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03- ~~ - y z, <br />~~ <br />MEMORANDUM OF AGREEMENT <br />PROVISION OF HEALTH INSURANCE BENEFITS <br />for QUALIFIED RETIREES OF ORANGE PERSON CHATHAM MENTAL HEALTH, <br />DEVELOPMENTAL DISABILITIES AND SUBSTANCE ABUSE AUTHORITY <br />WHEREAS, effective July 1, 2012 Orange, Person and Chatham <br />Counties will merge with the counties comprising PBH; and <br />WHEREAS, prior to the merger, Orange, Person and Chatham Counties <br />were the three counties that comprised Orange Person Chatham Mental <br />Health, Developmental Disabilities and Substance Abuse Authority d/b/a <br />OPC Area Program ("OPC"). <br />WHEREAS, certain qualified employees had retired from OPC and <br />therefore were receiving post retirement health insurance benefits as <br />set forth in policies approved by the OPC Board; and <br />WHEREAS, after the merger, OPC will be dissolved and will not be <br />an ongoing entity; and <br />WHEREAS, funds will be provided by OPC prior to the merger for <br />the purpose of funding the post retirement health insurance benefits <br />for qualified OPC retirees as shown on Exhibit A hereto; and <br />WHEREAS, Orange County has agreed to handle the administration of <br />providing the retiree health insurance and therefore Orange County <br />will take possession of the funds available for same and Orange County <br />is willing to do so for no compensation but also has no individual <br />liability to provide these benefits in the event the funds set aside <br />for this purpose are exhausted; and <br />wHEREAS, Orange County will provide a financial report to each <br />of the county managers of Orange, Person and Chatham Counties no later <br />than July 315t each year which will include at a minimum the beginning <br />balance of the fund, charges to the fund and the ending balance of the <br />fund; and <br />WHEREAS, in the event funds remain at the end of the obligations <br />set forth on Exhibit A, the excess funds shall remain with Orange <br />County for its use and purposes but in the event the funds are <br />exhausted prior to the time retirees would no longer have been <br />eligible for coverage had OPC remained an ongoing entity, the three <br />counties to this Agreeme~t will make up the shortfall, one-third each. <br />This shortfall sum will be paid to Orange County within thirty days of <br />determination of a shortfall; and <br />WHEREAS, the county managers of each county are collectively <br />given the authority to make any necessary administrative decisions <br />regarding these funds with the exception of decisions regarding funds <br />being exhausted. <br />