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2002/01/08 City Council Resolution (8)RESOLUTION NO. 2002-07 A RESOLUTION AUTHORIZING CERTAIN BENEFITS FOR THE ROHNERT PARK CITY COUNCIL WHEREAS, the Personnel Department has revised and updated an Outline of Benefits; and WHEREAS, such revision separates members of Management, members of the Confidential Group and members of City Council; and WHEREAS, the City wishes to have one document that outlines certain benefits already provided; and WHEREAS, said benefits are provided by previous City Council action. NOW, THEREFORE, BE IT RESOLVED that the following benefits are hereby approved and provided to members of the Rohnert Park City Council: A. MEDICAL AND HEALTH — The City shall pay medical insurance premiums for City Council members' choice of Kaiser Foundation Health Plan, Inc., California North Region (S Coverage) Health Plan of the Redwoods (Empire Plan), Blue Cross Prudent Buyer Plan or any other appropriate health plan offered by the City. The City shall pay any deductible or co- payments required by Kaiser Foundation Health Plan, Inc., California North Region (S Coverage), Health Plan of the Redwoods (Empire Plan), Blue Cross Prudent Buyer Plan for those members of the City Council in office on the date this resolution is adopted who were elected before April 30, 1997. B. DENTAL COVERAGE — The City shall continue to provide, at no premium cost to City Council members, dental service coverage for City Council members and dependents on a City self - insurance basis and which for the most part, but with some exceptions, provides the following City coverage: 100% of usual, customary and reasonable charges for Preventative Care, 80% of usual, customary and reasonable charges and /or 60% of prosthodontics with a calendar year maximum of $2,000. Allowable charges include nitrous oxide and fluoride sealant treatment. 2. 60% of Orthodontics with a lifetime maximum of $4,000. 3. TMJ (Temporomandibular Joint) benefit with the following terms and limits: a) Lifetime maximum TMJ benefit of $650.00 b) 50% co- payment from City Council member required c) Medical benefits would be primary d) TMJ benefits included in the $2,000 per calendar year dental maximum e) Mandatory pre- authorization required 4. No deductible on City Council members or dependents. 5. City to pay any co- payment required as a result of services provided under City - provided Dental Program. With the approval of the City Manager, the calendar year maximum benefit may be exceeded for good cause and charged against future years according to the following schedule: Years of Service Excess Yearly Maximum Benefit to be Charged Against Future Years Up to 4 $1,000 5 to 10 $2,000 11 to 15 $4,000 16+ $6,000 Schedule of future years over which benefits are prorated shall be determined by the years remaining in the individual City Council member's term of office. In the case of City Council members who are eligible for retirement benefits, the City Manager may determine the proration schedule. If dental expenses exceed the yearly maximum benefit and the schedule above is implemented, then, the excess over that year's maximum dental shall be charged against future years' maximum. Any future year maximum that has not been used for current dental expenses shall be used to offset the amount of dental expenditures that exceeded the previous yearly maximum. If that unused future annual maximum is not sufficient to consume the entire excess, then the balance shall be carried forward to the next year's future maximum, not to exceed the number of future years remaining in the City Council members' term of office or the retired City Council members' proration schedule as determined by the City Manager. If a City Council member terminates for any reason, other than normal retirement at age 50 or thereafter or for a work - related disability retirement, and draws a CalPERS retirement benefit, the amounts charged against future years must be refunded to City. An agreement to this effect must be executed with City Council member as a condition precedent to the City Manager's approval to exceed the calendar year maximum benefit. C. VISION CARE - The City will continue to provide, at no premium cost to City Council members, the vision care service coverage program which provides a vision care benefit to cover actual out -of- pocket costs incurred for eye examinations, treatment, or prescription eye - glasses or contact lenses for any member of City Council member's immediate family as follows: Up to $400 per calendar year for each City Council members and dependent under 18 years of age. 2. Up to $400 every two (2) calendar years for dependents 18 years or older; however, an City Council members' unused vision care benefit amount may be applied to his /her dependent(s) over age 18. In no event shall an individual's benefit exceed a total maximum benefit of $400 per calendar year under this section. D. DEFERRED INCOME - The City will continue to make available to Council members a deferred income program, now being administered by NationalDeferred in cooperation with Washington Mutual Bank, FA and International City Management Association (1CMA), or a similar program with another institution acceptable to City. There shall be no City contribution for Council members toward their deferred income program. E. RETIREMENT PROGRAM - The City will continue to make available the California Public Employees Retirement System (Ca1PERS) retirement program to eligible City Council members. There shall be no City contribution for Council members toward their Ca1PERS retirement program. F. USE OF CITY FACILITIES — City Council members and their eligible dependents (as defined both by City eligible dependent policy and Sports Center policy), will be allowed to participate with no fee imposed in open gym time and use the weight room and locker room facility at the Sports Center when such facilities are open and also participate in the Lap Swim Program conducted at the City's swimming pools. Other activities requiring payment of a fee can be discussed with the City Manager for consideration of a waiver of part or all of the fee. G. COUNSELING SERVICES — The City shall pay any unreimbursed costs, up to a maximum City reimbursement of $1,000 per family per calendar year, for professional counseling service charges which are not paid for by City- provided or other insurance which the City Council member may have. H. BENEFITS FOR RETIRED CITY COUNCIL MEMBERS — Resolution 90 -212 (Exhibit A) provided for the extension of certain health, medical, dental and vision benefits to retired City Council members and their spouses and /or dependents who: (a) have at least 12 years of service with the City Council or city commission, (b) retire or are not re- elected, (c) are 50 years old or more, or (d) have been covered under the city health insurance program for the three (3) years preceding retirement or departure. The same resolution provided for payment of 50% of benefits for retired City Council members who (a) have less than 12 years but more than 8 years of service, (b) retire or are not re- elected, and who have been covered by the city's insurance for the three (3) years immediately preceding departure. While the provisions of Resolution 90 -212 did not require continuous years of service for coverage eligibility, Section 6.16.1 of Resolution 89 -117 (Exhibit B), which refers to "Retired and /or Permanently and Totally Disabled Employees," did require at least 10 years of continuous service for Council members as for City employees. Resolution No. 92 -181 (Exhibit C) later discontinued the above - mentioned benefits for retired City Council members sworn in after November 10, 1992. A City Attorney memorandum dated December 9, 1994 gave opinion on the provisions of this resolution, in particular concerning Councilmembers elected prior to November 10, 1992, and who qualified for retirement benefits under the provisions of Res. 90 -212 or were in the process of qualifying. The opinion was that if a Councilmember was eligible for qualification on November 10, 1992, but had not yet qualified, "his or her rights become vested subject to completion of the requirements for qualification." Therefore, the City agrees to pay the costs of insurance premiums for City- provided /offered health, medical, dental and vision benefits for retired City Council members who qualified, or were in the process of qualifying under the provisions of Res. 90 -212 and who were sworn in before November 10, 1992. Coverage will extend to eligible dependents. Further, for the above - described retired City Council members, the following shall apply: 1. Benefits provided under this section shall be coordinated with Medi -Care, Medi -Cal, and any other welfare program available of which said benefit coverage shall be considered primary and City- provided coverage in turn considered secondary. 2. Benefits provided under this section will continue for such retired City Council member and their legal dependents, in any, while said retired City Council member is alive. In the event of the retired City Council member's death, coverage will continue for the spouse until the spouse dies or remarries. In addition, the benefits provided under this section will continue for said retired or deceased retired City Council member's legal dependent children who qualify as an Internal Revenue Service dependent until said children reach the age of twenty -three (23) or the spouse remarries, whichever occurs earliest. 3. All benefits provided under this section are subject to the characteristics of each individual benefit program. 4. The City agrees to pay premium for any future premium increases that may be necessary to maintain benefit levels in effect as when the employee retires due to regular retirement, retirement due to permanent or total disability, or death. 5. The City shall extend any and all future increases in benefit coverage to retired City Council member and their spouse /legal dependents as well as deceased Council members' spouse /legal dependents. Said benefit coverage increases shall only apply to those benefit programs to which the aforementioned parties participated in at the time of the City Council member's retirement or death. In the event the aforementioned benefit coverage increase includes a corresponding premium increase, the increased cost for same shall be borne entirely by the retired City Council member, or spouse /legal dependent. 6. Any retired City Council member who, after retirement from the City, becomes employed elsewhere and is covered by medical, health, dental or vision care benefits by his /her new employer, said coverage provided by the City to the retired City Council member will be considered secondary to the coverage provided by his /her new employer. His/her new employer's coverage shall be considered primary. 7. Any spouse of a deceased City Council member or deceased retired City Council member who is receiving benefit coverage as provided under this section, becomes employed and is covered by medical, health, dental or vision care benefits by his /her employer, said coverage provided by the City will be considered secondary to the coverage provided by the spouse's employer, and his /her employer's coverage shall be considered primary. BE IT FURTHER RESOLVED that participation by Council members in the listed programs at City expense is permissive and not mandatory and is subject to the decision of each individual City Council member. DULY AND REGULARLY ADOPTED this 8thday of January, 2002. CITY OF ROHNERT PARK Mayor MW EXHIBITS: Exhibit A: Resolution No. 90 -212 — Resolution Authorizing Additional Benefits for Certain Key City Positions Exhibit B: Resolution No. 89 -117 — Resolution Outlining Certain Conditions of Employment, Fringe Benefits, and Salary Adjustments for Non - Represented Employees Exhibit C: Resolution No. 92 -181 — Resolution Amending Resolution No. 90 -212 to Delete Certain Health, Medical, Dental, and Visual Benefits extended to Retired City Council Members MACKENZIE: AYE REILLY: AYE SPIRO: AYE VIDAK- MARTINEZ: AYE FLORES: AYE AYES: (5) NOES: (0) ABSENT: (0) ABSTAIN: (0)