Loading...
Resolution No. 2011-066RESOLUTION NO. 2011-66 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 AMENDING THE 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, on October 6, 2008, the City Council of the City of Vernon adopted Resolution No. 9720 establishing the employee hearing aid device loan program; 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 amend the 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 amends the Employee Hearing Aid Device Loan Program. 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. Said Plan shall become effective upon adoption of this resolution. 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. 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 City Administrator, or his designee. SECTION 5: The City Council.of the City of Vernon hereby authorizes and empowers the City Administrator, 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 Loan Forms as are necessary to carry out the intent of this Resolution. Such additions, deletions and other changes therein as the City Administrator, or his 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. 2 SECTION 8: 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 19th day of April, 2011. ATT 11ard G. Y'amXg) chi/ City Clerk Name: Hilario Gonzales Title: Mayor 3 STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES ) I, Willard G. Yamaguchi, City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 2011-66, 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 Tuesday, April 19, 2011, and thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. Executed this % day of April, 2011, at Vernon, California. (SEAL) r Willard G. a ag i, City Clerk - 4 - EXHIBIT A City of Vernon Hearing Aid Device Plan Ob.iective 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. Eligibility 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 Personnel. 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 Resolution No. 2011-66 on April 19, 2011 - I - 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 Personnel 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 Personnel will communicate with employee regarding the denial. 6. If approved by the Director of Personnel, 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. 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. Hearing Aid Device Plan Adopted by Resolution No. 2011-66 on April 19, 2011 -2- 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). Healing Aid Device Plan Adopted by Resolution No. 2011-66 on Apiil 19, 2011 ' 3 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 prescriptionlrecommendation. Employees will proceed at 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 Resolution No. 2011-66 on April 19, 2011 Date Z� EXHIBIT B Personal Participation Loan Application and Agreement (Hearing Aid Device) (Revised 4/19/2011) Name Departmen 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: 1. 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 36 months or as long as the employee is employed by the City (whichever is less in length of time) to pay for the Plan. 3. 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. 2011-66 on April 19, 2011 - 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 Date City of Vernon Date ATTEST: Willard G. Yamaguchi, City Clerk Application and Agreement Adopted by Resolution No. 2011-66 on April 19, 2011 - 2 - HEARING AID DEVICE LOAN VERIFICATION TO: (Department Head) FROM: Director of Personnel 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 Personnel 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 Resolution No. 2011-66 on April 19, 2011 Date Please circle: -1- HEARING AID DEVICE LOAN VERIFICATION TO: Payroll FROM: Director of Personnel 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 Personnel 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 Resolution No. 2011-66 on April 19, 2011 - 1 - CITY CLERK'S OFFICE INTEROFFICE MEMORANDUM DATE: April 25, 2011 TO: Rory Burnett, Finance Director/City Treasurer Daniel Calleros, Interim Police Chief Kristen Enomoto, Council Department Manager Carlos Fandino, Director of Light & Power Masami Higa, Assistant Finance Director Alex Kung, Senior Accounting Manager Joaquin Leon, Deputy City Treasurer Lewis Pozzebon, Director of Health & Environmental Control Martha Valenzuela, Director of Personnel/Business Services Mark Whitworth, City Administrator/Fire Chief Kevin Wilson, Director of Community Services & Water FROM: Willard Yamaguchi, City Clerk �jt RE: Resolution No. 2011-66 — 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 Amending the Employee Hearing Aid Device Loan Program Transmitted herewith is a copy of Resolution No. 2011-66 referenced above, which was approved by City Council on April 19, 2011. Thank you. WY:dj Attachment c: Resolution No. 2011-66 � V rcye yd/f/jl RECEIVED RECEIVES APR i 2 2011 APR 1 2 2011 CITY ADMINISTRATION CITY CLERK'S OFFICE STAFF REPORT PERSONNEL DEPARTMENT DATE: April 6, 2011 TO: Honorable Mayor and City Council M V� - V FROM: Martha Valenzuela, Director of Personne RE: Amendment to Hearing Aid Device Loan Reso. No. 9720 & Exhibits I recommend the amendment to the Hearing Aid Device Loan Resolution No. 9720 and the exhibits based on the following: • Authorize the City Administrator to execute all necessary documents to implement the loan. • Remove the fiscal year in section 2 of the resolution; this would alleviate having to renew the resolution every year. • Replace the title of Director of Human Resources with the title of Director of Personnel with the title of Director of Personnel in the body of the exhibits. Respectfully Submitted.