Resolution No. 2011-106RESOLUTION NO. 2011-106
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING THE PAYMENT OF PREMIUMS FOR
INSURANCE FOR LIFE, MEDICAL, AND DENTAL BENEFITS
FOR EMPLOYEES DURING THE 2011-2012 FISCAL YEAR
WHEREAS, the City Council of the City of Vernon in prior
fiscal years has approved for each fiscal year the City's payment of
premiums for insurance for life, medical and dental benefits for full-
time regular employees.and their dependents; and
WHEREAS on June 21, 2011, the City Council considered the
City's payment of premiums for insurance for life, medical, and dental
benefits, and the funding of the Health Savings Account ("HSA")
applicable for the fiscal year 2011-2012 only; and
WHEREAS on July 19, 2010, the City Council adopted
Resolution No. 2010-97 to continue paying the premium for life,
medical, and dental insurance, for.full-time regular employees, and
WHEREAS on December 20, 2010, the City Council adopted
Resolution No. 2010-192 to be effective on January 1, 2011, amending
the payment of premiums for medical and dental benefits, and the
funding of the Health Savings Account ("HSA"); and
WHEREAS, the Risk Manager has recommended that the City
continue to.contribute up to $1,050 a month for those employees
enrolled in an HMO Medical Plan, and contribute up to $800 a month for
those employees enrolled in a PPO Medical Plan to be used towards
medical and dental premiums only; and
WHEREAS, it was further recommended that the City fund $500
on the 1st of September 2011, for those enrolled in the HSA PPO Medical
Plan in order to offset the high deductible; and
WHEREAS, it is recommended to continue payment of premiums
for life insurance, for full-time regular employees, and
WHEREAS, the City Council of the City of Vernon wishes to
adopt its policy applicable for the fiscal year 2011-2012 only
respecting payment of premiums for the City's insurance for life,
medical and dental benefits for employees, and the funding of the HSA,
and to declare that such benefits are not vested rights and will
expire at the conclusion of the fiscal year unless authorized and
approved by the City Council for any subsequent fiscal year.
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: 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 contribute up to $1,050 a month for those
employees enrolled in an HMO Medical Plan, and contribute up to $800 a
month for those employees enrolled in a PPO Medical Plan to be used
towards medical and dental premiums only. The City will pay the
insurance premium up to said amounts for the medical and dental
benefits as such benefits are in effect as of January 1, 2011, and
will continue to pay the insurance premium for life benefit, for all
full-time regular employees.
SECTION 3: The City will fund $500 on the 1st of September
2011 for those enrolled in the Health Savings Account ("HSA") PPO
Medical Plan.
N
SECTION 4: The City's agreement to pay said premiums
provided for above, shall not create or ripen into a vested right in
said employee to any such life, medical or dental benefit beyond June
30, 2012.
SECTION 5: 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 21st day of June, 2011.
Name: Hilario Gonzales
Title: Mayor /4e—o-;�=
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. 2011-106, 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, June 21, 2011, and thereafter was duly signed by the
Mayor or Mayor Pro-Tem of the City of Vernon.
Executed this �?3 day of June, 2011, at Vernon, California.
e�W'llara G. a uch', City Clerk
(SEAL)
CITY CLERK'S OFFICE
INTEROFFICE MEMORANDUM
DATE: June 23, 2011
TO: Rory Burnett, Finance Director/City Treasurer
Martha Valenzuela, Director of Business Services/Personnel
FROM: Willard Yamaguchi, City Clerk/Interim City Attorney
RE: Resolution No. 2011-106 — A Resolution of the City Counci of the City of Vernon
Approving the Payment of Premiums for Insurance for Life, Medical, and Dental Benefits
for Employees During the 2011-2012 Fiscal Year
Transmitted herewith is a copy of Resolution No. 2011-106 referenced above, which was approved by City
Council on June 21, 2011.
Thank you.
WY:dj
Attachment
c: Raquel Franco
Karina Rueda
Resolution No. 2011-106
RECEIVED
JUN 0 9 2011
CITY CLERKS OFFICE STAFF REPORT
Risk Management
DATE: June 9, 2011
RECEIVED
JUN 0 9 2011
CITY ADMINISTRATION
TO: Honorable Mayor and City Council
FROM: Willard G. Yamaguchi, Risk Manager
RE: Continue Payment of Employee Benefits Pre sums for Fiscal Year 2011-12
Background:
Each fiscal year, the City Council of the City of Vernon approves the City's payment of
insurance premiums for insurance for medical, dental, and life insurance benefits for employees.
Recommendation:
I recommend that the Council adopt a resolution approving to continue payment of the City's
contribution up to $1,050 a month for those employees enrolled in an HMO Medical Plan, and
contribution of up to $800 a month for those employees enrolled in a PPO Medical Plan, to be
used towards medical and dental premiums only.
It is further recommended that the City continue funding $500 on the I" of September 2011 for
those enrolled in the Health Savings Account ("HSA") PPO Medical Plan in order to help offset
the high deductible, in the HSA plan, applicable for Fiscal Year 2011-2012 only.
It is also recommended that the City continues to fund life insurance benefits for employees
WGY/mm
cc: Mark Whitworth