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10-174 RESOLUTION NO. 10-174 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENIFEE PROVIDING FOR CERTAIN HEALTH AND WELFARE BENEFIT PLANS FOR ITS EMPLOYEES IN ADDITION TO MEDICAL BENEFITS AND AUTHORIZING VOLUNTARY COUNCIL MEMBER PARTICIPATION IN THE CITY'S HEALTH AND WELFARE PLANS WHEREAS, the City will be contracting for medical benefits under the Public Employees Medical and Hospital Care Act (PEMCHA) and for certain deferred compensation plan welfare benefits; and WHEREAS, the City also wishes to provide for dental, vision, long-term disability, life insurance benefits and employee assistance program WHEREAS, the City wishes to contribute to the cost of medical insurance and such other benefits for employees by setting an (FSA) Flexible Spending Allowance in the amount of$1500.00 per month which will be provided to each full-time employee to be applied first to the purchase of coverage by such plans; and WHEREAS, in the event that such allowance is not utilized in full for medical or other benefits purchase because of the cost of the insurance or because the employee can provide evidence of other coverage, the City will provide the remaining unused portion of the allowance to the employee in cash. Cash payment shall be added to his/her taxable compensation and shall be paid to him/her as follows: Flexible Benefit Allowance shall be paid in twenty four (24) equal installments payable during the first two payroll dates of each month during the Plan Year subject to any applicable wage withholding or similar taxes; and WHEREAS, Government Code Sections 53208 et seq provide that City Council members may be participate in a City's health and welfare benefits plans on terms and conditions specified by the City Council that are no greater than those afforded to the employee(s) receiving the highest benefit, provided that no Council member may receive cash instead of the benefit allowance; and WHEREAS, only current employees and Council members would be eligible to receive such additional health and welfare benefits and to apply any extra allowance to ` cash or a 457 deferred compensation plan, and to the extent allowed by law this Resolution is not intended to and does not provide for any benefit of any kind for Council members after they leave office. NOW, THEREFORE, the City Council of the City of Menifee resolves and orders as follows: Section 1. The recitals set out above are true and correct. Section 2. Effective July 1, 2009, the City of Menifee has provided PEMCHA medical benefits to its employees and council members on the terms and conditions set out in Resolution No. 09-90. Employees are required to purchase the medical insurance or show evidence of other coverage. Section 3. In addition, the City will make available to its employees and council members the following additional benefits, which they are not required to purchase. VALERIEP 25650_1 Resolution 10-174 Health Benefits A. Dental Benefits B. Vision Benefits C. Long Term Disability D. Life Insurance E. Employee Assistance Program F. Flexible Spending/Dependent Care Account (Section 125 Plan) G. Additional benefit plans determined at the discretion of the City Section 4. The City will-contribute $1500.00 per month on behalf of each - employee or council member toward the cost of such medical and other insurance. They must pay for the remainder of the cost of such benefits. . Section 5. In the event that there is all or a portion of the allowance remaining, an employee will receive that remaining portion in cash, taxable to the employee as income. A Council member must determine not to receive such remaining amount as cash and must elect to deposit into the City's 457 plan and/or in a (FSA) Flexible Spending Account. All deposits to a 457 plan are subject to federal statutes and regulations governing such plans. Should the deposits reach federal annual maximum said contributions will stop for that Plan Year and will be deposited into a (FSA) Flexible Spending Account. Benefits under the Flexible Spending Account shall take the form of reimbursement by the Employer for Eligible Medical Spending Expenses incurred by the participate during the remaining plan year. Section 6. Agency staff is directed to take the necessary actions to implement this Resolution. PASSED, APPROVED and ADOPTED this 19th day of October, 2010, by the following vote: AYES: NOES: (f) 1 ABSENT: ABSTAIN: -nom Wallace W. Edgerton, Mayor Attest: Kathy Bennett, City Clerk 2 -TY rte. MEN IFEE Wallace W.Edgerton Mayor STATE OF CALIFORNIA ) Fred Twyman COUNTY OF RIVERSIDE ) ss Mayor Pro rem CITY OF MENIFEE ) John V.Denver I, Kathy Bennett, City Clerk of the City of Menifee, do hereby certify that the Councilmember foregoing Resolution No. 10-174 was duly adopted by the City Council of the City Darcy Kuenzi of Menifee at a meeting thereof held on the 19th day of October, 2010 by the Councilmember following vote: Scott A.Mann Ayes: Edgerton, Denver, Kuenzi, Mann, Twyman Councilmember wy Noes: None Absent: None Abstain: None Kathy Bennett, City Clerk t 29714 Haun Road Menifee,CA 92586 Phone 951.672.6777 Fax 951.679.3843 www.cityofrnenifee.us