HomeMy WebLinkAboutCity Council - 2023-34 RESOLUTION NO. 2023-34
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH
AMENDING THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY AND
THE HUNTINGTON BEACH MANAGEMENT EMPLOYEES' ORGANIZATION (MEO)
BY ADOPTING THE SIDE LETTER OF AGREEMENT
WHEREAS,on August 4,2014,the City Council of Huntington Beach adopted Resolution
No. 2014-57, approving the Side Letter to the Huntington Beach Management Employee's
Organization(MEO) Memorandum of Understanding(MOU)which provided language related to
Retiree Medical Subsidy; and,
WHEREAS, this Side Letter was incorporated into the subsequent MEO's MOU effective
December 21, 2012 through November 1, 2015. However, part of the Side Letter language was
inadvertently omitted from the subsequent MEO MOU;
WHEREAS, through the Side Letter, the City of Huntington Beach and MEO wish to
retroactively modify the language related to Exhibit B—Retiree Subsidy Medical Plan; and,
Subsequent to the adoption of the MOU, the City of Huntington Beach and MEO has met
and conferred and agreed to changes, corrections, and clarifications to the MOU that are reflected
in a Side Letter of Agreement attached hereto as Exhibit A and incorporated herein by this
reference. .
NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of
Huntington Beach as follows:
1. The Side Letter of Agreement attached hereto as Exhibit A is approved and adopted.
2. The Side Letter of Agreement amends the MOU between the City of Huntington Beach
and MEO.
RESOLUTION NO. 2023-34
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a
regular meeting thereof held on the May of July, 2023.
44-4
Mayor
REV WED ; D APP' OVED: APPROVED AS TO FORM:
City Ma an ger it ttorney
INITIATED AND APPROVED:
Interim Director of Human Resources
2
23-13144/314290
Resolution No. 2023-34
Exhibit'A'
SIDE LETTER OF AGREEMENT BETWEEN
THE CITY OF HUNTINGTON BEACH
AND
HUNTINGTON BEACH MANAGEMENT EMPLOYEES'ORGANIZATION (MEO)
Representatives of Management Employees Organization ("MEO") and the City of Huntington Beach
(City) have met and conferred regarding the subject matter of this Side Letter of Agreement to modify
the following section of the MEO MOU dated January 1, 2022 through December 31, 2024:
MANAGEMENT EMPLOYEES' ORGANIZATION
EXHIBIT B—RETIREE MEDICAL SUBSIDY PLAN
RETIREE SUBSIDY MEDICAL PLAN
Employees hired on or after October 1, 2014, shall not be eligible for this benefit.
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. The employee has a minimum of ten (10) years of continuous full-time 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. On the first of the month in which a retiree or dependent reaches age 65 or on the date
the retiree or dependent can first apply and become eligible, automatically or voluntarily,
for medical coverage under Medicare (whether or not such application is made)the City's
obligation to pay monthly premiums may be adjusted downward or eliminated. Benefit
coverage at age 65 under the City's medical plans shall be governed by applicable plan
document.
2. In the event 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 their death would be eligible to receive if they 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. .
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 full
time 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 (one
hundred twenty-one dollars). 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. Marital Status — Married unit retirees eligible for benefits under the Retiree Medical Subsidy Plan
may both receive the benefit earned pursuant to Section D—Maximum Monthly Subsidy Payments,
whether enrolled individually as the plan enrollee or whether enrolled as a dependent on any City-
sponsored medical plan.
a. In the case where a retired unit member is married to a City employee (active or retired)
outside of this bargaining unit, this provision shall remain applicable.
b. This provision shall apply to State of California registered domestic partners the same as
married spouses.
c. This provision shall become effective January 1, 2015, following ME0 open enrollment for
2015 Medical plans.
D. Maximum Monthly Subsidy Payments - 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.
All retirees, including those retired as a result of disability whose number of continuous, full time
years of City service prior to retirement City exceeds ten (10), shall be entitled to maximum
monthly payment of premiums by the 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
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. The
Human Resources Division 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. '
B. Benefits:
1. Retiree Subsidy Medical Plan includes the available group medical plans offered to active
unit members at the time of retirement.
2. City Plans are the primary payer for active employees age 65 and over,with Medicare the
secondary payer. Retirees age 65 and over have no City Plan options and are eligible only
for Medicare.
3. Premium payments are to be received at least one month in advance of the
coverage period.
C. Subsidies:
1. The subsidy.payments will pay for:
a. Retiree Subsidy Medical Plan.
b. 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. Any other employee benefit plan.
c. Any other commercially available benefit plan.
d. Medicare supplements.
D. Medicare:
1. All persons are eligible for Medicare coverage at age sixty five (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 sixty five (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 their spouse are both sixty five (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 sixty five (65 is eligible for paid Part A of Medicare and their spouse
is not eligible for paid Part A, the spouse shall not receive subsidy. When a retiree at age
sixty. five (65 is not eligible for paid Part A of Medicare and their spouse who is also age
sixty five(65is 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 sixty five (65. If such
retiree was covering dependents under the Plan, dependents will be eligible for state
and or federal COBRA continuation benefits effective as of the retiree's sixty-fifth
(65th) birthday.
b. Dependent coverage will be eliminated upon whichever of the following occasions
comes first:
i. After thirty six (36) months of COBRA continuation coverage, or
ii. When the covered dependent reaches age sixty five (65) in the event such
dependent reaches age sixty five (65) prior to the retiree reaching age sixty
five (65).
c. At age sixty five (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.
Side Letter Implementation
The provisions contained in this side letter are effective following approval by the City of Huntington
Beach City Council and will remain in full force and effect unless otherwise specifically modified, either
by subsequent side-letter or a successor memorandum of understanding.
IN WITNESS WHEREOF,the parties have caused this SIDE LETTER AGREEMENT to be executed by and
through their authorized officers on July 18, 2023
City of Huntingt• • -•ch Management Employees Organization
By: N-,4 By:
Al Zeli�=�' �_ Debra Jubinsky
City Ma MEO President
By:
Theresa St. Peter Aaron Peardon
Interim Human Resources Director OCEA Representative
APPROVED AST M•
Mica Gates
City torney
Res. No. 2023-34
STATE OF CALIFORNIA
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, ROBIN ESTANISLAU, the duly elected, qualified City Clerk of the
City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do
hereby certify that the whole number of members of the City Council of the City of
Huntington Beach is seven; that the foregoing resolution was passed and adopted
by the affirmative vote of at least a majority of all the members of said City Council
at a Regular meeting thereof held on July 18, 2023 by the following vote:
AYES: Kalmick, Moser,Van Der Mark, Strickland, McKeon, Bolton, Burns
NOES:. None
ABSENT:. None
RECUSE: None
t421741,,, 9,671.
City Clerk and ex-officio Clerk of the
City Council of the City of
Huntington Beach, California