CC RES 2019-057 RESOLUTION NO.2019-57
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF RANCHO PALOS VERDES, TO ADJUST THE
CITY'S MAXIMUM MONTHLY CONTRIBUTION
AMOUNTS FOR EMPLOYEE AND COUNCIL
MEMBER HEALTH INSURANCE PREMIUMS AND
RESCINDING AND REPLACING RESOLUTION NO.
2018-81
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 9, 2018, the City Council adopted Resolution No.
2018-81 establishing maximum City contributions towards employee health
insurance premiums for FY 2019; 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 Affordable Care Act (ACA) offer of medical coverage; and
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 equal to 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
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mental health benefits for eligible dependents (based on the composite medical
rates provided annually by the broker, such that there may be instances wherein
the actual City contribution to an individual is less/more than 50% of the maximum
limits). This is not a cafeteria amount.
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. 2018-81 is hereby rescinded and replaced by
this Resolution.
PASSED, APPROVED and ADOPTED this 6th day of November 2019.
Di/Mayor
Attest:
WIPP
Cit 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. 2019-57 was dul and regularly passed and adopted
by the said City Council at a regular meet ng , ereof held on November 6, 2019.
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