Resolution No. 2013-097RESOLUTION NO. 2013-97
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON AMENDING RESOLUTION NO. 2013-91 TO UPDATE
SECTION 4 AND REAFFIRM SECTION 5 REGARDING THE
CITY'S CONTRIBUTION TOWARD MEDICAL AND DENTAL
PREMIUMS FOR FULL TIME EMPLOYEES, AND THEIR
ELIGIBLE DEPENDENTS, AND QUALIFIED RETIREES UNDER
THE AGE OF 65 ENROLLED IN CITY SPONSORED PPO
MEDICAL PLANS
WHEREAS, on October 15, 2013, the City Council of the City of
Vernon adopted Resolution No. 2013-91 approving the payment of medical
and dental insurance premiums for full time employees and retirees
under the age of 65 and life insurance premiums for full time employees
for the 2014 calendar year; and
WHEREAS, by memorandum dated November 19, 2013, the Director
of Human Resources has requested (1) Section 4 of Resolution
No. 2013-91 be amended to update the City's contributions towards
medical and dental premiums for full time employees, and their
eligible dependents, and qualified retirees under the age of 65
enrolled in City -sponsored PPO Medical plans and (2) reaffirm
Section 5 of Resolution No. 2013-91 for those employees enrolled in a
PPO/HSA Medical Plan; and
WHEREAS, the City Council desires to amend Section 4 of
Resolution No. 2013-91 to update the City's contribution toward medical
and dental premiums for full time employees, and their eligible
dependents, and qualified retirees under the age of 65 enrolled in
City -sponsored PPO Medical plans and reaffirm Section 5 of Resolution
No. 2013-91 for those employees enrolled in a PPO/HSA Medical Plan.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF VERNON AS FOLLOWS:
1114131050
SECTION 1: The City Council of the City of Vernon hereby
finds and determines that the above recitals are true and correct.
SECTION 2: The City Council of the City of Vernon hereby
finds that the California Environmental Quality Act (CEQA) does not
apply to this action because CEQA does not apply to personnel -related
actions and administrative activities, as described by CEQA Guidelines
Section 15378(b)(2) and (5). Further, even if CEQA did apply,
approval of the proposed resolution is exempt from CEQA in accordance
with Section 15061(b)(3), the general rule that CEQA only applies to
projects that may have an effect on the environment.
SECTION 3: Section 4 of Resolution No. 2013-91 is hereby
amended in its entirety to read:
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 towards
City -sponsored medical and dental premiums for miscellaneous
employees, and their eligible dependents, enrolled in an HMO Medical
Plan or PPO Medical Plan, and contribute up to $800 a month towards
City -sponsored medical and dental premiums for those employees
enrolled in a PPO/HSA Medical Plan. Pursuant to their respective
Memoranda of Understanding, the City will contribute up to $1,100 a
month towards City -sponsored medical and dental premiums for safety
employees, and their eligible dependents, enrolled in an HMO Medical
Plan or PPO Plan, and contribute up to $850 a month towards
City -sponsored medical and dental premiums for those safety employees
enrolled in a PPO/HSA Medical Plan. The City will pay the insurance
premiums up to said amounts for the medical and dental benefits as
such benefits are in effect as of January 1, 2014, and will continue
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to pay the insurance premiums for basic life insurance benefits, for
all full time regular employees.
SECTION 4: The City Council of the City of Vernon hereby
reaffirms Section 5 of Resolution No 20.13-91 as follows:
The City will fund $1,500 on January 1, 2014, and $500,
each, in March, June and September for those full time employees
enrolled in the City -sponsored Health Savings Account ("HSA") PPO
Medical Plan.
SECTION 5: The provisions of Resolution No. 2013-91 not
consistent with or in conflict with this resolution are hereby
repealed; in all other respects, Resolution No. 2013-91, shall remain
in full force and effect.
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SECTION 6: The Interim City Clerk, or Deputy City Clerk, of
the City of Vernon shall certify to the passage, approval and adoption
of this resolution, and the Interim City Clerk, or Deputy City Clerk,
of the City of Vernon shall cause this resolution and the Interim City
Clerk's, or Deputy 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 November, 2013.
Name: W. Michael McCormick
Title: Mayor /-Ma-y, r Pr17
ATTEST�� \ n 1
Dana Reed
Interim City Clerk /-:-Bep Y C 77-clerW.'
APPROVED AS TO FORM:
/14,
Zaynah o ssa, Deputy City Attorney
4 - 1114131050
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
I, Dana Reed
ss
, Interim City Clerk of
the City of Vernon, do hereby certify that the foregoing Resolution,
being Resolution No. 2013-97, 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, November 19, 2013, and thereafter was
duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon.
Executed this 40 day of November, 2013, at Vernon, California.
(SEAL)
v Dana Reed
Interim City Clerk
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CITY CLERK'S OFFICE
INTEROFFICE MEMORANDUM
DATE: November 25, 2013
TO: Teresa McAllister, Director of Human Resources
FROM: Deborah Juarez, Records Management Assistant1
RE: Resolution No. 2013-97 — A Resolution of the City Council of the City of Vernon
Amending Resolution NO. 2013-91 to Update Section 4 and Reaffirm Section 5 Regarding
the City's Contribution Toward Medical and Dental Premiums for Full Time Employees,
and Their Eligible Dependents, and Qualified Retirees Under the Age of 65 Enrolled in City
Sponsored PPO Medical Plans
Transmitted herewith is a copy of Resolution No. 2013-97 referenced above, which was approved by City
Council on November 19, 2013.
Thank you.
Attachment
c: Raquel Franco
Karina Rueda
Resolution No. 2013-97
RECEIVED
NOV 14 2013
CITY CLERK'S OFFICE
STAFF REPORT
HUMAN RESOURCES DEPARTMENT
DATE: November 19, 2013
TO: Honorable Mayor and City Council
FROM: Teresa McAllister, Director of Human Resources 41
RE: A Resolution of the City Council of the City of Vernon amending Resolution
No. 2013-91 to update Section 4 and reaffirm Section 5 regarding the City's
contribution toward Medical and Dental Premiums for Full Time Employees
and Qualified Retirees under the Age of 65 enrolled in City sponsored PPO
Medical Plans.
Recommendation
It is recommended that the City Council:
1) Find that the California Environmental Quality Act (CEQA) does not apply to approval
of the proposed resolution authorizing the City contribution toward the medical and
dental premiums because CEQA does not apply to personnel -related actions and
administrative activities, as described by CEQA Guidelines Section 15378(b)(2) and (5).
Further, even if CEQA did apply, approval of the proposed resolution is exempt in
accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects
that may have an effect on the environment.
2) Approve and adopt the attached resolution effective January 1, 2014 amending
Resolution No. 2013-91 to update Section 4 and reaffirm Section 5 regarding the City's
contribution toward the medical and dental insurance premiums for full time employees
and qualified retirees under the age of 65 enrolled in a city -sponsored PPO Medical
Plans.
Bacimround
Historically, the City contribution toward health and dental benefits was based upon the City
having only two choices of plans, a PPO/HSA plan and a HMO plan. City employees were able
to select between a high deductible PPO HSA plan or a HMO plan. The City contributes, per
month, up to $1050 for miscellaneous employees and $1100 for safety employees enrolled under
the HMO plan, and up to $800 for miscellaneous employees and $850 for safety employees
enrolled under the PPO/HSA plan. The difference between the monthly HMO City contribution
and the PPO/HSA City contribution is deposited into a Health Savings Account for those
employees enrolled under the PPO/HSA account. This equalizes the total maximum annual City
contribution ($12,600 for miscellaneous employees and $13,200 for safety employees) available
to each employee regardless of which plan an employee is enrolled in.
Additional plans are now being offered to employees to afford the freedom of choosing between
six (6) healthcare coverage options that best meet the financial and health insurance needs of
employees and their families. There are now three PPO plans (only one of which is a PPO/HSA
plan) and three HMO plans that employees may choose between, rather than the one PPO/HSA
plan and one HMO plan as historically offered.
It is therefore recommended that the City amend its resolution reflecting city contributions up to
$1,050 a month towards City -sponsored medical and dental premiums for miscellaneous
employees and their eligible dependents enrolled in a City -sponsored HMO or PPO Plan, and up
to $800 a month towards City -sponsored medical and dental premiums for miscellaneous
employees enrolled in a PPO/HSA Plan. The City will continue to contribute $3,000.00 per
employee per year into a Health Savings Account for employees enrolled under the City -
sponsored PPO/HSA Medical Plan to help offset the high deductible associated with the HSA
plan and to ensure that the maximum annual City contribution is the same for all miscellaneous
employees.
It is also recommended that the City amend Resolutions 2012-95 and 2012-94, approving the
Memoranda of Understanding with the Vernon Police Officers Benefit Association and the
Vernon Firemen's Association, respectively, to reflect that the City will contribute up to $1,100 a
month for employees and their eligible dependents enrolled in a HMO or PPO Plan and up to
$850 per month for employees enrolled in a PPO/HSA plan. The City will continue to contribute
$3,000.00 per employee per year into a Health Savings Account for employees enrolled under
the City -sponsored PPO/HSA Medical Plan to help offset the high deductible associated with the
HSA plan and to ensure that the maximum annual City contribution is the same for all safety
employees.
Additionally, it is also recommended that the proposed amendment be applied to certain
categories of retirees who qualify for City -paid medical premiums or subsidized medical
premiums.
Fiscal Impact
There are no additional monies needed to amend the city contribution toward PPO medical and
dental premiums. Departments are already budgeted at the maximum contribution for each
respective employee.