Resolution No. 97201
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RESOLUTION NO. 9720
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND ADOPTING A REVISED HEARING AID
DEVICE PLAN, A FORM PERSONAL PARTICIPATION LOAN
APPLICATION AND AGREEMENT AND A FORM HEARING AID
DEVICE LOAN VERIFICATION FROM DEPARTMENT HEAD AND
PAYROLL AND ESTABLISHING AN EMPLOYEE HEARING AID
DEVICE LOAN PROGRAM
WHEREAS, by Minute Order on August 12, 2003, the Finance
Committee recommended that the City Council approve the employee
hearing aid device program, as approved by the City Council of the City
of Vernon on August 27, 2003; and
WHEREAS, the City Council of the City of Vernon believes that
encouraging the correction of hearing loss enhances an employee's job
performance which benefits the City; and
WHEREAS, the City Council desires to update and revise its
current hearing aid device program and forms and establish an Employee
Hearing Aid Device Loan Program ("Loan Program").
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
establishes an Employee Hearing Aid Device Loan Program for the 2008-
2009 fiscal year.
SECTION 3: The City Council of the City of Vernon hereby
approves and adopts the City of Vernon Hearing Aid Device Plan (the
"Plan"), a copy of which is attached hereto as Exhibit A and
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lincorporated by reference
111:
Said Plan will become effective October 6,
SECTION 4: The City Council of the City of Vernon hereby
approves and adopts the form Personal Participation Loan Application
and Agreement (the "Agreement") and form Hearing Aid Device Loan
Verification of Department Head and Payroll (collectively, the "Loan
Forms') in accordance with the Plan, copies of which are attached
hereto as Exhibit B and incorporated by reference. Said Loan Forms
shall be effective October 6, 2008. It is the intent of the City
(Council that the form Agreement shall be a binding contract between the
City and the employee upon acceptance by the Director of Human
Resources, or her designee.
SECTION 5: The City Council of the City of Vernon hereby
authorizes and empowers the ,Director of Human Resources, or her
Idesignee, 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 Loan Forms as are necessary to
carry out the intent of this Resolution. Such additions, deletions and
(other changes therein as the Director of Human Resources, or her
designee, executing the Agreement may approve, are conclusively
evidenced by the execution and delivery of the Agreement.
SECTION 6: 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 7: All resolutions, parts of resolutions, or minute
orders in conflict with this Resolution are hereby repealed.
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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 6th day of October, 2008._
ATTEST:
MA UELA GIRON, it ,Clerk
Name : „�,� is C . Malburg
Title: Mayor / -Ma-y-er PreTeE
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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. 9720, was
duly adopted by the City Council of the City of Vernon at a regular
meeting of the City Council duly held on Monday, October 6, 2008, and
thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of
Vernon.
(SEAL)
A�-
NIANUELA GIRON, City Clerk
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EXHIBIT A
EXHIBIT A
City of Vernon
Hearing Aid Device Plan
Obiective
The City's objective of the Hearing Aid Device Plan (the "Plan") is to assist an employee
in correcting their loss of hearing after diagnosis by a professional audiologist.
EhEibility
Any full-time City employee who has completed his/her initial evaluation period and a
minimum of one year of service is eligible to apply for a loan under the Plan. Employees
who are temporary, provisional, on leave of absence, probation, or who have returned to
probationary status, or are not eligible to apply for this loan.
Overall minimum performance evaluation within twelve months of the loan application
date must be 3.0 and/or A & B ratings for staff. Employees who receive below
satisfaction or below standard in any areas may not be eligible to apply. Supervisor
performance evaluation ratings must be an overall minimum of 3.50 and/or A & B ratings
and may not be eligible to apply if they receive any below standard or below satisfactory
ratings.
Employees may be eligible to finance an additional procedure if necessary and if funds
are available and approved by Director of Human Resources. Any additional procedures
would require a new Application and Agreement.
Loan Limits
Each employee is eligible to borrow up to a maximum of Six Thousand Dollars ($6,000)
with repayment over 36 months. Interest free loans will be made up to this limit for
certain hearing aid device(s) if employee is determined to be eligible.
Loans will be made to participants on a first -come, first -served basis and as funds are
available for such loans.
Hearing Aid Device Plan
Adopted by ResolutionNo. 9720 on October 6, 2008 - 1 -
Loan Payments
Loan payments will be made through payroll deduction on a bi-weekly basis. Employees
are responsible for monthly payments in the same amount as the total of the bi-weekly
payroll deduction even if they are on a leave of absence or otherwise not receiving a
paycheck. Loans are due and payable in full upon separation of employment for any
reason. Any payments made after separation from the City are subject to the payment
amount plus interest at a rate of 5% per annum compounded daily or the maximum legal
amount allowable, whichever is less. The failure to make full payment will obligate the
employee to pay the City's attorney's fees and costs in any restitution or collections
process.
Loans will be made for a maximum period of 36 months but may be paid earlier at the
participant's request.
Requirements
1. Copy of professional audiologist's diagnosis, prescription or recommendation.
2. Proof of payment for hearing aid device(s).
Procedure
Employees in this Plan will:
1. Obtain an application from the Treasurer's Department.
2. Submit the application and copy of doctor's
prescription/diagnosis/recommendation and proof of payment for hearing aid
device(s) to the Treasurer's Department.
3, The Treasurer's Department will verify employment and will coordinate with
the Employee's Department Head and Payroll when reviewing the application.
4. The Treasurer's Department will submit the application to the Director of
Human Resources with a Loan Verification Sheet containing comments from
Payroll and the Employee's Department Head.
5. Application may be denied, in which case the Director of Human Resources
will communicate with employee regarding the denial.
6. If approved by the Director of Human Resources, the Treasurer's Department
will finalize the Loan Agreement.
7. The Treasurer's Department will deliver a check to the employee or make the
check available for the employee to pick up.
Hearing Aid Device Plan
Adopted by ResolutionNo. 9720 on October 6, 2008 -2-
Loan Agreement
A written agreement between the City and the employee is required. The loan agreement
will outline the responsibilities of the employee, terms of the agreement, payroll
deduction arrangements, and other conditions of the Plan.
Restriction on Transfer or Assignment
Each employee in the Plan agrees that the loan made available under the Plan shall be
used for the purchase of hearing aid device(s) for the participating employee, only. If the
loan is not used for such purpose and for the employee, the employee must immediately
pay all money loaned under the Plan back to the City, with interest at a rate of 5% per
annum compounded daily or the maximum legal amount allowable, whichever is less.
Potential Income Tax Consequences
Employees in the Plan should be aware that certain legislation has been passed that could
potentially cause the interest foregone by the City to be treated as income to the
employee, for tax purposes, in the year the loan is made.
While the City expects that the IRS will treat the loans under the Plan 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.
Any tax consequences that arise as a result of this loan, shall be the exclusive liability of
the employee.
Protection Against Damage, Repair, Maintenance and Theft
The City does not assume any liability for damage, repair, maintenance or theft of the
hearing aid device(s).
The Hearing Aid Device Prescription/Recommendation
Employees in the Plan should ensure that their professional audiologist
prescribes/recommends the appropriate hearing aid device(s).
The City Makes No Representations
The City is not, in any way, making representations, guarantees or warranties of any type
to employees participating in the Plan regarding the safety or success of the hearing aid
device(s) or the professional audiologist selected by the employee to perform the
diagnosis/examination and prescription/recommendation. Employees will proceed at
Hearing Aid Device Plan
Adopted by ResolutionNo. 9720 on October 6, 2008 - 3 -
their own risk and should conduct their own independent investigation regarding the risks
and benefits of utilizing such hearing aid device(s).
RECEIVED, REVIEWED AND ACCEPTED BY:
Employee
Hearing Aid Device Plan
Adopted by ResolutionNo. 9720 on October 6, 2008
Date
M
EXHIBIT B
Personal Participation Loan Application and Agreement
(Hearing Aid Device)
(Revised October 6, 2008)
Name
Address
Department
The above -named employee or officer ("Participant") of the City of Vernon ("City") has
been provided a copy of the City of Vernon Personal Participation Loan Application and
Agreement hereby elects to participate in the financing arrangement offered under the
"Hearing Aid Device Plan" ("Agreement") and further agrees to and accepts the
following terms and conditions:
The price of the hearing aid device(s) is $
2. The City agrees to make an interest -free loan to the employee in the amount of
$ for a period not to exceed 3 6 months or as long as the
employee is employed by the City (whichever is less in length of time) to pay for
the Plan.
Participant authorizes the City to deduct $ from each
paycheck of the employee beginning until the amount
identified in paragraph two (2) above has been paid. If Participant does not
receive a paycheck from the City because they are on a leave of absence or
otherwise, Participant agrees to continue to make monthly payments in the same
amount as would have been deducted from their paycheck on a monthly basis.
Participant may elect to pay the remaining unpaid balance at any time prior to the
last payroll deduction.
4. Participant agrees that the hearing aid device(s) will be limited solely to the
Participant and not that of his/her immediate family or friends. If the hearing
device is received by anyone other than the Participant, it will be a violation of
this Agreement/Plan. Violation of this Plan will require Participant to
immediately pay to the City the remaining amount due on the loan plus interest at
a rate of 5% per annum compounded daily or the maximum legal amount
allowable, whichever is less.
Application and Agreement
Adopted by Resolution No. 9720 on October 6, 2008 - 1 -
5. Upon separation of Participant from employment with the City for any reason, the
remaining amount to be paid to the City under this Agreement shall immediately
become due and payable to the fullest extent permitted by law and Participant
hereby authorizes the City to withhold from his/her final pay, any sums regularly
due to be paid under the Agreement, and to execute a written Agreement
providing for the repayment of all amounts remaining under this Agreement. The
failure to make full payment will obligate the Participant to pay the City's
attorney's fees and costs in any restitution or collections process.
6. Not withstanding the above, this Agreement will survive the employment period
of the Participant and therefore will be enforceable without any further executed
written Agreement between the Participant and the City.
7. All warranties and/or contracts for the hearing aid device shall be between the
vendor and Participant. Participant shall deal directly with the vendor and in no
event shall Participant look to the City for any claims relating to warranty or
service of the hearing aid device.
8. This Agreement may be changed only by a written document signed by the City
and the Participant and supersedes any and all written or oral agreements,
proposals and communications concerning the Plan.
9. I have received and reviewed a copy of the Corrective Eye Surgery Plan.
Please answer the following questions which will be evaluated when assessing your loan
application:
10. Have you ever filed for Bankruptcy:
(Circle one) YES NO
11. Have your wages ever been garnished:
(Circle one) YES NO
12. Have you ever defaulted on a loan:
(Circle one) YES NO
13. Has any personal debt of yours ever
(Circle one) YES NO
gone to collections:
Accepted by:
Participant/Employee
City of Vernon
ATTEST:
Manuela Giron, City Clerk
Date
Date
Application and Agreement
Adopted by Resolution No. 9720 on October 6, 2008 - 2
HEARING AID DEVICE LOAN VERIFICATION
TO: (Department Head)
FROM: Director of Human Resources
RE: (Employee's) Hearing Aid Device Loan Application
DATE:
has applied for a Hearing Aid Device loan from the City
(Name of Employee) of Vernon
In an effort to assist the Department of Human Resources in performing its due diligence
with respect to the viability of the loan, please provide the following information.
Date of Last Performance Review
Score or Rating received on the last Performance Review
Number of Disciplinary Issues in the last 12 months
Verbal Written
Number of Pending Disciplinary Issues
Other Comments:
Department Head Name
Department Hearing Aid Device Loan verification
Adopted by ResolutionNo. 9720 on October 6, 2008
Date
Please circle:
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HEARING AID DEVICE LOAN VERIFICATION
TO: Payroll
FROM: Director of Human Resources
RE: (Employee's) Hearing Aid Device Loan Application
DATE:
has applied for a Hearing Aid Device loan from the City
(Name of Employee) of Vernon
In an effort to assist the Department of Human Resources in performing its due diligence
with respect to the viability of the loan, please provide the following information.
Does this employee currently have any other loans with the City: Please Circle One:
YES NO
If YES, please provide the following details:
Type of Loan
Loan Amount
When Commenced_
Balance Due
Does this employee have any garnishments on their paycheck: Please Circle One: YES
NO
Are their any deductions to employee's payroll beyond the standard deductions and
beyond insurance deductions?
Please Circle One: YES NO
If YES, please provide details:
Other Comments:
Payroll Clerk
Date
Payroll Hearing Aid Device Loan Verification
Adopted by ResolutionNo. 9720 on October 6, 2008 - 1 -
CITY CLERK'S OFFICE
INTEROFFICE MEMORANDUM
DATE: October 21, 2008
TO: Rory Burnett, Finance Director
Sharon Duckworth, City Treasurer
Masami Higa, Internal Control Manager/Controller
Avigal Horrow, Human Resources Director
Joaquin Leon, Assistant Finance Director
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. 9720 - A Resolution of the City Council of
the City of Vernon Approving and Adopting a Revised Hearing
Aid Device Plan, a Form Personal Participation Loan
Application and Agreement and a Form Hearing Aid Device Loan
Verification from Department Head and Payroll and
Establishing an Employee Hearing Aid Device Loan Program
Transmitted herewith is a copy of Resolution No. 9720 referenced
above, which was approved by City Council on October 6, 2008.
Thank you.
NG:dr
C. Resolution File No. 9720