANAGEMENT ASSOCIATION Res. No. 2002-122 MEMORANDUM OF UNDERSTANDING FMA LIST OF MOU EXHIBITS EXHIBITS SUBJECT A Class/Salary Schedule B Retiree Medical Plan and Subsidy Program C Employee Health Plan D Delta Care (PMI) Dental Plan E Delta Dental — Dental Plan F ]Vision Service Plan Res. No. 2002-122 MEMORANDUM OF UNDERSTANDING HUNTINGTON BEACH FIRE MANAGEMENT ASSOCIATION EXHIBIT A e FIRE MANAGEMENT ASSOCIATION SALARY SCHEDULE Effective December 21, 2002 Step Job Code Classification Range A B C D E. 0031 Fire Battalion Chief 583 39.93 42.13 44.45 46.90 49.48 0026 Fire Division Chief 615 46.84 49.42 52.14 55.01 58.04 2003 FMA MOU Final.doc 31 04/02/02 7:54 AM Res. No. 2002-122 MEMORANDUM OF UNDERSTANDING HUNTINGTON BEACH FIRE MANAGEMENT ASSOCIATION EXHIBIT B — RETIREE SUBSIDY MEDICAL PLAN An employee who has retired from the city shall be entitled to participate in the city sponsored medical insurance plans and the city shall contribute toward monthly premiums for coverage in an amount as specified in accordance with this plan, provided: A. At the time of retirement the employee has a minimum of ten (10) years of continuous city service or is granted an industrial disability retirement; and B. At the time of retirement, the employee is employed by the city; and C. Following official separation from the city, the employee is granted a retirement allowance by the California Public Employees' Retirement System. The city's obligation to pay the monthly premium as indicated shall be modified downward or cease during the lifetime of the retiree upon the occurrence of any one of the following: 1. During any period the retired employee is eligible to receive or receives health insurance coverage at the expense of another employer, the payment will be suspended. "Another employer' as used herein means private employer or public employer or the employer of a spouse. As a condition of being eligible to receive the premium contribution as set forth in this plan, the city shall have the right to require any retiree to annually certify that the retiree is not receiving or eligible to receive any such health insurance benefits from another employer. If it is later discovered that a misrepresentation has occurred, the retiree will be responsible for reimbursement of those amounts inappropriately expended and the 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. 3. 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. MEMORANDUM OF UNDERSTANDING Res. No. 2002-122 HUNTINGTON BEACH FIRE MANAGEMENT ASSOCIATION EXHIBIT B — RETIREE SUBSIDY MEDICAL PLAN CONTINUED SCHEDULE OF BENEFITS A. 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. B. 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. C. Maximum Monthly Subsidy Payments -- 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 2003 FMA MOU Final.doc :1a 04/02/02 7:54 AM Res. No. 2002-122 MEMORANDUM OF UNDERSTANDING HUNTINGTON BEACH FIRE MANAGEMENT ASSOCIATION EXHIBIT B - RETIREE SUBSIDY MEDICAL PLAN CONTINUED 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. 2003 FMA MOU Final.doc Rd 04/02/02 7:54 AM Res. No. 2002-122 MEMORANDUM OF UNDERSTANDING HUNTINGTON BEACH FIRE MANAGEMENT ASSOCIATION 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 2003 Benefits City Plan - Employees City Plan - Subsidized Non -Subsidized Retirees Retirees COBRA -eligibles Deductible $250 per person $250 per person $500 per family $500 per family Maximum Out of Pocket $2,000 per person $2,000 per person $4,000 per family $4,000 per family Co-Insurance:PPO 90% of UCR 90% of UCR Non-PPO 50% of UCR 50% of UCR Note: Retirees who elect to participate in HMO 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. M_ 0 Res. No. 2002-122 MEMORANDUM OF UNDERSTANDING HUNTINGTON BEACH FIRE MANAGEMENT ASSOCIATION RETIREE SUBSIDY MEDICAL PLAN/MISCELLANEOUS PROVISIONS A. Eligibility: 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. 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 $1,000 or greater per person. 4) Major medical benefits are paid at 60% or less of covered expenses. b. The Risk Manager will have the authority to provide additional exceptions following review of the "other" medical plan policy. Exceptions will be made only if the "other" medical plan benefit provisions are comparable to the guidelines under B above. Res. No. 2002-122 MEMORANDUM OF UNDERSTANDING HUNTINGTON BEACH FIRE MANAGEMENT ASSOCIATION EXHIBIT B — RETIREE SUBSIDY MEDICAL PLAN CONTINUED c. Miscellaneous Provisions: 1. Benefits provided under the Retiree Subsidy Medical Plan will be coordinated with the `other" medical plan as the primary carrier. 2. The city shall have the right to require any retiree to provide a copy of the "other" medical plan policy for review by the Risk Manager. 5. When a retiree becomes eligible for 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 County Foundation for Medical Care (OCFMC). 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. 2003 FMA MOU Final.doc 17 04/02/02 7:54 AM Res. No. 2002-122 MEMORANDUM OF UNDERSTANDING HUNTINGTON BEACH FIRE MANAGEMENT ASSOCIATION EXHIBIT B — RETIREE SUBSIDY MEDICAL PLAN CONTINUED b. HMO. c. 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 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: 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, 2003 FMA MOU Final.doc C �R 04/02/02 7:54 AM Res. No. 2002-122 MEMORANDUM OF UNDERSTANDING HUNTINGTON BEACH FIRE MANAGEMENT ASSOCIATION EXHIBIT B — RETIREE SUBSIDY MEDICAL PLAN CONTINUED 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 Employee Benefits 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. M 2003 FMA MOU Final.doc 110 04/02/02 7:54 AM Res. No. 2002-122 EXHIBIT C — EMPLOYEE HEALTH PLAN BROCHURE A copy of the Employee Health Plan Brochure may be obtained from the Administrative Services Department Res. No. 2002-122 EXHIBIT D — DELTA CARE (PMI) DENTAL PLAN BROCHURE A copy of the Delta Care (PMI) Brochure may be obtained from the Administrative Services Department 2003 FMA MOU Final.doc Al 04/02/02 7:54 AM Res. No. 2002-122 EXHIBIT E — DELTA DENTAL PLAN BROCHURE A copy of the Delta Dental Plan Brochure may be obtained from the Administrative Services Department 2003 FMA MOU Final.doc a9 04/02/02 7:54 AM Res. No. 2002-122 EXHIBIT F — VISION (VSP) PLAN BROCHURE A copy of the Vision (VSP) Brochure may be obtained from the Administrative Services Department 2003 FMA MOU Final.doc AR 04/02/02 7:54 AM Res. No. 2002-122 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 an regular meeting thereof held on the 18th clay of November, 2002 by the following vote: AYES: Green, Dettloff, Cook, Houchen, Winchell, Bauer NOES: Boardman ABSENT: None ABSTAIN: None 'CONNIE BROCKWAY City Clerk and ex-officio Crerk of the City Council of the City of Huntington Beach, California / U re(come to THE CITY OF HUNTINGTON BEACH A portion of the document you are viewing contains additional information that has not been scanned. For information on how to view the original, please contact or visit the City Clerk's Office for assistance. 2000 Main Street 2nd Floor — City Hall Huntington Beach CA 92648 (714) 536-5227