CC - Item 5K - Adoption Of Annual Resolution Establishing Compensation And Benefits For the City Council SE M
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ROSEMEAD CITY COUNCIL
.°F STAFF REPORT
4.CORPORATED O6
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: BILL R. MANIS, CITY MANAGER, ,?.
DATE: OCTOBER 24, 2017
SUBJECT: ADOPTION OF ANNUAL RESOLUTION ESTABLISHING
COMPENSATION AND BENEFITS FOR THE CITY COUNCIL
SUMMARY
The City Council will consider approval of the annual Resolution establishing compensation and
benefits for the City Council of the City of Rosemead.
The purpose of the annual compensation and benefits resolution is to ensure transparency and
reaffirm the compensation and benefits provided to the City Council.
STAFF RECOMMENDATION
It is recommended that the City Council adopt Resolution No. 2017-58, for the City Council with
no changes from the prior year.
BACKGROUND
On June 28, 2016, the City Council approved and adopted Resolution No. 2016-20 establishing
compensation and benefits for the City Council of the City of Rosemead. The City Council has
historically reviewed and approved an annual Resolution which defines the City Council's
compensation and benefits.
FISCAL IMPACT
The total estimated net cost to implement the terms and conditions of the Resolution have been
factored into the City's adopted budget for the 2017-18 fiscal year.
STRATEGIC PLAN IMPACT—None
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
ITEM NO. 5.K
City Council Meeting
October 24,2017
Page 2 of 2
Prepared by:
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Brad McKinney, Assistan City Manager
Attachment: Resolution No. 2017-58
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Attachment
Resolution No. 2017-58
RESOLUTION NO. 2017-58
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, 2017, the
salary ranges and benefits for the affected classification will be as follows:
SECTION 1: COMPENSATION
Members of the City Council will receive $1,118.63 per month for attendance of two City
Council meetings pursuant to Ordinance No. 841.
SECTION 2: HEALTH INSURANCE PROVIDER
The City contracts with California Public Employees' Retirement System (CaIPERS) to serve as
the health insurance provider for the City.
SECTION 3: CAFETERIA-STYLE HEALTH,WELFARE,& SAVINGS BENEFIT
Effective July 1,2016, the City will provide each full-time Team Member with $1,700 per month
for use towards enrolling in any of the City offered health plans, dental plans, and vision plans.
Any unused remainder can be put into a 457 deferred compensation plan. Members can also
choose to waive coverage and take the entire benefit as deferred compensation (457 Plan) but
must first show proof of group health insurance coverage through an individual, a spouse or
family member's coverage through their employer and complete the Voluntary Decline of Health
Care Offered Under City of Rosemead Group Plan form.
SECTION 4: CHANGES TO HEALTHCARE LAWS
The parties recognize that certain changes to State or Federal laws, programs, taxes or regulation
including, but not limited to, the Affordable Care Act, may impact future medical plan offerings.
In the event that such reform measures or resulting changes in the healthcare marketplace alter
healthcare coverage options, costs or other elements of healthcare that may materially alter the
provisions of this Resolution, the City may reopen Section 2 and 3 regarding medical
insurance/benefits.
SECTION 5: 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.
Members hired after July 1, 2007 will receive retiree health benefits in accordance with public
employees' retirement laws and Ca1PERS.
SECTION 6: RETIREMENT PROGRAM(CALPERS)
Members will be enrolled in the City's retirement program through Ca1PERS. On July 1, 2007,
the City began providing the 2.7%@55 benefit formula with one-year final compensation option
with no cap.
On July 1, 2010, the City implemented a 2-tier system with changes for new hires only. All full-
time new hires, hired on or after July 1, 2010, will be subject to the 2%@55 formula with one-
year final compensation option. All existing full-time Members hired prior to July 1, 2010 will
remain at the 2.7@55 formula.
Under the Public Employees' Pension Reform Act of 2013 (PEPRA), effective January 1, 2013,
all "new members" will be subject to the 2.0% @ age 62 benefit formula which also requires a
three year final compensation (the highest average annual pensionable compensation earned by a
member during a period of at least 36 months)with an early retirement age of 52.
A"New Member" is defined as:
1. A new hire that is brought into Ca1PERS membership for the first time on or after
January 1, 2013, and who has no prior membership in any other California public
retirement system.
2. A new hire who is brought into CalPERS membership for the first time on or after
January 1, 2013, and who is not eligible for reciprocity with another California
public retirement system.
3. A member who established Ca1PERS membership prior to January 1, 2013, and who
is hired by a different Ca1PERS employer after January 1, 2013, after a break in
service of greater than six months.
Effective January 1, 2013, PEPRA prohibited employers from paying any portion of a "new
member's" member contribution rate. All new members must pay 50% of total normal cost as
employee contribution rate.
Ca1PERS refers to all members that do not fit within the definition of a new member as "classic
members". All existing Ca1PERS members as of December 31, 2012, will retain the existing
benefit levels for future service with the same employer.
By January 1, 2018, all "classic members" will be required to contribute their full share up to 8%
of the employee contribution of the Ca1PERS rate.
Effective January 1, 2013, PEPRA prohibited employers from paying any portion of a "new
member's" member contribution rate. All non-classic California Public Employees' Retirement
System (Ca1PERS) members must pay 50%of total normal cost as employee contribution rate.
SECTION 7: ENHANCED RETIREMENT PROGRAM: PUBLIC AGENCY RETIREMENT SERVICES
(PARS)
The City offers an enhanced retirement package through Public Agency Retirement Services
(PARS) for all members hired prior to July 1, 2010. Such members who retire from Rosemead
after working 12 years for the City will have their pension formula enhanced to 3%@55, with the
provision that the maximum pension allowance that members can accrue through PARS is 90%
of their final pay. The PARS retirement pension is limited to 90% of their final pay. Members
must be at least 55 years of age to qualify for PARS.
All newly elected members hired on or after July 1, 2010 are ineligible for the Enhanced
Retirement Program through PARS. PARS has been eliminated for all newly elected members.
SECTION 8: DEFERRED COMPENSATION PROGRAM(401A& 457)
Members of the City Council receive $500 per month. Income may be deferred through the
401A Plan which allows members to make contributions through a supplemental retirement
savings program. The remaining balance of the monthly heath benefit allowance will be put into
a 457 deferred compensation plan as specified in Section 3.
On July 1, 2010, the employer funded deferred compensation program was eliminated for all
newly elected members of the City Council.
SECTION 9: LIFE INSURANCE
Members of the City Council receive an accidental death and dismemberment and life insurance
policy of$100,000.
SECTION 10: TUITION REIMBURSEMENT
The City will reinstate the tuition reimbursement program for FY 2016-2018 based upon
availability of funding.
Subject to City Manager approval, Members may attend and be reimbursed for part or all of the
costs of educational and other training courses (up to $5,000 per fiscal year) which provide a
benefit to the City provided there are budgeted funds for such approval by the City Council. The
educational/training courses must be job-related leading towards a college or university degree or
certificate and Members must remain with the City for three (3) years after the successful
completion of class/course or must refund the amount received to the City on a pro-rated basis.
If a Member leaves office (voluntarily or involuntarily) with the City, prior to the three (3) years
after the completion of class/course, the Member must refund the amount received based upon
the following pro-rated basis:
Pro-Rated Schedule of Refund
Years of Service After
Completion Refund Amount Due to the City
Less than one (1) year Full Amount Received
Less than two (2) years 2/3 of Amount Received
Less than three (3) years 1/3 of Amount Received
Members with prior approval by the City Manager, may be reimbursed for registration, cost of
books, tuition, lab fees and parking for classes or instruction, provided such classes or instruction
are related to the Member's assigned duties with the City.
Reimbursement will be made only after a Member has satisfactorily completed the class or
workshop with the grade of"C" or better or a "B" or better for graduate level courses and that
proof of completion has been submitted and approved by the City Manager.
All study time shall be considered completely voluntary.
There is no mileage reimbursement for travel to and from educational classes. Required forms
must be completed and necessary documentation (receipts and grades) must be provided in order
to receive reimbursement.
SECTION 11: WELLNESS PROGRAM
The City provides the Wellness Reimbursement Program at $300 per fiscal year for FY2016-
2018.
SECTION 12: 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. Loans are due and payable
in full upon termination or separation of service.
SECTION 13: EMPLOYEE ASSISTANCE PROGRAM
The City provides access to the Employee Assistance Program(EAP).
SECTION 14: DIRECT DEPOSIT
Members of the City Council are 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 15: UNEMPLOYMENT INSURANCE BENEFITS
Members of the City Council are not eligible for unemployment insurance benefits.
PASSED, APPROVED,AND ADOPTED this 24th day of October, 2017.
Polly Low, Mayor
APPROVED AS TO FORM: ATTEST:
Rachel Richman, City Attorney Marc Donohue, City Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) §
CITY OF ROSEMEAD )
I, Marc Donohue, City Clerk of the City Council of the City of Rosemead, California, do hereby
certify that the foregoing City Council Resolution, No. 2017-58, was duly adopted by the City
Council of the City of Rosemead, California, at a regular meeting thereof held on the 24th day of
October, 2017, by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
Marc Donohue, City Clerk