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Resolution No. 93461 PA 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 RESOLUTION NO. 9346 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 2007-2008 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 Section of the City Council of the City of Vernon on June 14, 2007, considered, applicable for the fiscal year 2007-2008 only, that (i) the City 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, retired employees shall apply for medicare coverage, whereupon the City insurance will become supplemental coverage, if applicable. The City will continue to pay Ithe insurance premium to provide for medical -dental insurance as 28 11supplemental only to Medicare as the City will not be the primary 1 insurance carrier once the employee reaches the age of sixty-five (65); 2 and 3 WHEREAS, the City Council of the City of Vernon wishes to 4 adopt its policy applicable for the fiscal year 2007-2008 only 5 respecting payment of premiums for the City's medical -dental insurance 6 for certain categories of retired employees and to declare that such 7 benefits are not vested rights and will expire at the conclusion of the 8 fiscal year unless authorized and approved by the City Council for the 9 next fiscal year. 10 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE 11 CITY OF VERNON AS FOLLOWS: 12 SECTION 1: The City Council of the City of Vernon does 13 hereby find and determine that the recitals contained hereinabove are 14 true and correct. 15 SECTION 2: The City Council of the City of Vernon hereby 16 adopts the following policy for the 2007-2008 fiscal year and declares 17 that such benefits are not vested rights and are approved for this 18 fiscal year only: 19 A. The City will pay the insurance premium for the City's 20 medical -dental insurance program for all full-time 21 regular employees, with at least twenty (20) years of 22 continuous uninterrupted service who retire at age 23 sixty (60) or later, excluding dependents, if any, and 24 the City shall continue to pay said premium for said 25 retired employee up to the age of sixty-five (65). 26 27 28 1 B. All full-time regular employees with at least thirty 2 (30) years of continuous service who retire before the 3 age of sixty (60) years will be permitted to pay their 4 health insurance premium for the City's medical -dental 5 insurance program, and, upon reaching the age of sixty 6 (60), the City will pay the insurance premium for said 7 medical -dental insurance for said retired employee 8 only and not for dependents, if any, up to the age of 9 sixty-five (65). 10 C. For retired employees who receive medical -dental 11 insurance benefits pursuant to subsections A and B 12 above and who reach the age of sixty-five (65), said 13 retired employees shall apply for medicare coverage, 14 whereupon the City insurance will become supplemental 15 coverage, if applicable. The City will pay the 16 premium to provide for medical -dental insurance as 17 supplemental insurance only to Medicare because the 18 City will not be the primary insurance carrier once 19 the employee reaches the age of sixty-five (65). 20 D. All retired employees may pay the premiums for 21 medical -dental insurance up to the age of sixty-five 22 (65) after which Medicare will become the primary 23 insurance carrier and further may purchase 24 supplemental insurance to Medicare thereafter. 25 26 27 28 / / / 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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, 2007. A TEST: MANUELA GIRO' , C ty Clerk ' 4 Name: Leonis C. Malburg Title: Mayor - - 4 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 STATE OF CALIFORNIA ) )ss COUNTY OF LOS ANGELES ) I, MANUELA GIRON, City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 9346, was duly adopted by the City Council of the City of Vernon. at a special meeting of the City Council duly held on Monday, June 25, 2007, and thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. MANUELA G4IN1 City Clerk (SEAL) 5 - CITY CLERK'S OFFICE INTEROFFICE MEMORANDUM DATE: July 12, 2007 TO: Willard Yamaguchi, Risk Manager/Chief Deputy City Attorney FROM: Nelly Giron, City Clerk RE: Resolution No. 9346 - A Resolution of the City Council of the City o_f Vernon Approving the Continued Payment of Premiums for Medical -Dental Insurance for Certain Categories of Retired Employees During the 2007-2008 Fiscal Year Transmitted herewith is a copy of Resolution No. 9346 referenced above, which was approved by City Council on June 25 2007. Thank you. NG:dr c: Sharon Duckworth Karina Rueda Martha Valenzuela Resolution No. 9346