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HomeMy WebLinkAbout4.08 Amend Personnel Rules/Benefit Plan CITY OF DUBLIN Igo r L f o AGENDA STATEMENT CITY COUNCIL MEETING DATE: June 26, 1989 SUBJECT: Amendments to Personnel Rules/Benefit Plan/and Related Personnel Resolutions. (Prepared by Lou Ann Riera-Texeira, Administrative Assistant to the City Manager) EXHIBITS: Exhibit A - Resolution Firing Employer's Contribution Under the Public Employees' Medical and Hospital Care Act and Rescinding Resolution No. 110-88 Exhibit B - Resolution Amending the City of Dublin's Benefit Plan Exhibit C - Resolution Amending Rule YVI, Section 5 of the City of Dublin's Personnel Rules (relating to holidays occurring on a weekend day) RECOMMENDATIVopt Resolutions FINANCIAL Maximum potential cost for Fiscal Year 1989-90: STATEMENT: Increased Medical Insurance Contribution $5,610 Increased Dental Insurance Contribution $1,558 TOTAL ANNUAL COST $7,168 Note: The estimated actual costs would be significantly lower than this because not all employees are covered by plans which have increased costs. DISCUSSION: The City's Personnel System is governed by Personnel Rules, a Benefit Plan and several related resolutions. The staff report will present a number of proposed changes to the Personnel Rules and related resolutions. PERS Health Premiums The City currently contracts with the Public Employees' Retirement System (PERS) for the provision of health insurance benefits. This allows the City a wide variety of insurance plans due to the number of participating agencies. PERS allows each participating agency to designate the amount to be contributed by the employer. Presently, the City contributes a maximum of $338 per month per employee towards medical insurance. Under the 1988-89 PERS health benefit plan, insurance premiums for plans currently used by City employees range from $99.97 to $338 per month. However, as of August 1, 1989 all medical plan premiums will increase. The new premiums for plans currently used by City employees will range from $104.15 to $397 per month. The cost differentials are based on the type of plan selected and the number of dependents included on the plan. Due to the significant increases in medical plan premiums, staff recommends that the Council consider increasing the City's contribution from $338 to $355 per month. This would provide full family coverage for all PERS medical plans offered within Alameda County with the exception of PERS-CARE. The 1989-90 premium for PERS-CARE will be at least $397 per month and could increase to $441 per month if the Governor does not approve the State budget surcharge. J. 0 I /. Vii` P) Al, Based on the May 1989 medical insurance enrollments, there are only two City employees who would be affected by the premium increases. In addition, the PEPS open Enrollment period is in effect until July 14, 1989. All employees have the opportunity to change health benefit plans. Employees who select a plan costing more than the City's contribution will pay for the difference through payroll deductions. The proposed Resolution is attached (Exhibit A) which would increase the employer's contribution under Public Employees' Medical and Hospital Care Act and rescind Resolution No. 110-88. The proposed increase is approximately 5% above the current contribution level. Amendments to Benefit Plan The City's Personnel Rules require the City Council to adopt a Benefit Plan. The Benefit Plan provides a summary of the City's benefit program, including medical, dental, disability, and life insurance, holidays, car allowance and travel expenses, and participation in deferred compensation and credit union programs. The following discussion only outlines sections where changes are proposed. All of the remaining sections are as they exist in the current Benefit Plan. Section 2. Medical Insurance The Benefit Plan currently specifies the City's maximum contribution to medical insurance coverage at $338 per month. Should Council approve an increase in the City's contribution from $338 to $355 per month (as recommended above) , - modifications must be made to the Benefit Plan accordingly. Section 3. Dental Insurance The Benefit Plan also stipulates the City's maximui-n contribution to dental insurance. The current maximum contribution is $49.17 per month. This provides for full family coverage under the current dental insurance program (ABAG Benefits Trust Program) . The City was recently informed that as of July 1, 1989 the monthly premiums for dental insurance will increase by approximately 12%. The premium increase appears to be reasonable considering the dental insurance premiums ,were not raised during 1988-89. Consequently, the monthly premium for family coverage will increase to $55.07 per month. Staff recommends that Council increase the City's contribution towards dental insurance from a maximum of $49.17 to a maximum of $55.07 per month and direct staff to amend the City's Benefit Plan accordingly. Section 8. Credit Union Currently, the Benefit Plan states that the City Manager shall have the authority to arrange with an appropriate credit union for membership to be offered to eligible employees. Staff has enrolled in City & County Employee's Credit Union. The proposed Benefit Plan has been amended to include the name of the City's program (approved by the City Council) . Section 9. Deferred Compensation Plan The Benefit Plan also states that participation in a deferred compensation plan(s) is offered. The City of Dublin currently participates in a deferred compensation program offered through the International City Manager's Association (ICMA) . The proposed Benefit Plan has been amended to include the name of the City's program (approved by the City Council) . The proposed Resolution (Exhibit B) is attached which would amend the City's Benefit Plan in accordance with the changes above. • Amendment 'to Personnel Rules Lastly, staff is proposing an amendment to the Personnel Rules, Rule 'l.VI, Section 5 which describes the City's procedure for observing a holiday which occurs on a weekend day. The current policy addresses the procedure for observing a single holiday when it occurs on a weekend day; it does not, however, address the procedure for observing one of two consecutive holidays which falls on a weekend day. For example, this year Christmas falls on a Monday and Christmas Eve, also an observed holiday, falls on Sunday. According to the current rules, the Sunday holiday would be observed on Monday; however, Monday is already a holiday. Clarification is required to assure that employees receive the total number of holidays identified in the Benefit Plan. The proposed amendment provides that in such cases, the City Manager shall designate the day to be observed as a holiday in lieu of the holiday which falls on the weekend day. Thus, the City Manager can determine the appropriate in-lieu holiday by contacting other public and private agencies and gauging the City's workload. Staff recommends adoption of Exhibit C which amends Rule XVI, Section 5 of the Personnel Rules. CONCLUSION: Staff recommends that the City Council adopt the three Resolutions which will revise the City's employee benefit package. The changes increase tha maximum health insurance contribution by $17.00 per month and the maximum contribution towards dental insurance by $5.90 per month. The third modification is for clarification purposes only and does not affect the benefit package provided to City employees. RESOLUTION NO. - 89 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN ************************* FIXING EMPLOYER'S CONTRIBUTION UNDER THE PUBLIC EMPLOYEES' MEDICAL AND HOSPITAL CARE ACT AND RESCINDING RESOLUTION-NO. 110-88 WHEREAS, Government Code Section 22825.6 provides that a local agency contracting with the Public Employees' Medical and Hospital Care Act shall fix the amount of the employer contribution at an amount not less than the amount required under Section 22825 of the Act; and WHEREAS, the City of Dublin is a local agency contracting under the Act; and WHEREAS, on August 8, 1988, the City Council adopted Resolution No. 110-88 fixing the employer's contribution at $338.00 per month; and WHEREAS, various health plans offered by the Act have increased premiums significantly due to cost increases within the health care industry. NOW, THEREFORE, BE IT RESOLVED that the employer's contribution for each eligible employee or annuitant shall be the amount necessary to pay the cost of his/her enrollment, including the enrollment of his/her eligible family members, in a health benefit plan or plans, up to a maximum of $355.00 per month, plus administrative fees and Contingency Reserve Fund assessments. BE IT FURTHER RESOLVED that this contribution shall begin with the August 1, 1989 premium and that Resolution No. 110-88 shall be rescinded. PASSED, APPROVED AND ADOPTED this day of 1989. AYES: NOES: ABSENT: Mayor City Clerk RESOLUTION NO. 89 A RESOLUTION OF THE CITY COUNCIL • OF THE CITY OF DUBLIN ADOPTING A BENEFIT PLAN IN ACCORDANCE WITH PERSONNEL RULES WHEREAS, the City Council adopts Personnel System Rules for employees of the City; and WHEREAS, the provision of employee benefits assists the City in attracting and retaining quality employees; and WHEREAS, the Personnel System Rules require the City Council to adopt a Benefit Plan; and WHEREAS, the identification of benefits in a single document will assist with the administration of the personnel system; and WHEREAS, the following benefit provisions shall be established in accordance with the City of Dublin Personnel Rules; and WHEREAS, the Benefit Plan was last amended in September of 1987 . NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby adopt the following benefits as a Benefit Plan: Section 1. Eligible Employees: All benefits shall apply to full-time employees of the City of Dublin, unless otherwise stated. The provision of benefits outlined in this plan shall not apply to temporary employees . Section 2 . Medical Insurance: All City employees who are members of the Public Employees Retirement System (PERS) shall be eligible to select from plans administered by the Public Employees Medical and Hospital Care Act. Beginning with the August, 1989 premium, the City will contribute a maximum of $355 per month, exclusive of administrative charges towards medical insurance. If the cost of coverage exceeds the amount of the City contribution, the additional cost will be paid by the employee through payroll deductions or to the extent allowed by Section 4 of the Benefit Plan. Section 3 . Dental Insurance: Beginning with the July 1989 premium, the City will contribute on behalf of each employee 'scheduled to regularly work at least 30 hours per week, a maximum of $55 . 07 per month to a dental insurance plan selected by the City. Section 4 . Supplemental Dental/Vision/Health Care Reimbursement Trust Fund: a. Plan Limits : Full-time employees shall have a limit of $600 for "1989-90 plan year" for eligible reimbursements. Employees regularly scheduled to work between 20 and 40 hours per work week shall have a limit of $300 per plan year for eligible reimbursements . Page 1 b. Plan Year: The "Plan Year" shall cover reimbursements for eligible expenses incurred between July 1st and June 30th of the City' s fiscal year. C. Eligible Claims: Employees eligible for this benefit may request reimbursement for the following expenses provided that they have not exceeded their Plan limit for the corresponding "plan year" . i . Qualified dental expenses and co-payments incurred by an employee or any of the employee's qualified dependents, provided expenses . are not paid either by the City provided dental insurance, or any dual coverage provided by an employee' s spouse. ii . Reimbursement to an employee for optical exams and appliances incurred by *the employee or any of the employee' s qualified dependents . iii . Co-payment of a health insurance premium under a City offered program which exceeds the City contribution identified in Section 2 . Also, payment of employee or dependent medical expense under the deductible amount for employees enrolled in an indemnity plan. d. Administrative Rules: The reimbursement of any expenses pursuant to this .section shall be contingent upon the fulfillment of requirements established by the City's accounting procedures and other rules or policies established by the City Manager. Section 5 . Disability Insurance: The City will contribute on behalf of each regular employee scheduled to regularly work at least 30 hours per week, the total premium cost of a Long Term Disability Plan selected by the City. Section 6 . Life Insurance: The City will contribute on behalf of each full-time employee scheduled to regularly work at least 40 hours per week (excluding the position of City Manager) , the total premium cost of a $50, 000 Term Life Insurance Policy selected by the City. In addition, the City Manager shall be authorized to implement a supplemental life insurance program, which would allow full-time employees to purchase additional term life insurance through payroll deductions, if such a plan is available. Section 7 . Retirement: The City will provide the California Public Employees Retirement System 2% at age 60 plan to all eligible employees. The City Council shall have the authority to amend the plan to 'include benefit options offered by the Public Employees Retirement System.. Beginning September 26, 1988, the City shall contribute to the Public Employees' Retirement System (PERS) on behalf of all covered employees, seven percent (7 . 0%) of the employee contribution required by PERS . Contributions made pursuant to this section shall be reported as "employee contributions being made by the contracting agency" . Said contributions shall not apply in the case of temporary, provisional, or contract employees, unless the contract explicitly states that the City, is to pay the employee' s contribution rate required by PERS. Page 2 The aforesaid contribution shall not be consi-erred as a part of an employee' s salary for the purpose of computing straight time earnings, compensation for overtime worked, or the City's contributions to PERS; nor shall such contribution be taken into account in determining the level of any other benefit which is a function of or percentage of salary. The City will not treat these contributions as compensation subject to income tax withholding unless the Internal Revenue Service or Franchise Tax Board indicates that such contributions are taxable income subject to withholding. Each employee shall be solely and personally responsible for any federal, state or local tax liability of the employee that may arise out of the implementation of this section or any penalty that may be imposed therefor. Section 8 . Credit Union: The City Manager shall have the authority to arrange with an appropriate credit union for membership to be offered to eligible employees . The credit union shall retain the right to define an' eligible employee. Membership is currently offered in the City County Employees Credit Union. Section 9 . Deferred Compensation Plan: Participation in a deferred compensation plan(s) is offered. This shall be a voluntary program and the City will not contribute any funds on behalf of an employee. Participation is currently offered in a program administered by the International City Management Association. Section 10 . Holidays: The following days shall be deemed holidays in accordance with the Personnel System Rules : a) New Year' s Day January 1 b) Martin Luther King Jr. Day Third Monday in January c) Washington' s . Birthday Third Monday in February d) Memorial Day Last Monday in May e) Independence Day July 4 f) Labor Day First Monday in September g) Veteran' s Day November 11 h) Thanksgiving Day Fourth Thursday in November i) Day following Thanksgiving Day following above j ) Day preceeding Christmas December 24 k) Christmas Day December 25 1) Day preceeding New Year' s Day December 31 Section 11 . Education Reimbursement: Full-time employees shall be eligible to participate in an education reimbursement program. The City shall only reimburse the employee for courses undertaken which are job related. The employee must obtain prior authorization from the City Manager and reimbursement will only be provided upon submittal of proof of satisfactory completion of the courses undertaken with a passing grade when applicable. The City will reimburse an amount equal to one-half of the employees tuition and/or fees, (including books) however, the amount reimbursed shall not exceed $500 per fiscal year. The payment of any reimbursements shall be contingent upon the fulfillment of reporting requirements established by the City Manager. Page 3 Section 12 . Car Allowance: The following positions shall be eligible to receive the designated monthly, allowance. The receipt of the car allowance pursuant to this section shall be full compensation for all operating costs excluding tolls, parking fees and out of area travel. a. Management Positions Receiving Monthly Allowance Eligible Positions Monthly Allowance Administrative Services/Finance Director $190 Assistant ,City Manager $190 Planning Director $190 Public Works Director/City Engineer $190 Recreation Director $190 b. Miscellaneous Employees Receiving Car Allowance The following position shall be eligible to receive the designated monthly car allowance. Eligible Position Monthly Allowance Public Works Inspector $100 C. Operating Costs Miscellaneous employees noted in Section (b) and employees whose services and compensation are provided for under separate agreement who receive a car allowance shall be eligible to receive $ . 10 (ten cents) per mile driven as an operating cost, unless said contract explicitly excludes payment of operating expenses. d. Out of Area Travel Reimbursement When traveling out of the area on City business, the City will reimburse $ . 25 (twenty-five cents) per mile for the use of a private vehicle or air transportation costs, whichever is less . e. Administrative Requirements The payment of any mileage reimbursements or car allowance shall be contingent upon the fulfillment of requirements established by the City' s accounting procedures and other rules and policies. Section 13 . This resolution shall supersede Resolution No. 128-88 and any previous resolutions adopted by the City Council which are in conflict. PASSED, APPROVED AND ADOPTED this 26th day of June, 1989, by the following vote: AYES: NOES : ABSENT: Mayor ATTEST: City Clerk Page 4 RESOLUTION NO. - 89 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN AMENDING RULE XVI, SECTION 5 OF THE PERSONNEL RULES RELATING TO HOLIDAYS WHICH OCCUR ON A WEEKEND DAY AS ADOPTED IN RESOLUTION NO. 85-87 WHEREAS, the City Council adopted Resolution No. 85-87 which established Personnel System Rules; and WHEREAS, Rule XVI, Section 5 describes the observation of holidays which occur on a weekend day; and WHEREAS, the adopted rules only address the observation of a single holiday occurring on a weekend day and do not speak to cases where one of two consecutive holidays falls on a weekend day;' and WHEREAS, the language requires modification to address cases where one of two consecutive holidays falls on a weekend day. NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Dublin does hereby amend Resolution No. 85-87 by rescinding Rule XVI, Section 5 and replacing the rule with the language contained in Exhibit C.1, attached hereto and by reference made a part hereof. BE IT FURTHER RESOLVED that this amendment shall be incorporated as a part of the City of Dublin Personnel Rules. PASSED, APPROVED AND ADOPTED this day of 1989. AYES: NOES: ABSENT: Mayor City Clerk EXHIBIT C.1 RULE XVI, SECTION 5. HOLIDAYS OCCURRING ON WEEKEND Section 5. "Holidays Occurring on Weekend": In the event that a holiday falls on a Saturday, the preceding Friday shall be a holiday. In the event a holiday falls on a Sunday, the following Monday shall be a holiday. In cases where one of two consecutive holidays falls on a weekend day (e.g. , the Day Before Christmas and Christmas Day/the Day Before .New Years and New Years Day) a conflict may occur with the paragraph above. In such cases, the City Manager shall designate the day(s) to be observed as a holiday(s) in lieu of the holiday(s) which falls on Saturday and/or Sunday. The City Manager's designation shall not result in the observation of more total holidays than are approved in the Employee Benefit Plan.