Resolution No. 97211
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RESOLUTION NO. 9721
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND ADOPTING A REVISED CORRECTIVE
EYE SURGERY PLAN, A FORM PERSONAL PARTICIPATION
LOAN APPLICATION AND AGREEMENT AND A FORM
CORRECTIVE EYE SURGERY LOAN VERIFICATION FROM
DEPARTMENT HEAD AND PAYROLL AND ESTABLISHING AN
EMPLOYEE CORRECTIVE EYE SURGERY LOAN PROGRAM
WHEREAS, by Minute Order on June 25, 2001, the Finance
Committee recommended that the City Council approve the employee
corrective eye surgery loan program, as approved by the City Council of
the City of Vernon on June 27, 2001; and
WHEREAS, the City Council of the City of Vernon believes that
encouraging the correction of vision enhances an employee's job
performance which benefits the City; and
WHEREAS, the City Council desires to update and revise its
current corrective eye surgery program and forms and establish an
Employee Corrective Eye Surgery Loan Program (the "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
Iestablishes an Employee Corrective Eye Surgery 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 Corrective Eye Surgery Plan (the
"Plan"), a copy of which is attached hereto as Exhibit A and
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incorporated by reference. Said Plan will become effective October 6,
II
SECTION 4: The City Council of the City of Vernon hereby
approves and adopts the form Personal Participation Loan Application
and Agreement (Corrective Eye Surgery) (the "Agreement") and form
Corrective Eye Surgery Loan Verifications 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 Agreement shall be a binding
contract between the City and the employee upon acceptance by the
Director of Human Resources, or her designee. j
SECTION 5: The City Council of the City of Vernon hereby
authorizes and empowers the Director of Human Resources, or her
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 and 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:
MANUELA GIRON, ity Clerk
Name: Leonis-C. Malburg
Title: Mayor / Mays r—Rro-'hem
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1 STATE OF CALIFORNIA )
2 ) ss
COUNTY OF LOS ANGELES )
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4 I, MANUELA GIRON, City Clerk of the City of Vernon, do hereby
5 certify that the foregoing Resolution, being Resolution No. 9721, was
6 duly adopted by the City Council of the City of Vernon at a regular
7 meeting of the City Council duly held on Monday, October 6, 2008, and
8 thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of
9 Vernon.
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MANUELA GIRON, City Clerk
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13 (SEAL)
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EXHIBIT A
CITY OF VERNON
CORRECTIVE EYE SURGERY PLAN
OBJECTIVE
The objective of the Corrective Eye Surgery Plan (the "Plan") is to correct the vision to
20/20 for City employees.
ELIGIBILITY
Any full-time City employee who has completed his/her initial evaluation period and a
minimum of one year of service period beyond the initial evaluation period, is eligible to
apply for a loan under the program. 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 $4,000.00 with repayment over
36 months. Interest free loans will be made up to this limit for employees 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.
Corrective Eye Surgery Plan
Adopted by ResolutionNo. 9721 on October 6, 2008
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 the employee is 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 upon demand 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.
CORRECTIVE EYE SURGERY REQUIREMENTS
1. Copy of doctor's prescription for patient/employee.
2. Proof of payment for procedure.
LIMITATIONS
Loans will be made to employees on a first -come, first served basis, until the loan fund is
depleted. The loan fund may be adjusted each fiscal year. As funds become available
through loan repayment, additional loans will be processed.
PROCEDURE
Employees applying for 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 procedure 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.
Corrective Eye Surgery Plan
Adopted by Resolution No. 9721 on October 6, 2008
7. The Treasurer's Department will deliver a check to the employee or make the
check available for the employee to pick up.
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 procedure available under this Plan will be
restricted only to the employee. The loan made available under the Plan shall be used
for corrective eye surgery for the participating employee, only. If the loan is not used
for such purpose, 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.
Any tax consequences that arise as a result of this loan shall be the exclusive liability
of the employee.
THE EYE CORRECTION PROCEDURE
Employees in the Plan should ensure that their doctor provides adequate protection
for their procedure.
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
corrective eye surgery or the medical provider selected by the employee to perform
such surgery. Employees will proceed at their own risk and should conduct their own
independent investigation regarding the risks and benefits of such a procedure.
Corrective Eye Surgery Plan 3 -
Adopted by ResolutionNo. 9721 on October 6, 2008
RECEIVED, REVIEWED AND ACCEPTED BY:
Employee
Date
Corrective Eye Surgery Plan _ 4
Adopted by ResolutionNo. 9721 on October 6, 2008
I IM, X
Name
Address
PERSONAL PARTICIPATION LOAN APPLICATION AND
AGREEMENT
(CORRECTIVE EYE SURGERY)
(Revised October 6, 2008)
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
Plan, (Corrective Eye Surgery Plan) ("Agreement") and further agrees to and accepts the
following, terms and conditions:
1. The price of the procedure is $
2. The City agrees to make an interest -free loan to the Participant in the amount of
$ for a period not to exceed 36 months or as long as the Participant is
Employed by the City of Vernon (whichever is less in length of time) to pay for the
Plan.
Participant authorizes the City to deduct $ from each paycheck of
the Participant beginning until the amount identified in Paragraph 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 procedure will be limited to the Participant and not that of
his/her immediate family. If the procedure is not received by 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.
Upon separation of Participant 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 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
Application and Agreement _
Adopted by ResolutionNo. 9721 on October 6, 2008 - 1
failure to make full payment will obligate the Participant to pay the City's attorney's
fees and costs in any restitution or collect ion 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 this procedure shall be between the vendor/doctor
and Participant. Participant shall deal directly with the vendor/doctor and in no event
shall Participant look to the City for any claims relating to warranty or service of the
procedure.
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:
By:
Manuela Giron, City Clerk
Date
Date
Application and Agreement
Adopted by ResolutionNo. 9721 on October 6, 2008
TO:
FROM:
RE:
Application
DATE:
CORRECTIVE EYE SURGERY LOAN VERIFICATION
(Department Head)
Director of Human Resources
(Employee's) Corrective Eye Surgery Loan
has applied for a Corrective Eye Surgery loan from the
City of Vernon.
(Name of Employee)
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
Date
Please Circle:
Department Head Corrective Eye Surgery Loan Verification
Adopted by Reso(utionNo. 9721 on October 6, 2008
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CORRECTIVE EYE SURGERY LOAN VERIFICATION
TO: Payroll
FROM: Director of Human Resources
RE: (Employee's) Corrective Eye Surgery Loan
Application
DATE:
has applied for a Corrective Eye Surgery loan from the
City of Vernon.
(Name of Employee)
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 Corrective Eye Surgery Loan Verification
Adopted by ResolutionNo. 9721 on October 6, 2008
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
FRO Nelly Giron, City Clerk
RE: Resolution No. 9721 - A Resolution of the City Council of
the City of Vernon Approving and Adopting a Revised
Corrective Eye Surgery Plan, a Form Personal Participation
Loan Application and Agreement and a Form Corrective Eye
Surgery Loan Verification from Department Head and Payroll
and Establishing an Employee Corrective Eye Surgery Loan
Program
Transmitted herewith is a copy of Resolution No. 9721 referenced
above, which was approved by City Council on October 6, 2008.
Thank you.
NG:dr
c: Resolution File No. 9721