Resolution No. 97481 RESOLUTION NO. 9748
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
3 VERNON APPROVING AND ADOPTING A REVISED HIGHER
4 EDUCATION LOAN AND ASSISTANCE PROGRAM GUIDELINES,
FORM PERSONAL PARTICIPATION LOAN APPLICATION AND
5 AGREEMENT, FORM REQUEST FOR TUITION REIMBURSEMENT
AND FORM PAYBACK SCHEDULE AND REPEALING ALL
6 RESOLUTIONS OR PARTS OF RESOLUTIONS IN CONFLICT
THEREWITH
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8 WHEREAS, on.February 4, 2008, the City Council of the City of
9 Vernon adopted Resolution No. 9544, approving and adopting a revised
10 education loan program and forms relating thereto regarding the merging
11 of the Discretionary Educational Assistance Program and Employee
12 University Education Loan Program; and
13 WHEREAS, the City Council believes that continuing education
14 by City employees not only personally benefits those employees taking
15 courses but also enhances job performance which benefits the City; and
16 WHEREAS, the Director of Human Resources has determined that
17 the current education loan program and forms relating thereto should be
18 revised; and
19 WHEREAS, the City Council desires to update and revise its
20 current education loan program and forms relating thereto and establish
21 a Higher Education Loan and Assistance Program.
22 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
23 CITY OF VERNON AS FOLLOWS:
24 SECTION 1: The City Council of the City of Vernon does
25 hereby find and determine that the recitals contained hereinabove are
26 true and correct.
27 SECTION 2: The City Council of the City of Vernon hereby
28 establishes a Higher Education Loan and Assistance Program and approves
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and adopts the City of Vernon Higher Education Loan and Assistance
Program (the "Program"), a copy of which is attached hereto as Exhibit
A and incorporated by reference. Said Program will become effective
November 3, 2008. The Director of Human Resources shall have authority
to administer the Program available to eligible employees.
SECTION 3: The City Council of the City of Vernon hereby
approves and adopts the form Personal Participation Loan Application
and Agreement (the "Agreement"), the form Request for Tuition
Reimbursement, the form Payback Schedule, the form Department Head and
Payroll Higher -Education Loan and Assistance Verifications
(collectively, the "Loan Forms") in accordance with the Program, copies
of which are attached hereto as Exhibit B and incorporated by
reference. Said Loan Forms shall be effective November 3, 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 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 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
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1 conclusively evidenced by the execution and delivery of the Agreement.
2 SECTION 6: All resolutions, parts of resolutions, or minute,
3 orders in conflict with this Resolution are hereby repealed.
4 SECTION 7: The City Clerk of the City of Vernon shall
5 certify to the passage of this resolution, and thereupon and thereafter
6 the same shall be in full force and effect.
7 APPROVED AND ADOPTED this 3rd day of November, 2008.
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11 Name: Hilario Gonzales
12 Titl / Mayor Pro-Tem
13 ATTEST:
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MA UELA GIRON, City Clerk
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1 STATE OF CALIFORNIA )
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2 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. 9748, 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, November 3, 2008, and
8 thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of
9 Vernon.
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M NUELA GIRON, Cit Clerk
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13 (SEAL)
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EXHIBIT A
City of Vernon
Higher Education Loan and Assistance Program
OBJECTIVE:
This program is to assist those employees who wish to pursue higher education, who
have met the City's criteria for said Higher Education Loan and Assistance Program (the
"Program"), and who would like to enter into a loan agreement with the City to
participate in said Program. Furthermore, participation in the Program is at the discretion
of the Director of Human Resources.
DEGREE SELECTION
❖ Bachelor's Degree
❖ Master's Degree
❖ 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.
Employees who have filed for bankruptcy or are currently having their wages garnished,
are not eligible to participate in this program.
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.
Higher Education Loan and Assistance Program
Adopted by ResolutionNo. 9748 on November 3, 2008 - 1 -
MAXIMUM LOAN LIMIT
Bachelor Degree
Master Degree
Specialized Certificates or
other approved courses
up to $25,000.00 per 12-month period
up to $25,000.00 per 12-month period
up to $15,000.00 per 12-month period
EMPLOYEE LOAN PAYBACK PERIOD (INTEREST FREE)
❖ 36-month agreement
•'• 48-month agreement
❖ 60-month agreement
•'• 72-month agreement
LIMITATIONS
- up to $15,000.00 total.
- $15,001.00 to $25,000.00
- $25,001.00 to $35,000.00
- $35,001.00 and over
Loans will be made to employees on a first -come, first served basis and as funds are
available for such loans.
LOAN PAYMENTS AND EMPLOYEE' SEPARATION LOAN PAYMENTS
Loan payments will be made through payroll deduction on a bi-weekly basis. Participant
is 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 will be made for a maximum period of 72 months but may be paid earlier at the
employee's request.
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. 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% per annum compounded daily, or the maximum legal amount
allowable, whichever is less, and payment must be remitted in full within 35 days after
his/her final paycheck. The failure to make full payment by said 35 days, will obligate
the employee to pay the City's attorney's fees and costs in any restitution or collections
process. City shall seek legal remedy to which employee shall be responsible for said
legal costs.
Higher Education Loan and Assistance Program
Adopted byResolutionNo. 9748 on November 3, 2008 - 2 -
ADMINISTRATION
The Personnel Department shall administer the "Higher Education Loan and Assistance
Program."
REQUIREMENTS
In addition to the loan application, Participant will be required to submit a memorandum
detailing what program participant will be attending and where participant will be taking
classes as well as the following back up documentation:
1. Copy of class schedule.
2. Proof of completion of class and final grade.
3. Receipts for classes, books and supplies.
PROCEDURE
Employees in this Program will:
1. Obtain an application from the Personnel Department.
2. Submit the application, memorandum and all back up documentation
indicating classes, degrees, programs and cost to the Personnel Department.
3. The Personnel Department will verify employment and will coordinate with
the employee's Department Head and Payroll when reviewing the application.
4. The Personnel 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 the employee regarding the denial.
6. Upon approval from the Director of Human Resources, a Personal
Participation Loan Application and Agreement (Higher Education Loan and
Assistance Program) 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
"Program."
7. At the conclusion of each course, the Employee shall submit a "Request for
tuition reimbursement" form to the Personnel Department 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
employee shall submit all necessary paperwork for reimbursement no later
than 60 days from receipt of grades. City will amend the payback schedule
accordingly and give the employee a copy of the same.
Higher Education Loan and Assistance Program
Adopted by ResolutionNo. 9748 on November 3, 2008 -3-
RESTRICTION ON TRANSFER OR ASSIGNMENT
Each employee in the Program agrees that the loan made available under the Program
shall be used for higher education 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 Program 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 CONSEOUENCES
Employees in the Program 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 loan was made.
While the City expects that the IRS will 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.
Any tax consequences that arise as a result of this loan, shall be the exclusive liability of
the employee.
HIGHER EDUCATION ASSISTANCE ($2,200.00 PER FISCAL YEAR)
(Section 127 of the Internal Revenue Code)
Higher Education Assistance may be provided by the City of Vernon at the sole
discretion of the Department Head 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 Department Head of the City of Vernon, all
requests for reimbursement for Higher Education Assistance shall meet the following
terms and conditions:
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 of non -interrupted service. Employees who are temporary, part-time,
provisional, on leave of absence, probation or who have been returned to
probationary status or are not considered regular employees, shall not be eligible.
2. Reimbursement shall be limited and shall not exceed an employee's expenses for
tuition, fees and textbooks.
Higher Education Loan and Assistance Program
Adopted by ResolutionNo. 9748 on November 3, 2008 - 4 -
Reimbursement shall apply to academic courses only that are determined by the
Department Head to be job related or shall apply to courses required as part of a
degree program.
4. Employee must obtain pre -approval, in writing, from the Department Head, for
courses selected by employee in order to be eligible for reimbursement of such
expenses.
At the conclusion of the course, the employee shall submit a request for tuition
reimbursement" form to the Personnel Department 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 employee shall
submit said application for reimbursement with executed pre -approval from the
Department Head no later than 60 days from receipt of grades.
6. Information regarding the Higher Education Assistance Program shall become a
part of the orientation process conducted by the Personnel Department for all new
employees.
7. 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
uarter 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. In the event reimbursement
amount under Section 127 of the Internal Revenue Code is modified, the City, in
its sole discretion, may adjust the reimbursement amount without further notice.
Fiscal year is defined as July 1 through June 30 of each year. Below is a table depicting
examples of fiscal year based upon 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
Example: Woodbury
Higher Education Loan and Assistance Program
Adopted by ResolutionNo. 9748 on November 3, 2008 - 5 -
RECEIVED, REVIEWED AND ACCEPTED BY:
Employee
Higher Education Loan and Assistance Program
Adopted by ResolutionNo. 9748 on November 3, 2008
Date
EXHIBIT B
Personal Participation Loan Application and Agreement
(Higher Education Loan and Assistance Program)
(Revised November 3, 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 ("Agreement") hereby elects to participate in the financing arrangement
offered under the "Higher Education Loan and Assistance Program" ("Program") and
further agrees to and accepts the following terms and conditions:
1. The City agrees to make an interest -free loan to the Participant in the amount of
2. Participant authorizes the City to deduct an amount determined by the payback
schedule which is based on the total amount of the loan, from each paycheck of
the Participant beginning until the amount identified in
paragraph one (1) 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.
3. Participant agrees that the Higher Education Loan and Assistance will be limited
solely to the Participant and not that of his/her immediate family or friends. If the
Higher Education Loan and Assistance is received by anyone other than the
Participant, it will be a violation of this Agreement. Violation of this Agreement
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.
4 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
Higher Education Application and Agreement
Adopted by Resolution No. 9748 on November 3, 2008 - 1 -
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.
5 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.
6 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 Program.
7 I have received and reviewed a copy of the Higher Education Loan and
Assistance Program.
Please answer the following questions which will be evaluated when assessing your loan
application:
8. Have you ever filed for Bankruptcy: (Circle one) YES NO
9. Have your wages ever been garnished: (Circle one) YES NO
10. Have you ever defaulted on a loan: (Circle one) YES NO
11. Has any personal debt of yours ever (Circle one) YES NO
gone to collections:
Accepted by:
Participant/Employee Date
City of Vernon
ATTEST:
Manuela Giron, City Clerk
Date
Higher Education Application and Agreement
Adopted by Resolution No. 9748 on November 3, 2008 - 2
HIGHER EDUCATION LOAN AND ASSISTANCE VERIFICATION
TO: (Department Head)
FROM: Director of Human Resources
RE: (Employee's) Higher Education Loan Application
DATE:
has applied for a higher education 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
Date
Please circle:
Department Head Higher Education Loan and Assistance Verification
Adopted by ResolutionNo. 9748 on November 3, 2008 - 1 -
HIGHER EDUCATION LOAN VERIFICATION
TO: Payroll
FROM: Director of Human Resources
RE: (Employee's) Higher Education Loan Application
DATE:
(Name of Employee)
has applied for a Higher Education Loan from the City
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 pay check: Please Circle One: YES
NO
Are there 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
Higher Education Loan Verification
Payroll
Resolution No. 9748 adopted on November 3, 2008
Date
REQUEST FOR TUITION REIMBURSEMENT
NAME DATE
DEPARTMENT
POSITION
REQUESTS REIMBURSEMENT FOR THE FOLLOWING COURSE(S):
(Requests are to be submitted quarterly or per semester not cumulatively) All reimbursement
requests are to be submitted within 60 days of completion of course(s).
COLLEGE QUARTER SEMESTER
COURSE
TITLE
COURSE
TITLE
COURSE
TITLE
TOTAL UNITS COMPLETED
UNITS GRADE
UNITS GRADE
_UNITS GRADE,
TUITION CHARGED:
BOOKS & SUPPLIES PURCHASED (Attach Receipts):
TITLE COST
TITLE COST
TITLE COST
TOTAL COST OF BOOKS & SUPPLIES:
ADDITIONAL FEES REQUIRED (Attach Receipts):
COST
COST
Fiscal Yr
TOTAL ADDITIONAL FEES:
TOTAL REIMBURSEMENT REQUESTED:
EDUCATION ASSISTANCE: Yes No
(If applicable up to $2,200.00 per Fiscal Yr)
EDUCATION LOAN
TOTAL REIMBURSEMENT APPROVED:
EDUCATION LOAN BALANCE AS OF: $
ATTACHED IS THE PAYBACK SCHEDULE (If Applicable)
EMPLOYEE'S SIGNATURE DATE
PERSONNEL DEPARTMENT USE ONLY
RECORDED REIMBURSEMENT:
SUBMITTED TO TREASUER' S DEPT FOR PAYMENT:
Request for Tuition Reimbursement
Adopted by ResolutionNo. 9748 on November 3, 2008 1 -
CITY OF VERNON PAYBACK SCHEDULE
Funds Accumulated up to Qtr/Semester.
Employee Name:
Date:
Loan Summary
Loan amount:
Loan period in years:
3
Number of payments per year:
26
Number of total loan payments:
78
Start date of loan
First loan payment
Pmt
No.
Payment
Date
Beginning
Balance
Scheduled
Payment
Ending
Balance
1
$0.00
2
$0.00
3
$0.00
4
$0.00
5
$0.00
6
$0.00
7
$0.00
8
$0.00
9
$0.00
10
$0.00
11
$0.00
12
$0.00
13
$0.00
14
$0.00
15
$0.00
16
$0.00
17
$0.00
18
$0.00
19
$0.00
20
$0.00
21
$0.00
22
$0.00
23
$0.00
24
$0.00
25
$0.00
26
$0.00
27
$0.00
28
$0.00
29
$0.00
30
$0.00
31
$0.00
32
$0.00
33
$0.00
34
$0.00
35
$0.00
36
$0.00
37
$0.00
38
$0.00
39
$0.00
40
$0.00
41
$0.00
42
$0.00
Payback Schedule
Adopted by ResolutionNo. 9748 on November 3, 2008 - 1 -
Pmt
No.
Payment
Date
Beginning
Balance
Scheduled
Payment
Ending
Balance
43
$0.00
44
$0.00
45
$0.00
46
$0.00
47
$0.00
48
$0.00
49
$0.00
50
$0.00
51
$0.00
52
$0.00
53
$0.00
54
$0.00
55
$0.00
56
$0.00
57
$0.00
58
$0.00
59
$0.00
60
$0.00
61
$0.00
62
$0.00
63
$0.00
64
$0.00
65
$0.00
66
$0.00
67
$0.00
68
$0.00
69
$0.00
70
$0.00
71
$0.00
72
$0.00
73
$0.00
74
$0.00
75
$0.00
76
$0.00
77
$0.00
78
$0.00
79
$0.00
80
$0.00
Payback Schedule
Adopted by ResolutionNo. 9748 on November 3, 2008 - 2 -
CITY CLERK'S OFFICE
INTEROFFICE MEMORANDUM
DATE: November 5, 2008
TO: Rory Burnett, Finance Director
Sharon Duckworth, City Treasurer
Avigal Horrow, Human Resources 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. 9748 - A Resolution of the City Council of
the City of Vernon'Approving and Adopting a Revised Higher
Education Loan and Assistance Program Guidelines, Form
Personal Participation Loan Application and Agreement, Form
Request For Tuition Reimbursement and Form Payback Schedule
and Repealing All Resolutions or Parts of Resolutions in
Conflict Therewith
Transmitted herewith is a copy of Resolution No. 9748 referenced
above, which was approved by City Council on November 3, 2008.
Thank you.
NG:dr
c: Resolution No. 9748