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CC - 2011-32 - Establishing Annual Salary Ranges and Benefits for City CouncilRESOLUTION NO. 2011-32 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD, CALIFORNIA, ESTABLISHING ANNUAL SALARY RANGES AND BENEFITS FOR THE CITY COUNCIL OF THE CITY OF ROSEMEAD WHEREAS, THE FOLLOWING City Council Members are critical to the efficient and effective operations of the City, due to the policy- making nature and responsibilities of the position; and NOW THEREFORE, BE IT RESOLVED that effective beginning July 1, 2011, the salary ranges and benefits for the affected classification will be as follows: SECTION 1: COMPENSATION Members of the City Council will receive $1,268.63 per month, ($1,118.63 for attendance of two City Council meetings and $150 for two Rosemead Community Development Commission meetings per month) pursuant to Ordinance No. 841. SECTION 2: HEALTH INSURANCE PROVIDER The City shall contract with CalPERS to serve as the health insurance provider for the City of Rosemead. SECTION 3' CAFETERIA -STYLE HEALTH WELFARE & SAVINGS BENEFIT Beginning July 1, 2008, the City will provide members of the Council with $1,600 per month for use towards enrolling in any of the City offered health plans, dental plans, and vision plans. Any unused remainder must be applied to a deferred compensation plan. Members can also choose to take the entire benefit as deferred compensation, but must first show proof of health insurance through another source. SECTION 4: RETIREMENT HEALTH PLAN Members of the City Council elected on or before July 1, 2007, who have 20 years or more of service with the City of Rosemead, and who retire from the City, an allocation of up to $1,000 / month will be given to pay for health care benefits for the duration of their retirement. If the health insurance program selected by the Member costs more than $1,000 / month, the City will only cover the first $1,000 / month of the cost of the selected program. Once the Member reaches age 65 or becomes eligible for Medicare coverage, the Member will transition to Medicare coverage, with the City picking up the remaining cost of health insurance coverage up to a maximum of $1,000 / month. For members elected on or before July 1, 2007, who have 12 -19 years of service with the City of Rosemead, and who retire from the City, an allocation of up to $500 / month will be given to pay for health care benefits for the duration of their retirement. If the health insurance program selected by the Member costs more than $500 /month, the City will only cover the first $500 / month of the cost of the selected program. The above retirement health contributions will only be in effect for Members employed with the City as of July 1, 2007. When Member reaches 65 years of age, or becomes eligible for Medicare, said Members will transition to Medicare coverage and the City will continue to contribute towards the cost of health care coverage during the duration of the Members' retirement. Furthermore, it is expressly noted that the retirement health contribution can be used towards health coverage for the Member, their spouse, and / or any eligible dependent. SECTION 5: RETIREMENT PROGRAM (PERS) Members will be enrolled in the City's retirement program through CalPERS. Effective July 1, 2007, the City began providing the 2.7 % @55 benefit with one -year final compensation option with no cap. In addition, the City contributes the Member's share to the retirement system. Effective July 1, 2010, the City implemented a 2 -tier system with changes for newly elected members only. All newly elected members will be at the 2 % @55 formula with one -year final compensation option. SECTION 6: ENHANCED RETIREMENT PROGRAM (PARS) The City offers an enhanced retirement package through PARS for all existing Team Members elected prior to July 1, 2010. Such members who retire from Rosemead after working 20 years for the City will have their pension formula enhanced to 3 % @55, with the provision that the maximum pension allowance that Member's can accrue through PARS will be 90% of their final pay. Members must be at least 55 years of age to qualify for PARS. Effective July 1, 2010, the enhanced retirement package through PARS will no longer be offered to newly elected members. The PARS enhancement will be phased out. SECTION 7: DEFERRED COMPENSATION PROGRAM Members of the City Council receive $500 per month. Income may be deferred through the 457 Plan which allows members to make contributions through a supplemental retirement savings program. Effective July 1, 2010, the employer funded deferred compensation program has been eliminated for all newly elected Members of the City Council. SECTION 8: SHORT -TERM DISABILITY The City will provide a short -term disability plan to protect against cases where a non - work - related illness or injury is sustained which results in an inability to work for a short period of time. In these cases, they will receive 66.67% of their base salary (1 year average of W -2) with a waiting period of 15 days. Members will receive continued payment until he /she is medically able to return to work, or has to begin utilizing long term disability, or until he /she reaches the age of 65, whichever comes first. The maximum short -term disability benefit amount will be $1848 per week. SECTION 9: LONG -TERM DISABILITY The City will provide a long -term disability plan to protect against cases where a non - work - related illness or injury is sustained which results in an inability to work for a long period of time. In these cases, they will receive 66.67% of their base salary with a 90 day waiting period. Members will receive continued payment until he /she is medically able to return to work, or until he /she reaches the age of 65, whichever comes first. The maximum long -term disability benefit amount will be $8,000 per month. SECTION 10: LIFE INSURANCE Members of the City Council will receive an accidental death & dismemberment and life insurance policy of $100,000. SECTION 11: TUITION REIMBURSEMENT The City will suspend the tuition reimbursement program for FY 2011 -2012. The City will revisit the tuition reimbursement program for FY 2012 -2013 based upon the availability of funding and a possible creation of the reimbursement pool. SECTION 12: WELLNESS PROGRAM The City will suspend the Wellness Program for FY 2011 -2012. The City will revisit the wellness reimbursement program at $500 per year for FY 2012 -2013 based upon the availability of funding. SECTION 13: COMPUTER PURCHASE PROGRAM The City provides a computer purchase program for members of the City Council as outlined in the Administrative Policy No. 30 -09 approved by the City Manager. SECTION 14: EMPLOYEE ASSISTANCE PROGRAM The City will provide access to the Employee Assistance Program (EAP) SECTION 15: DIRECT DEPOSIT Members of the City Council will be provided with an option to authorize the automatic deposit of each paycheck into an individual's checking, savings or credit union account. Payroll checks will not be issued in advance. SECTION 16: MILEAGE REIMBURSEMENT The City will provide mileage reimbursement for conducting City business based on the standard miles rates of the Internal Revenue Service (IRS). SECTION 17: UNEMPLOYMENT INSURANCE BENEFITS Members of the City Council are not eligible for unemployment insurance benefits. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Rosemead on the 28th day of June 2011. Steven Ly Mayor ATTEST: W _% A, Gloria Molleda City Clerk APPROVE AS TO FORM: �' kc achel Richman City Attorney STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS. CITY OF ROSEMEAD ) I, Gloria Molleda, City Clerk of the City of Rosemead, do hereby certify that the foregoing Resolution No. 2011 -32 being: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD, CALIFORNIA, ESTABLISHING ANNUAL SALARY RANGES AND BENEFITS FOR THE CITY COUNCIL OF THE CITY OF ROSEMEAD was duly and regularly approved and adopted by the Rosemead City Council on the 28th of June, 2011, by the following vote to wit: Yes: Alarcon, Armenta, Clark, Ly No: None Abstain: None Absent: Low 1 ona Molleda City Clerk