1. MEMORANDUM OF AGREEMENT between the CITY OF MELROSE AND THE MELROSE PUBLIC EMPLOYEE COMMITTEE 1

2. HISTORY First PEC/GIC agreement ratified for three years in September, 2008. Vote to renew the agreement for another three years in March, 2011. Current agreement expires June 30, 2015 2

3. Bargaining the current agreement Mayor requested bargaining Bargaining sessions in April, May and June Public Employee Committee (PEC) met after each session Agreement reached on June 17, 2014 PEC recommending this agreement for ratification 3

4. Memorandum of Agreement between The City of Melrose and the Melrose Public Employee Committee WHEREAS, the City of Melrose and the Melrose Public Employee Committee have concluded negotiations on health insurance benefits to be provided by the City to employees, retirees and their dependents and survivors, and, WHEREAS, the parties agree that the collective bargaining agreements in effect between the City and its Unions shall continue in full force and effect except as expressly modified by this Memorandum of Agreement, and and Chapter 69 of the Acts of 2011 WHEREAS, the Melrose Board of Aldermen voted on November 15, 2004 to accept Section 19 of Chapter 32B, (as amended by Chapter 67 of the Acts of 2007 and Chapter 69 of the Acts of 2011), and NOW, THEREFORE, the Public Employee and the City have entered into this Memorandum of Agreement pursuant to Section 19 of Chapter 32B. 4

5. Effective Date and Duration of Agreement 1. This agreement shall take effect on the date as of which this agreement has been executed by the Mayor and by representatives of the Public Employee Committee constituting a majority of the weighted votes of the Committee and shall remain in effect through June 30, 2021. 5

6. Health Coverage to be Provided Through the Group Insurance Commission 2. The City of Melrose and the Public Employee Committee agree that health coverage will continue to be provided for all subscribers through the Group Insurance Commission through June 30, 2021. For purposes of this agreement, the term “subscribers” shall mean all employees, retirees, and their dependents and survivors, currently insured and eligible under Chapter 32B or under section 12 of Chapter 32A and under any policies, practices and/or regulations of the City in effect as of the date of this agreement, as well as any subscribers who become eligible in the future under Chapter 32B and any policies, practices and/or regulations of the City in effect as of the date of this agreement. Chapter 69 of the Acts of 2011, or any subsequent amendments thereto 3. Subscribers will receive health coverage from the Group Insurance Commission in accordance with the provisions of Section 19 of Chapter 32B, as amended by Chapter 67 of the Acts of 2007, Chapter 69 of the Acts of 2011, or any subsequent amendments thereto. 6

7. 4. To the extent necessary 4. To the extent necessary, the City will provide the Group Insurance Commission with a copy of this agreement as soon as possible after it takes effect in accordance with paragraph 1, and in no event later than October 1, 2014. Premium Contributions HMO/PPO Plans – 84/16 Split 5. Effective July 1, 2015, and for the duration of this agreement, the City will contribute eighty-four percent (84%) of the premium or cost for any of the following health maintenance (HMO) or preferred provider (PPO) plans offered by the Group Insurance Commission which a subscriber selects and the subscriber shall contribute sixteen (16%) percent 5. Effective July 1, 2015, and for the duration of this agreement, the City will contribute eighty-four percent (84%) of the premium or cost for any of the following health maintenance (HMO) or preferred provider (PPO) plans offered by the Group Insurance Commission which a subscriber selects and the subscriber shall contribute sixteen (16%) percent. Neighborhood Health Plan Fallon Select Care Fallon Direct Care Harvard Pilgrim Health Care Independence Plan Harvard Pilgrim Primary Choice 7

8. Health New England Tufts Health Plan Spirit Tufts Health Plan Navigator UniCare State Indemnity Plan PLUS UniCare State Indemnity Plan Community Choice If the GIC offers any new or additional HMO or PPO plans during the life of this agreement, the same contribution percentages will apply. However, it is agreed that only plans offered by the GIC will be available to subscribers. In accordance with Chapter 46 of the Acts of 2005, the City shall contribute eighty-five percent (85%) of the premium cost for any employee who has retired or will retire from the service of the City and is enrolled in an HMO or PPO type health plan offered by the City, for as long as the retiree remains continuously enrolled in such plans notwithstanding any change in the health plan premiums paid by the City for active employees In accordance with Chapter 46 of the Acts of 2005, the City shall contribute eighty-five percent (85%) of the premium cost for any employee who has retired or will retire from the service of the City and is enrolled in an HMO or PPO type health plan offered by the City, for as long as the retiree remains continuously enrolled in such plans notwithstanding any change in the health plan premiums paid by the City for active employees. 8

9. Indemnity Plans – 60/40 Split 6. For the duration of this agreement, the City will contribute sixty percent (60%) of the premium or cost for any of the following indemnity plans offered by the Group Insurance Commission which a subscriber selects and the subscriber shall contribute forty (40%) percent: UniCare State Indemnity Plan Basic with CIC UniCare State Indemnity Plan Basic without CIC If the GIC offers any new or additional Indemnity plans during the life of this agreement, the same contribution percentages will apply. However, it is agreed that only plans offered by the GIC will be available to subscribers. 9

10. Medicare Enrollment – 70/30 Split 7. Subscribers who are eligible or who become eligible for Medicare shall transfer to Medicare coverage. The City shall pay any Medicare Part B premium penalty assessed by the federal government and will contribute seventy percent (70%) of the monthly cost of the standard Medicare Part B premium and of a Medicare Extension Plan selected by the subscriber for any subscriber enrolled in Medicare and the subscriber will contribute 30 percent (30%). Flexible Spending Accounts 8. The City will offer to active employees a Flexible Spending Medical Program (including the debit card) and will provide for and pay the administrative costs associated with the program. The City will also pay an annual administrative fee for subscribers who opt into the program for the duration of this Agreement. 10

11. Meetings 9. The Public Employee Committee shall be comprised of a union officer from each collective bargaining unit which negotiates with the Mayor and a retiree representative designated by the Retired State, County and Municipal Employees Association. Each union officer and the retiree representative shall have the option of allowing one additional representative to attend meetings of the Public Employee Committee with the Mayor, and/or his designees. 10. The parties shall establish a regular schedule of meetings to discuss the administration and operation of this agreement and any issues relating to the effectiveness and efficiency of health coverage for subscribers. Such meetings shall take place no less than quarterly, unless agreed otherwise. Meetings will be held at times and places which are mutually agreed upon by the City and the Committee. In addition, either party may convene a meeting upon 7 days’ notice to the other party, unless there is an emergency that requires shorter notice. Meeting notices will be provided to the Mayor and to the Public Employee Committee to the person and in the manner designated in writing by the Mayor and the Committee. 11

12. and/or his designees 11. Any employee who is a representative on the Public Employee Committee shall receive time off to attend meetings of the Committee with the Mayor, and/or his designees, with full pay and benefits. Correspondence and Information 12. The City shall copy a designee of the Public Employee Committee on all correspondence to the Group Insurance Commission or to any provider of health coverage. The City shall also provide the Public Employee Committee with a copy of all correspondence from the Group Insurance Commission or from any provider of health coverage by requesting that the Commission or the provider copy of the Public Employee Committee on such correspondence or by providing a copy to the Public Employee Committee, providing that nothing in this section will violate state or federal law. Chapter 69 of the Acts of 2011, or any subsequent amendments thereto 13. Upon request, the City shall provide the Public Employee Committee with information necessary to carry out it responsibilities under this agreement and the provisions of Section 19 of Chapter 32B as amended by Chapter 67 of the Acts of 1997, Chapter 69 of the Acts of 2011, or any subsequent amendments thereto. 12

13. Health Coverage after June 30, 2021 14. This agreement will terminate on June 30, 2021. 15. The Mayor and the Public Employee Committee will begin negotiations for a successor agreement pursuant to Section 19 of Chapter 32B, and any subsequent amendments thereto, no later than February 1, 2020. At the request of the PEC, the City will present a proposal for alternative plans which are at least the actuarial equivalent of those offered by the Commission for the (sixth year) plan year so that the parties may fully explore and negotiate the health coverage to be provided to subscribers starting on July 1, 2021. If the parties have not reached a successor agreement by June 1, 2020, either party may file for final and binding arbitration of all unresolved issues, including but not limited to, whether to withdraw from Commission coverage, the health coverage which will be provided if subscribers are withdrawn from the Commission, and premium contributions. The arbitration proceeding shall be administered by the American Arbitration Association under the procedures set forth in its Labor Arbitration Rules. The arbitrator shall render a decision no later than September 1, 2020 and the parties shall execute a successor agreement no later than September 15, 2020.

14. 16. In accordance with the provisions of the successor agreement, the City will continue coverage through the Commission effective July 1, 2021 the interval specified in the agreement or that the City is withdrawing its subscribers effective July 1, 2021. In the event that the City ceases to provide health insurance through the Group Insurance Commission, the City and the Public Employee Committee agree to maintain Section 19 of Chapter 32B to bargain health insurance coverage. Effect of Agreement 17. This agreement shall be binding on all subscribers and shall supersede any conflicting provisions of any City policies or any collective bargaining agreements between the City and any unions representing town employees. Cancellation 18. In the event the City is delinquent in making payments as required by the Group Insurance Commission and the Commission notifies

15. Arbitration of Disputes 19. Either party may submit a dispute between the parties concerning the interpretation or application of this agreement to the American Arbitration Association for final and binding arbitration under its Labor Arbitration rules. A request for arbitration on behalf of the Public Employee Committee must be approved by seventy percent (70%) of the weighted votes of the representatives on the Committee. Special Legislation 20. Throughout the duration of this agreement, the City of Melrose commits that it will not petition the Legislature, nor commence any process, for the enactment of special legislation concerning the provision of health insurance to subscribers covered by this agreement, as well as the subject matters which are also covered by this Agreement.

16. Premium Holiday 21. In Fiscal Year 2016 (July 1, 2015 to June 30, 2016), the City shall provide active employees covered by this agreement with a premium holiday during the month of December. Said premium holiday shall equate with 1/12 th of the employee’s annual share of his or her health insurance premium contribution. This premium holiday shall only occur during the month of December in Fiscal Year 2016, and shall not occur in any subsequent years during the life of this Agreement. Hiatus Period Procedures 22. Reimbursement During Hiatus Period. (a)COBRA Any newly hired eligible employee who enrolls in a GIC health insurance plan and continues group health benefits under COBRA during the Hiatus Period shall be reimbursed by the City on a proportional basis for the cost of COBRA benefits during the Hiatus Period. The proportional reimbursement amount shall be determined by the contribution split agreed to in the Section 19 PEC Agreement

17. (i.e. 84/16 for HMO and PPO plans; 60/40 for indemnity plans) for the selected GIC plan. Under no circumstances, shall the City’s COBRA reimbursement exceed what the City would have contributed to the selected GIC plan during the Hiatus Period. (b) Health Connector Plan. Any newly hired eligible employee without health insurance coverage who enrolls in a GIC health insurance plan and who also chooses to enroll in a plan available to him/her through the Commonwealth Connector during the Hiatus Period shall be reimbursed by the City on a proportional basis for the total cost of the selected Commonwealth Connector plan premium during the Hiatus Period. The proportional reimbursement amount shall be determined by the contribution split agreed to in the Section 19 PEC Agreement (i.e. 84/16 for HMO and PPO plans; 60/40 for indemnity plans) for the selected GIC plan. Under no circumstances, shall the City’s Connector reimbursement exceed what the City would have contributed to the selected GIC plan during the Hiatus Period.

18. (c) Medical expenses in lieu of premium reimbursement during Hiatus Period Any newly hired eligible employee without health insurance coverage who enrolls in a GIC health insurance plan, but chooses not to continue COBRA benefits or elect a Connector plan shall be reimbursed by the City on a proportional basis for all unexpected medical expenses incurred by the employee during the Hiatus Period that do not exceed the total cost of the selected GIC premium. The proportional reimbursement amount shall be determined by the contribution split under the Section 19 PEC Agreement (i.e. 84/16 for HMO and PPO plans; 60/40 for indemnity plans) for the selected GIC plan. Under no circumstances, shall the City’s reimbursement exceed what the City would have contributed to the selected GIC plan during the Hiatus Period. 3. GIC Retroactive Effective Date of Coverage If an employee incurs medical expenses that exceed the total cost of the GIC selected plan premium during the Hiatus Period, said employee may file a written request to the Commission for approval of Health Coverages to become effective on the first day of employment. Upon

19. Approval by the Commission, coverage shall take effect as of the first day of employment. Upon approval by the Commission, coverage shall take effect as of the first day of employment. In this event, the City shall contribute the same percentage toward the premium of the selected GIC plan retroactive to the first day of employment as provided for under the Section 19 PEC Agreement. The City shall submit the full-cost of the premium for the Hiatus Period to the GIC in a timely manner. The Employee shall reimburse the City his/her proportional share of the premium for the Hiatus Period through normal payroll deductions. 4. Notice The City shall provide the following information to each newly hired employee within ten (10) days of his or her first day of employment. a) An explanation of the GIC Hiatus Period as provided in 805 DMR 9.01(3) and the date of when his/her health insurance shall become effective. (b) The GIC Retroactive Coverage as provided in CMR 9.01(4).

20. c) The reimbursement arrangements and options set forth under the terms of this Side Letter of Agreement. d) The tax penalties associated with the requirements under the Massachusetts Health Care Reform Acts and applicable regulations. Commitment to Avoid Layoffs 23. The City commits that it will not effectuate layoffs upon any bargaining unit employee covered by this agreement in Fiscal Years 2015 or 2016. In the event a bargaining unit employee separates from service in either FY15 or FY16 via voluntary act (i.e., resignation or retirement), the City maintains the managerial discretion as to whether said position shall be filled. In the event the City is required to effectuate layoffs upon any bargaining unit employee covered by this agreement in either Fiscal Year 2015 or Fiscal Year 2016, the parties agree that the premium split for HMO and/or PPO plans shall revert back to 87/13 for the year(s) in which said layoff is effectuated. Thereafter, and for any other year encompassing the term of the agreement, said split shall be 84/16 for HMO and PPO plans.

21. 24. Each signatory to this agreement is authorized to bind the entity she represents. ___________________________________________________ Robert J. Dolan, Mayor Date Executed on behalf of the Public Employee Committee: ________________________________________________________ Melrose Education AssociationSuperior Officer’s Union ________________________________________________________ Fire Fighter’s Local 1617Patrolmen’s Association _______________________________________________________ Association of City Hall EmployeesMelrose Association of City Employees ________________________________________________________ Library AFSCMESchool Administrators ________________________________________________________ Melrose School SecretariesMelrose Education Paraprofessionals ________________________________________________________ School TransportationSchool Custodians ______________________________ Retirement Representative