CC RES 2018-081 RESOLUTION NO. 2018-81
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 2019 AND RESCINDING AND
REPLACING RESOLUTION NO. 2017-58
WHEREAS, as an employer with fewer than 100 employees, the City must
purchase insurance using small-group rates, where employees are assigned
different monthly premiums based on several factors, such as age and number of
dependents; and
WHEREAS, the City is billed for the small-group rates associated with each
employee, based on their age and number of dependents; and
WHEREAS, the City has utilized so-called composite rates, rather than individual
rates, to determine the employee's contribution for each level of coverage offered
for each medical plan such that all employees and Council Members, regardless
of their age and number of dependents, receive the same deduction for the same
level of coverage selected if it is for the same medical plan; and
WHEREAS, the maximum City contribution limits the City publishes are based on
medical composite rates that are for illustration purposes, and the City's actual
maximum contribution for medical premiums can vary from employee to employee,
based on their age and number of dependents; and
WHEREAS, on October 17, 2017, the City Council adopted Resolution No. 2017-
58 establishing maximum City contributions towards employee health insurance
premiums for FY 2018; 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, City council persons, and part-time employees eligible
for an ACA offer of medical coverage.
WHEREAS, it is uncertain whether the maximum City contributions limits towards
health insurance premiums established for calendar year 2018 will be sufficient for
calendar year 2019 because the small group medical rates have not yet been
published but are expected to be published by the end of October; and
WHEREAS, the City may approve a change in the City's Benefits Broker of
Record, the addition of new health benefit options and revision of new insurance
carriers that could result in potential savings to the City that could impact the
maximum health contribution limits previously adopted; and
Resolution No. 2018-81
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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 (based on the composite
medical rates, such that there may be instances wherein the actual City
contribution to an individual is less/more than 50% of the maximum limits).
Section 2: The City's contribution for part-time employees that are considered "full-
time employees," as defined by the Affordable Care Act, shall have the maximum
amount applied only toward the cost of the medical premium and up to 50% of the
cost for eligible dependents (based on the composite medical rates, such that there
may be instances wherein the actual City contribution to an individual is less/more
than 50% of the maximum limits).
Section 3: 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).
This City contribution is not available to part-time employees that have been
deemed "full-time" under the ACA.
Section 4: 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 or part-time employee or active City Council
person, as applicable.
Section 5: 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 under
the City's cafeteria plan as governed by Section 125 of the Internal Revenue Code.
The cash-in-lieu payment shall be equal to 50% of the lowest cost medical plan
(based on the medical composite rates) available to employees for employee only
coverage.
Section 6: The City shall pay the full cost for each active full-time employee's life
insurance premium with accidental death & dismemberment premium for
employees and their dependents as well as the long term disability premium for
employees. The City shall pay the full cost for each active City Council member's
life insurance premium.
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Section 7: 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 8: The City Manager or his/her designee, is authorized to adopt rules and
procedures for the implementation of this Resolution.
Section 9: Resolution No. 2017-58 is hereby rescinded and replaced by this
Resolution.
PASSED, APPROVED and ADOPTED this 16th day of October 2018.
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Attest:
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40114,Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss
CITY OF RANCHO PALOS VERDES )
I, Emily Colborn, City Clerk of the City of Rancho Palos Verdes, hereby
certify that the above Resolution No. 2018-81 was duly and regularly passed and
adopted by the said City Council at a regular meeti- : thereof held on October 16,
2018.
411Nraw
IL
41111111; y Clerk
Resolution No. 2018-81
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