HomeMy WebLinkAbout2017-1611
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RESOLUTION NO. 2017-161
RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, APPROVING EMPLOYER PAID HEALTH BENEFIT
CONTRIBUTIONS FOR BENEFIT PLAN YEAR 2018 AND AUTHORIZING THE CITY
MANAGER TO EXECUTE A MEMORANDUM OF UNDERSTANDING (MOU)
BETWEEN THE CITY OF SAN BERNARDINO AND THE CALIFORNIA STATE
ASSOCIATION OF COUNTIES EXCESS INSURANCE AUTHORITY (CSAC EIA) JOINT
POWERS HEALTH PROGRAM; AND ELECTION OF THE MAYOR AND CITY
COUNCIL TO RECEIVE THE SAME BENEFIT PLAN AS THE MANAGEMENT/
CONFIDENTIAL BARGAINING UNIT
WHEREAS, adoption of the Employer Paid Health Benefit Contribution schedule for Plan
Year 2018 is necessary to implement the budget allocations for the City's health benefit
contributions provided in the FY 2017-2018 adopted budget; and,
WHEREAS, on July 31, 2017, the City's Human Resources staff and the City's Health
Benefit Broker Alliant, met with the Health Benefits Committee representing all bargaining groups:
[San Bernardino Confidential/Management Association (SBCMA), Middle Management
Employees' Association, Teamsters Local 1932 (MMA), General Unit, International Union of
Operating Engineers Local 12 (IUOE), San Bernardino Police Management Association (SBPMA),
San Bernardino Police Officers' Association (SBPOA)] and provided proposals, financial and other
information regarding the health plans and optional benefits; and,
WHEREAS, the City and SBCMA, MMA, IUOE, SBPOA, and SBPMA representatives
have reached an agreement on the City or Employer contributions towards the purchase of City -
sponsored health care premiums; and,
WHEREAS, the Health Benefits Committee agreed upon the terms of joining the medical
pool purchasing option through the California State Association of Counties Excess Insurance
Authority (CSAC EIA); and
WHEREAS, the CSAC EIA is a member directed risk sharing pool of counties and public
entities committed to providing risk coverage programs and risk management services which are
competitive, equitable, and most importantly stable.
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NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL
OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
SECTION 1: The following benefit changes for all bargaining groups are adopted for
implementation effective January 1, 2018:
1. Health Benefit Contributions: Employer contributions for insurance benefits available for
purchase by employees include medical, dental, vision, life and accidental death and
dismemberment, as made available through the City. The amount of the Employer
contribution is based on the selection of the "Medical" enrollment category. If an employee
elects "employee only" medical coverage, then the "employee only" allowance is given to
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
contributions as set forth below are currently compliant with the Affordable Care Act
(ACA).
Bargaining Unit
Employee On
Employee +
One
Employee +
Family
Management/Confidential
$1,025.00
$1,150.00
$1,150.00
Middle Management
$605.00
$880.00
$880.00
General
$565.00
$730.00
$730.00
Police Safety
$574.29 $974.74
$1,163.48
Police Management
$990.60
$1,065.07
$1,270.26
*City Contributions for the units are determined by the provisions in their respective MOUs.
2. For Plan Year 2019 and forward, the City will continue to meet with the Health Benefits
Committee to review health plan options and may adjust the Employer contributions toward
medical, dental, vision, and other health benefits according to the applicable provisions of
the bargaining unit MOUs. Plan designs and contributions shall be effective January 1St
annually. The City shall reserve all rights to modify medical plans and the amount of
contributions paid by the City.
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3. Health Insurance Waiver Stipend: Effective with health benefit plan year 2018, the City
of San Bernardino agrees to continue to provide full-time eligible employees who waive
health benefits an annual "Health Insurance Waiver Stipend" each December 15a`. Payments
for plan year 2018 shall be issued by December 15th of 2018. Such payment is not
considered compensation for purposes of Ca1PERS and is subject to state and federal taxes.
Employees electing to receive a "Health Insurance Waiver Stipend" must meet certain
requirements, including without limitation, must be a regular full-time and paid status for a
minimum of 21 hours per week; must provide satisfactory written proof of comparable
medical insurance coverage; and, must waive all medical, dental, vision, supplemental life,
and supplemental AD&D benefits. The Health Insurance Waiver Stipend Policy and Waiver
Form are available from the City's Human Resources Department.
Bargaining Unit
Stilpend Amount
Management/Confidential
$3,000.00
Middle Management
$3,000.00
General
$3,000.00
Police Safety
$2,500.00
Police Management
$2,500.00
4. Health Benefit Contributions for the Mayor and City Council: In addition to retirement
benefits under CalPERS, the Mayor and City Council Members are eligible to receive the
same health benefits that are provided to City employees and the City's contributions to
such benefits shall be the same as is available to SBCMA members. In the event that the
Mayor and/or City Council members elect to receive the health insurance stipend as
described in paragraph 3 herein, the stipend must be contributed to the City's established
deferred compensation plan.
5, Retirement Medical Benefits: The City and the Official Committee of Retired Employees
of the City of San Bernardino created as a result of the City's filing of Chapter 9 Bankruptcy
have entered into a Settlement Agreement, dated as of May 19, 2015 (a copy of which can
be found on the docket for the City's Chapter 9 Bankruptcy case) setting forth the City's
obligations for contributions to the retirees electing to participate in the City's health plan
options for Plan Year 2018.
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6. CSAC EIA Health Program: The City Manager of the City of San Bernardino is hereby
authorized and directed to execute a Memorandum of Understanding (MOU) between the
City of San Bernardino and the California State Association of Counties Excess Insurance
Authority (CSAC EIA) for participation by the City as a Member of the EIA Health
Program, a copy of which is attached hereto marked Exhibit "A" and incorporated herein by
reference as fully as though set forth at length.
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RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, APPROVING EMPLOYER PAID HEALTH BENEFIT
CONTRIBUTIONS FOR BENEFIT PLAN YEAR 2018 AND AUTHORIZING THE CITY
MANAGER TO EXECUTE A MEMORANDUM OF UNDERSTANDING (MOU)
BETWEEN THE CITY OF SAN BERNARDINO AND THE CALIFORNIA STATE
ASSOCIATION OF COUNTIES EXCESS INSURANCE AUTHORITY (CSAC EIA) JOINT
POWERS HEALTH PROGRAM; AND ELECTION OF THE MAYOR AND CITY
COUNCIL TO RECEIVE THE SAME BENEFIT PLAN AS THE MANAGEMENT/
CONFIDENTIAL BARGAINING UNIT
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and
City Council of the City of San Bernardino at a Joint Regular Meeting thereof, held on the 16th
day of AAu zst 2017, by the following vote, to wit:
Council Members: AYES NAYS
MARQUEZ X
VALDIVIA X(M)
SHORETT X
NICKEL X
RICHARD X
MULVIHILL X(S)
ABSTAIN ABSENT
GeorgeaptVHHanna, dMt, City Clerk
The foregoing Resolution is hereby approved this 16th day of
Approved as to form:
Gary D. Saenz, City Attorney
By: CA
5
_ -- -Z�
R. Carey D
City of Sar)
201
Mayor
EXHIBIT A
AkAdopted: March 7, 2003
Amended: June 1, 2003
Amended: December 12, 2005
Amended: June 27, 2007
MEMORANDUM OF UNDERSTANDING
EIAHEALTH PROGRAM
This Memorandum of Understanding (hereinafter "MEMORANDUM") is entered into by and
between the CSAC Excess Insurance Authority (hereafter "AUTHORITY") and the
participating entities (hereafter MEMBERS) that are signatories to this MEMORANDUM.
1. CREATION OF THE PROGRAM. There is hereby created by this MEMORANDUM the
EIAHealth Program (hereafter "PROGRAM").
2. JOINT POWERS AGREEMENT. Except as otherwise provided herein, all terms used
shall be as defined in Article 1 of the Joint Powers Agreement Creating the
CSAC Excess Insurance Authority (hereafter "AGREEMENT"), and all other
provisions of the AGREEMENT not in conflict with this MEMORANDUM shall be
applicable.
3. PURPOSE. The PROGRAM is formed for the purpose of providing its MEMBERS with
health insurance benefits in the most cost-effective manner possible.
4. PROGRAM COMMITTEE. There is hereby established an EIAHealth Committee
(hereinafter referred to as "COMMITTEE") comprised of seven (7) members.
Except as otherwise provided herein, said COMMITTEE shall have full authority to
determine all matters affecting the PROGRAM and its MEMBERS, including, but not
limited to, approval of new members, and premium/rate setting.
The Executive Committee of the AUTHORITY shall appoint the COMMITTEE
members, to be selected from MEMBERS in the PROGRAM. One seat on the
Committee shall be designated for a Public Entity representative
appointed by the Executive Committee. If there are no Public Entity
nominations from the Program membership for the Public Entity seat, the
Executive Committee shall appoint the Committee member from counties
participating in the Program.
If at any time there are less than seven (7) MEMBERS in the PROGRAM, then
the number of members on the COMMITTEE shall equal the number of
MEMBERS in the PROGRAM. Upon the PROGRAM having seven (7) or more
members, the COMMITTEE membership shall be established as provided
for herein.
The terms of the members of the COMMITTEE shall be for two (2) years,
except for the Public Entity representative whose term shall be for one (1)
EIAHealth Program Adopted: March 7, 2003
Memorandum of Understanding Amended: June 1. 2003
Amended: December 12, 2005
Amended: June 27, 2007
year. The expiration dates of the two-year appointments shall be
staggered so that terms of no more than four (4) members will expire at
any one time. The Committee will annually, at its first meeting of the
calendar year, select its officers, consisting of a Chair and Vice -Chair.
The COMMITTEE, when necessary to fulfill the purposes of this
MEMORANDUM, shall meet at the call of the Chair of the COMMITTEE as
provided in Article 12 of the AGREEMENT and Article VI of the Bylaws of the
AUTHORITY (hereinafter referred to as the "Bylaws").
A majority of the members of the COMMITTEE shall constitute a quorum for
the transaction of business. Except as otherwise provided herein, all
actions of the COMMITTEE shall require the affirmative vote of a majority of
the members of the COMMITTEE.
Except as otherwise provided herein, the COMMITTEE shall be authorized
to do such acts as are reasonably necessary to further the purposes of
this agreement and implement its provisions.
Any meeting of the COMMITTEE shall be subject to the applicable
provisions of Government Code §54950 et seq., commonly know as the
"Brown Act."
5. PREMIUMS. The COMMITTEE shall establish premiums for the PROGRAM. MEMBERS
that will remit monthly premiums based upon rates established for each category
of employee and the census of covered employees, dependents, and retirees.
Rates for each category of employee will be determined by the COMMITTEE
based upon advice from consultants and/or a consulting Benefits Actuary
and insurance carriers. Rates may vary depending upon factors including,
but not limited to, demographic characteristics, loss experience of the
MEMBER, loss experience of all MEMBERS, and differences in benefits
provided (plan design), if any.
Billing and eligibility determinations will be done by a third party
administrator(s) selected by the COMMITTEE. Billing dates, payment due
dates, and any late fees and/or penalties will be set by the Committee. All
member entities will receive separate notification of any changes in due
dates and/or penalty fees at least 30 days prior to effective date of
change.
Notification of termination of benefits for a covered employee must be
received by the 15th of the current month to terminate at the end of the
month. Otherwise (i.e. notification after the 15th), termination will be as of
the end of the following month.
Page 2 of 5
EIAHealth Program Adopted: March 7, 2003
Memorandum of Understanding Amended: June 1, 2003
Amended: December 12, 2005
Amended: June 27, 2007
6. ASSESSMENTS. Should the PROGRAM not be adequately funded for any reason,
pro -rata assessments to the MEMBERS may be utilized to ensure the approved
funding level for applicable policy periods. Any assessments, which are deemed
necessary to ensure approved funding levels, shall be made upon the
determination and approval of the COMMITTEE in accordance the following:
Assessments/dividends will be used sparingly. Generally, any over/under
funding will be factored into renewal rates.
If a dividend/assessment is declared, allocation will be based upon each
MEMBER'S proportional share of total premium paid for the preceding 3
years. MEMBERS must be current participants to receive a dividend except
upon termination of the PROGRAM and distribution of assets.
MEMBERS will be liable for assessments for 12 months following withdrawal
from the PROGRAM.
Fund equity will be evaluated on a total program -wide basis as opposed to
each year standing on its own.
7. PERIOD OF COMMITMENT. Any entity wishing to become a MEMBER Of the
PROGRAM at its inception shall be required to agree to a commitment to remain in
the PROGRAM for a period of at least three (3) years. Any entity which enters the
PROGRAM after the date of its inception shall also be required to enter into a three
(3) year commitment agreement, however, such MEMBER may be released from
such commitment if the PROGRAM's annual premium drops by 50% or more as
compared to the premium in the MEMBER'S first year of participation.
8. MAINTENANCE OF EFFORT. The PROGRAM is designed to provide a total
healthcare solution to all stakeholders of the MEMBER including active and retired
employees and dependents. MEMBERS are not permitted to reduce the amount
contributed toward retiree health cost upon joining the PROGRAM. During the
initial commitment period, MEMBERS must contribute the same or more toward the
cost of retiree health coverage than was contributed immediately prior to
becoming a MEMBER.
9. APPLICATION To THE PROGRAM. Any public entity that is a member of the
Authority wishing to become a member of the PROGRAM shall make application to
and be approved by the COMMITTEE in a manner prescribed by them.
10. BENEFITS. Benefits provided to MEMBERS' employees shall be as set forth in the
MEMBERS' Plan Summary and as agreed upon between the MEMBER and its
recognized employee organizations as applicable.
Page 3 of 5
EIAHealth Program Adopted: March 7, 2003
Memorandum of Understanding Amended: June 1, 2003
Amended: December 12, 2005
Amended: June 27, 2007
11. COVERAGE DOCUMENTS. The AUTHORITY shall issue MEMBERS a Participation
Agreement outlining the coverage provided, including terms and conditions of
coverage. Except as otherwise provided herein, coverage documents are
controlling with respect to the PROGRAM.
12. PROGRAM FUNDING. It is the intent of this MEMORANDUM to provide for a fully
funded PROGRAM by any or all of the following: pooling risk; purchasing individual
stop loss coverage to protect the pool from large claims; and purchasing
aggregate stop loss coverage.
13. CLAIMS ADMINISTRATION. The COMMITTEE will authorize the retention of the
services of a claims administrator to provide claims services for the PROGRAM.
14. WITHDRAWAL. Members shall notify the PROGRAM in writing of their intent to
withdraw no later than 180 days prior to their actual termination date. The
Member may rescind its notice of intent to withdraw unless otherwise barred by
the applicable provisions of Article 20 of the AGREEMENT.
15. Late Payments. Notwithstanding any other provisions to the contrary regarding
late payment of invoices or cancellation from a Program, at the discretion of the
Executive Committee, any member that fails to pay an invoice when due may be
given a ten (10) day written notice of cancellation.
16. LIAISON WITH THE AUTHORITY. Each MEMBER shall maintain staff to act as liaison
with the AUTHORITY and between the MEMBER and the AUTHORITY's designated
claims representative.
17. DISPUTES. The COMMITTEE shall first determine any question or dispute with
respect to the rights and obligations of the parties to this Memorandum, however,
all final determinations shall be in accordance with Article 31 of the AGREEMENT.
18. ADMINISTRATION COSTS. The AUTHORITY shall be entitled to assess annual
administration costs associated with the PROGRAM as determined by the
COMMITTEE and approved by the Executive Committee.
19. COMPLETE AGREEMENT. Except as otherwise provided herein, this MEMORANDUM
constitutes the full and complete agreement of the MEMBERS.
20. SEVERABILITY. Should any provision of this MEMORANDUM be judicially
determined to be void or unenforceable, such determination shall not affect any
remaining provision.
21. AMENDMENT OF MEMORANDUM. This MEMORANDUM may be amended by a
majority Vote of the COMMITTEE and signature on the MEMORANDUM by the
MEMBER's designated representative, or alternate who shall have authority to
Page 4 of 5
EIAHealth Program
Memorandum of Understanding
Adopted:
March 7, 2003
Amended:
June 1, 2003
Amended:
December 12, 2005
Amended:
June 27, 2007
execute this MEMORANDUM. Any MEMBER who fails or refuses to execute an
amendment to this MEMORANDUM shall be deemed to have withdrawn from the
PROGRAM on the next annual renewal date that is beyond any commitment
required by paragraph 5.
22. EFFECTIVE DATE. This MEMORANDUM shall become effective on the first effective
date of coverage for the MEMBER and upon approval by the COMMITTEE and the
signing of this agreement by the MEMBERS and General
Manager/Secretary/Treasurer of the AUTHORITY.
23. EXECUTION IN COUNTERPARTS. This MEMORANDUM may be executed in several
counterparts, each of which shall be an original, all of which shall constitute but
one and the same instrument.
In Witness Whereof, the undersigned have executedpe-MEMORANDUM as of the
date set forth below. l'Z)
Dated:
CSAC Excess Insurance
Dated:
Member Entity
Page 5 of 5
EIAHealth Program Adopted: March 7, 2003
Memorandum of Understanding Amended: June 1, 2003
Amended: December 12, 2005
Amended: June 27, 2007
execute this MEMORANDUM. Any MEMBER who fails or refuses to execute an
amendment to this MEMORANDUM shall be deemed to have withdrawn from the
PROGRAM on the next annual renewal date that is beyond any commitment
required by paragraph 5.
22. EFFECTIVE DATE. This MEMORANDUM shall become effective on the first effective
date of coverage for the MEMBER and upon approval by the COMMITTEE and the
signing of this agreement by the MEMBERS and General
Manager/Secretary/Treasurer of the AUTHORITY.
23. EXECUTION IN COUNTERPARTS. This MEMORANDUM may be executed in several
counterparts, each of which shall be an original, all of which shall constitute but
one and the same instrument.
In Witness Whereof, the undersigned have executed the.ME-MORANDUM as of the
date set forth below. i"
Dated:... —_�. "� - 07
CSAC Excess Insurance
Dated: _
Member Entity _
Page 5 of 5