CC RES 2026-081 RESOLUTION NO. 2026-81
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
RANCHO PALOS VERDES, CALIFORNIA, APPROVING,
ADOPTING, AND IMPLEMENTING, AND THEREBY
AUTHORIZING THE CITY MANAGER TO SIGN A SECOND
AMENDMENT TO THE CITY'S MEMORANDUM OF
UNDERSTANDING WITH THE RANCHO PALOS VERDES
EMPLOYEES' ASSOCIATION FOR THE PERIOD JULY 1,
2025 THROUGH JUNE 30, 2028, INCREASING THE CITY'S
CONTRIBUTION TO ELIGIBLE EMPLOYEE HEALTH
SAVINGS ACCOUNTS IN 2027
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") continues to recognize 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 covering the period July 1, 2025 through
June 30, 2028 adopted on June 3, 2025 by City Council Resolution No. 2025-36 ("RPVEA
MOU 2025-28"), a copy of which is attached hereto as Exhibit"1"; and,
WHEREAS, th'e parties entered into a First Amendment to the RPVEA MOU 2025-
28 dated November 4, 2025 ("First Amendment"), which became effective on January 1,
2026, to address the CITY's 2026 contribution to employee Health Savings Account
plans, with all other terms and conditions of the RPVEA MOU 2025- 28 remained in full
force and effect.
WHEREAS, pursuant to the provisions of the Meyers-Milias-Brown Act
(Government Code § 3500 et seq.), the City's labor representatives and RPVEA have
met and conferred and reached a tentative agreement regarding increasing the City's
2027 contributions to employee Health Savings Accounts for individual employees and
employee family plans provided under the 2025-28 RPVEA MOU to further incentivize
employees to remain in or join the City's high deductible medical plan, in return keeping
premium insurance costs lower for the City; and
WHEREAS, the City Council has determined that it desires to further incentivize
employees to remain in or join the City's high-deductible medical plan by matching the
IRS increases to the contribution amounts for such HSA plans for calendar year 2027;
and
WHEREAS, the City Council and RPVEA desire to amend the, RPVEA MOU 2025-
28 by accepting, adopting and implementing the attached Second Amendment to the
2025-28 RPVEA MOU to reflect the aforementioned changes.
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 approves and adopts the attached Second
Amendment to the 2025-28. RPVEA MOU provided herewith as Exhibit "1" thereby
increasing the City's Health Savings Account contribution for individual employees and
employee family plans starting calendar year 2027; and,
Section 3. This resolution shall be effective on January 1, 2027. The City Clerk
shall certify the adoption of this Resolution.
PASSED, APPROVED AND ADOPTED on this 20th day of October, 2026.
P I S __ yor
ATTEST:
Asa Takaoka, City Clerk
STATE OF CALIFORNIA )
COUNTY OF LO.S 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. 2026-81 was duly and regularly passed and adopted by the said City
Council at a regular meeting thereof held on October 20, 2026.
Ter Takaoka, City Clerk
Resolution No. 2026-81
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SECOND AMENDMENT TO
MEMORANDUM OF UNDERSTANDING
City of Rancho Palos Verdes
and
Rancho Palos Verdes Employees Association
July 1, 2025 - June 30, 2028
Docusign Envelope ID: F74C327B-BC52-8713-819A-2ED81A987FC8
Resolution No. 2026-81
Exhibit 1
Page 1 of 3
1
SECOND AMENDMENT TO MEMORANDUM OF UNDERSTANDING
between the City of Rancho Palos Verdes and the
Rancho Palos Verdes Employees Association
for the Period of July 1, 2025 through June 30, 2028
Pursuant to the requirements of the Meyers-Milias-Brown Act (“MMBA,” commencing at
California Government Code § 3500 et seq.), the City of Rancho Palos Verdes (“CITY”) has
recognized the Rancho Palos Verdes Employees Association (“RPVEA”) as the majority or
exclusive representative, as those terms are interchangeably used under the MMBA, for those
CITY employees in the bargaining unit defined as non-management, full-time employees in the
classifications listed on Exhibit “A” to the Memorandum of Understanding between the CITY
and RPVEA for the period July 1, 2025 through June 30, 2028 (“RPVEA MOU 2025-28”), and
adopted by Resolution No. 2025-36 on June 3, 2025.
Thereafter, the parties entered into a First Amendment to the RPVEA MOU 2025-28 dated
November 4, 2025 (“ First Amendment”), which became effective on January 1, 2026, to address
the CITY’s contribution to employee Health Savings Account plans, with all other terms and
conditions of the RPVEA MOU 2025- 28 remained in full force and effect.
Thereafter, by and between the CITY and RPVEA, this Second Amendment shall only become
effective January 1, 2027 and makes only those changes reflected herein below, all other terms
and conditions of the RPVEA MOU 2025-28 remaining in full force and effect.
RPVEA MOU 2025-28, ARTICLE VII Benefits, Section A, subsection 1, currently provides as
follows:
A. Medical Insurance and Opt-Out
1. Medical Insurance
The City has five (5) medical plans available to employees (3 HMO’s, 1
traditional PPO, and a high deductible PPO).
The high deductible PPO plan comes with a Health Savings Account (HSA) that
is funded by the City. The City’s annual contribution to an employee’s HSA plan
for the 2026 calendar year is Four- Thousand Four Hundred dollars ($4,400.00)
for single coverage or Eight-Thousand Seven Hundred Fifty dollars ($8,750.00)
for employee and dependent coverage. Employees can make additional
contributions, on a pre-tax basis, to their HSA account through payroll
deductions, up to the IRS limits, based on their age (50+) and coverage level.
ARTICLE VII Benefits, Section A, subsection 1, shall be superseded and replaced in full with
the following language upon City Council approval of this Second Amendment to the RPVEA
MOU 2025-28:
A. Medical Insurance and Opt-Out
1. Medical Insurance
Docusign Envelope ID: F74C327B-BC52-8713-819A-2ED81A987FC8
Resolution No. 2026-81
Exhibit 1
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The City has five (5) medical plans available to employees (3 HMO’s, 1
traditional PPO, and a high deductible PPO).
The high deductible PPO plan comes with a Health Savings Account (HSA) that
is funded by the City. The City’s annual contribution to an employee’s HSA plan
for the 2027 calendar year is Four- Thousand Five Hundred dollars ($4,500.00)
for single coverage or Nine-Thousand dollars ($9,000.00) for employee and
dependent coverage. Employees can make additional contributions, on a pre-tax
basis, to their HSA account through payroll deductions, up to the IRS limits,
based on their age (50+) and coverage level.
IT IS SO AGREED:
City of Rancho Palos Verdes Rancho Palos Verdes Employee
Association
Ara M. Mihranian – City Manager
Matt Waters – President
Catherine Jun – Deputy City Manager
Cheri Bailiff – Vice President
Vina Ramos – Finance Director
Vanessa Godinez – Human Resources and Risk
Manager
Docusign Envelope ID: F74C327B-BC52-8713-819A-2ED81A987FC8
Resolution No. 2026-81
Exhibit 1
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