CC RES 2017-058 RESOLUTION NO. 2017-58
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO
PALOS VERDES, INCREASING THE CITY'S MAXIMUM MONTHLY
CONTRIBUTION AMOUNTS FOR EMPLOYEE AND COUNCIL
MEMBER HEALTH INSURANCE PREMIUMS FOR CALENDAR YEAR
2018 AND RESCINDING AND REPLACING RESOLUTION NO. 2016-51.
WHEREAS, on November 1, 2016, the City Council adopted Resolution No. 2016-51
establishing maximum City contributions towards employee health insurance premiums
for FY 2017; and,
WHEREAS, the City has been advised of an increase in employee health insurance
premiums for calendar year 2018 which will exceed the current maximum City
contributions towards employee health insurance premiums established for FY 2017; and,
WHEREAS, the City desires to sufficiently contribute to employee health insurance
premiums by providing sufficient maximum City contributions towards same for its active
full-time employees and City council persons.
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 full-time employee or active City Council person
shall have a maximum amount which may be applied toward the full cost of the active full-
time employee's or active council person's medical, dental, vision and mental health
benefits, and pay up to 50% of the cost of medical, dental, vision and mental health
benefits for eligible dependents, subject to the maximum amounts for these insurance
coverages as specified below. However, for part-time employees that are considered "full-
time employees," as defined by the Affordable Care Act, the maximum amount may only
be applied to toward the full cost of the medical premium and up to 50% of the cost for
medical dependent coverage.
Full-time Employee/ Councilmember
Insurance Status Maximum Contribution per Month
HMO HSA PPO
Employee Only $801.81 $779.75 $1,273.25
Two Party $1,175.40 $1,163.70 $1,792.38
Family $1,408.64 $1,409.00 $2,202.96
Section 2: The City will pay towards the participant's deductible in the HSA Plan $3,000
for Employee Only and $6,000 for Employee + 1 and Family (3 or more).
Section 3: Any amounts remaining between the necessary contributions required and the
maximum amounts specified in Section 1 of this Resolution are not to be paid to the active
full-time employee or active City Council person, as applicable.
Section 4: If a full-time employee or City Council member can provide proof of group
medical coverage that is generally similar to the City's medical coverage, and declines the
medical coverage offered by the City, the City will make a cash-in-lieu payment to the
opting out full-time employee or City Council member of$353 per month under the City's
cafeteria plan as governed by Section 125 of the Internal Revenue Code.
Section 5: The City shall pay the full cost for each active full-time employee's life insurance
premium, accidental death & dismemberment premium and long term disability premium.
The City shall pay the full cost for each active City Council member's life insurance
premium.
Section 6: The Health Savings Account will be funded semi-annually in accordance with
Rancho Palos Verdes Employee Association's Memorandum of Understanding as may be
modified from time to time.
Section 7: The City Manager or his/her designee, is authorized to adopt rules and
procedures for the implementation of this Resolution.
Section 8: Resolution No. 2016-51 is hereby rescinded and replaced by this Resolution.
PASSED, APPROVED and ADOPTED this 17th day of October 2017.
4.e
Attes .
1111
'WREN
t ty Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss
CITY OF RANCHO PALOS VERDES )
I, Emily Colborn, City Clerk of the City of Ranch e os Verdes, hereby certify
that the above Resolution No. 2017-58 was duly and res lad passed and adopted by
the said City Council at a regular meeting thereof held on ber 17, 2017.
Nit City Clerk
Resolution No. 2017-58
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