CC RES 2025-076 RESOLUTION NO. 2025-76
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
RANCHO PALOS VERDES AUTHORIZING THE
INCREASE OF THE CITY'S HEALTH SAVINGS ACCOUNT
CONTRIBUTION FOR ALL ELIGIBLE FULL-TIME
EMPLOYEES EFFECTIVE JANUARY 1, 2026
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 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
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 2026 due to the recent inflation surge from $4,300 to $4,400 for
employee-only coverage, and from $8,550 to $8,750 for family coverage; and
WHEREAS, the City's labor relations representatives met 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 2025-2028
Memorandum of Understanding ("MOU") 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 2026 subject to City Council
approval by resolution and have prepared, under a separate resolution, a First
Amendment to the 2025-28 RPVEA MOU to reflect that change.
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; and,
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 $4,400 for employee-only coverage and $8,750 for family
coverage for eligible employees commencing January 1, 2026 for all full-time City
employees subject to any required meet and confer with the! respective employee
organization for represented employees; and,
n
Section 3. The City Council hereby approves, adopts and implements the First
Amendment to the 2025-28 RPVEA MOU which incorporates the increased City
contributions to the City's high deductible PPO medical plan with HSA to the IRS allowed
limits of $4,400 for employee-only coverage and $8,750 for family coverage for eligible
RPVEA represented employees commencing January 1, 2026; and,
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 on this 4th day of November, 2025.
David L. Bradley, yor
ATTEST:
112,40/2A----
T 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. 2025-76 was duly and regularly passed and adopted by the said City
Council at a regular meeting thereof held on November 4, 2025.
reif.v (40/12,454-/-
T rest Takaoka, City Clerk
Resolution No. 2025-76
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