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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 Page 2 of 2 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 Page 2 of 3 2 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 Page 3 of 3