CC SR 20221115 K - Employee HSA Increased Contribution Resolution
CITY COUNCIL MEETING DATE: 11/15/2022
AGENDA REPORT AGENDA HEADING: Consent Calendar
AGENDA TITLE:
Consideration and possible action to increase the City’s contribution to employee health
savings accounts.
RECOMMENDED COUNCIL ACTION:
1) Adopt Resolution No. 2022 -___ A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF RANCHO PALOS VERDES, CALIFORNIA, INCREASING THE
CITY’S HEALTH SAVINGS ACCOUNT CONTRIBUTION FOR ALL ELIGIBLE
EMPLOYEES EFFECTIVE JANUARY 1, 2023
FISCAL IMPACT:
Amount Budgeted: N/A
Additional Appropriation: None
Account Number(s):
ORIGINATED BY: Karina Bañales, Deputy City Manager
REVIEWED BY: Same as above
APPROVED BY: Ara Mihranian, AICP, City Manager
ATTACHED SUPPORTING DOCUMENTS:
A. Draft Resolution No. 2022-___ (page A-1)
B. November 1, 2022, staff report
BACKGROUND AND DISCUSSION:
On November 1, 2022, the City Council approved increasing the City's Health Savings
Account (HSA) contribution for eligible individual employees and employee family plans
starting calendar year 2023 to incentivize employees to remain or join the City’s high
deductible medical plan that in return will keep premium insurance costs low for the City
(Attachment B).
This evening, Staff seeks City Council adoption of a resolution (Attachment A)
memorializing the City’s HSA contribution amount of $3,850 for eligible individuals and
$7,750 for eligible family plans for the 2023 High Deductible preferred provider
organization (PPO)+HSA medical plan.
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ADDITIONAL INFORMATION:
On October 20, 2022, the Rancho Palos Verdes Employees Association (RPVEA) board
approved the increased HSA amounts. This action was pursuant to the requirements of
the Meyers-Milias-Brown Act (“MMBA,” commencing at California Government Code §
3500 et seq.). The City is still in meet and confer negotiations with the American
Federation of State, County and Municipal Employees, District Council 36 (“AFSCME”),
representing certain part-time City classifications, regarding this increase, and therefore
the Resolution is adopted subject to completion of those negotiations before the
increased City contribution amounts shall be available to AFSCME represented eligible
part-time employees.
CONCLUSION:
Staff recommends the City Council adopt a resolution to memorialize the HSA
contribution increases for all eligible employees for calendar year 2023.
ALTERNATIVES:
In addition to the Staff recommendation, the following alternative actions are available for
the City Council’s consideration:
1. Do not adopt the draft resolution, thereby not adopting the HSA increases for the
2023 health insurance benefit year.
2. Take other action, as deemed appropriate.
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RESOLUTION NO. 2022-___
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF RANCHO PALOS VERDES, CALIFORNIA,
INCREASING THE CITY’S HEALTH SAVINGS ACCOUNT
CONTRIBUTION FOR ALL ELIGIBLE EMPLOYEES
EFFECTIVE JANUARY 1, 2023
WHEREAS, Section 36506 of the California Government Code requires that a
city council fix the compensation of all appointive officers and employees by resolution
or ordinance; and
WHEREAS, the City of Rancho Palos Verdes (“City”), through City Council
action, provided eligible employees with a high deductible PPO medical plan with a
Health Savings Account (“HSA”) feature that was partly funded by the City starting in
2007;
WHEREAS, the City Council has increased its HSA contribution amounts over
the years since 2007 and expanded employee eligibility for the high deductible PPO +
HSA medical plan to include qualifying part-time employees pursuant to law;
WHEREAS, the Internal Revenue Service (“IRS”) administers and enforces U.S.
federal tax laws and announced that eligible HSA contribution limits would be increased
for 2023 due to the recent inflation surge to $3,850 for self-only coverage, up from
$3,650 in 2022, and to $7,750 for family coverage, up from $7,300 in 2022;
WHEREAS, the City’s labor relations representatives recently negotiated with the
Rancho Palos Verdes Employees Association (“RPVEA”), as the exclusive employee
organization for those City employees in the bargaining unit defined as non -
management, full-time employees in the classifications listed in Exhibit "A" to the
Memorandum of Understanding between the City and the RPVEA, and reached a
tentative agreement to implement an increase to the City’s HSA contributions to the new
limits allowed by the IRS for eligible employees for 2023 subject to City Council
approval by resolution;
WHEREAS, the City’s labor relations representatives are in the process of
negotiating with the American Federation of State, County and Municipal Employees,
District Council 36 (“AFSCME”), representing certain part-time City classifications,
regarding an increase to the City’s HSA contributions to the new limits allowed by the
IRS for eligible employees for 2023; and
WHEREAS, the City Council authorized on November 1, 2022, the increase to
the City’s HSA contributions to the new limits allowed by the IRS for eligible employees
for 2023 subject to City Council approval by resolution and asked staff to bring such
resolution back to the City Council for formal adoption to be effective January 1, 2023;
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Resolution No. 2022-
Page 2 of 3
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS:
Section 1: The City Council finds the above recitals are true and correct and
incorporated herein by this reference.
Section 2: The City Council hereby approves, adopts and implements
increased City contributions to the City’s high deductible PPO medical plan with HSA to
the IRS allowed limits of $3,850 for self-only coverage and $7,750 for family coverage
for eligible employees commencing January 1, 2023.
Section 3: The increased contribution amounts for American Federation of
State, County and Municipal Employees, District Council 36 , represented employees
shall be subject to meet and confer and agreement by AFSCME District Council 36,
before such increased contribution shall be implemented.
Section 4: This resolution shall be effective upon adoption though
implementation shall occur at a later date as specified herein . The City Clerk shall
certify the adoption of this Resolution.
PASSED, APPROVED and ADOPTED this 15th day of November 2022.
_____________________________
David L Mayor
Attest:
____________________________
Teresa Takaoka, City Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss
CITY OF RANCHO PALOS VERDES )
I, Teresa Takaoka, City Clerk of the City of Rancho Palos Verdes, hereby certify
that the above Resolution No. 2022-__ was duly and regularly passed and adopted by
the said City Council at a regular meeting thereof held on November 15, 2022.
__________________________
City Clerk
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List of Classifications in the
Rancho Palos Verdes Employee Association
Account Clerk
Accountant
Accounting Manager
Accounting Technician
Administrative Analyst I
Administrative Analyst II
Administrative Analyst II (Records Management)
Administrative Staff Assistant
Assistant Engineer
Assistant Planner
Associate Engineer
Associate Planner
Building Inspector I
Building Inspector II
Cable TV Station Manager
Code Enforcement Officer
Deputy City Clerk
Engineering Technician
Geographic Information Systems Coordinator
Lead Worker
Maintenance Superintendent
Maintenance Supervisor
Maintenance Worker 1/11
Open Space & Trails Manager
Park Ranger
Permit Clerk
Permit Technician
Planning Technician
Principal Planner
Project Manager
Recreation Program Supervisor I
Recreation Program Supervisor II
Recreation Services Manager
Senior Account Technician
Senior Accountant
Senior Administrative Analyst
Senior Code Enforcement Officer
Senior Engineer
Senior Information Technician
Senior Park Ranger
Senior Planner
Staff Assistant I
Staff Assistant 11
Traffic Engineering Technician
Exhibit A
Resolution No. 2022-
Exhibit A
Page 1 of 1
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