CC RES 2005-131RESOLUTION NO. 2005 -131
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES AMENDING THE CITY CONTRIBUTION RATES FOR EMPLOYEE
BENEFIT PREMIUMS FOR ACTIVE FULL -TIME EMPLOYEES, ACTIVE SHARED -
POSITION EMPLOYEES AND ACTIVE CITY COUNCIL PERSONS FOR CALENDAR
YEAR 2006 AND RESCINDING RESOLUTION NO. 2002 -87.
WHEREAS, on May 20, 1997, the City Council adopted Resolution No. 97 -42
which established the City contribution rates for employee benefit premiums for active
full -time employees and City Council persons for calendar year 1997; and,
WHEREAS, on November 5, 1997, the City Council adopted Resolution No. 97-
93 amending the maximum contribution amounts for full -time employees and City
Council persons for calendar years 1998 and 1999; and,
WHEREAS, on April 21, 1998, the City Council adopted Resolution No. 98 -29
establishing the maximum contribution amount for shared - position employees for
calendar year 1998 and 1999; and,
WHEREAS, on December 7, 1999, the City Council adopted Resolution No. 99-
89 establishing the maximum contribution amount for full -time employees, shared -
position employees and City Council persons for calendar year 2000; and,
WHEREAS, on November 8, 2000, the City Council adopted Resolution No.
2000 -73 establishing the maximum contribution amount for full -time employees, shared -
position employees and City Council persons for calendar year 2001; and,
WHEREAS, on November 7, 2001, the City Council adopted Resolution No.
2001 -90 establishing the maximum contribution amount for full -time employees, shared -
position employees and City Council persons for calendar year 2002; and,
WHEREAS, the California Public Employee Retirement System (CaIPERS)
medical benefits program, which is the offered provided to the City's employees and
City Councilmembers, will increase its rate by a maximum of 23% for calendar year
2003; and,
WHEREAS, on September 3, 2002, the City Council adopted Resolution No.
2002 -76 establishing the maximum contribution amount for full -time employees, shared -
position employees and City Council persons for calendar year 2003, but directed staff
to return with an amended Resolution that provides parity between all benefits offered to
City employees and City Council persons.
WHEREAS, on 2002, the City Council adopted Resolution No. 2002 -87
establishing the maximum contribution amount for full -time employees, shared - position
employees and City Council persons for calendar year 2003; and,
WHEREAS, due to health insurance premium savings realized by withdrawing
from the CalPERS medical benefits program in 2004 and contracting with an
independent insurance broker, Maniaci Insurance Services Inc., the City did not need to
increase the maximum insurance contribution cap in 2004 and 2005; and,
WHEREAS, due to a proposed 18% increase in health insurance premiums in
2006, on November 1, 2005, the City Council authorized the substitution of a single
PPO medical plan in place of the two PPOs previously offered to participants, thereby
reducing the increase to approximately 15 %; and,
WHEREAS, the increases in health insurance premiums in 2006 would slightly
exceed (less than $60) the maximum contribution cap established in 2002; and,
WHEREAS, the City desires to continue to provide certain contributions to its
active full -time employees, shared - position employees and City Council persons for
health benefits.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS:
Section 1: The City's contribution for each active full -time employee or active City
Councilperson shall have a maximum amount which may be applied toward the full cost
of the active fill -time employee's or active Council person's medical, dental, vision and
mental health benefits, and to pay up to 50% of the cost of medical, dental, vision and
mental health insurance benefits for eligible dependents, subject to the maximum
amounts for these insurance coverages as specified in the table below:
Maximum Contribution
Insurance Status
Per Month
Employee Only
$654.00
Two Party
$957.00
Family
$1,171.00
Section 2: Pursuant to Resolution No. 98 -28, the City shall pay a proportional
share of the medical, dental, vision and mental health insurance premium for the
shared - position employee and dependent care premium based on the number of hours
that employee worked per week. The City's contribution for each shared - position
employee shall have a maximum amount which may be applied toward the full cost of
the active shared - position employee's medical, dental, vision and mental health
insurance benefits for eligible dependents, subject to the maximum amounts for these
insurance coverages as specified in the table below:
Maximum Contribution
Insurance Status Per Month
Employee Only $327.00
Two Party $482.00
Family $560.00
Resolution No. 2005 -131
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Section 3: Any amounts remaining between the necessary contributions required
and the maximum amounts specified in Sections 1 and 2 of this Resolution are not to be
paid to the active full-time employee, active City Councilperson or active shared-position
employee, as applicable.
Section 4: The shared-position employee shall pay any difference between the
City's contribution and the premium rates charged by the insurance carrier for the
benefits that the shared-position employee has selected.
Section 5: If a full-time employee or City Council member can provide proof of
medical coverage that is generally similar to the City's medical coverage, and declines
the medical coverage offered by the City, the City will reimburse the full-time employee
or City Council member $154.00 per month. If a shared-position employee can provide
proof of medical coverage that is generally similar to the City's medical coverage, and
declines the medical coverage offered by the City, the City will reimburse the shared-
position employee $77.00 per month.
Section 6: The City shall pay the full cost for each active full-time employee's and
active shared-position employee's life insurance premium and accidental death and
dismemberment premium.
Section 7: The City Manager, or his designee, is authorized to adopt rules and
procedures for the implementation of the Resolution.
Section 8: Resolution No. 2002-87 is hereby rescinded and replaced by this
Resolution.
PASSED, APPROVED and ADOPTED this 6th day of December 2005.
Mit .//_. _Ad •
Attest: ►4 .Y or
Cita Clerk
State of California )
County of Los Angeles )ss
City of Rancho Palos Verdes )
I, Carolynn Petru, City Clerk of the City of Rancho Palos Verdes, hereby certify that the
above Resolution No. 2005-131 was duly and regularly passed and adopted by the said
City Council at a regular meeting thereof held on December 6, 2005.
Ci Clerk
Resolution No. 2005-131
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