CC RES 2023-049 RESOLUTION NO. 2023-49
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, 2024
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
c
WHEREAS, the City of Rancho Palos Verdes ("City"), through City Council
action, provided eligible employees with a high deductible Preferred Provider
Organization ("PPO") medical plan with a Health Savings Account ("HSA") feature that
was partly funded by the City starting in 2007; and
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; and
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 calendar year 2024 due to the recent inflation surge from $3,850 to $4,150 for self-
only coverage, and from $7,750 to $8,300 for family coverage; and
WHEREAS, the City's labor relations representatives meet and conferred 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 2024 subject to City Council
approval by resolution and have prepared a First Amendment to the RPVEA MOU
/O22-25 to reflect that change; and
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 2024.
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 $4,150 for self-only coverage and $8,300 for family coverage
for eligible employees commencing January 1, 2024, for all City employees subject to
any required meet and confer with the respective employee organizations for
represented employees.
Section 3: The City Council hereby approves, adopts, and implements the
First Amendment to the RPVEA MOU 2022-25 which incorporates the increased City
contributions to the City's high deductible PPO medical plan with HSA to the IRS
allowed limits of $4,150 for self-only coverage and $8,300 for family coverage for
eligible RPVEA represented employees commencing January 1, 2024.
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 17th day of October 2023.
v r
John I ikshank, Mayor Pro Tem
Attest:
•
ere .: 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. 2023-49 was duly and regularly passed and adopted by the said
City Council at a regular meeting thereof held on October 17, 2023.
eres= . -aoka, City Clerk111
o Resolution No 2023-49
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