HomeMy WebLinkAboutAgenda Report - July 5, 2000 H-01AGENDA TITLE: Council Benefits
MEETING DATE: July 5, 2000
SUBMITTED BY: City Manager
RECOMMENDATION: That the City Council adopt the attached Resolution authorizing "executive
management benefits" as listed in Exhibit C to present members of the City Council and to members of the
City Council who served after September 8, 1988.
BACKGROUND INFORMATION: On September 8, 1988 the City Manager's Office authorized
the Personnel and Finance Director to make medical, dental and/or vision benefits available to members of
the City Council (Exhibit A). Until then, benefits had not been given to members of the Lodi City Council.
This decision was strictly an administrative decision from the City Manager's Office and not an action of
the City Council. However, by signing up for these benefits, it would be correct to assume that the City
Council had approved of this action.
In our research of City Council benefits, it has been found that in many cities, the Council benefits are
authorized only by administrative action as shown in Exhibit B. The study shows that the cities of
Manteca, Davis, Woodland and Turlock give their Councils benefits based on administrative approval.
This is similar to Lodi with the exception of PERS retirement and deferred comp that were approved by
City Council action. In some cities, the City Council is not given any benefits while in other cities the City
Council enjoys a number of benefits. Also, the documentation used to approve these benefits varies. In
some cities it is a City Council action and in other cities it is strictly an administrative action. There is no
common thread.
Between September 1988 and now, the City Council has been given "executive management benefits"
without question based on the approval of the City Manager's Office. The benefits were limited to medical
insurance in the beginning and were extended to all "executive management benefits" over time.
Until recently, this action had not been questioned. However, with the recent focus of the City Council on
"tuition reimbursement" the question has been raised as to how and what benefits should be authorized.
The City Attorney reviewed the current benefits and found that the City has not acted improperly in
granting these benefits to the City Council, to include the tuition reimbursements.
Based on recent comments by Council members and concerned community members, staff recommends
that all Council benefits be ratified by City Council to ensure that everyone is in agreement with the
benefits thus far offered and to ensure that there is documentation to support this action. This Resolution
should provide approval for all benefits offered after September 1988 (Exhibit C).
APPROVED:
H. Dixon Flynn -- City Manager
7 i9
CITY OF LODI COUNCIL1 1
OTHER DISCUSSION AND OPTIONS
Included for further discussion are letters from members of the City Council:
• E-mail from Councilperson Hitchcock subject: "Council Benefits" dated June 28, 2000 Exhibit D
• Memo from Councilman Pennino regarding Council Benefits (Exhibit E)
• Letter from Mayor Mann regarding Council Benefits (Exhibit F)
Respectfully submitted,
H. Dixon Flynn
City Manager
Attachments: Exhibit A
September 8, 1988. Memo from City Manager's Office
Exhibit B
Results of "other cities" Council benefits
Exhibit C
List of Executive Management Benefits
Exhibit D
E -Mail from Council Member Hitchcock
Exhibit E
Memo from Council Member Pennino
Exhibit F
Letter from Mayor Mann
Exhibit G
Resolution No. 2000-121
APPROVED:
H. Dixon Flynn -- City Manager
EXHIBI A
MEMORANDUM
TO: Robert Ho Finance Director S
,ioanne rloch, Personnel Director
FROM: Eric Whitaker
Administrative Assistant to the City Manager
DATE: September 8, 1988
SUBJ: Insurance Benefits for City Councilmembers
Effective fiscal year 1988-89, City Councilmembers may opt to receive
City -paid medical, dental, and/or vision insurance. Councilmembers submitting
enrollment forms should be treated as new hires for insurance purposes and
will be eligible for COBRA continuation privileges at group rates upon
separation from office in a manner similar to City employees.
This enrollment will be coordinated by the Office of the City Clerk,
which will notify the Personnel Office by September 20, 1988 regarding the
choices of the Councilmembers.
Please contact me if you have any questions or need further
information.
r' Whitaker
(Administrative Assistant to the City Manager
EW:br
cc: Assistant City Manager
City Clerk
AAMEM070
EXHIBIT 13
Citv Council — Bene its ON of Lodi Human Resources Department
- - --------------------------------- - -
CITY Benefits Available to City Council Members I How was decision made to provide these benefits? i
#I
!
1
; CHICO
_
'i Medical, Dental, Vision. ; Implemented by resolution.
LI-------------------------------
2
CLOVIS
------------------------------------------------------------------------------- - -- - - - - - -------------------------------------------------------------------------------'
PERS (all Council members have the option of participating or not), j Clovis has always provided these benefits. There is no official record
i
Medical, Prescription, Dental, Vision, $100,000 Life Insurance. of Council extending these benefits to themselves.
! 3
i
-i - -------------------+- - - -- -- ------ --------------------------------------------------------------------------------}--------------------------------------------------------------------------------------------------- i
! DAVIS i CalPERS Health Program, Dental, $100,000 Life Insurance. ! Staff decided to extend these benefits to City Council many years ago
and they have continued to this day.
i
i
'r------f--------------------
i 4
! FAIRFIELD
; Medical, Dental, Vision, Life Insurance, Auto Allowance - $300/month Implemented by resolution.
for Mayor, $150/month for Council members.
5
' MANTECA
--------------------------------------
; CalPERS Health Program (includes pharmaceutical, Council has a Staff can not recall a resolution extending these benefits to Council.
choice of approximately 8 plans), Dental, Vision, PERS retirement.
In lieu of participating in PERS retirement, Council members may i
+-----------------------------t-------------------
choose the ICMA RC deferred compensation plan. -----------------------------3
�- 6
!
I
i
-
MERCED
i
!
- - - — — - -- -----------------+----------------------------------------------------------
1 No benefits provided. 1 N/A ;
�
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7
i !
MODESTO ; PERS retirement-- or if the Council member does not participate in Council member must pay their portion 7% of PERS or 3.75% of PARS
i
i this, another retirement plan known as PARS (used for part-time ! - staff believes this was implemented by resolution. Medical, Dental,
employees) is available. Medical, Dental, Vision. Vision are only available if the Council member pays full cost - this was
i i implemented by staff alone no resolution.
'---------------------
! 8
! REDDING
-------------------- -
I PERS, Medical, Dental, Vision, Life Insurance, Travel Allowances. ! The "Miscellaneous Employees Resolution" covers City Council
members and all executive management employees. It specifically
j lists benefits Council receives.
--------=--
---------- -----1---------------
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EXHIBITS C
City Council Benefits
_
�-..-...,,.._..��h•.^Benefit......_......�........�....._�...-....�....._.._.,M�. What You Receive
Accidental Death Insurance
$25,000 accidental death policy, in the event of death
resulting from a line -of -duty injury.
Accident Travel Insurance
$100,000 travel life insurance coverage from National
Accident Insurance Group while traveling on City
business outside the City limits.
Chiropractic Insurance
This benefit allows up to a maximum of 40 visits per
calendar year and each visit is subject to a $10.00 co-
payment. A Landmark Chiropractor must be utilized.
Credit Union
Membership in the Lodi Employees Credit Union which
offers savings plans, loans, and automatic payroll
deductions.
Deferred Compensation
A contribution or a percentage may be made based on
salary, up to $8,000 per year, or 25% of their gross
salary. The amount deferred and interest earned are not
considered taxable income until withdrawn.
Dental Insurance
The City will pay 100% of the monthly premium for
dental insurance.
Direct Deposit
Payroll checks may be deposited directly into a checking
or savings account at a bank of choice.
Employee Assistance
6 free visits per year per family member with a licensed
Program
clinical social worker though "Options." This may be
supplemented by medical insurance after exhaustion of
the 6 free visits.
Employee Development
Training programs, professional and skills development
courses, meetings, and seminars may be utilized to
improve efficiency and broaden knowledge in the
performance of duties.
Executive Physical
In accordance with Health Net guidelines, may receive a
physical including office examination, blood panel,
urinalysis, chest x-ray, EKG (resting), mammogram, and
pap smear, if deemed necessary by the physician.
Employee is reimbursed for costs not covered by medical
insurance. Receipts should be submitted to Finance.
Flexible Spending Account
Each calendar year elections may be make to contribute
re -taxed dollars into:
6/9/00
619!00
What You Receive
TBenefits
Flexible Spending Account
1) Premium conversion
con't
2) unreimbursed medical
3) dependent care reimbursement
Life Insurance
1 '/z times annual salary rounded to the next highest
$1,000. Plus $12,000 to a maximum of $150,000 of
coverage. Including dependent coverage.
De en nt QL)vgrage Includes
Spouse $1,500
Dependent Child (6mos.-22 years) $1,500
Child (under 6mos.) $ 150
Medical Insurance
City pays 100% of premium for family members.
Medical Fringe
Choosing single coverage on the medical insurance will
allocate $25 per pay period to a deferred compensation
account. Electing to waive medical coverage will
allocate $71.15 per pay period to a deferred
compensation account.
Medical -Married City
If both the employee and the employee's spouse work for
Employees
the City and are eligible for medical insurance, only one
medical plan will be provided and the Medical Fringe
benefit will apply to the employee who is not the primary
provider. Employees and family members required to
pay a co -payment due to loss of dual coverage will have
co -payments reimbursed by the City of Lodi on a
quarterly basis.
Pharmaceutical
Prescriptions, when prescribed by a physician, are limited
to a 30 -day supply, and subject to a $10.00 co -pay per
prescription.
Recreation
Lodi City Employees Association costs $3 per month.
The Association is headed by a Board of Directors
composed of representative(s) form each department.
They sponsor an annual dinner dance and annual picnic,
and operate a booth at the Lodi Grape Festival each fall.
Retirement
2% @ 55 -The city pays both employer and employee
619!00
` Benefits What You Receive
Retirement con't
contributions.
Tuition Reimbursement
The City shall provide up to $300 per fiscal year for
tuition reimbursement or the equivalent cost of tuition
and books for two courses per semester or quarter at a
State University beyond the level of an Associate of Arts
degree, to be paid upon satisfactory completion of job-
related course work. This section will be applied toward
tuition at an accredited College or University.
Vision Insurance
The City provides a Family Vision Care insurance plan.
Workers Compensation
Employees are provided with Workers' Compensation
benefits under State law and consist of medical
'payments, temporary disability, permanent partial
disability, permanent total disability, and vocational
rehabilitation. Compensation is for injuries arising out of
and in the course of employment.
6/9/00
EXHIBIT D
Jennifer Perrin
From: Susan Hitchcock [syhjlg@pacbell.net]
Sent: Wednesday, June 28, 2000 2:02 AM
To: Steve Mann; Keith Land; Alan Nakanishi; Philip Pennino; Randy Hays; Dixon Flynn
Subject: Council Benefits
The unfortunate situation with tuition reimbursement for Mayor Mann did not have to take place.
Contrary to comments made by Councilmembers and the City Manager, the City has a very clear
and defined policy on tuition reimbursement.
The California codes and court decisions do provide a framework for compensation/benefits/
expenses received by City Councilmembers. The California Municipal Law Handbook states:
It is "the settled rule that compensation for official services depends entirely upon law, that statutes
relating to such compensation are strictly construed in favor of the government, that a public officer
may only collect and retain such compensation as is specifically provided by law, and that any
money paid by a governmental agency without authority of law may be recovered from such officer"
and
"Under the authorities noted in the introduction to this topic, the statutes authorizing expense
reimbursement are strictly construed against public officials. 'An expense must meet four
requirements to be reimbursable: (1) It must be an expense of a member of the city council; (2) It
must be an 'actual' expense; (3) The expense must have been 'incurred in the performance of official
duties; and (4) It must be a 'necessary' expense."
and
"In addition to the limitations on council compensation, expense reimbursement, and benefits
provided by state and federal law, local ordinances regarding these subjects are common and will be
effective to reduce or eliminate payments to which an official would otherwise be entitled."
The City spells out very clearly its policy for payment of tuition reimbursement in the City of Lodi
Administrative Policy and Procedure Manual and the Rules For Personnel Administration.
The Administrative Policy and Procedure Manual adopted May 1, 1995 (1 believe Mayor Mann and
Councilmember Pennino were on the Council at the time) spells out the policy and procedure for
tutition reimbursement:
Subject: Tuition Reimbursement - Policy
Date Issued: May 1, 1995
Section: T
Section 1: Purpose
"The purpose of tuition reimbursement is to encourage employees to broaden their knowledge in
their occupational field and in the activities and functions of the City of Lodi through participation in
educational courses of recognized schools or professional organizations. It is expected that as a
result of such participation, the employee will enhance hislher career opportunities, and the City will
benefit in terms of increased effciency and quality of work.
Section 2: Eligibility
Participation is limited to full-time regular employees with the City of Lodi.
Section 3: Reimbursement
Subject to the terms and conditions of the appropriate memorandum of understanding, City shall
reimburse employees the cost of tuition and books upon the satisfactory completion of job related
coursework beyond the level of an Associate of Arts degree.
Employees must maintain continuous service from the date a course begins to the date of its
completion.
Employees shall not be eligible for reimbursement when a course is paid for by another source.
The maximum amount reimbursable is subject to the terms and conditions of the appropriate
memorandum of understanding.
Section 4: Job Relationship
Courses should pertain to an employee's career field, thus enhancing his/her career advancement
opportunities and job skills. Courses related to an employee's job duties and responsibilities must
exceed the educational level required to qualify for the employees's current classification.
Subject: Tuition Reimbursement - Procedure
Date Issued: May 1, 1995
Section: T
Section I: Purpose
The purpose of this procedure is to provide guidance in implementing the City of Lodi's Tuition
Reimbursement policy.
Section 2: Application Procedure
Prior to enrollment in a course, the employee shall submit an application for participation in this
program to his/her Department Head
The Department Head shall review the application and determine eligibility according to the Tuition
Reimbursement policy and the appropriate memorandum of understanding. If the application is
denied, a letter shall be sent by the Department Head to the employee explaining why it has been
disapproved. If the application is approved, the Department Head shall sign the application and
return it to the employee, who shall be responsible to retain it until the course is completed.
Upon completion of the course of instruction, the employee shall submit to the Department Head
evidence of satisfactory completion (grade of "C" or equivalent or better). For ungraded courses, a
statement from the school or the instructor must indicate successful completion of the course. This
shall be accomplished within 30 calendar days of the completion of the course. in the event that
such cannot be furnished within this time period, the employee shall provide a written statement
explaining the reason for the delay.
The Department Head shall then authorize payment of the appropriate reimbursement.
The completed application, receipt, and evidence of grade shall be forwarded to the Finance
Department and a reimbursement check shall be issued to the employee.
Section 3: Conditions
Participation in courses must not be during regular work hours and must not result in reducing either
the normal work week of the employee or the quality and quantity of hislher services to the City,
except that the City may grant time off for attendance at training courses during working hours if the
course is given at no other times and if such time off does not disturb normal City operations. The
best interests of the City shall at all times be the determining factor in the consideration of such time
off.
Employees must complete courses within the regulation period of time allowed for them by the
school or professional organization.
Participation in this program is to be considered a privilege rather than a right of the employee.
The City reserves the right to disapprove reimbursement for courses if the course requested is
available at a substantially lower cost at a local school or college."
The City of Lodi Administrative Policy and Procedure Manual contains very thorough explanations of
policies and procedures. Besides tuition, the following topics are addressed: administrative leave,
bereavement leave, discrimination complaints, dress code, drug and alcohol testing, employee
performance evaluation, family medical leave, holiday leave, outside employment (moonlighting),
nepotism, layoff, personnel records, smoking, salary, and travel and business expense. The
distribution list shows that eighty-five copies of the manual are distributed to various positons or
locations in the City. I would suggest all Councilmembers request a copy; it is very informative and
enlightening to know there are policies in place, whether followed or not, for almost every situation. It
was written for a purpose.
To understand exactly who a "regular employee" is described as eligible for tutition benefits, one
must refer to the "Definition of Terms" as spelled out in the Rules For Personnel Administration:
Regular Employee: An employee hired from an eligible list, who has successfully completed the
probationary period for a class and occupies a budgeted position in the classified service.
Classified Service: All employees except for the following: elected ofcials; officers appointed by
the City Council, Department Heads; members of appointed boards, commissions and committees;
persons engaged under contract to render professional, scientific, technical or expert services; and
part-time or temporaty employees.
Clearly, City Councilmembers do not qualify for tuition benefits under the very specifically spelled out
tuition policy in the City of Lodi Administrative Policy and Procedure Manual. Therefore, the only
compensation/benefits to which Councilmembers are entitled are those specifically adopted by
statute as described in The California Municipal Law Handbook for General Law Cities.
It appears the City's tuition reimbursement policy has not been administered fairly in the past five
years since adoption of the Administrative Policy and Procedure Manual because not only has a
Councilmember been reimbursed for tuition, classes which are not related to an employee's career
field (Joanne Nariock, Human Resources Director - courses such as Appelate Practice, Criminal
Procedure, Trial Practice, etc.) have been reimbursed, and most recently I have heard contract
employees have also been reimbursed tutiton expenses.
i would like to know why the policy is not being followed and at whose direction. Further, I
request a written report of those employees who have received tuition reimbursement benefits
during the past five years along with justification. If we do not undertake a clean, in-house
investigation, I know of citizens who are ready to refer this issue to the San Joaquin County Grand
Jury, if they haven't already.
On June 12, 2000, the City Manager sent Councilmembers a memo that is unclear and contradictory.
He states City Council benefits were authorized as outlined in his attachment "executive
management benefits offered to City Councilmembers" and cites a letter from Eric Whittaker,
Administrative Assistant to the City Manager as authority for those benefits. Mr. Whittaker's memo is
very specific that it refers only to insurance benefits, but more specifically, medical, dental and vision
insurance. For most of the benefits listed in the June 9, 2000, City Council Benefits list, there is no
supporting documentation, adopted policy or resolution that currently provides these benefits to
Councilmembers.
We were not elected by citizens to the City Council to become "regular employees" of the City. Other
than clarifying present benefits, I see no reason to further to discuss additional benefits for City
Councilmembers.
Jennifer Perrin
From: Susan Hitchcock [syhjlg@pacbell.net]
Sent: Wednesday, June 28, 2000 2:02 AM
To: Steve Mann; Keith Land; Alan Nakanishi; Philip Pennino; Randy Hays; Dixon Flynn
Subject: Council Benefits
The unfortunate situation with tuition reimbursement for Mayor Mann did not have to take place.
Contrary to comments made by Councilmembers and the City Manager, the City has a very clear
and defined policy on tuition reimbursement.
The California codes and court decisions do provide a framework for compensation/benefits/
expenses received by City Councilmembers. The California Municipal Law Handbook states:
It is "the settled rule that compensation for official services depends entirely upon law, that statutes
relating to such compensation are strictly construed in favor of the government; that a public officer
may only collect and retain such compensation as is specifically provided by law, and that any
money paid by a governmental agency without authority of law may be recovered from such officer"
and
"Under the authorities noted in the introduction to this topic, the statutes authorizing expense
reimbursement are strictly construed against public officials. An expense must meet four
requirements to be reimbursable: (1) It must be an expense of a member of the city council, (2) It
must be an 'actual' expense; (3) The expense must have been 'incurred in the performance of official
duties'; and (4) It must be a 'necessary' expense. "
and
"in addition to the limitations on council compensation, expense reimbursement, and benefits
provided by state and federal law, local ordinances regarding these subjects are common and will be
effective to reduce or eliminate payments to which an official would otherwise be entitled."
The City spells out very clearly its policy for payment of tuition reimbursement in the City of Lodi
Administrative Policy and Procedure Manual and the Rules For Personnel Administration.
The Administrative Policy and Procedure Manual adopted May 1, 1995 (1 believe Mayor Mann and
Councilmember Pennino were on the Council at the time) spells out the policy and procedure for
tutition reimbursement:
Subject: Tuition Reimbursement - Policy
Date Issued: May 1, 1995
Section: T
Section 1: Purpose
"The purpose of tuition reimbursement is to encourage employees to broaden their knowledge in
their occupational field and in the activities and functions of the City of Lodi through participation in
educational courses of recognized schools or professional organizations. It is expected that as a
result of such participation, the employee will enhance his/her career opportunities, and the City will
benefit in terms of increased efficiency and quality of work.
Section 2: Eligibility
Participation is limited to full-time regular employees with the City of Lodi.
Section 3: Reimbursement
Subject to the terms and conditions of the appropriate memorandum of understanding, City shall
reimburse employees the cost of tuition and books upon the satisfactory completion of job related
coursework beyond the level of an Associate of Arts degree.
Employees must maintain continuous service from the date a course begins to the date of its
completion.
Employees shall not be eligible for reimbursement when a course is paid for by another source.
The maximum amount reimbursable is subject to the terms and conditions of the appropriate
memorandum of understanding.
Section 4: Job Relationship
Courses should pertain to an employee's career tied, thus enhancing his/her career advancement
opportunities and job skills. Courses related to an employee's job duties and responsibilities must
exceed the educational level required to qualify for the employees's current classification.
Subject: Tuition Reimbursement - Procedure
Date Issued: May 1, 1995
Section: T
Section I: Purpose
The purpose of this procedure is to provide guidance in implementing the City of Lodi's Tuition
Reimbursement policy.
Section 2: Application Procedure
Prior to enrollment in a course, the employee shall submit an application for participation in this
program to his/her Department Head
The Department Head shall review the application and determine eligibility according to the Tuition
Reimbursement policy and the appropriate memorandum of understanding. If the application is
denied, a letter shall be sent by the Department Head to the employee explaining why it has been
disapproved. If the application is approved, the Department Head shall sign the application and
return it to the employee, who shall be responsible to retain it until the course is completed.
Upon completion of the course of instruction, the employee shall submit to the Department Head
evidence of satisfactory completion (grade of "C" or equivalent or better). For ungraded courses, a
statement from the school or the instructor must indicate successful completion of the course. This
shall be accomplished within 30 calendar days of the completion of the course. In the event that
such cannot be furnished within this time period, the employee shall provide a written statement
explaining the reason for the delay.
The Department Head shall then authorize payment of the appropriate reimbursement.
The completed application, receipt, and evidence of grade shall be forwarded to the Finance
Department and a reimbursement check shall be issued to the employee.
Section 3: Conditions
Participation in courses must not be during regular work hours and must not result in reducing either
the normal work week of the employee or the quality and quantity of his/her services to the City,
except that the City may grant time off for attendance at training courses during working hours if the
course is given at no other times and if such time off does not disturb normal City operations. The
best interests of the City shall at all times be the determining factor in the consideration of such time
off.
Employees must complete courses within the regulation period of time allowed for them by the
school or professional organization.
Participation in this program is to be considered a privilege rather than a right of the employee.
The City reserves the right to disapprove reimbursement for courses if the course requested is
available at a substantially lower cost at a local school or college. "
The City of Lodi Administrative Policy and Procedure Manual contains very thorough explanations of
policies and procedures. Besides tuition, the following topics are addressed: administrative leave,
bereavement leave, discrimination complaints, dress code, drug and alcohol testing, employee
performance evaluation, family medical leave, holiday leave, outside employment (moonlighting),
nepotism, layoff, personnel records, smoking, salary, and travel and business expense. The
distribution list shows that eighty-five copies of the manual are distributed to various positons or
locations in the City. I would suggest all Councilmembers request a copy; it is very informative and
enlightening to know there are policies in place, whether followed or not, for almost every situation. It
was written for a purpose.
To understand exactly who a "regular employee" is described as eligible for tutition benefits, one
must refer to the "Definition of Terms" as spelled out in the Rules For Personnel Administration:
Regular Employee: An employee hired from an eligible list, who has successfully completed the
probationary period for a class and occupies a budgeted position in the classified service.
Classified Service: All employees except for the following: elected officials; officers appointed by
the City Council; Department Heads; members of appointed boards, commissions and committees;
persons engaged under contract to render professional, scientific, technical or expert services; and
part-time or temporaty employees.
Clearly, City Councilmembers do not qualify for tuition benefits under the very specifically spelled out
tuition policy in the City of Lodi Administrative Policy and Procedure Manual. Therefore, the only
compensation/benefits to which Councilmembers are entitled are those specifically adopted by
statute as described in The California Municipal Law Handbook for General Law Cities.
It appears the City's tuition reimbursement policy has not been administered fairly in the past five
years since adoption of the Administrative Policy and Procedure Manual because not only has a
Councilmember been reimbursed for tuition, classes which are not related to an employee's career
field (Joanne Narlock, Human Resources Director - courses such as Appelate Practice, Criminal
Procedure, Trial Practice, etc.) have been reimbursed, and most recently I have heard contract
employees have also been reimbursed tutiton expenses.
I would like to know why the policy is not being followed and at whose direction. Further, I
request a written report of those employees who have received tuition reimbursement benefits
during the past five years along with justification. If we do not undertake a clean, in-house
investigation, I know of citizens who are ready to refer this issue to the San Joaquin County Grand
Jury, if they haven't already.
On June 12, 2000, the City Manager sent Councilmembers a memo that is unclear and contradictory.
He states City Council benefits were authorized as outlined in his attachment "executive
management benefits offered to City Councilmembers" and cites a letter from Eric Whittaker,
Administrative Assistant to the City Manager as authority for those benefits. Mr. Whittaker's memo is
very specific that it refers only to insurance benefits, but more specifically, medical, dental and vision
insurance. For most of the benefits listed in the June 9, 2000, City Council Benefits list, there is no
supporting documentation, adopted policy or resolution that currently provides these benefits to
Councilmembers.
We were not elected by citizens to the City Council to become "regular employees" of the City. Other
than clarifying present benefits, I see no reason to further to discuss additional benefits for City
Councilmembers.
ITY COUNCIL EXFDUMTt EI 4
TEVE MANN, City Mangy ar
LAN N KANISHIor CITY OF L O D I JACKIE TAYLOR
Mayor Pro Tempore Acting City C; rk
USAN HITCHCOCK CITY HALL, 221 WEST PINE STREET RANDALL A. HAYS
EITH LAND P.O. BOX 3006 City Attor 3y
"HILLIP PENNINO LODI, CALIFORNIA 95241-1910
(209)333-6702
FAX (209) 333-6807
June 12, 2000
Mayor and Fellow Councilmembers
During the past week, there has been a lot of discussion regarding Councilmember's benefit
package. All this centers around the absence of a clear policy regarding which benefits
councilmembers are entitled to receive_ It should be noted, in 1988 a memo from the City
Managers Office stated "that councilmembers may opt to receive City -paid medical, dental,
and/or vision insurance. " The memo goes on the say that councilmembers submitting
enrollment forms should be treated as new hires for insurance purposes and will be eligible for
CORBA continuation privileges at group rates upon separation from office in a manner similar
to City employees.
It is my understanding, that this memo, along with the approved "PERS" benefits established
by the Council in 1998, sets the foundation that Councilmembers are city employees and
therefore eligible for "approved" benefits.
Having said this, to help prevent any further misunderstanding I would like you to consider the
following:
1. At a future meeting, the Council approve a policy establishing the appropriate benefits for
City Councilmembers.
2. That a budget policy be approved that states:
Tach year in accordance with the budget, each councilmemher will be appropriated
an amortnl to be used al lheir discretion. Tire intent of these fi nd s will be to further
their knowledge, underslanding and work as a counclmenrher representing the City or
Lodi. If a councilmemher goes over the approved budget amount, a requestfrom the
councilmemher shall be put on the council agenda under the consent calendar, for
approval by the council.
I believe by approving these two policies, any misunderstanding could be avoided in the future.
I hope each of you will concur with this recommendation and allow this to be put onto the next
agenda.
Phillip Pennino
Council Member
CITY COUNCIL
STEPHEN MANN, Mayor CITY OF L O D I
ALAN NAKANISHI
Mayor Pro Tempore
SUSAN HITCHCOCK CITY HALL, 221 WEST PINE STREET
KEITH LAND P.O. BOX 3006
PHILLIP A. PENNINO LOD1, CALIFORNIA 95241-1910
(209)333-6700
FAX (209) 333-6807
June 29, 2000
Dear Fellow Council Members:
EXHIBITS F 4
H. DIXON FLYNN
City Manager
JACQUELINE TAYLOR
Interim City Clerk.
RANDALL A. HAYS
City Attorney
As you now know, an official resolution authorizing Council Members to receive benefits
does not currently exist. Historically, Council Members have been considered full-time
employees for the purpose of receiving management benefits. According to city records, nearly
all Council Members over the past 12 years have received some level of benefits, including life,
medical, dental, chiropractic, and vision insurance, to name a few. It now appears that there has
only been administrative, rather than City Council, approval of these benefits.
My personal experience led to this discovery. Accordingly, I have asked that this item be
placed on the agenda so that the Lodi City Council may deliberate the issues and come to an
official resolution. It is in everybody's best interest to officially resolve what benefits, if any,
Council Members may be entitled to receive. I propose to have the City Council appoint an Ad
Hoc Committee to examine the possibilities, and to return within 30 days with a recommendation
for Council consideration. By having an independent citizens committee study the issue, the
Council will hopefully avoid any appearance of a conflict of interest.
Recent events have also brought to light the need to establish controls over Council
spending. For example, the Council's "Protocol Account," which is used to finance special social
events, is largely unrestricted, and at $21,000 or more, I believe there needs to be some level of
accountability put in place. While I am not concerned about the type of events that are being
held, I am very concerned that this account is out of control. I hope you will agree that the City
Council should adopt a specific policy governing this account.
Finally, I would like to recommend that the City Council also adopt a policy governing
Council Member travel budgets. Each Council Member has an annual $5,000 travel budget. In
recent years, some Council Members, myself included, have exceeded their respective allotment.
I continue to believe that Council Members need to do a certain amount of traveling in order to
stay abreast of the dynamic changes in government and technology. I am not personally opposed
to Council Members occasionally exceeding their budgets, however I believe it is time to
establish some kind of policy that specifically addresses this issue.
Accordingly, I respectfully request that the Lodi City Council approve these recommendations:
• Designate Council Members as full-time city employees for the purpose of receiving
benefits, whatever they may be
• Impanel a citizens committee to study the issue of Council Member benefits, and to make
specific recommendations for Council consideration
• Impose a $100 limit for expenditures made from the City's "Protocol Account," above
which would require specific City Council approval by placing the item on a regular City
Council agenda
• Impose a $ 100 limit upon Council Members' travel expenses, above which would require
specific City Council approval by placing the item on a regular City Council agenda
I am acutely aware that my proposals represent a dramatic shift from current practice.
However, I believe that by adopting these policies the public's best interests will be served.
Thank you for your thoughtful consideration of these recommendations that have been most
respectfully submitted.
Mayor
8XHIBITI
RESOLUTION NO. 2000-121
A RESOLUTION OF THE LODI CITY COUNCIL APPROVING
AND RATIFYING SCHEDULE OF EXECUTIVE MANAGEMENT
BENEFITS GRANTED TO CITY COUNCIL MEMBERS
WHEREAS, never in the City of Lodi's past history has a policy regarding
benefits to City Council Members ever been formally written; and
WHEREAS, typically any benefit granted to the City Council is done as an
administrative matter, performed through the Office of the City Manager, except in 1992
and 1998 when the City Council voted to implement PERS retirement and deferred
comp for City Council Members; and
WHEREAS, in September 8, 1988 the City Manager's office authorized the
Personnel Director and the Finance Director to make available to City Council Members
medical, dental and vision benefits, and other executive management benefits have
been added since that time; and
WHEREAS, the current City Council is desirous of adopting a formai policy
setting forth the benefits that City Council Members are eligible to receive and have
received from 1988 to present, as shown on Exhibit A attached hereto and made a part
hereof; and
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Lodi
has reviewed and hereby approves and ratifies the Schedule of Executive Management
Benefits granted to City of Lodi City Council Members now and in effect since
September 1988 until such time as this Resolution is amended or rescinded.
Dated: July 5, 2000
-----------------
-----------------
I hereby certify that Resolution No. 2000-121 was passed and adopted by the
City Council of the City of Lodi in a regular meeting held July 5, 2000, by the following
vote:
AYES: COUNCIL MEMBERS —
NOES: COUNCIL MEMBERS -
ABSENT: COUNCIL MEMBERS -
ABSTAIN: COUNCIL MEMBERS -
JACQUELINE L. TAYLOR
City Clerk
2000-121
EXHIBIT -45 A
City Council Benefits
Benefit What You Receive
Accidental Death Insurance
$25,000 accidental death policy, in the event of death
resulting from a line -of -duty injury.
Accident Travel Insurance
$100,000 travel life insurance coverage from National
Accident Insurance Group while traveling on City
business outside the City limits.
Chiropractic insurance
This benefit allows up to a maximum of 40 visits per
calendar year and each visit is subject to a $10.00 co-
payment. A Landmark Chiropractor must be utilized.
Credit Union
Membership in the Lodi Employees Credit Union which
offers savings plans, loans, and automatic payroll
deductions.
Deferred Compensation
A contribution or a percentage may be made based on
salary, up to $8,000 per year, or 25% of their gross
salary. The amount deferred and interest earned are not
considered taxable income until withdrawn.
Dental Insurance
The City will pay 100% of the monthly premium for
dental insurance.
Direct Deposit
Payroll checks may be deposited directly into a checking
or savings account at a bank of choice.
Employee Assistance
G rrec visits per year per family member with a licensed
Program
clinical social worker though "Options." This may be
supplemented by medical insurance after exhaustion of
the 5 free visits.
Employee Development
Training programs, professional and skills development
courses, meetings, and seminars may be utilized to
improve efficiency and broaden knowledge in the
performance of duties.
Executive Physical
In accordance with Health Net guidelines, may receive a
physical including office examination, blood panel,
urinalysis, chest x-ray, EKG (resting), mammogram, and
pap smear, if deemed necessary by the physician.
Employee is reimbursed for costs not covered by medical
insurance. Receipts should be submitted to Finance.
Flexible Spending Account
Each calendar year elections may be make to contribute
re -taxed dollars into:
619100
EXHIBIT
Benefits What You Receive _I
Flexible Spending Account
1) Premium conversion
con't
2) unreimbursed medical
3) dependent care reimbursement
Life Insurance
1 '/2 times annual salary rounded to the next highest
$1,000. Plus $12,000 to a maximum of $150,000 of
coverage. Including dependent coverage.
Dependent Coverage Includes
Spouse $1,500
Dependent Child (61 -nos. -22 years) $1,500
Child (under Gmos.) $ 150
Medical Insurance
City pays 100% of premium for family members.
Medical Fringe
Choosing single coverage on the medical insurance will
allocate $25 per pay period to a deferred compensation
account. Electing to waive medical coverage will
allocate $71.15 per pay period to a deferred
compensation account.
Medical -Married City
If both the employee and the employee's spouse work for
Employees
the City and are eligible for medical insurance, only one
medical plan will be provided and the Medical Fringe
benefit will apply to the employee who is not the primary
provider. Employees and family members required to
pay a co -payment due to loss of dual coverage will have
co -payments reimbursed by the City of Lodi on a
quarterly basis.
Pharmaceutical
Prescriptions, when prescribed by a physician, are limited
to a 30 -day supply, and subject to a $10.00 co -pay per
prescription.
Recreation
Lodi City Employees Association costs $3 per month.
The Association is headed by a Board of Directors
composed of representative(s) form each department.
They sponsor an annual dinner dance and annual picnic,
and operate a booth at the Lodi Grape Festival each fall.
Retirement
2% @ 55 -The city pays both employer and employee
619100
i H i B'T,, A
BenefitsTE What You Receive`
Retirement con't
contributions.
Tuition Reimbursement
The City shall provide up to $300 per fiscal year for
tuition reimbursement or the equivalent cost of tuition
and books for two courses per semester or quarter at a
State University beyond the level of an Associate of Arts
degree, to be paid upon satisfactory completion of job-
related course work. This section will be applied toward
tuition at an accredited College or University.
Vision Insurance
The City provides a Family Vision Care insurance plan.
Workers Compensation
Employees are provided with Workers' Compensation
benefits under State Iaw and consist of medical
payments, temporary disability, permanent partial
disability, permanent total disability, and vocational
rehabilitation. Compensation is for injuries arising out of
and in the course of employment.
6/9/ob