Resolution No. 95441
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RESOLUTION NO. 9544
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON MERGING THE EMPLOYEE UNIVERSITY EDUCATION
LOAN PROGRAM AND THE DISCRETIONARY EDUCATIONAL
ASSISTANCE PROGRAM, APPROVING AND ADOPTING A
REVISED EMPLOYEE UNIVERSITY EDUCATION LOAN PROGRAM
GUIDELINES AND FORM EMPLOYEE TUITION LOAN
REIMBURSEMENT AGREEMENT AND REPEALING ALL
RESOLUTIONS OR PARTS OF RESOLUTIONS IN CONFLICT
THEREWITH
WHEREAS, on September 19, 1995, the City Council of the City
of Vernon adopted Resolution No. 6687, as amended, establishing a
Discretionary Educational Assistance Program; and
WHEREAS, on November 6, 2007, the City Council of the City of
Vernon adopted Resolution No. 9454 approving and adopting a revised
Employee University Education Loan Program Guidelines and form Employee
Tuition Loan Reimbursement Agreement; and
WHEREAS, the City Council believes that continuing education
by City employees not only personally benefits those employees taking
courses but also enhances job performance which benefits the City; and
WHEREAS, the City Council desires to merge the Employee
University education Loan Program and the Discretionary Educational
Assistance Program for clarity and to revise the guidelines and form
agreement to implement the change.
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
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approves and adopts the City of Vernon Employee University Education
Loan Program Guidelines (Revised February 4, 2008) (the "Guidelines").
Said Guidelines will become effective February 4, 2008.
SECTION 3: The City Council of the City of Vernon hereby
Ilapproves and adopts the form Employee Tuition Loan Reimbursement
Agreement, University Education Program (Revised February 4, 2008),
(the "Agreement") in accordance with the Guidelines, with the intent
that the same shall be a binding contract between the City and the
employee upon acceptance by the City Administrator. Said form
jagreement shall be effective February 4, 2008.
SECTION 4: The City Council of the City of Vernon hereby
allows those employees currently enrolled under any prior program to
continue with the prior program under the guidelines and agreement
under which the prior program existed.
SECTION 5: The City Council of the City of Vernon hereby
authorizes the City Administrator, or his designee, to make whatever
nonsubstantive, administrative and/or text changes, upon advice of
counsel, to the Guidelines and Agreement.
SECTION 6: The City Council of the City of Vernon hereby
authorizes and empowers the City Administrator and/or his designee to
execute individual copies of the form Agreement on an as -needed basis
and to make whatever nonsubstantive and administrative changes, upon
advice of counsel, to the form Agreement as is necessary to carry out
the intent of this Resolution. Such additions, deletions and other
changes therein as the City Administrator and/or his designee executing
the Agreement may approve, is conclusively evidenced by the execution
and delivery of the Agreement.
I/ / /
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SECTION 7: All resolutions, parts of resolutions, or minute
orders in conflict with this Resolution are hereby repealed and
Resolution Nos. 6687, 7165, 7359, 7558 and 8013 specifically are
repealed in their entirety once the new Guidelines and Agreement are in
place.
SECTION 8: 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 4th day of February, 2008.
ATTEST:
MAN ELA GIRON, Y it Clerk
Name: Leonis C. Malburg
Title: Mavor /
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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. 9544, was
duly adopted by the City Council of the City of Vernon at a regular
meeting of the City Council duly held on Monday, February 4, 2008, and
thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of
Vernon.
(SEAL)
M�NU'ELA GIRON, Ci y Clerk
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CITY OF VERNON
EMPLOYEE UNIVERSITY EDUCATION LOAN PROGRAM AND
DISCRETIONARY EDUCATIONAL ASSISTANCE PROGRAM
GUIDELINES
(Revised February 4, 2008)
This program is to assist those employees who wish to pursue
further education, who have met the City's criteria for said
Employee University Education Loan Program and Discretionary
Educational Assistance Program (the "Program"), and who would
like to enter into an assistance/loan agreement with the City to
participate in said Program. Furthermore, participation in the
Program is at the discretion of the City of Vernon Personnel
Committee and/or City Council.
UNIVERSITY EDUCATION LOAN PROGRAM
UNIVERSITY EDUCATION LOAN PROGRAMS
•'• Bachelor
••• Master
Specialized Certificates
EMPLOYEE QUALIFICATION CRITERIA
❖ Eligibility - at least two years of continuous
uninterrupted regular full-time employment with the City.
Employees who are temporary, provisional, on leave of
absence, probation, or who have returned to probationary
status, or are not considered regular employees, shall not
be eligible.
❖ Overall minimum evaluation scores within the last twelve
months from application date:
Staff 3.00 and/or A & B rating scores
Supervisors 3.50 and/or A & B rating scores
•3 Written communication from employee expressing his/her
desire to participate in the University Education Loan
Program shall include:
Type of program desired.
University of preference.
Estimated cost for the program.
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City of Vernon
University Education Program Guidelines
❖ Written recommendation from Department Head for employee to
participate in the University Education Loan Program.
INELIGIBILITY - an overall rating of less of 3.00 and/or three
(3) or more C's on the employee's evaluation within the last
twelve months from the application date.
ADMINISTRATION - the Personnel Department shall administer the
University Education Loan Program.
MAXIMUM LOAN LIMITS
••• Bachelor Degree
••• Master Degree
❖ Specialized Certificates or
other approved course
up to $25,000.00 per 12-
month period.
- up to $25,000.00 total.
up to $15,000.00 total.
EMPLOYEE LOAN PAYBACK PERIOD (INTEREST FREE)
❖ 36-month agreement - up to $15,000.00 total.
❖ 48-month agreement - $15,001.00 to $25,000.00
❖ 60-month agreement - $25,001.00 to $35,000.00
❖ 72-month agreement - $35,000.00 and over
APPROVAL FOR PARTICIPATION IN THE UNIVERSITY EDUCATION
LOAN PROGRAM
❖ Recommendation from Department Head and a written statement
from the employee communicating his/her interest to
participate in the University Education Loan Program shall
be submitted to the Personnel Committee for approval. Final
approval is at the sole discretion of the Personnel
Committee and/or City Council.
❖ Upon approval from the Personnel Committee, an Employee
Tuition Loan / Discretionary Educational Assistance
Reimbursement Agreement shall be entered into between the
employee and the City. The loan agreement will outline the
responsibilities of the employee, terms of the agreement,
payroll deduction arrangements and other conditions of the
University Education Loan Program.
City of Vernon
University Education Program Guidelines
❖ Employee shall submit a loan payback schedule every time a
tuition loan reimbursement is requested indicating the
accumulated grand total due to the City. At the conclusion
of the course, the Employee shall submit an application for
reimbursement form to the department head and shall present
all receipts and final grades at the end of each
semester/quarter with such request. A grade of C or better
is required for eligibility for such reimbursement.
❖ Loan repayments will be made through payroll deduction,
after taxes, on a bi-weekly basis.
❖ Employees in the University Education Loan Program should
be aware that the interest foregone by the City could be
treated as income to the employee, for tax purposes, in the
year the loan was made. While the IRS may treat the loans
under the Program as falling within a de minimis exception
applying to small interest sums, employees should refer
questions to their tax advisor. The City makes no
representation whatsoever regarding the tax consequences to
the individual employee.
EMPLOYEE SEPARATION
In case of employment separation from the City, under any
circumstances, the amount due to the City in accordance with
the employee interest free loan payback schedule shall be paid
in full to the City within ten (10) days of separation.
DISCRETIONARY EDUCATIONAL ASSISTANCE PROGRAM
(Section 127 of the Internal Revenue Code)
Educational aid may be provided by the City of Vernon at the
sole discretion of the Personnel Committee and/or the City
Council and shall be excluded from an employee's federal gross
income if the Internal Revenue Code so provides.
In order to be considered for approval by the Personnel
Committee and/or the City Council of the City of Vernon, all
requests for reimbursement for educational aid shall meet the
following terms and conditions:
1. In order to be eligible for reimbursement, an employee
shall be a regular full-time employee who has been employed
by the City of Vernon for at least twelve (12) months.
Employees who are temporary, part-time, provisional, on
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City of Vernon
University Education Program Guidelines
leave of absence, probation or who have been returned to
probationary status or are not considered regular
employees, shall not be eligible. Except, however, that a
regular employee working an assigned part-time schedule of
at least fifty percent (500) of a full-time schedule, for
at least five (5) years, and has satisfied the requirements
for regular status shall be considered eligible for such
aid. In such exception, however, such aid shall be reduced
to the same proportion as the employee's regular part-time
schedule is to a full-time schedule.
2. Employees who are subject to a collective bargaining
agreement shall not be eligible unless provided for in said
bargaining agreement. However, such provision in said
agreement shall be consistent with the terms and conditions
herein.
3. Reimbursement shall be limited and shall not exceed an
employee's expenses for tuition, fees and textbooks or, in
applicable circumstances, shall not exceed a proportion of
such expenses.
4. Reimbursement shall apply to academic courses only that are
determined by the Department Head to be job related and
shall not apply to courses involving sports, games or
hobbies, even though such courses may be required as part
of a degree program.
5. Employee must obtain pre -approval from the Department Head
of courses selected by employee in order to be eligible for
reimbursement of such expenses. The Department Head may
pre -approve such courses; however, final approval of all
such reimbursement is at the sole discretion of the
Personnel Committee and/or the City Council. The
Department Head may consider all factors relating to the
employee's work history with the City of Vernon in
determining such pre -approval.
6. Upon approval from the Personnel Committee and/or the City
Council, an Employee Tuition Loan / Discretionary
Educational Assistance Reimbursement Agreement shall be
entered into between the employee and the City. The
agreement will outline the responsibilities of the
employee, terms of the agreement, and other conditions of
the Discretionary Educational Assistance Program.
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City of Vernon
University Education Program Guidelines
7. Employee shall submit a schedule every time reimbursement
is requested indicating the accumulated grand total of
reimbursement. At the conclusion of the course, the
employee shall submit an application for reimbursement form
created by the Personnel Department 'to the Department Head
and shall present all receipts and final grades at the end
of each semester/quarter with such request. A grade of C
or better is required for eligibility for such
reimbursement. The Department Head may request
authorization for reimbursement from the City
Administrator, or his designee, and the City Council. Such
requests for such reimbursement shall be in the sole
discretion of the City Council. The employee shall submit
said application for reimbursement no later than one (1)
year from the date of completion of the course.
8. This Discretionary Educational Assistance Program shall
become a part of the orientation process conducted by the
Personnel Department for all new employees.
9. Reimbursement is limited to Two Thousand Two Hundred
Dollars ($2,200) per fiscal year. Such limitation is based
upon tuition, fees and textbooks required by the California
State University System (Los Angeles State University for
the quarter system and Long Beach State University for the
semester system). Reimbursement shall also be limited to
classes that are enrolled in after the completion of the
employee's evaluation period.
10. After the first Two Thousand Two Hundred Dollars ($2,200)
per fiscal year is reached under the Discretionary
Educational Assistance'Program, the employee submit a loan
payback schedule every time a tuition loan reimbursement is
requested indicating the accumulated grand total due to the
City. At the conclusion of the course, the Employee shall
submit an application for reimbursement form to the
department head and shall present all receipts and final
grades at the end of each semester/quarter with such
request. A grade of C or better is required for
eligibility for such reimbursement.
An employee shall upgrade his or her employee schedule and
employee payback schedule form each time he or she requests
reimbursement.
Fiscal year is defined as July 1 through June 30 of each year.
Below is a table depicting examples of fiscal year based upon
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City of Vernon
University Education Program Guidelines
when reimbursement request submitted and not when actual quarter
or semester ends.
Semester/Quarter & Year (Fiscal Year
Example: Cal
State L.A.
Winter 2008
(Jan. to
March)
2007-08
Spring 2008
(March to
June)
2008-09
Summer 2008
(June to
Aug.)
2008-09
Fall 2008 (Sept. to
Dec.)
2008-09
Example: Cal State Long Beach
Spring 2008 (Jan to May) 2007-08
Summer 2008 (June to Aug.) 2008-09
Fall/Winter 2008 (Aug. to Dec.) 2008-09
zxampie : woocmury
Spring 2008 (Jan. to May) 2007-08
Summer 2008 (May to Aug.) 2008-09
Fall 2008 (August to Dec.) 2008-09
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EMPLOYEE TUITION LOAN / DISCRETIONARY EDUCATIONAL ASSISTANCE
REIMBURSEMENT AGREEMENT
UNIVERSITY EDUCATION PROGRAM
(Revised February 4, 2008)
THIS TUITION LOAN REIMBURSEMENT AGREEMENT is made, entered
into and executed in duplicate originals, either copy of which may be
considered and used as the original hereof for all purposes, as of the
day of , 20 in the City of Vernon, County of
Los Angeles, California,
BY AND BETWEEN City of Vernon, a Municipal
Corporation (hereinafter
referred to as "City")
AND
(hereinafter referred to as
"Employee")
RECITALS
WHEREAS, the City and Employee desire to memorialize the
terms and conditions under which the Employee will participate in the
financial arrangement for interest -free tuition loan reimbursement
and/or discretionary educational assistance offered by the City
pursuant to the Employee University Education Loan Program and
Discretionary Educational Assistance Program Guidelines (the
"Guidelines"), a copy of which will be supplied to the Employee upon
execution of this Agreement; and
WHEREAS, Employee represents that he or she is eligible to
participate in the Employee University Education Loan Program and/or
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Discretionary Educational Assistance Program after having met all the
requirements set forth in the Guidelines; and
WHEREAS, after the first $2,200 of discretionary educational
assistance is deducted, Employee shall agree to pay back the interest -
free loan for at least thirty-six (36) months or the appropriate
payback period as indicated in the Guidelines and authorize the City
to deduct from each paycheck the amount identified in the loan payback
schedule attached hereto; and
WHEREAS, the employee leaves the City of Vernon either
voluntarily or involuntarily, under any circumstances, then
reimbursement for the balance of the loan shall be made forthwith in
accordance with the Guidelines.
NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS AND
AGREEMENTS HEREIN CONTAINED THE PARTIES HERETO AGREE AS FOLLOWS:
SECTION 1: The City and Employee hereby agree that the
Irecitals contained hereinabove are true and correct.
SECTION 2: The City agrees to make an interest -free loan
to the employee above and beyond the first $2,200 of discretionary
educational assistance per year provided to the employee, to provide
financial assistance for the Employee's further education in obtaining
a Bachelor Degree, Master Degree, Specialized Certificate or Approved
Program in a sum in accordance with the Guidelines. Employee agrees
to reimburse the City in accordance with the Guidelines. A copy of a
form University Education Loan Program -Employee Payback Schedule and
Discretionary Educational Assistance Program -Employee Schedule is
attached hereto as Exhibit A and incorporated by reference.
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SECTION 3: Employee authorizes the City to deduct from
each paycheck of the employee the amount identified in the loan
payback schedule attached hereto until the amount identified in the
loan payback schedule has been paid. Employee may elect to pay the
remaining unpaid balance at any time prior to the last payroll
deduction. The first $2,200 provided to the Employee under the
Discretionary Educational Assistance Program shall not be included in
the loan payback amount.
SECTION 4: In the event the Employee leaves his or her
employment with the City, either voluntarily or involuntarily, under
any circumstances, then reimbursement for the balance of the loan
shall be made as specified by the Guidelines.
Upon separation of employee from employment with the City
for any reason, the remaining amount of the loan to be paid to the
City under this agreement shall immediately become due and payable,
and Employee hereby authorizes City to withhold from his/her final
pay, any and all of the loan amount remaining under this agreement.
Should Employee, after five days of issuance of his/her final check,
still have a remaining loan balance, interest will be charged on said
balance at a rate of 5% computed daily and payment must be remitted in
full within 35 days after his/her final paycheck. If payment in full
is not remitted by said 35 days, City shall seek legal remedy to which
Employee shall be responsible for said legal costs.
Employee agrees that he or she does not have a property
right in employment and that he or she serves at the will and pleasure
of the City Council.
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SECTION 5: This Agreement shall become effective
commencing , 20 This agreement supersedes any
and all written or oral agreements, proposals and communications
concerning the Program.
IN WITNESS WHEREOF, the City has caused this Agreement to be
signed and executed on its behalf by the City Administrator, and the
Employee has signed and executed this Agreement, both in duplicate,
the day and the year first above written.
CITY OF VERNON
Eric T. Fresch, City Administrator
Employee
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CITY CLERK'S OFFICE
INTEROFFICE MEMORANDUM
DATE: February 26, 2008
TO: Rory Burnett, Director of Finance
Sharon Duckworth, City Treasurer
Donal O'Callaghan, Director of Light & Power
Lewis Pozzebon, Director of Environmental Health
Steve Towles, Chief of Police
Martha Valenzuela, Director of Personnel/Purchasing Agent
Mark Whitworth, Fire Chief
Kevin Wilson, Director of Community Services & Water
Willard. Yamaguchi, Chief Deputy City Attorney/Risk Manager
FROM: Nelly Giron, City Clerk
RE: Resolution No. 9544 - A Resolution of the City Council of
the City of Vernon Merging the Employee University Education
Loan Program and the Discretionary Educational Assistance
Program, Approving and Adopting a Revised Employee Tuition
Loan Reimbursement Agreement and Repealing All Resolutions
or Parts of Resolutions in Conflict Therewith
Transmitted herewith is a copy of the Employee University Education
Loan Program and Discretionary Educational Assistance Program
Guidelines, reimbursement agreement form, and Resolution No. 9544
referenced above, which was approved by City Council February 4, 2008.
Employees may obtain reimbursement agreement forms from the Personnel
Department.
NG:dr
c: Resolution File No. 9544