Resolution No. 82312
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RESOLUTION NO. 8231
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING THE CONTINUED PAYMENT OF PREMIUMS
FOR MEDICAL -DENTAL INSURANCE FOR CERTAIN CATEGORIES
OF RETIRED EMPLOYEES DURING THE 2003-2004 FISCAL
YEAR
WHEREAS, the City Council of the City of Vernon in prior
fiscal years has approved for each fiscal year the,City's payment of
premiums for medical -dental insurance for service -retired employees who
are at least sixty (60) years of age and who have continuously served
for twenty (20) years; and
WHEREAS, the Finance Committee of the City of Vernon on
June 16, 2003, considered a recommendation applicable for the fiscal
year 2003-2004 only, which provides that (i) the City shall pay the
insurance premium for all full-time regular employees who have a
minimum of twenty (20) years of continuous service who retire at the
age of sixty (60) or later; (ii) all full-time regular employees with
at least thirty (30) years of continuous service who retire before the
age of sixty (60) will be permitted to pay their health insurance
premium for the City's medical -dental insurance program, and, upon
their reaching the age of sixty (60), the City will pay the premiums
for said medical -dental insurance for said retired employee only and
not for dependents, if any, up to the age of sixty-five (65); and (iii)
upon retired employees reaching sixty-five (65) years of age, the City
will continue to pay the insurance premium to provide for medical -
dental insurance as supplemental only to Medicare as the City will not
be the primary insurance carrier once the employee reaches the age of
sixty-five (65); and
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WHEREAS, the City Council of the City of Vernon wishes to
adopt its policy applicable for the fiscal year 2003-2004 only
respecting payment of premiums for the City's medical -dental insurance
for certain categories of retired employees and to declare that such
benefits are not vested rights and will expire at the conclusion of the
fiscal year unless authorized and approved by the City Council for the
next fiscal year.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF VERNON AS FOLLOWS:
SECTION 1: The City Council of the City of Vernon does
hereby find and determine that the recitals contained hereinabove are
true and correct.
SECTION 2: The City Council of the City of Vernon hereby
adopts the following policy for the 2003-2004 fiscal year and declares
that such benefits are not vested rights and are approved for this
fiscal year only:
A. The City will pay the insurance premium for the City's
medical -dental insurance program for all full-time
regular employees, with at least twenty (20) years of
continuous uninterrupted service who retire at age
sixty (60) or later, excluding dependents, if any, and
the City shall continue to pay said premium for said
retired employee up to the age of sixty-five (65).
B. All full-time regular employees with at least thirty
(30)'years of continuous service who retire before the
age of sixty (60) years will be permitted to pay their
health insurance premium for the City's medical -dental,
insurance program, and, upon reaching the age of sixty
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(60), the City will pay the insurance premium for said
medical -dental insurance for said retired employee
only and not for dependents, if any, up to the age of
sixty-five (65).
C.
For retired employees who receive medical -dental
insurance benefits pursuant to subsections A and B
above and who reach the age of sixty-five (65), the
City will pay the premium to provide for medical -
dental insurance as supplemental insurance only to
Medicare because the City will not be the primary
insurance carrier once the employee reaches the age of
sixty-five (65).
D.
All retired employees may pay the premiums for
medical -dental insurance up to the age of sixty-five
(65) after which Medicare will become the primary
insurance carrier and further may purchase
supplemental insurance to Medicare thereafter.
SECTION 3: The City Clerk of the City of Vernon shall
certify to the
passage of this resolution and thereupon and thereafter
the same shall
be in full force and effect.
APPROVED AND ADOPTED this 25th day of June, 2003.
LEONIS C. MA BURG, Ayor
ATTEST:
d�
BRUCE V. MALKENHORST, City Clerk
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STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
)ss
)
I, BRUCE V. MALKENHORST, City Clerk of the City of Vernon, do
hereby certify that the foregoing Resolution, being Resolution No.
8231, was duly adopted by the City Council of the City of Vernon at an
adjourned regular meeting of the City Council duly held on Wednesday,
June 25, 2003, and thereafter was duly signed by the 'Mayor of the City
of Vernon.
(SEAL)
i
,RULE V. MALKENHORST, City Clerk
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SUPPORTING
DOCUMENTS
CITY COUNCIL
LEONIS C. MALBURG
Mayor
THOMAS A. YBARRA
Mayor Pro—Tem
WM. "BILL" DAVIS
Councilman
H. "LARRY" GONZALES
Councilman
W. MICHAEL MCCORMICK
Councilman
BRUCE V. MALKENHORST
City Administrator/City Clerk
FAX (323) 826-1438
Finance Committee
City of Vernon
Honorable Members:
EDUARDO OLIVO
�% City Attorney
�`� FAX: (562) 869-1883
CITY HALL
4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058
TELEPHONE (323) 583-8811
KEVIN WILSON
Director of Community Services & Water
FAX: (323) 826-1435
KENNETH J. DeDARIO
Director of Utilities
FAX: (323) 826-1425
STEVEN E. PARKER
Fire Chief
FAX: (323) 826-1407
BRUCE W. OLSON
Police Chief
FAX: (323) 826-1481
June 11, 2003
�X�
v
As part of the proposed budget for the 2003-2004 fiscal year, it is
hereby recommended that the City continue the following policy with
regard to health insurance premiums for retired employees (excluding
their dependants):
1. The City shall pay the insurance premium for all full-time
regular employees who have a minimum of twenty (20) years of
continuous service who retire at the age of sixty (60) or
later.
2. All full-time regular employees with at least thirty (30)
years of continuous service who retire before the age of
sixty (60) shall pay their health insurance premium, and
upon reaching the age of sixty (60), the City shall then pay
the insurance premium.
Retired employees covered in numbers 1 and 2 above, upon reaching the
age of sixty-five (65), must seek medicare coverage and the City
insurance will be supplemental coverage.
Very truly yours,
Bruce V. Malkenhorst
Director of Finance
BVM/gm
Molledg, Gloria
From:
Orosco, Gloria
Sent:
Tuesday, June 10, 2003 9:25 AM
To:
Molleda, Gloria
Subject:
FW: Retirees
it appears you can put the retiree item on the next F/C agenda - keep these a -mails for our records w/the back-up data.
-----Original Message -----
From: Francone, Joan
Sent: Tuesday, June 10, 2003 9:14 AM
To: Orosco, Gloria
Subject: RE: Retirees
No change at this time.
-----Original Message -----
From: Orosco, Gloria
Sent: Tuesday, June 10, 2003 8:49 AM
To: Francone, Joan
Cc: Molleda, Gloria
Subject: Retirees
hate to bug you but we do have to address the retiree medical benefit very soon. this is the review period for the 03-04
proposed budget & i must present something to the committee within the next week or so. any new information?
Gloria Jean
Chief Deputy City Clerk
cc: G. Molleda (FYI)
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Molleda, Gloria
From: Orosco, Gloria
Sent: Tuesday, June 10, 2003 11:11 AM
To: Molleda, Gloria
Subject: FW: Retiree Medical Insurance
more back-up
-----Original Message -----
From: Malkenhorst, Bruce Sr.
Sent: Tuesday, June 10, 2003 11:09 AM
To: Orosco, Gloria
Subject: RE: Retiree Medical Insurance
m
-----Original Message -----
From: Orosco, Gloria
Sent: Tuesday, June 10, 2003 9:17 AM
To: Francone, Joan
Cc: Malkenhorst, Bruce Sr.
Subject: Retiree Medical Insurance
Joan: this is just to confirm our conversation - this office may proceed to place the Retiree Medical Benerif on the
Finance Agenda w/bruce's recommendation to approve. You will not be making any changes to the program
(coverage) from the way it is this fiscal year. Am I correct w/that understanding?
Gloria Jean
Chief Deputy City Clerk
1
Molleda, Gloria
From: Orosco, Gloria
Sent: Tuesday, June 10, 2003 11:03 AM
To: Molleda, Gloria
Subject: FW: Retiree Medical Insurance
attach to your back-up please.
-----Original Message -----
From: Francone, Joan
Sent: Tuesday, June 10, 2003 9:35 AM
To: Orosco, Gloria
Subject: RE: Retiree Medical Insurance
Yes
-----Original Message -----
From: Orosco, Gloria
Sent: Tuesday, June 10, 2003 9:17 AM
To: Francone, Joan
Cc: Malkenhorst, Bruce Sr.
Subject: Retiree Medical Insurance
Joan: this is just to confirm our conversation - this office may proceed to place the Retiree Medical Benerit on the
Finance Agenda w/bruce's recommendation to approve. You will not be making any changes to the program
(coverage) from the way it is this fiscal year. Am I correct w/that understanding?
Gloria Jean
Chief Deputy City Clerk