Mayor Frank Picozzi disclosed Tuesday that an agreement has been worked out with former City Council President Steven Merolla, at no cost to the city, that will enable him to remain on the city’s healthcare plan without jeopardizing coverage to a family member dealing with health issues.

According to Picozzi, Merolla will give up two years of benefits  eligibility – he will now be eligible at 62 – in exchange for the nearly $44,000 the city was looking for in reimbursements in health care costs. Merolla gets to keep the coverage he has and will pay for it until eligible for the city to assume the cost.

As is the case with employees leaving city employment, Merolla’s healthcare was automatically extended for a period following his last day in office. Due to a clerical error on the part of the city that coverage was not suspended, nor was Merolla notified that he would need to cover the cost if continued.

In a statement released by his office at the time, Picozzi said, "His ineligibility surfaced recently when another former councilman applied for his post-retirement benefits and it was discovered that the ordinance was incorrectly applied in Mr. Merolla’s case. Once this was brought to my attention I had Mr. Merolla’s coverage stopped. I’m now seeking and intend to get full restitution for the cost to the city for that coverage, $43,984.32."

On Monday, Picozzi pointed out that the agreement addresses Merolla’s concern that termination of his coverage would mean the loss of coverage for a family member who faces serious health issues.