HomeMy WebLinkAbout2016-183 1 RESOLUTION NO. 2016-183
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3 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO APPROVING EMPLOYER PAID HEALTH BENEFIT
4 CONTRIBUTIONS FOR BENEFIT PLAN YEAR 2017 AND ELECTION OF THE
MAYOR AND COMMON COUNCIL TO RECEIVE THE SAME BENEFIT PLAN AS
5 THE MANAGEMENT /CONFIDENTIAL BARGAINING UNIT.
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WHEREAS, on October 19, 2009, the Mayor and Common Council adopted Resolution
7 No. 2009-339, authorizing an annual stipend payable to employees who waive health care benefits
8 to commence calendar year 2010; and,
9 WHEREAS, on July 18, 2012, the Mayor and Common Council of the City of San
10 Bernardino declared a fiscal emergency; and,
11 WHEREAS, on August 1, 2012, the City filed an emergency voluntary petition for relief
12 under Chapter 9 of the Bankruptcy Code in the United Stated Bankruptcy Court for 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 May 18, 2015, the Mayor and Common Council adopted Resolution No.
16 2015-103 authorizing the implementation of the City's fiscal recovery plan, the filing of the
17 Chapter 9 Plan of Adjustment and Disclosure Statement and the filing of related documents; and,
18 WHEREAS, on May 29, 2015, the City filed its Plan of Adjustment and Disclosure
Statement; on November 25, 2015, the City filed its First Amended Plan of Adjustment and
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Disclosure Statement; on March 30, 2016, the Second Amended Plan of Adjustment and
20 Disclosure Statement was filed on May 29, 2016; and, the Third Amended Plan of Adjustment
21 (dated July 29, 2016) and an approved Disclosure Statement was filed; and,
22 WHEREAS, on June 27, 2016, the Mayor and the Common Council adopted the City's
23 2016-2017 Budget; and,
24 WHEREAS, adoption of the Employer Paid Health Benefit Contribution schedule for Plan
Year 2017 is necessary to implement the budget allocations for the City's. health benefit
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contributions provided in the FY 2016-2017 adopted budget; and,
26 WHEREAS, on July 19, 2016, the City's negotiating team has met with the Joint Labor
27 Management Health Benefits Committee representing all bargaining groups: [San Bernardino
28 Confidential/Management Association (SBCMA), Middle Management Employees' Association,
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I Teamsters Local 1932 (MMA), General Unit, International Union of Operating Engineers (IUOE),
2 San Bernardino Police Management Association (SBPMA), San Bernardino Police Officers'
3 Association (SBPOA)] and provided proposals, financial and other information regarding the
4 health plans and optional benefits; and,
WHEREAS, the City and SBCMA, MMA, IUOE, SBPOA, and SBPMA representatives
5 have reached an agreement on the City or Employer contributions towards the purchase of City-
6 sponsored health care premiums.
7 WHEREAS, the Mayor and Common Council may receive the same benefits that the City
8 provides to a large number of its employees, as long as those benefits are no greater than the most
9 generous schedule of benefits provided to any category of non-safety employees.
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NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON
11 COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
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13 SECTION 1: The following benefit changes for all bargaining groups are adopted for
14 implementation effective January 1, 2017:
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1. Health Benefit Contributions: Employer contributions for insurance benefits available for
16 purchase by employees include medical, dental, vision, life and accidental death and
17 dismemberment, as made available through the City. The amount of the Employer
18 contribution is based on the selection of the "Medical" enrollment category. If an employee
19 elects "employee only" medical coverage, then the "employee only" allowance is given to
20 the employee. Any contributions not utilized by an employee shall revert to the City unless
otherwise provided for in an agreement with a bargaining unit. All health benefit
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contributions as set forth below are compliant with the Affordable Care Act (ACA).
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23 Employee Employee+
Bargaining Unit Only Employee+ 1 Family
24 Management/Confidential $ 990.00 $ 1,115.00 $ 1,115.00
25 Middle Management $ 530.00 $ 805.00 $ 805.00
26 General $ 490.00 $ 655.00 $ 655.00
27 Police Safety* $ 538.29 $ 910.96 $ 1,080.64
28 Police Management* $ 954.60 $ 1,001.33 $ 1,187.42
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I *City Contributions for the SBPOA and PMA are determined by the provisions in their
2 respective MOUs.
3 2. For Plan Year 2018 and forward, the City will continue to meet with the Joint Labor
4 Management Health Benefits Committee to review health plan options and may adjust the
5 Employer contributions toward medical, dental, vision, and other health benefits. Plan
6 designs and contributions shall be effective January 1St annually. The City shall reserve all
7 rights to modify medical plans and the amount of contributions paid by the City. With
respect to the SBCMA, MMA, and the IUOE, the City will include health plan options and
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City contributions as part of the pending labor negotiations.
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10 3. Health Insurance Waiver Stipend: Effective with health benefit plan year 2017, the
11 City of San Bernardino agrees to provide full-time eligible employees who waive health
12 benefits an annual "Health Insurance Waiver Stipend" of$2,500 each December 15th. The
13 first payment would be December 15th of 2017. Such payment is not considered
compensation for purposes of CalPERS and is subject to state and federal taxes.
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Employees electing to receive a "Health Insurance Waiver Stipend" must meet certain
15 requirements, including without limitation, must be a regular full-time and paid status for a
16 minimum of 21 hours per week; must provide satisfactory written proof of comparable
17 medical insurance coverage; and, must waive all medical, dental, vision, supplemental life,
18 and supplemental AD&D benefits. The Health Insurance Waiver Stipend Policy and
19 Waiver Form are available from the City's Human Resources Department.
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4. Health Benefit Contributions for the Mayor and Common Council: In addition to
21 retirement benefits under CalPERS, the Mayor and Common Council Members are eligible
22 to receive the same health benefits that are provided to City employees and the City's
23 contributions to such benefits shall be the same as is available to SBCMA members. In the
24 event that the Mayor and/or Common Council members elect to receive the health
25 insurance stipend as described in paragraph 3 herein, the stipend must be contributed to the
26 City's established deferred compensation plan.
5. Retirement Medical Benefits: The City and the Official Committee of Retired Employees
27 of the City of San Bernardino created as a result of the City's filing of Chapter 9
28 Bankruptcy have entered into a Settlement Agreement, dated as of May 19, 2015 (a copy
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1 of which can be found on the docket for the City's Chapter 9 Bankruptcy case) setting
2 forth the City's obligations for contributions to the retirees electing to participate in the
3 City's health plan options for Plan Year 2017.
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I RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO APPROVING EMPLOYER PAID HEALTH BENEFIT
2 CONTRIBUTIONS FOR BENEFIT PLAN YEAR 2017 AND ELECTION OF THE
3 MAYOR AND COMMON COUNCIL TO RECEIVE THE SAME BENEFIT PLAN AS
THE MANAGEMENT /CONFIDENTIAL BARGAINING UNIT.
4
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and Common
5 Council of the City of San Bernardino at a joint regular meeting thereof, held on the 6th day of
6 September, 2016, by the following vote, to wit:
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g Council Members: AYES NAYS ABSTAIN ABSENT
9 MARQUEZ X
BARRIOS X
10
VALDIVIA X
11 SHORETT X
12 NICKEL X
13 RICHARD X
14 MULVIHILL X
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16 George n Hanna,tkC, City Clerk
17 ZK
The foregoing resolution is hereby approved this day of September, 2016.
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20 R. Carey Davi , Mayor
21 City of San , /iezdino
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Approved as to form:
23 Gary D. Saenz, City Attorney
24 By:
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