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HomeMy WebLinkAboutAgenda Report - August 20, 2014 C-22AGENDA ITEM CeL Z &11& CITY OF LODI COUNCIL COMMUNICATION TM AGENDA TITLE: Adopt Resolution Rescinding Resolutions 2000-211 and 2012-165 and Approving Benefit Modifications for Council Members MEETING DATE: August 20, 2014 PREPARED BY: Human Resources Manager RECOMMENDED ACTION: Adopt resolution rescinding Resolutions 2000-211 and 2012-165 and approving Benefit Modifications for Council Members. BACKGROUND INFORMATION: The City Council has previously adopted Resolutions 2000-211 and 2012-165 which set the types of benefits for which Council members are eligible. At its June 18, 2014 meeting, Council discussed modifying their benefits to increase the City's capped contribution towards medical to the January 1, 2014 rates for the lowest cost HMO in the Lodi geographical area and to increase the "opt -out" provision for those who decline coverage through the City. These changes would be effective the first pay period in which January 1, 2015 falls. The City Council's prior resolutions listed a summary of benefits but did not include a description, coverage amounts, or define whether the employee or employer paid for the benefit. The attached includes amounts according to our current practice. A summary of the benefits provided to City Council members is listed below: Benefit Amount Accidental Death & Dismemberment Insurance $10,000; City pays full premium Chiropractic Coverage Access to coverage through City plan; City pays full premium Deferred Compensation Participation in any of the plans offered by the City No City matchprovided) Dental Coverage Access to coverage through City plan; City pays full premium Employee Assistance Program Access to coverage through City plan; City pays full premium Flexible Spending Account Section 125 Participation in City provided plan Life Insurance $10,000; City pays full premium Lodi City Employee's Association (LCEA) Membership in LCEA is available at the Council members cost Medical Insurance Access to available plans through CaIPERS—City contribution capped at the 2014 lowest cost HMO in the Lodi geographical area; City pays monthly maximum of $657.33 for Employee only; $1,314.66 for Employee + 1; $1,709.06 for Employee + Family coverage APPROVED: 4 '} Stephen SchwabauerrCity Manager Medical Insurance Opt -Out If City offered coverage is declined and proof of other group coverage is provided, Council member is eligible for payment of $305.22 for Employee only, $532.92 for Employee + 1; and $692.81 for Employee + Family coverage PERS Retirement 2% at 55 for'Classic' employees; 2% at 62 for'New' employees; Council member pays the full employee share Travel Insurance -Accidental Death $100,000; Ci!Y 2ays full premium Vision Coverage Access to coverage through City plan; City pays full premium Worker's Compensation Covered by California Worker's Compensation program; City pays full premium Council members are not eligible for Tuition Reimbursement under the City's Tuition Reimbursement policy. Attached are copies of Resolutions 2000-211 and 2012-165. Also attached is an Overview of Council Member Benefits. FISCAL IMPACT: It is estimated that the benefit modifications will cost the City about $3,939 per year. FUNDING AVAILABLE: Necessary funding will be included in each fiscal year budget. Adele Post, Human Resources Manager RESOLUTION NO. 2012-165 A RESOLUTION OF THE LODI CITY COUNCIL APPROVING BENEFIT MODIFICATIONS FOR COUNCIL MEMBERS WHEREAS, City Council benefits shall be reduced to the same level as those negotiated by employees; and WHEREAS, it is recommended that Council approve the following benefit modifications for Council Members: • Council Members will begin paying 7 percent of the employee's share of retirement. • Council Members' medical premium will be capped at the January 1, 2012, rate for the lowest cost HMO. • Council Members newly elected on or after November 6, 2012, will receive the reduced CaIPERS retirement formula of 2 percent at 60 on January 1, 2013, or upon the date in which the City amends its retirement contract with CaIPERS (whichever is later). Date: October 17, 2012 I hereby certify that Resolution No. 2012-165 was passed and adopted by the Lodi City Council in a regular meeting held October 17, 2012, by the following vote: AYES: COUNCIL MEMBERS — Hansen, Johnson, Katzakian, Nakanishi, and Mayor Mounce NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — None el Jro H L City Clerk 2012-165 RESOLUTION NO. 2000-211 A RESOLUTION OF THE LODI CITY COUNCIL APPROVING AND AFFIRMING THE BENEFITS PROVIDED TO ITS CITY COUNCIL MEMBERS WHEREAS, the Lodi City Council is desirous of formalizing and affirming the benefits provided to its City Council Members; and WHEREAS, the following Schedule of Benefits represents a listing of those benefits: NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Lodi hereby approves and affirms the Schedule of Benefits set forth above for City of Lodi Council Members: and BE IT FURTHER RESOLVED, that this Schedule of Benefits for City Council Members may be amended from time to time by Resolution. Dated: November 15, 2000 I hereby certify that Resolution No. 2000-211 was passed and adopted by the City Council of the City of Lodi in a regular meeting held November 15, 2000, by the following vote: AYES: COUNCIL MEMBERS — Land, Nakanishi, Pennino and Mayor Mann NOES: COUNCIL MEMBERS — Hitchcock ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — None SUSAN J. BLACKSTON City Clerk 2000-211 SCHEDULE OF BENEFITS ➢ Accidental Death Insurance ➢ Accidental Travel Insurance ➢ Chiropractic Insurance ➢ Credit Union Membership ➢ Deferred Compensation ➢ Dental Insurance ➢ Direct Deposit Payroll ➢ Employee Assistance Program ➢ Employee Development * ➢ Life Insurance ➢ Flexible Spending Account ➢ Medical Fringe ➢ Medical Insurance > Pharmaceutical ➢ Medical -Married City Employees ➢ 2% @ 55 as allowed through ➢ Recreation (LCEA) PERS 9 Vision Insurance ➢ Workers Compensation " Does Not Include Tuition Reimbursement Per Council Action on July 5, 2000. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Lodi hereby approves and affirms the Schedule of Benefits set forth above for City of Lodi Council Members: and BE IT FURTHER RESOLVED, that this Schedule of Benefits for City Council Members may be amended from time to time by Resolution. Dated: November 15, 2000 I hereby certify that Resolution No. 2000-211 was passed and adopted by the City Council of the City of Lodi in a regular meeting held November 15, 2000, by the following vote: AYES: COUNCIL MEMBERS — Land, Nakanishi, Pennino and Mayor Mann NOES: COUNCIL MEMBERS — Hitchcock ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — None SUSAN J. BLACKSTON City Clerk 2000-211 January 2015 Lodi City Council Member Overview of Benefits Accidental Death & Dismemberment Insurance (AD&D) Council Members are provided with an additional $10,000 of accidental death and dismemberment coverage in the event the death is the result of an accident. This coverage is in addition to Life Insurance and Travel Insurance. The City pays the full premium for this benefit. Chiropractic Coverage Council Members are provided with chiropractic coverage, in addition to medical coverage. The City pays the full premium for this benefit. Deferred Compensation Council Members, at their own expense, may elect to defer compensation on a pre-tax basis to a 457 Deferred Compensation Plan. Dental Coverage The City contributes the full cost of the premium for dental coverage. Council Members may elect coverage for eligible dependents and are responsible for any deductible or co -payment. Annual benefits are capped at $1,000 per covered participant. Employee Assistance Program (EAP) The City offers an Employee Assistance Program (EAP) providing confidential counseling services for Council Members and their family members. The City pays the full premium for this benefit. Flexible Spending Account (Section 125) Council Members may participate, at their own expense, in Section 125 Flexible Spending Accounts including; pre-tax medical premiums, pre-tax contributions to pay for qualified medical expenses, and pre-tax contributions towards qualified childcare expenses. Life Insurance Council Members are provided with $10,000 of life insurance coverage. The City pays the full premium for this benefit. Medical Insurance (Including Prescription Coverage) The City offers a variety of medical plans through CalPERS health. The City has capped its contribution towards medical premiums to the lowest cost HMO available in Lodi's geographical area, effective January 1, 2014. The City offers three tiers of coverage, employee only, employee plus one, and employee plus family. Council Members may elect coverage for eligible dependents and are responsible for the premium costs above and beyond the City's contribution. The City offers an "opt -out" provision for those who decline medical benefits which can be added to their deferred compensation account or receive in cash (employee only $305.22, employee plus one $532.92, and employee plus family $692.81). January 2015 PERS Retirement CalPERS retirement benefits: retirement formula of 2 percent at 55 as allowed through CalPERS for "classic" members; Council Members newly elected on or after November 6, 2012, will receive the retirement formula of 2 percent at 62 if deemed a "new" member by CalPERS. Council Members shall pay the full employee's share of retirement. Recreation — Optional Membership in Lodi City Employee's Association (LCEA) Council Members may, at their own expense, join the Lodi City Employee's Association (LCEA) for a minimal annual contribution. Travel Insurance — Accidental Death The City provides accidental death benefit coverage in the amount of $100,000 to Council Members while traveling on City business. Vision Coverage The City contributes the full cost of the premium for vision benefits, including eye examinations and glasses, for Council Members and their eligible dependents. Workers' Compensation Council Members' are covered by California Workers' Compensation. C 4OZZ RESOLUTION NO. 2014- A RESOLUTION OF THE LODI CITY COUNCIL APPROVING BENEFIT MODIFICATIONS FOR COUNCIL MEMBERS, AND FURTHER RESCINDS RESOLUTION NO. 2000-211 AND RESOLUTION NO. 2012-165 WHEREAS, the Lodi City Council is amending the benefits provided to its City Council Members; and WHEREAS, the following Schedule of Benefits represents a listing of those benefits: Benefit Amount Accidental Death & Dismemberment $10,000; City pays full premium Insurance Chiropractic Coverage Access to coverage through City plan; City pays full premium Deferred Compensation Participation in any of the plans offered by the Cit No City matchprovided) Dental Coverage Access to coverage through Cit Ian Employee Assistance Program Access to coverage through City plan; City pays full premium Flexible Spending Account Section 125 Participation in City provided plan Life Insurance ity pays full premium Lodi City Employee's Association (LCEA) Membership in LCEA is available at the Council members cost Medical Insurance Access to available plans through CalPERS—City contribution capped at the 2014 lowest cost HMO in the Lodi geographical area; City pays monthly maximum of $657.33 for Employee only; $1,314.66 for Employee + 1; $1,709.06 for Employee + Family coverage Medical Insurance Opt -Out If City offered coverage is declined and proof of other group coverage is provided, Council member is eligible for payment of $305.22 for Employee only, $532.92 for Employee + 1; and $692.81 for Employee + Family covers e PERS Retirement 2% at 55 for'Classic' employees; 2% at 62 for `New' employees; Council member pays the full employee share Travel Insurance -Accidental Death $100 000; City pays full premium Vision Coverage Access to coverage through City plan Worker's Compensation Covered by California Worker's Compensation program; City pays full premium Council members are not ellgible _for tuition reimbursement under the Cws Tuition Reimbursement Poli NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby approve the above -referenced benefit modifications for Council Members, and further rescinds Resolution No. 2000-211 and Resolution No. 2012-165. Date: August 20, 2014 --------=--------------------------------------------------------- ------------------------------------------------------------------ I hereby certify that Resolution No. 2014- was passed and adopted by the Lodi City Council in a regular meeting held August 20, 2014, by the following vote: AYES: COUNCIL MEMBERS — NOES: COUNCIL MEMBERS — ABSENT: COUNCIL MEMBERS — ABSTAIN: COUNCIL MEMBERS — JENNIFER M. ROBISON City Clerk 2014- RESOLUTION NO. 2014-161 A RESOLUTION OF THE LODI CITY COUNCIL APPROVING BENEFIT MODIFICATIONS FOR COUNCIL MEMBERS, AND FURTHER RESCINDING RESOLUTION NO. 2000-211 AND RESOLUTION NO. 2012-165 WHEREAS, the Lodi City Council is amending the benefits provided to its City Council Members; and WHEREAS, the following Schedule of Benefits represents a listing of those benefits: Benefit Amount Accidental Death & Dismemberment $10,000; City pays full premium Insurance Chiropractic Coverage Access to coverage through City plan; City pay§ full premium Deferred Compensation Participation in any of the plans offered by the Cit no City matchprovided) Dental Coverage Access to coverage through CFtplan Employee Assistance Program Access to coverage through City plan; City pays full premium Flexible Spending Account Section 125)_Participation in City provided plan Life Insurance $10,000; lty payrs full premium Lodi City Employee's Association (LCEA) Membership in LCEA is available at the Council Member's cost Medical Insurance Access to available plans through CalPERS—City contribution capped at the 2014 lowest cost HMO in the Lodi geographical area; City pays monthly maximum of $657.33 for Employee only; $1,314.66 for Employee + 1; $1,709.06 for Employee + Family coverage Medical Insurance Opt -Out If City offered coverage is declined and proof of other group coverage is provided, Council Member is eligible for payment of $305.22 for Employee only, $532.92 for Employee + 1; and $692.81 for Employee + Family coverage PERS Retirement 2% at 55 for 'Classic' employees; 2% at 62 for'New' employees; Council Member a s the full employee share Travel Insurance -Accidental Death $100,000; City p a s full premium Vision Coverage Access to coverage through City plan Worker's Compensation Covered by California Worker's Compensation program; City pays full premium Council Members are not eligible for tuition reimbursement under the City's Tuition Reimbursement Policy NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby approve the above -referenced benefit modifications for Council Members, and further rescinds Resolution No. 2000-211 and Resolution No. 2012-165. Date: August 20, 2014 I hereby certify that Resolution No. 2014-161 was passed and adopted by the Lodi City Council in a regular meeting held August 20, 2014, by the following vote: AYES: COUNCIL MEMBERS — Hansen, Johnson, Nakanishi, and Mayor Katzakian NOES: COUNCIL MEMBERS — Mounce ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — None JNIFER . ROBISON y Clerk 2014-161