Resolution No. 2016-038RESOLUTION NO. 2016-38
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING THE AMENDMENT NO. 2 TO THE
MEMORANDUM OF UNDERSTANDING BY AND BETWEEN THE CITY
OF VERNON AND THE VERNON POLICE OFFICERS' BENEFIT
ASSOCIATION FOR THE PERIOD OF JULY 1, 2014 THROUGH
JUNE 30, 2017
WHEREAS, the Vernon Police Officers' Benefit Association
("VPOBA") has been recognized as an employee organization pursuant to
Resolution No. 4027; and
WHEREAS, on September 16, 2014, the City Council of the City
of Vernon adopted Resolution No. 2014-57 approving a Memorandum of
Understanding ("MOU") setting forth certain terms and conditions for
employment of City of Vernon employees in classifications represented
by the VPOBA, for the period of July 1, 2014 through June 30, 2017; and
WHEREAS, on June 16, 2015, the City Council of the City of
Vernon adopted Resolution No. 2015-39, approving an Amendment No. 1 to
the MOU; and
WHEREAS, representative members of the VPOBA and the City have
agreed to execute an Amendment No. 2 to the MOU (the "Amendment") to
amend the following Articles: (a) Article Two, Section 2 regarding
Term, (b) Article Three, Section 3 regarding Merit Steps, (c) Article
Three, Section 4 regarding Salary Adjustment Increase, (d) Article
Seven, Section 4 regarding Cafeteria Plan, (e) Article Seven, Section 6
regarding Vision Plan, and (f) Article Seven, Section 8 regarding
Retiree's Medical; and
WHEREAS, the City Council of the City of Vernon desires to
approve the Amendment.
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 above recitals are true and correct.
SECTION 2: The City Council of the City of Vernon finds
that this action is exempt under the California Environmental Quality
Act (CEQA) review, because it is an administrative action that will
not result in direct or indirect physical changes in the environment,
and therefore does not constitute a "project" as defined by CEQA
Guidelines section 15378.
SECTION 3: The City Council of the City of Vernon hereby
approves the Amendment No. 2 to the Memorandum of Understanding between
the City of Vernon and the Vernon Police Officers' Benefit Association,
in substantially the same form as the copy which is attached hereto as
Exhibit A.
SECTION 4: The City Council of the City of Vernon hereby
instructs the City Administrator, or his designee, to take whatever
action is deemed necessary or desirable for the purpose of implementing
and carrying out the purposes of this Resolution and the transactions
herein approved or authorized, including but not limited to, any
nonsubstantive changes to the Amendment attached herein.
SECTION 5: The City Council of the City of Vernon hereby
directs the City Clerk, or the City Clerk's designee, to send a fully
executed Amendment to Lorenzo Gaytan, President of the Vernon Police
Officers' Benefit Association.
- 2 -
SECTION 6: The City Clerk, or Deputy City Clerk, of the
City of Vernon shall certify to the passage, approval and adoption of
this resolution, and the City Clerk, or Deputy City Clerk, of the City
of Vernon shall cause this resolution and the 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 12th day of July, 2016.
Name: William J. Davis
Title: Mayor /-May X-Pro-Te�3
ATTEST:
aria E Ayala
City Clerk /
APPROVED AS TO FORM:
Moussa, Senior Deputy City Attorney
- 3 -
STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I, Maria E . Ayala, City Clerk / y i y 9f the City
of Vernon, do hereby certify that the foregoing Resolution, being
Resolution No. 2016-38, 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, July 12, 2016, and thereafter was duly
signed by the Mayor or Mayor Pro-Tem of the City of Vernon.
Executed this day of July, 2016, at Vernon, California.
(S EAL )
77'&
Mari E . Ay a
City Cle k / -Deputy r; t<, rl orb
- 4 -
EXHIBIT A
AMENDMENT NO.2 TO THE
MEMORANDUM OF UNDERSTANDING
BETWEEN
CITY OF VERNON
AND
VERNON POLICE OFFICERS' BENEFIT ASSOCIATION
July 1, 2014 through June 30, 2017
AMENDMENT NO. I TO THE MEMORANDUM OF
UNDERSTANDING BETWEEEN
CITY OF VERNON
AND
VERNON POLICE OFFICERS' BENEFIT ASSOCIATION
Parties to the Memorandum of Understanding
Pursuant to Chapter 10 (section 3500 et seq) of Division 4, Title 1 of the
Government Code, and Resolution No. 4027, the Resolution for the
administration of employer -employee relations, the matters within the
scope of representation that are set forth in this Memorandum of
Understanding (MOU) have been discussed by and between
representatives of the City of Vernon and the representatives of the
Vernon Police Officers Benefit Association (hereinafter "VPOBA") and
except as otherwise specifically provided herein shall apply only to those
defined in the aforesaid Resolution as "all full-time and regular part-time
sworn personnel in the Police Department, except management
employees."
This Amendment to the MOU constitutes a joint agreement by the
Municipal Employee Relations Representative ("MERR") and the
VPOBA, to be submitted to the City Council of the City of Vernon for its
determination and approval by one or more Resolutions or Ordinances as
the City Council may deem fit and proper.
The MERR and the Representative of the VPOBA have agreed that they
will jointly urge the City Council of the City of Vernon to adopt one or
more Resolutions or Ordinances reflecting the changes in wages, hours,
and other conditions of employment agreed upon in this Amendment.
If approved, the terms agreed upon by this Amendment to the MOU shall
be deemed in effect as of July 1, 2016, and shall expire at midnight on
June 30, 2019.
N
IN CONSIDERATION OF THE TERMS AND CONDITIONS HEREIN
STATED, the VPOBA and the City of Vernon agree that the following
provisions of the MOU be replaced as follows:
ARTICLE TWO
Section 2: Term
(a) Except as otherwise provided herein, this Memorandum of
Understanding shall be in full force and effect from July 1, 2014,
and shall remain in full force and effect up to and including
midnight, the 30th day of June 2019 or until the next
Memorandum of Understanding becomes effective.
(b) This Memorandum of Understanding shall be binding on the
City and the Association when approved and adopted by the City
Council.
Except as otherwise provided herein, the City and the Association agree
to submit proposals for any changes related to wages, benefits and/or
other terms of and conditions of employment affecting this
Memorandum of Understanding between February 1, 2019 and March 1,
2019.
ARTICLE THREE
Section 3: Merit Steps
Salary increases to higher pay grade steps are merit steps only, and shall
be available to employees as recognition and reward for satisfactory
services with the time frames described in the Personnel Policies and
Procedures, Performance Evaluation Policy. Merit increases to any said
step shall remain the sole discretion of the City Council.
Effective July 1, 2015 — Employees and Grandfathered Sergeants not at
the top of their current salary grade who in the discretion of the Police
3
Chief and in accordance with the City's Performance Evaluation Policy,
have attained one year of satisfactory service as of their immediately
preceding classification anniversary date shall receive a one-time 5%
merit increase during the term of this contract. Future salary increases to
any said step shall remain the sole discretion of the City Council. The
July 1, 2015 merit increase shall not alter the employee's actual
classification anniversary date.
Notwithstanding the above provision, any person employed in a position
of Police Officer, Step 1, shall be appointed to Step 2 upon his/her
successful completion in an assigned accredited training academy, and
any person employed in a position of Police Officer, Step 2, shall be
appointed to Step 3 after serving at least six (6) months in the field and
upon receiving a merit evaluation of satisfactory/competent. Any person
who qualifies for said increase shall have his/her anniversary date for
future merit increases established as of the date said officer is appointed
to said Step.
Effective July 10, 2016 — Employees who are not at the top step of their
Classification Compensation Plan and have attained one year of an
overall "satisfactory" or higher performance evaluation rating, as of their
immediately preceding classification anniversary date, shall receive one
merit salary advance. Effective July 2017 and for the remainder of this
agreement, employees who are not at the top step of their Classification
Compensation Plan and who achieve an overall "exceeds standards"
ranking during their annual performance review in accordance with the
City's Performance Evaluation Policy will receive one merit salary
advance on the first full pay period in July. Employees shall continue to
receive their annual evaluations as scheduled in the City's Performance
Evaluation Policy and employees may receive more than one annual
merit salary advance during the term of this Agreement.
Section 4: Salary Adjustment Increase
Effective the first full pay period in July 2016, the base salary schedule
will be increased by 2% (excluding Y-rated employees; however, a base
salary schedule increase may raise a salary range which may remove the
11
Y-rate).
Effective the first full pay period in July 2017, the base salary schedule
will be increased by an additional 2% (excluding Y-rated employees;
however, a base salary schedule increase may raise a salary range which
may remove the Y-rate).
Effective the first full pay period in July 2018, the base salary schedule
will be increased by an additional 2% (excluding Y-rated employees;
however, a base salary schedule increase may raise a salary range which
may remove the Y-rate).
In the event there is a salary inequity between ranks or between
employees within the Department, the Chief of Police may incorporate a
service adjustment increase up to ten percent (10%) per month of their
base salary.
ARTICLE SEVEN
Section 4: Cafeteria Plan.
The City and the Association agree to a section 125 cafeteria plan (non -
cash out). The City will adhere to the cafeteria plan requirements in
accordance with IRS Section 125 regulations. The City shall provide to
each employee in this bargaining unit a monthly allowance toward the
cost of his/her medical, dental, and vision plans as outlined in
subsections A, B, C, and D below.
A. During the term of the Agreement, for employees who elect
Employee + Family coverage, the City agrees to provide a
cafeteria plan contribution equal to the total premium costs of the
Employee + Family Low Medical HMO, Employee + Family
lowest cost Dental DMO and lowest cost family vision plan.
Employees enrolled in the Employee + Family health benefits
category that elect a health plan higher than the Low HMO
medical, dental and/or vision, will be responsible for any
applicable premium costs through a pre-tax payroll deduction. The
s
City understands that this amount will vary based on the premium
costs that go into effect on January 1 st of each calendar year of the
term of this Agreement. If employees opt out of dental and/or
vision, they may use the allotments for those respective coverages
toward excess medical premiums.
B. During the term of the Agreement, for employees who elect
Employee -Only, Employee + Spouse and Employee + Children
tiers, the City agrees to provide the same flat dollar cafeteria
contribution for medical, dental and vision benefits that the City is
paying as of June 2016 for these employee health group tiers. That
amount is $1,165 per month. Employees who elect one of these
tiers must pay for their dental and vision benefits from this
cafeteria contribution. The parties understand and agree that this
amount will remain fixed during the term of this Agreement.
Provided, however, should the total premium cost of the lowest
cost medical HMO, lowest cost Dental DMO, and lowest cost
vision plan exceed the current flat rate dollar cafeteria contribution
for medical, dental, and vision benefits for any of the tiers, then the
contribution for that tier will be raised to equal the total premium
costs of the Low Cost Medical HMO, lowest cost Dental DMO,
and lowest cost vision plan for that tier. Employees that elect a
health plan higher than the applicable City contribution will be
responsible for any applicable premium costs through a pre-tax
payroll deduction. If employees opt out of dental and/or vision,
they may use the allotments for those respective coverages toward
excess medical premiums.
C. For unit employees enrolled in the HSA PPO plan, the City shall
pay up to the city contribution for their specific tier as set forth in
A and B above reduced by an annual amount of $3,000. In
addition, for each employee enrolled in an HSA PPO plan,
annually the City shall make lump sum contributions to a health
savings account (HSA) as follows $1,500 in January, and $500
each in March, June, and September. The cost of any HSA PPO
plan selected by employees that exceeds the City contribution
2
amount shall be paid the employee through a pre-tax payroll
deduction.
D. During the term of the Agreement, Employees will be allowed to
opt in to the Employee + Family plan during any open enrollment
period or upon a qualifying event as prescribed by the City's
insurance provider.
Section 6: Vision:
The City of Vernon provides a vision care plan to employees. The City
shall pay 100% of the cost of such a plan for employees and eligible
dependents, as designated by their election of medical coverage. In the
event an employee does not exceed their monthly employer medical
allowance, the employee shall be allowed to apply any unused portion
towards the purchase of additional provided coverage for vision care.
The City agrees that all itemized benefit amounts specified in the City of
Vernon Vision Plan (CVVP) that fall below $150 shall be raised to
$150.
Section 8: Retiree's Medical
Employees must retire from the City of Vernon under a CalPERS
Benefit Formula (i.e. Age 50 or 57 Formula) to be eligible for Retiree
Medical/Dental Benefits.
The City shall pay up to $1,100 per month towards the employee's
option of the City's medical and dental insurance programs for the
employee and his/her eligible spouse in the classifications represented
by the Vernon Police Officers Benefit Association who have been
employed as sworn Peace Officers for a minimum of twenty (20) years
and a minimum of 10 years of that service has been in the employment
of the City of Vernon. The maximum $1,100 City contribution shall be
applied only toward a city provided medical and dental premium plan
payment and shall have no cash surrender value.
The City's contribution toward the Retiree Medical/Dental Benefit Plan
shall continue for said retired employee and eligible spouse up to the age
of sixty-five (65). Upon reaching the age of sixty-five (65), the retiree
and/or eligible spouse shall apply for Medicare coverage, whereupon the
City's insurance shall become supplemental coverage. The City shall
pay up to $1,100 per month of the cost to provide any Medicare
supplemental medical and dental insurance plan offered by the City of
Vernon. The City will not be the primary insurance carrier once the
retiree and/or eligible spouse reaches the age of sixty-five (65). If the
retiree or eligible spouse fails to timely obtain and maintain Medicare
coverage, the City shall not be required to provide any medical/dental
benefits until such Medicare coverage is obtained and maintained. The
maximum $1,100 City contribution shall be applied only towards a City
sponsored Medicare supplemental medical and dental premium plan
payment and shall have no cash surrender value.
All retired employees with a minimum of ten (10) years of continuous
uninterrupted service with the City may pay the City's premium cost for
medical and dental insurance for employee only, up to the age of sixty-
five (65) after which time Medicare will become the primary insurance
carrier. The retired employee may remain on the City's supplemental
insurance to Medicare at his/her cost provided the retiree has timely
obtained and maintains Medicare coverage.
Should the retired employee fail to pay his/her required cost of the
insurance premium for the City's medical/dental benefit plan for any
three (3) consecutive months or, should the coverage otherwise lapse for
any reason other than City's non-payment, then the City's obligation to
maintain the retiree's medical/dental benefit plan shall automatically
terminate without the need for further notice.
Eligible retired employees may opt not to enroll in the City's medical
and/or dental insurance coverage and instead receive a monthly
reimbursement payment for the employee and his/her eligible spouse of
$1,100, or the equivalent to the then -current lowest cost City -offered
Employee+Spouse medical HMO and/or dental HMO insurance
premium, whichever is greater, as permitted by the Public Employee
Pension Reform Act (PEPRA). Once a retired employee opts not to
enroll in the City's medical and/or dental insurance, he or she will not be
allowed to re -enroll.
[Signatures Begin on Next Page].
0
SIGNATURE PAGE
CITY OF VERNON
Carlos R. Fandino Jr.
City Administrator / "MERR"
Isaac Garibay
Director of Human Resources
Lisette Michel Grizzelle
Senior Human Resources Analyst
William F. Fox
Director of Finance/City Treasurer
APPROVED AS TO FORM:
Hema Patel
City Attorney
VERNON POLICE OFFICERS'
BENEFIT ASSOCIATION
Lorenzo Gaytan
President
Nicholas Perez
Vice President
APPROVED AND ADOPTED BY THE CITY COUNCIL ON , PER
RESOLUTION NO
ATTEST:
Maria Ayala
City Clerk
m
Dated:
SIGNATURE ROUTING FORM
CONTRACTOR: Vernon Police Officer's Benefit Association
CONTRACT PURPOSE: Memorandum of Understanding — Amendment No 2
CONTRACT IS: ❑ FEDERAL ❑ PREVAILING WAGE ❑ COMPETITIVE SELECTION & NOTICED RFP
❑ COMPETITIVE BID & NOTICED INVITATION TO BID
❑ EXEMPT FROM COMPETITIVE PROCESS (APPROVAL ATTACHED)
❑ SERVICES ❑ MATERIALS WtUDGETED ❑ NOT BUDGETED
TOTAL CONTRACT VALUE: $ Charge Acct. No(s)
Amendment Value $ ❑ Contract is an Amendment to Eden Contract No. (if applicable)
RESPONSIBLE DEPARTMENT PERSON: Michael Earl PHONE: ext. 239
AUTHORIZATION: BKApproved by Council on 7/12/20110
(Check one and attach Resolution No. 2016-38 (if applicable)
supporting documentation)
❑ Approved by City Administrator on
❑ Approved by Finance Director on
ROUTING SEQUENCE: (Please Follow In Order) Initials Date
(1) Responsible Department Person
Certifies compliance with Competitive Bidding and Purchasing Ordinance,
obtains approval from City Council/City Administrator/Finance Director, and obtains
approval as to form from the City Attorney's Office, assembles two (2) originals of contract,
obtains proper signatures from contractor/consultant pursuant to the signature requirements,
obtains insurance & bond documents, notifies IT to remove related RFP/bid notice from the
City's website (if applicable), enters contract into Eden once routing process is complete.
(2) Liability and Claims ` /
Approves insurance and sureties, if bonds required. J , Y
0 �C -
Checks compliance with Competitive Bidding & Living Wage Ordinances 1 I
and reflected in current budget.
(4) City Attorney l 1
Approves contract as to form.
(5) City Signatory 14
Signs document on behalf of City. NO, r - 3 ,
(6) City Clerk
Attests signatures, numbers and files contract, enters contract documents
(executed contract, supporting documentation, insurance and bonds, etc.) into Laserfiche,
transmits duplicate original to contractor/consultant, notifies Responsible Department Person,
and notifies any "consultant" of duties to file Form 700, if applicable.
Rev. 6/2017
TRANSMITTAL COMMUNICATION
f
of
Ott
*5
OFFICE OF THE CITY CLERK
4305 Santa Fe Avenue, Vernon, California 90058
Telephone (323) 583-8811
November 14, 2017
Vernon Police Officers' Benefit Association
Attn: Jason Lucas, President
4305 Santa Fe Avenue
Vernon, CA 90058
Re: Vernon Police Officers' Benefit Association Amendment No. 2 to the Memorandum of
Understanding for the Period of July 1, 2016 — June 30, 2019
Dear Mr. Lucas:
Transmitted herewith is a fully executed copy of the original amendment to the Memorandum of
Understanding approved by City Council on July 12, 2016, through Resolution No. 2016-38.
If you have any questions regarding this matter, please call Carlos Fandino, at (323) 583-8811
ext. 570.
Very truly yours,
Deborah R. Juarez
Records Management Assistant
Enclosure
c: Anthony Miranda
Carlos Fandino
William Fox
Michael Earl
Resolution No. 2016-38
Agreement No. 16-081
Exc(usivefy Industrial
FULLY EXECUTED AGREEMENT
AMENDMENT NO. 2 TO THE
MEMORANDUM OF UNDERSTANDING
BETWEEN
CITY OF VERNON
VERNON POLICE OFFICERS' BENEFIT ASSOCIATION
July 1, 2016 through June 30, 2019
1
AMENDMENT NO.2 TO THE MEMORANDUM OF
UNDERSTANDING BETWEEEN
CITY OF VERNON
AND
VERNON POLICE OFFICERS' BENEFIT ASSOCIATION
Parties to the Memorandum of Understanding
Pursuant to Chapter 10 (section 3500 et seq) of Division 4, Title 1 of the
Government Code, and Resolution No. 4027, the Resolution for the
administration of employer -employee relations, the matters within the
scope of representation that are set forth in this Memorandum of
Understanding (MOU) have been discussed by and between
representatives of the City of Vernon and the representatives of the
Vernon Police Officers Benefit Association (hereinafter "VPOBA") and
except as otherwise specifically provided herein shall apply only to those
defined in the aforesaid Resolution as "all full-time and regular part-time
sworn personnel in the Police Department, except management
employees."
This Amendment to the MOU constitutes a joint agreement by the
Municipal Employee Relations Representative ("MERR") and the
VPOBA, to be submitted to the City Council of the City of Vernon for its
determination and approval by one or more Resolutions or Ordinances as
the City Council may deem fit and proper.
The MERR and the Representative of the VPOBA have agreed that they
will jointly urge the City Council of the City of Vernon to adopt one or
more Resolutions or Ordinances reflecting the changes in wages, hours,
and other conditions of employment agreed upon in this Amendment.
If approved, the terms agreed upon by this Amendment to the MOU shall
be deemed in effect as of July 1, 2016, and shall expire at midnight on
June 30, 2019.
2
IN CONSIDERATION OF THE TERMS AND CONDITIONS HEREIN
STATED, the VPOBA and the City of Vernon agree that the following
provisions of the MOU be replaced as follows:
ARTICLE TWO
Section 2: Term
(a) Except as otherwise provided herein, this Memorandum of
Understanding shall be in full force and effect from July 1, 2016,
and shall remain in full force and effect up to and including
midnight, the 30th day of June 2019, or until the next
Memorandum of Understanding becomes effective.
(b) This Memorandum of Understanding shall be binding on the
City and the Association when approved and adopted by the City
Council.
Except as otherwise provided herein, the City and the Association agree
to submit proposals for any changes related to wages, benefits and/or
other terms of and conditions of employment affecting this
Memorandum of Understanding between February 1, 2019 and March 1,
2019.
ARTICLE THREE
(d) Effective the first full pay period in July 2016, the base salary
schedule will be increased by 2% (excluding Y-rated
employees; however, a base salary schedule increase may raise
a salary range which may remove the Y-rate).
(e) Effective the first full pay period in July 2017, the base salary
schedule will be increased by an additional 2% (excluding Y-
rated employees; however, a base salary schedule increase may
raise a salary range which may remove the Y-rate).
3
(f) Effective the first full pay period in July 2018, the base salary
schedule will be increased by an additional 2% (excluding Y-
rated employees; however, a base salary schedule increase may
raise a salary range which may remove the Y-rate).
Section 3: Merit Steps
Salary increases to higher pay grade steps are merit steps only, and shall
be available to employees as recognition and reward for satisfactory
services with the time frames described in the Personnel Policies and
Procedures, Performance Evaluation Policy. Merit increases to any said
step shall remain the sole discretion of the City Council.
Effective July 1, 2015 — Employees and Grandfathered Sergeants not at
the top of their current salary grade who in the discretion of the Police
Chief and in accordance with the City's Performance Evaluation Policy,
have attained one year of satisfactory service as of their immediately
preceding classification anniversary date shall receive a one-time 5%
merit increase during the term of this contract. Future salary increases to
any said step shall remain the sole discretion of the City Council. The
July 1, 2015 merit increase shall not alter the employee's actual
classification anniversary date.
Notwithstanding the above provision, any person employed in a position
of Police Officer, Step 1, shall be appointed to Step 2 upon his/her
successful completion in an assigned accredited training academy, and
any person employed in a position of Police Officer, Step 2, shall be
appointed to Step 3 after serving at least six (6) months in the field and
upon receiving a merit evaluation of satisfactory/competent. Any person
who qualifies for said increase shall have his/her anniversary date for
future merit increases established as of the date said officer is appointed
to said Step.
Effective July 10, 2016 — Employees who are not at the top step of their
Classification Compensation Plan and have attained one year of an
overall "satisfactory" or higher performance evaluation rating, as of their
immediately preceding classification anniversary date, shall receive one
merit salary advance. Effective July 2017 and for the remainder of this
agreement, employees who are not at the top step of their Classification
Compensation Plan and who achieve an overall "exceeds standards"
ranking during their annual performance review in accordance with the
City's Performance Evaluation Policy will receive one merit salary
advance on the first full pay period in July. Employees shall continue to
receive their annual evaluations as scheduled in the City's Performance
Evaluation Policy and employees may receive more than one annual
merit salary advance during the term of this Agreement.
Section 4: Salary Adiustment Increase
In the event there is a salary inequity between ranks or between
employees within the Department, the Chief of Police may incorporate a
service adjustment increase up to ten percent (10%) per month of their
base salary.
ARTICLE SEVEN
Section 4: Cafeteria Plan.
The City and the Association agree to a section 125 cafeteria plan (non -
cash out). The City will adhere to the cafeteria plan requirements in
accordance with IRS Section 125 regulations. The City shall provide to
each employee in this bargaining unit a monthly allowance toward the
cost of his/her medical, dental, and vision plans as outlined in
subsections A, B, C, and D below.
a. During the term of the Agreement, for employees who elect
Employee + Family coverage, the City agrees to provide a
cafeteria plan contribution equal to the total premium costs of the
Employee + Family Low Medical HMO, Employee + Family
lowest cost Dental DMO and lowest cost family vision plan.
Employees enrolled in the Employee + Family health benefits
category that elect a health plan higher than the Low HMO
medical, dental and/or vision, will be responsible for any
applicable premium costs through a pre-tax payroll deduction. The
5
City understands that this amount will vary based on the premium
costs that go into effect on January 1 st of each calendar year of the
term of this Agreement. If employees opt out of dental and/or
vision, they may use the allotments for those respective coverages
toward excess medical premiums.
b. During the term of the Agreement, for employees who elect
Employee -Only, Employee + Spouse and Employee + Children
tiers, the City agrees to provide the same flat dollar cafeteria
contribution for medical, dental and vision benefits that the City is
paying as of June 2016 for these employee health group tiers. That
amount is $1,165 per month. Employees who elect one of these
tiers must pay for their dental and vision benefits from this
cafeteria contribution. The parties understand and agree that this
amount will remain fixed during the term of this Agreement.
Provided, however, should the total premium cost of the lowest
cost medical HMO, lowest cost Dental DMO, and lowest cost
vision plan exceed the current flat rate dollar cafeteria contribution
for medical, dental, and vision benefits for any of the tiers, then the
contribution for that tier will be raised to equal the total premium
costs of the Low Cost Medical HMO, lowest cost Dental DMO,
and lowest cost vision plan for that tier. Employees that elect a
health plan higher than the applicable City contribution will be
responsible for any applicable premium costs through a pre-tax
payroll deduction. If employees opt out of dental and/or vision,
they may use the allotments for those respective coverages toward
excess medical premiums.
c. For unit employees enrolled in the HSA PPO plan, the City shall
pay up to the city contribution for their specific tier as set forth in
A and B above reduced by an annual amount of $3,000. In
addition, for each employee enrolled in an HSA PPO plan,
annually the City shall make lump sum contributions to a health
savings account (HSA) as follows $1,500 in January, and $500
each in March, June, and September. The cost of any HSA PPO
plan selected by employees that exceeds the City contribution
3
amount shall be paid the employee through a pre-tax payroll
deduction.
d. During the term of the Agreement, Employees will be allowed to
opt in to the Employee + Family plan during any open enrollment
period or upon a qualifying event as prescribed by the City's
insurance provider.
Section 6: Vision:
The City of Vernon provides a vision care plan to employees. The City
shall pay 100% of the cost of such a plan for employees and eligible
dependents, as designated by their election of medical coverage. In the
event an employee does not exceed their monthly employer medical
allowance, the employee shall be allowed to apply any unused portion
towards the purchase of additional provided coverage for vision care.
The City agrees that all itemized benefit amounts specified in the City of
Vernon Vision Plan (CVVP) that fall below $150 shall be raised to
$150.
Section 8: Retiree's Medical
Employees must retire from the City of Vernon under a Ca1PERS
Benefit Formula (i.e. Age 50 or 57 Formula) to be eligible for Retiree
Medical/Dental Benefits.
The City shall pay up to $1,100 per month towards the employee's
option of the City's medical and dental insurance programs for the
employee and his/her eligible spouse in the classifications represented
by the Vernon Police Officers Benefit Association who have been
employed as sworn Peace Officers for a minimum of twenty (20) years
and a minimum of 10 years of that service has been in the employment
of the City of Vernon. The maximum $1,100 City contribution shall be
applied only toward a city provided medical and dental premium plan
payment and shall have no cash surrender value.
The City's contribution toward the Retiree Medical/Dental Benefit Plan
shall continue for said retired employee and eligible spouse up to the age
of sixty-five (65). Upon reaching the age of sixty-five (65), the retiree
and/or eligible spouse shall apply for Medicare coverage, whereupon the
City's insurance shall become supplemental coverage. The City shall
pay up to $1,100 per month of the cost to provide any Medicare
supplemental medical and dental insurance plan offered by the City of
Vernon. The City will not be the primary insurance carrier once the
retiree and/or eligible spouse reaches the age of sixty-five (65). If the
retiree or eligible spouse fails to timely obtain and maintain Medicare
coverage, the City shall not be required to provide any medical/dental
benefits until such Medicare coverage is obtained and maintained. The
maximum $1,100 City contribution shall be applied only towards a City
sponsored Medicare supplemental medical and dental premium plan
payment and shall have no cash surrender value.
All retired employees with a minimum of ten (10) years of continuous
uninterrupted service with the City may pay the City's premium cost for
medical and dental insurance for employee only, up to the age of sixty-
five (65) after which time Medicare will become the primary insurance
carrier. The retired employee may remain on the City's supplemental
insurance to Medicare at his/her cost provided the retiree has timely
obtained and maintains Medicare coverage.
Should the retired employee fail to pay his/her required cost of the
insurance premium for the City's medical/dental benefit plan for any
three (3) consecutive months or, should the coverage otherwise lapse for
any reason other than City's non-payment, then the City's obligation to
maintain the retiree's medical/dental benefit plan shall automatically
terminate without the need for further notice.
Eligible retired employees may opt not to enroll in the City's medical
and/or dental insurance coverage and instead receive a monthly
reimbursement payment for the employee and his/her eligible spouse of
$19100, or the equivalent to the then -current lowest cost City -offered
Employee+Spouse medical HMO and/or dental HMO insurance
premium, whichever is greater, as permitted by the Public Employee
Pension Reform Act (PEPRA). Once a retired employee opts not to
enroll in the City's medical and/or dental insurance, he or she will not be
allowed to re -enroll.
[Signatures Begin on Next Page].
9
SIGNATURE PAGE
CITY OF VERNON
City Administrator / "MERR"
Lisette Michel Grizzelle
Senior Human Resources Analyst
William F. Fox
Director of Finance/City Treasurer
Ana K. Rueda
Human Resources Analyst
APPROVED AS TO FORM:
*CY)A
Zayna Mousa
Senior Deputy City Attorney
VERNON POLICE OFFICERS'
BENEFIT ASSOCIATION
Jason Lucas
President
Nicholas Perez
Vice President
APPROVED AND ADOPTED BY THE CITY COUNCIL ON JOLY 12, 2010
RESOLUTION NO. 2016-38_
ATTEST:
Dated: li 141 '70
Maria Ay la
City Clerk
10
STAFF REPORT
STAFF REPORT
CITY ADMINISTRATION
DATE: July 12, 2016
RECEIVED
TO: Honorable Mayor and City Council
FROM: Carlos Fandino Jr., City Administrator Cf't?r
Originator: Isaac Garibay, Director of Human Resources
JUL 0 7 2016
CITY CLERK'S RE
RE: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON
APPROVING AMENDMENT NO. 2 TO THE VERNON POLICE
OFFICERS' BENEFIT ASSOCIATION 2014-2017 MEMORANDUM OF
UNDERSTANDING
Recommendations
A. Find that approval of the proposed Amendment No. 2 to the Vernon Police Officers'
Benefit Association 2014-2017 Memorandum of Understanding is exempt under the
California Environmental Quality Act ("CEQA") review, because it is an administrative
action that will not result in direct or indirect physical changes in the environment, and
therefore does not constitute a "project" as defined by CEQA Guidelines section 15378;
and
B. Adopt the attached resolution approving Amendment No. 2 to the Vernon Police
Officers' Benefit Association 2014-2017 Memorandum of Understanding to amend the
following provisions:
1) Article Two, Section 2, Term
2) Article Three, Section 3, Merit Steps
3) Article Three, Section 4, Salary Adjustment Increase
4) Article Seven, Section 4, Cafeteria Plan
5) Article Seven, Section 6, Vision Plan
6) Article Seven, Section 8, Retiree's Medical; and
C. Authorize the City Administrator and Director of Human Resources to execute the
attached Amendment No. 2 to the 2014-2017 Memorandum of Understanding between
the City of Vernon and employees represented by the City of Vernon Police Officers'
Benefit Association.
Page 1 of 3
Background
The City and the City of Vernon Police Officers' Benefit Association (VPOBA) concluded labor
negotiations on August 13, 2014 regarding wages, benefits and working conditions for the 2014-
2017 Memorandum of Understanding (MOU).
On May 24, 2016, the VPOBA submitted a written request to the City requesting to reopen
negotiations as they relate to their MOU. On June 8, 2016, the City's labor negotiations team met
with VPOBA to discuss the VPOBA's reopener request in detail. It was determined that there
was a mutual interest in reopening the MOU, and the parties concluded negotiations regarding
Amendment No. 2 to the MOU on June 8, 2016.
Key provisions of the proposed Amendment are:
• The term of the MOU shall be extended to June 30, 2019.
• Effective the first full pay period in July 2016, the base salary schedule will be increased
by 2% (excluding Y-rated employees).
• Effective the first full pay period in July 2017, the base salary schedule will be increased
by an additional 2% (excluding Y-rated employees).
• Effective the first full pay period in July 2018, the base salary schedule will be increased
by an additional 2% (excluding Y-rated employees).
• Effective July 1, 2014, sick leave shall not count toward time worked for purposes of
calculating overtime.
• Effective July 9, 2016, employees who are not at the top step of their Classification
Compensation Plan and have attained one year of an overall "satisfactory" or higher
performance evaluation rating, as of their immediately preceding classification
anniversary date, shall receive one merit salary advance. Effective July 2017 and for the
remainder of the agreement, employees who are not at the top step of their Classification
Compensation Plan and who achieve an overall "exceeds standards" ranking during their
annual performance review in accordance with the City's Performance Evaluation Policy
will receive one merit salary advance on the first full pay period in July. Employees shall
continue to receive their annual evaluations as scheduled in the City's Performance
Evaluation Policy and employees may receive more than one annual merit salary advance
during the term of this Agreement.
• As it pertains to health and welfare benefits, employees who elect Employee -Only,
Employee + Spouse and Employee + Children health benefit tiers, the City agrees to
provide the same flat dollar cafeteria contribution that corresponds with the respective
Low Medical HMO, lowest cost Dental DMO, and lowest cost vision plans combined, or
$1,165 per month, whichever is greater. Employees who elect the HSA coverage shall
receive an equal benefit to that described above, less $3,000 on an annual basis, which
would instead be deposited to their HSA account.
• All itemized benefit amounts specified in the City of Vernon Vision Plan (CVVP) that
fall below $150 shall be raised to $150.
• Employees eligible for retiree medical may opt not to enroll in the City's medical and/or
dental insurance coverage and instead receive a monthly reimbursement payment of
$1,100, or the equivalent to the then -current lowest cost City -offered Employee+Spouse
medical HMO and/or dental HMO insurance premium, whichever is greater, as permitted
by the Public Employee Pension Reform Act (PEPRA). Once a retired employee opts
Page 2 of 3
not to enroll in the City's medical and/or dental insurance, he or she will not be allowed
to re -enroll.
It is recommended that City Council approve Amendment No.2 to the 2014-2017 VPOBA
MOU, which has been reviewed and approved as to form by the City Attorney's Office, to
incorporate the above -mentioned changes.
Fiscal Impact
The approximate cost to adopt Amendment No. 2 to the 2014-2017 Memorandum of
Understanding between the City and the Vernon Police Officers' Benefit Association for Fiscal
Year 2016-2017 is $72,269. The approximate cost for Fiscal Year 2017-2018 and Fiscal Year
2018-2019 cannot yet be determined as the cost of health and welfare benefits are variable and
unknown.
Attachments
1. Resolution Approving Amendment No. 2 to the Memorandum of Understanding by and
between the City of Vernon and Vernon Police Officers' Benefit Association.
Page 3 of 3
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING THE AMENDMENT NO. 2 TO THE
MEMORANDUM OF UNDERSTANDING BY AND BETWEEN THE CITY
OF VERNON AND THE VERNON POLICE OFFICERS' BENEFIT
ASSOCIATION FOR THE PERIOD OF JULY 1, 2014 THROUGH
JUNE 30, 2017
WHEREAS, the Vernon Police Officers' Benefit Association
("VPOBA") has been recognized as an employee organization pursuant to
Resolution No. 4027; and
WHEREAS, on September 16, 2014, the City Council of the City
of Vernon adopted Resolution No. 2014-57 approving a Memorandum of
Understanding ("MOU") setting forth certain terms and conditions for
employment of City of Vernon employees in classifications represented
by the VPOBA, for the period of July 1, 2014 through June 30, 2017; and
WHEREAS, on June 16, 2015, the City Council of the City of
Vernon adopted Resolution No. 2015-39, approving an Amendment No. 1 to
the MOU; and
WHEREAS, representative members of the VPOBA and the City have
agreed to execute an Amendment No. 2 to the MOU (the "Amendment") to
amend the following Articles: (a) Article Two, Section 2 regarding
Term, (b) Article Three, Section 3 regarding Merit Steps, (c) Article
Three, Section 4 regarding Salary Adjustment Increase, (d) Article
Seven, Section 4 regarding Cafeteria Plan, (e) Article Seven, Section 6
regarding Vision Plan, and (f) Article Seven, Section 8 regarding
Retiree's Medical; and
WHEREAS, the City Council of the City of Vernon desires to
approve the Amendment.
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 above recitals are true and correct.
SECTION 2: The City Council of the City of Vernon finds
that this action is exempt under the California Environmental Quality
Act (CEQA) review, because it is an administrative action that will
not result in direct or indirect physical changes in the environment,
and therefore does not constitute a "project" as defined by CEQA
Guidelines section 15378.
SECTION 3: The City Council of the City of Vernon hereby
approves the Amendment No. 2 to the Memorandum of Understanding between
the City of Vernon and the Vernon Police Officers' Benefit Association,
in substantially the same form as the copy which is attached hereto as
Exhibit A.
SECTION 4: The City Council of the City of Vernon hereby
instructs the City Administrator, or his designee, to take whatever
action is deemed necessary or desirable for the purpose of implementing
and carrying out the purposes of this Resolution and the transactions
herein approved or authorized, including but not limited to, any
nonsubstantive changes to the Amendment attached herein.
SECTION 5: The City Council of the City of Vernon hereby
directs the City Clerk, or the City Clerk's designee, to send a fully
executed Amendment to Lorenzo Gaytan, President of the Vernon Police
Officers' Benefit Association.
- 2 -
SECTION 6: The City Clerk, or Deputy City Clerk, of the
City of Vernon shall certify to the passage, approval and adoption of
this resolution, and the City Clerk, or Deputy City Clerk, of the City
of Vernon shall cause this resolution and the 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 12th day of July, 2016.
Name:
Title: Mayor / Mayor Pro-Tem
ATTEST:
City Clerk / Deputy City Clerk
APPROVED AS TO FORM:
Moussa, Senior Deputy City Attorney
- 3 -
STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I, , City Clerk / Deputy City Clerk of the City
of Vernon, do hereby certify that the foregoing Resolution, being
Resolution No. , 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, July 12, 2016, and thereafter was duly
signed by the Mayor or Mayor Pro-Tem of the City of Vernon.
Executed this day of July, 2016, at Vernon, California.
(SEAL)
- 4 -
City Clerk / Deputy City Clerk
EXHIBIT A
Z
�� UN � ( 1905
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5
LY 1�9�
AMENDMENT NO.2 TO THE
MEMORANDUM OF UNDERSTANDING
BETWEEN
CITY OF VERNON
AND
VERNON POLICE OFFICERS' BENEFIT ASSOCIATION
July 1, 2014 through June 30, 2017
1
AMENDMENT NO. 1 TO THE MEMORANDUM OF
UNDERSTANDING BETWEEEN
CITY OF VERNON
AND
VERNON POLICE OFFICERS' BENEFIT ASSOCIATION
Parties to the Memorandum of Understanding
Pursuant to Chapter 10 (section 3500 et seq) of Division 4, Title 1 of the
Government Code, and Resolution No. 4027, the Resolution for the
administration of employer -employee relations, the matters within the
scope of representation that are set forth in this Memorandum of
Understanding (MOU) have been discussed by and between
representatives of the City of Vernon and the representatives of the
Vernon Police Officers Benefit Association (hereinafter "VPOBA") and
except as otherwise specifically provided herein shall apply only to those
defined in the aforesaid Resolution as "all full-time and regular part-time
sworn personnel in the Police Department, except management
employees."
This Amendment to the MOU constitutes a joint agreement by the
Municipal Employee Relations Representative ("MERR") and the
VPOBA, to be submitted to the City Council of the City of Vernon for its
determination and approval by one or more Resolutions or Ordinances as
the City Council may deem fit and proper.
The MERR and the Representative of the VPOBA have agreed that they
will jointly urge the City Council of the City of Vernon to adopt one or
more Resolutions or Ordinances reflecting the changes in wages, hours,
and other conditions of employment agreed upon in this Amendment.
If approved, the terms agreed upon by this Amendment to the MOU shall
be deemed in effect as of July 1, 2016, and shall expire at midnight on
June 30, 2019.
2
IN CONSIDERATION OF THE TERMS AND CONDITIONS HEREIN
STATED, the VPOBA and the City of Vernon agree that the following
provisions of the MOU be replaced as follows:
ARTICLE TWO
Section 2: Term
(a) Except as otherwise provided herein, this Memorandum of
Understanding shall be in full force and effect from July 1, 2014,
and shall remain in full force and effect up to and including
midnight, the 30th day of June 2019 or until the next
Memorandum of Understanding becomes effective.
(b) This Memorandum of Understanding shall be binding on the
City and the Association when approved and adopted by the City
Council.
Except as otherwise provided herein, the City and the Association agree
to submit proposals for any changes related to wages, benefits and/or
other terms of and conditions of employment affecting this
Memorandum of Understanding between February 1, 2019 and March 1,
2019.
ARTICLE THREE
Section 3: Merit Steps
Salary increases to higher pay grade steps are merit steps only, and shall
be available to employees as recognition and reward for satisfactory
services with the time frames described in the Personnel Policies and
Procedures, Performance Evaluation Policy. Merit increases to any said
step shall remain the sole discretion of the City Council.
Effective July 1, 2015 — Employees and Grandfathered Sergeants not at
the top of their current salary grade who in the discretion of the Police
3
Chief and in accordance with the City's Performance Evaluation Policy,
have attained one year of satisfactory service as of their immediately
preceding classification anniversary date shall receive a one-time 5%
merit increase during the term of this contract. Future salary increases to
any said step shall remain the sole discretion of the City Council. The
July 1, 2015 merit increase shall not alter the employee's actual
classification anniversary date.
Notwithstanding the above provision, any person employed in a position
of Police Officer, Step 1, shall be appointed to Step 2 upon his/her
successful completion in an assigned accredited training academy, and
any person employed in a position of Police Officer, Step 2, shall be
appointed to Step 3 after serving at least six (6) months in the field and
upon receiving a merit evaluation of satisfactory/competent. Any person
who qualifies for said increase shall have his/her anniversary date for
future merit increases established as of the date said officer is appointed
to said Step.
Effective July 10, 2016 — Employees who are not at the top step of their
Classification Compensation Plan and have attained one year of an
overall "satisfactory" or higher performance evaluation rating, as of their
immediately preceding classification anniversary date, shall receive one
merit salary advance. Effective July 2017 and for the remainder of this
agreement, employees who are not at the top step of their Classification
Compensation Plan and who achieve an overall "exceeds standards"
ranking during their annual performance review in accordance with the
City's Performance Evaluation Policy will receive one merit salary
advance on the first full pay period in July. Employees shall continue to
receive their annual evaluations as scheduled in the City's Performance
Evaluation Policy and employees may receive more than one annual
merit salary advance during the term of this Agreement.
Section 4: Salary Adiustment Increase
Effective the first full pay period in July 2016, the base salary schedule
will be increased by 2% (excluding Y-rated employees; however, a base
salary schedule increase may raise a salary range which may remove the
[!
Y-rate).
Effective the first full pay period in July 2017, the base salary schedule
will be increased by an additional 2% (excluding Y-rated employees;
however, a base salary schedule increase may raise a salary range which
may remove the Y-rate).
Effective the first full pay period in July 2018, the base salary schedule
will be increased by an additional 2% (excluding Y-rated employees;
however, a base salary schedule increase may raise a salary range which
may remove the Y-rate).
In the event there is a salary inequity between ranks or between
employees within the Department, the Chief of Police may incorporate a
service adjustment increase up to ten percent (10%) per month of their
base salary.
ARTICLE SEVEN
Section 4: Cafeteria Plan.
The City and the Association agree to a section 125 cafeteria plan (non -
cash out). The City will adhere to the cafeteria plan requirements in
accordance with IRS Section 125 regulations. The City shall provide to
each employee in this bargaining unit a monthly allowance toward the
cost of his/her medical, dental, and vision plans as outlined in
subsections A, B, C, and D below.
A. During the term of the Agreement, for employees who elect
Employee + Family coverage, the City agrees to provide a
cafeteria plan contribution equal to the total premium costs of the
Employee + Family Low Medical HMO, Employee + Family
lowest cost Dental DMO and lowest cost family vision plan.
Employees enrolled in the Employee + Family health benefits
category that elect a health plan higher than the Low HMO
medical, dental and/or vision, will be responsible for any
applicable premium costs through a pre-tax payroll deduction. The
s
City understands that this amount will vary based on the premium
costs that go into effect on January 1 st of each calendar year of the
term of this Agreement. If employees opt out of dental and/or
vision, they may use the allotments for those respective coverages
toward excess medical premiums.
B. During the term of the Agreement, for employees who elect
Employee -Only, Employee + Spouse and Employee + Children
tiers, the City agrees to provide the same flat dollar cafeteria
contribution for medical, dental and vision benefits that the City is
paying as of June 2016 for these employee health group tiers. That
amount is $1,165 per month. Employees who elect one of these
tiers must pay for their dental and vision benefits from this
cafeteria contribution. The parties understand and agree that this
amount will remain fixed during the term of this Agreement.
Provided, however, should the total premium cost of the lowest
cost medical HMO, lowest cost Dental DMO, and lowest cost
vision plan exceed the current flat rate dollar cafeteria contribution
for medical, dental, and vision benefits for any of the tiers, then the
contribution for that tier will be raised to equal the total premium
costs of the Low Cost Medical HMO, lowest cost Dental DMO,
and lowest cost vision plan for that tier. Employees that elect a
health plan higher than the applicable City contribution will be
responsible for any applicable premium costs through a pre-tax
payroll deduction. If employees opt out of dental and/or vision,
they may use the allotments for those respective coverages toward
excess medical premiums.
C. For unit employees enrolled in the HSA PPO plan, the City shall
pay up to the city contribution for their specific tier as set forth in
A and B above reduced by an annual amount of $3,000. In
addition, for each employee enrolled in an HSA PPO plan,
annually the City shall make lump sum contributions to a health
savings account (HSA) as follows $1,500 in January, and $500
each in March, June, and September. The cost of any HSA PPO
plan selected by employees that exceeds the City contribution
no
amount shall be paid the employee through a pre-tax payroll
deduction.
D. During the term of the Agreement, Employees will be allowed to
opt in to the Employee + Family plan during any open enrollment
period or upon a qualifying event as prescribed by the City's
insurance provider.
Section 6: Vision:
The City of Vernon provides a vision care plan to employees. The City
shall pay 100% of the cost of such a plan for employees and eligible
dependents, as designated by their election of medical coverage. In the
event an employee does not exceed their monthly employer medical
allowance, the employee shall be allowed to apply any unused portion
towards the purchase of additional provided coverage for vision care.
The City agrees that all itemized benefit amounts specified in the City of
Vernon Vision Plan (CVVP) that fall below $150 shall be raised to
$150.
Section 8: Retiree's Medical
Employees must retire from the City of Vernon under a Ca1PERS
Benefit Formula (i.e. Age 50 or 57 Formula) to be eligible for Retiree
Medical/Dental Benefits.
The City shall pay up to $1,100 per month towards the employee's
option of the City's medical and dental insurance programs for the
employee and his/her eligible spouse in the classifications represented
by the Vernon Police Officers Benefit Association who have been
employed as sworn Peace Officers for a minimum of twenty (20) years
and a minimum of 10 years of that service has been in the employment
of the City of Vernon. The maximum $1,100 City contribution shall be
applied only toward a city provided medical and dental premium plan
payment and shall have no cash surrender value.
The City's contribution toward the Retiree Medical/Dental Benefit Plan
shall continue for said retired employee and eligible spouse up to the age
of sixty-five (65). Upon reaching the age of sixty-five (65), the retiree
and/or eligible spouse shall apply for Medicare coverage, whereupon the
City's insurance shall become supplemental coverage. The City shall
pay up to $1,100 per month of the cost to provide any Medicare
supplemental medical and dental insurance plan offered by the City of
Vernon. The City will not be the primary insurance carrier once the
retiree and/or eligible spouse reaches the age of sixty-five (65). If the
retiree or eligible spouse fails to timely obtain and maintain Medicare
coverage, the City shall not be required to provide any medical/dental
benefits until such Medicare coverage is obtained and maintained. The
maximum $1,100 City contribution shall be applied only towards a City
sponsored Medicare supplemental medical and dental premium plan
payment and shall have no cash surrender value.
All retired employees with a minimum of ten (10) years of continuous
uninterrupted service with the City may pay the City's premium cost for
medical and dental insurance for employee only, up to the age of sixty-
five (65) after which time Medicare will become the primary insurance
carrier. The retired employee may remain on the City's supplemental
insurance to Medicare at his/her cost provided the retiree has timely
obtained and maintains Medicare coverage.
Should the retired employee fail to pay his/her required cost of the
insurance premium for the City's medical/dental benefit plan for any
three (3) consecutive months or, should the coverage otherwise lapse for
any reason other than City's non-payment, then the City's obligation to
maintain the retiree's medical/dental benefit plan shall automatically
terminate without the need for further notice.
Eligible retired employees may opt not to enroll in the City's medical
and/or dental insurance coverage and instead receive a monthly
reimbursement payment for the employee and his/her eligible spouse of
$1,100, or the equivalent to the then -current lowest cost City -offered
Employee+Spouse medical HMO and/or dental HMO insurance
premium, whichever is greater, as permitted by the Public Employee
Pension Reform Act (PEPRA). Once a retired employee opts not to
enroll in the City's medical and/or dental insurance, he or she will not be
allowed to re -enroll.
[Signatures Begin on Next Page].
M
SIGNATURE PAGE
CITY OF VERNON
Carlos R. Fandino Jr.
City Administrator / "MERR"
Isaac Garibay
Director of Human Resources
Lisette Michel Grizzelle
Senior Human Resources Analyst
William F. Fox
Director of Finance/City Treasurer
APPROVED AS TO FORM:
VERNON POLICE OFFICERS'
BENEFIT ASSOCIATION
Lorenzo Gaytan
President
Nicholas Perez
Vice President
Hema Patel
City Attorney
APPROVED AND ADOPTED BY THE CITY COUNCIL ON , PER
RESOLUTION NO.
ATTEST:
Dated:
Maria Ayala
City Clerk
10