Resolution No. 2010-034RESOLUTION NO. 2010-34
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON AMENDING RESOLUTION NO. 10,019 REGARDING THE
PAYMENT OF PREMIUMS FOR INSURANCE FOR LIFE, HEALTH
AND DENTAL BENEFITS FOR EMPLOYEES DURING THE 2009-
2010 FISCAL YEAR ("EMPLOYEE INSURANCE RESOLUTION."),
BY AMENDING SECTIONS 2 AND 3 OF THE EMPLOYEE
INSURANCE RESOLUTION (AMENDMENT NO. 1)
WHEREAS, on July 13, 2009, the City Council of the City of
Vernon adopted Resolution No. 10,019 to be effective on June 30, 2009,
regarding the payment of premiums for insurance for life, health and
dental benefits for employees during the 2009-2010 fiscal year; and
WHEREAS, the City Administrator has recommended that the
City continue paying the full insurance cost for employee insurance
coverage, continue permitting dependents to be eligible for insurance
coverage, but not to pay, the insurance cost for dependent insurance
coverage; and
WHEREAS, the City Administrator has indicated that some
practical problems may delay the timely implementation of these
changes; and
WHEREAS, the City Council of the City of Vernon wishes to
amend Sections 2 and 3 of the Employee Insurance Resolution to
implement the aforementioned changes.
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
hereby finds and determines that the recitals contained hereinabove
are true and correct.
SECTION 2: Effective March 1, 2010, the City Council of the
City of Vernon hereby amends Section 2 of the Employee Insurance
Resolution to read as follows:
"SECTION 2: The City Council of the City of Vernon hereby
adopts the following policy and declares that such benefits are not
vested rights: The City will pay the insurance premium for the City's
program for life, health and dental benefits as such benefits are in
effect as of June 30, 2009, for all full-time regular employees only
and not dependents."
SECTION 3: If in implementing the change contained in
Section 2, above, the City Administrator encounters practical problems,`
the City Administrator is authorized to continue paying for dependent
medical and dental coverage which was authorized under the prior City
policy until such time as the practical implementation problems have
been resolved.
SECTION 4: Effective March 1, 2010, the City Council of the
City of Vernon hereby amends Section 3 of the Employee Insurance
Resolution to read as follows:
"SECTION 3: The City's agreement to pay the full cost of
premiums provided above for full-time regular employees shall not
create or ripen into a vested right in said employee to any such life,
medical, or dental insurance benefit."
SECTION 5: The provisions of Resolution No. 10,019, not
consistent with or in conflict with this Resolution are hereby
repealed, in all other respects, Resolution No. 10,019, shall remain
in full force and effect.
2
SECTION 6: The City Clerk of the City of Vernon shall
certify to the passage, approval and adoption of this Resolution, and
the City Clerk of the City of Vernon shall cause this Resolution and
the City Clerk's certification to be entered in the File of
Resolutions of the Council of this City.
APPROVED AND ADOPTED this 1st day of March, 2010.
WN
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Willard Y fnag�c�fV,, City Clerk
Name: Hilario Gonzales
Title: Mayor / -
_3-
STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I, Willard Yamaguchi, City Clerk of the City of Vernon, do hereby
certify that the foregoing Resolution, being Resolution No. 2010-34,
was duly passed, approved and adopted by the City Council of the City
of Vernon at a regular meeting of the City Council duly held on Monday,
March 1, 2010, and thereafter was duly signed by the Mayor or Mayor
Pro-Tem of the City of Vernon.
Executed this day of March 2010, at Vernon, California.
Willa�rd am chi, City Clerk
(SEAL)
- 4 -
CITY CLERK'S OFFICE
INTEROFFICE MEMORANDUM
DATE: March 4, 2010
TO: Rory Burnett, Finance Director/City Treasurer
Martha Valenzuela, Director of Business Services/Personnel
FROM: Willard Yamaguchi, City Clerk
RE: Resolution No. 2010-34 — A Resolution of the City Council of the City of Vernon
Amending Resolution No. 10,019 Regarding the Payment of Premiums for Insurance
for Life, Health and Dental Benefits for Employees During the 2009-2010 Fiscal
Year ("Employee Insurance Resolution"), By Amending Sections 2 and 3 of the
Employee Insurance Resolution (Amendment No. 1)
Transmitted herewith is a copy of Resolution No. 2010-34 referenced above, which was approved
by City Council on March 1, 2010.
Thank you.
WY:dj
c: Karina Rueda
Resolution No. 2010-34, 10,019
Staff Report
Risk Management
Date: February 25, 2010
To: Honorable Mayor and City Council -6
From: Willard G. Yamaguchi, Risk Manager V711
Re: Change to Employee Medical Benefits
F171-D 2 6 20,0
CITY CLERK'S OFFICE
In order to help reduce City costs and attain a balanced budget, City Staff has reviewed those
benefits currently received by City employees and paid for in full by the City. Currently, the
City pays for the life, health, and dental premiums for each employee and their dependents. In
order to move towards a balanced budget, it is necessary to reduce those costs.
Recommendation
It is recommended that employee medical benefits be limited to employees only, and that
employees be responsible for paying the life, health, and dental insurance premiums for any
additional spouses and/or dependents.
cc: Donal O'Callaghan
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Inter Office Memorandum
Risk Management
Date: February 25, 2010 (A4j
2\
To: Donal O'Callaghan, City Administrator
From: Willard G. Yamaguchi, Risk Manager
Re: Change to Employee Medical Benefits
CITY CLERK'S UFO ui
In order to help reduce City costs and attain a balanced budget, City Staff has reviewed those
benefits currently received by City employees and paid for in full by the City. Currently, the
City pays for the life, health, and dental premiums for each employee and their dependents. In
order to move towards a balanced budget, it is necessary to reduce those costs.
Recommendation
It is recommended that employee medical benefits be limited to employees only, and that
employees be responsible for paying the life, health, and dental insurance premiums for any
additional spouses and/or dependents.
/�� 5 2010
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