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Home My WebLink AboutRes 2015-47 - Benefits - Councilmembers - DependentsResolution No. 2015-47 CITY OF PALM DESERT HUMAN RESOURCES DEPARTMENT STAFF REPORT REQUEST: Per the request of Mayor Pro -tern Spiegel consideration of Resolution No. 2015-47 providing city paid benefits to City Councilmember dependents. SUBMITTED BY: Lori Carney, Human Resources Manager DATE: May 28, 2015 CONTENTS: Resolution No. 2015- 47 Recommendation: Resolution: Waive further reading and adopt Resolution No. 2015- 47 providing city paid benefits to City Councilmember dependents. Executive Summary: At the May 14, 2015, City Council meeting Mayor Pro-tem Spiegel requested that a resolution be placed on the next agenda to provide city paid benefits to Councilmember dependents, while maintaining the existing opt -out provisions. The attached resolution will amend the City's IRS Section 125 Flexible benefits plan as follows: • Provide city paid health, dental and vision benefits to the qualifying dependents of City Councilmembers in the same way, and at the same cost, that it is provided to employees. • Maintain the current opt -out provisions applied to Councilmembers, wherein individuals who opt -out of coverage receive a taxable cash payment equivalent to the combined health, dental and vision premiums for single party coverage. Staff Report Resolution No. 2015-47 Resolution to provide Council Benefits Coverage May 28, 2015 Page 2of2 It should be noted that this creates a benefits structure for Councilmembers which is different, and possibly superior, to that provided to employees and therefore may be subject to legal challenge. Fiscal Analysis: The fiscal impact is dependent upon the choices made by current and/or future councilmembers. If the council remains the same, and the family sizes and insurance choices remain the same, the impact would be an increased cost of approximately $18,700 annually. Submitted by: Lori Carney, Human Resources Manager v" Paul S. Gibson, Director of Finance Approval: ohn M. Wohlmuth, City Manager RESOLUTION NO. 2015- 47 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, RESTATING THE CITY OF PALM DESERT AMENDING SCHEDULE B OF THE IRS SECTION 125 FLEXIBLE BENEFITS PLAN; WHEREAS, Section 125 of the Internal Revenue Code allows employees and Councilmembers to choose among two or more appropriate levels of health benefits for themselves and their families; and WHEREAS, the City of Palm Desert first adopted its flexible benefits plan in 1999; and WHEREAS, the Flexible Benefits Plan is not considered discriminatory to collective bargaining units; and WHEREAS, over the years the plan has been amended to reflect changes in Federal law and the City's benefits structure; and WHEREAS, the City Council desires to provide paid health, dental and vision benefits to dependents of its members and it is therefore necessary to amend Schedule B; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Palm Desert, California, adopt the attached City of Palm Desert IRS Section 125 Cafeteria Plan, Schedule B; and PASSED, APPROVED AND ADOPTED at the regular meeting of the Palm Desert City Council held on this 28th day of May, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: Susan Marie Weber, Mayor ATTEST: Rachelle D. Klassen, City Clerk City of Palm Desert, California SCHEDULE B RESOLUTION NO. 2015-47 Flex Dollar Allowance Schedule Full Time Employees With Health Insurance Coverage Premium Coverage Employee Only Actual premium rate for any CalPERS health plan — except PersCare. Employee's selecting PersCare will receive a premium credit equivalent to the PersChoice rate for their family size. Employee + 1 Employee + 2 or More Without Health Insurance Coverage Cash in lieu of premium Employee Only $150.00 Employee + 1 $150.00 Employee + 2 or More $150.00 Dental & Vision Flex Dollars Employee Only Actual Premium $50.00 Employee + 1 Actual Premium w/dependants $50.00 Employee + 2 or More Actual Premium w/ dependants $50.00 Part Time Employees (Work between 20 and 40 hours per week) With Health Insurance Coverage Premium Coverage Employee Only 50% of current premium paid for employees with regular full-time status Employee + 1 Employee + 2 or more Without Health Insurance Coverage Cash in lieu of premium Employee Only $75.00 Dental & Vision Flex Dollars Employee Only 50% of actual Premium $25.00 Employee + 1 50% of actual Premium $25.00 Employee + 2 or More 50% of actual Premium $25.00 Council Members (effective June 1, 2015) With Health Insurance Coverage Premium Coverage Council Member Only Actual premium rate for any CaIPERS health plan — except PersCare. Members selecting PersCare will receive a premium credit equivalent to the PersChoice rate for their family size. Council Member+ 1 Council Member+2 or more Without Health Insurance Coverage Cash in Lieu of Premium Individual Only (No Dependents) Cash benefit equal to the amount of the individual premium for the 2"d highest cost plan, including dental & vision premiums. Dental & Vision Flex Dollars Employee Only Actual Premium - individual only $50.00 Amended on 5/28/2015 for an effective date of June 1, 2015 Klassen, Rachelle From: Hermann, David Sent: Wednesday, May 27, 2015 3:54 PM To: Klassen, Rachelle Cc: Carney, Lori; Wohimuth, John Subject: FW: Contact Us Submission Hi Rachelle, We received the communication below today regarding the City Council Member health benefits item on the agenda for tomorrow's meeting. I have copied Lori Carney and John on this as well. Please let me know if I can be of further assistance. David David Hermann Public Information Officer City of Palm Desert 760-776-6411 -----Original Message ----- From: info@ci.palm-desert.ca.us [mailto:info@ci.paim-desert.ca.us] Sent: Wednesday, May 27, 2015 2:45 PM To: InformationMail Subject: Contact Us Submission Submission information Submitter DB ID : 3056 Submitter's language : Default language IP address: 24.199.30.170 Time to take the survey : 18 min. , 3 sec. Submission recorded on : 5/27/2015 2:45:24 PM Survey answers Your Contact Information First name: * Dale Last name: * Gribow E-mail Address: * dale@dalegribowlaw.com Address line 1 73 061 El Paseo Suite 220 Address line 2 Not answered City Palm Desert i 01 =h Nd LZ AVN SIOZ V0 '183S30 HlVd 301 JO S,N8313 A1I3 03A1: ' State CA Zip code: * 92260 Phone number 7608377500 I Am a: Palm Desert Business Owner [x] Palm Desert Resident [] Comments: It has come to my attention that the issue of Health Benefits for the Palm Desert City Council is being reconsidered. I was contacted because I was Vice Chairman of the ad hoc committee that evaluated the salary and benefits of our council. As a member of that committee we went over the calendars of all council members and I was shocked at how much time most of the members put in. I can only say that I am so happy I was not successful when I ran many years ago. It is my understanding, other than Indian Well, that every other city has health benefits and Palm Desert should lead the way being as it is the most forward & clear thinking city. Providing Health benefits, in my opinion, is such a minor thing for council members that give up most of their free time serving our city. I ask you to do the right thing and reconsider the position of the former council, who for the most part has replaced their anti health benefits members. z