HomeMy WebLinkAbout2014-369 I RESOLUTION NO. 2014-369
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3 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO APPROVING EMPLOYER PAID HEALTH BENEFIT CONTRIBUTIONS
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FOR BENEFIT PLAN YEAR 2015.
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6 WHEREAS, on October 19, 2009, the Mayor and Common Council adopted
7 Resolution No. 2009-339, authorizing an annual stipend payable to employees who
8 waive health care benefits to commence calendar year 2010.
9 WHEREAS, on July 18, 2012, the Mayor and Common Council of the City of San
Bernardino declared a fiscal emergency; and
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WHEREAS, on August 1, 2012, the City filed an emergency voluntary petition for
11 relief under Chapter 9 of the Bankruptcy Code in the United Stated Bankruptcy Court for
12 the Central District of California, Riverside Division; and
13 WHEREAS, on November 26, 2012, the Mayor and Common Council adopted the
14 Pendency Plan, Resolution 2012-278; and
15 WHEREAS, on January 28, 2013, the Mayor and Common Council adopted
modifications to the retiree health insurance payments for Police Safety and Police
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Management employees in accordance with the City's Pendency Plan, Item #8; an
17 WHEREAS, the City must present a balanced financial plan for the General Fund
18 that allows the City to continue to provide effective service, and in doing so, to reduce the
19 City's cost of employee health benefits by approximately $1.4 million for calendar year
20 2015; and
21 WHEREAS, on June 28, 2014, the Mayor and Common Council adopted its Fiscal
22 Year (FY) 2014-2015 budget reflecting an approximately $1.4 million reduction to the
Employer Paid Health Benefit Contribution schedule; and
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WHEREAS, adoption of the Employer Paid Health Benefit Contribution schedule
24 for Plan Year 2015 is necessary to implement the reductions in the FY 2014-2015
25 adopted budget; and
26 WHEREAS, since April 2014, the City's negotiating team has been meeting with
27 the Joint Labor Management Health Benefits Committee representing all bargaining
28 groups: [San Bernardino Confidential/Management Association (SBCMA), Middle
I Management Unit (SBPEA), General Unit (IUOE), San Bernardino Police Management
2 Association (SBPMA), San Bernardino Fire Management Association
3 (SBFMA), San Bernardino Police Officer's Association (SBPOA), San Bernardino City
Professional Firefighters' Local 891 (SBCPF)] and provided proposals, financial and other
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information responsive to the bargaining groups; and
5 WHEREAS, the City and SBCMA, SBPEA, IUOE, SBFMA and SBPMA
6 representatives have reached an agreement on the Employer contributions towards the
7 purchase of City-sponsored health care premiums; and
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9 NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON
COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
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11 SECTION 1: The following benefit changes for all bargaining groups are adopted
12 for implementation effective January 1, 2015:
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1. Health Benefit Contributions: Employer contributions for insurance benefits
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available for purchase by employees include medical, dental, vision, life an
15 accidental death and dismemberment, as made available through the City. The
16 amount of the Employer contribution is based on the selection of the "Medical"
17 enrollment category. If an employee elects "employee only" medical coverage,
18 then the "employee only" allowance is given to the employee. Any contributions
19 not utilized by an employee shall revert to the City. All health benefit contributions
as set forth below are compliant with the Affordable Care Act (ACA).
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21 Bargaining Unit Employee Only Employee +1 or Family
Management/Confidential $949.87 $949.87
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Middle Management $408.25 $689.17
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General $399.33 $529.83
24 Police Safety $508.21 $855.38
25 Police Management $949.87 $949.87
26 Fire Safety $508.21 $855.38
27 Fire Management $949.87 $949.87
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1 2. The City in consultation with the all bargaining groups will review on an annual
2 basis and may adjust the Employer contributions toward medical, dental, vision,
and other health benefits. The City will continue to meet with all bargaining groups
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that participate in the City's Joint Labor Management Health Benefits Committee
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to review possible options for modifying health benefit plan designs. Plan designs
5 and contributions shall be effective January 1St annually.
6 3. Health Insurance Waiver Stipend: Effective with health benefit plan year 2015, the
7 City of San Bernardino agrees to provide full-time eligible employees who waive
8 health benefits an annual "Health Insurance Waiver Stipend" of $2,000 each
9 December 15th. The first payment would be December 15th of 2015. Such
payment is not considered compensation for purposes of CalPERS and is subject
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to state and federal taxes. The Health Insurance Waiver Stipend Policy an
11 Waiver Form attached hereto and incorporated herein, marked as Exhibit "A', is
12 hereby approved.
13 4. Post-Retirement Medical Benefits: Employees hired on or after January 1, 2013,
14 shall not be eligible to receive payments for retiree medical benefits. The City shall
15 reserve all rights to modify retiree medical plans and the amount of contributions
16 paid by the City.
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26 111
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I RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
2 BERNARDINO APPROVING EMPLOYER PAID HEALTH BENEFIT CONTRIBUTIONS
3 FOR BENEFIT PLAN YEAR 2015.
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I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor an
5 Common Council of the City of San Bernardino at a joint regular meeting thereof, held on
6 the 20th day of October, 2014, by the following vote, to wit:
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8 Council Members: AYES NAYS ABSTAIN ABSENT
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MARQUEZ X
BARRIOS X
10 VALDIVIA X
11 SHORETT X
12 NICKEL X
13 JOHNSON X
14 MULVIHILL X
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16 Geor ann Hanna, City Clerk
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18 The foregoing resolution is hereby approved this ;-S day of October 2014.
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20 c�
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R. Carey D is, Mayor
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City of San Bernardino
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Approved as to form:
24 GARY D. SAENZ,
25 City Attorney
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27 By: (Jti-�.C �✓
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