The URL can be used to link to this page

Home My Public Portal AboutCity Council_Resolution No. 23-5692_Side Letter with Temple City Employee AssociatioRESOLUTION NO. 23-5692 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMPLE CITY, CALIFORNIA APPROVING THE SIDE LETTER WITH THE TEMPLE CITY EMPLOYEE ASSOCIATION (TCEA) TO THE CURRENT MEMORANDUM OF UNDERSTANDING (MOU) BETWEEN THE CITY OF TEMPLE CITY AND TCEA FOR TCEA-REPRESENTED POSITIONS FOR JULY 20, 2022 TO JUNE 30, 2025 WHEREAS, on July 19, 2022, the City Council approved the MOU between the City and TCEA from July 20, 2022 through June 30, 2025. WHEREAS, the MOU contained a reopener to discuss reducing the City's contributions for health benefits of future employees. WHEREAS, on July 21, 2023, the City was notified that TCEA membership voted to accept the City's proposal presented to the TCEA negotiating team on July 11, 2023 and which is memorialized in the attached Side Letter Agreement (Exhibit "1"). NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF TEMPLE CITY DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. The City Council hereby approves the Side Letter agreement between the City and TCEA for the remainder of the MOU term through June 30, 2025 (Exhibit "1 "); and Section 2. The City Clerk shall certify to the adoption of this Resolution. PASSED, APPROVED AND ADOPTED on this 15th day of August 2023. William Man, Mayor ATTEST: APPROVED AS TO Peggy �CuCyClerk Gre u phy, City Attor I hereby certify that the foregoing resolution, Resolution No. 23-5692, was duly passed, approved and adopted by the City Council of the City of Temple City at a regular meeting held on the 15th day of August 2023, by the following vote: AYES: Councilmember - Sternquist, Vizcarra, Yu, Chavez, Man NOES: Councilmember - None Resolution No 23-5692 August 16, 2023 Page 2 of 3 ABSENT: Councilmember - None ABSTAIN: Councilmember - None P Peggy uo, Clerk EXHIBIT 1 Resolution No 23-5692 August 16, 2023 Page 3 of 3 Side Letter Agreement between the City and TCEA to the TCEA MOU dated July 20, 2022 through June 30, 2025 (See attached.) SIDE LETTER OF AGREEMENT THE CITY OF TEMPLE CITY AND THE TEMPLE CITY EMPLOYEE ASSOCIATION REVISION OF HEALTH BENEFITS FOR NEW HIRES Pursuant to the provisions of the Meyers-Milias-Brown Act ("MMBA"), the City of Temple City (the "City") and the Temple City Employee Association ("Association") have met and conferred and have reached agreement regarding amendment of Article 5, Health Benefits, of the Memorandum of Understanding between the City and the Association, currently in effect July 20, 2022 through June 30, 2025. Article 5: Health Benefits, is hereby amended to include the following revised Sections: 5.1 Summary of Benefits. The City offers employees and retirees certain health benefits. Information provided here is a summary of the benefits that are fully set forth in the City's contract with CaIPERS, in the plan documents with insurance providers, in resolutions adopted by the Temple City City Council, and in the case of a conflict between this summary and those documents, then those documents will control. 5.2 Medical Insurance. Each Unit member will be provided with medical insurance coverage through the CaIPERS system pursuant to the Public Employees' Medical and Hospital Care Act (PEMHCA). A variety of plan options are available for employees to select. In accordance with Resolution No. 78-1747, the City currently contributes 100% of the cost of the employee's coverage and 50% of the cost of the employee's dependents. Employees will pay any excess premium cost through a payroll deduction. Effective October 1, 2023, in accordance with Resolution No. 23-5690 and any additional resolution(s) adopted to effectuate this section, the City will contribute 100% of the PEMHCA minimum (which is set by CalPERS annually,) to CaIPERS directly. In addition to the PEMHCA minimum contribution paid to CalPERS, the City will contribute an amount equal to 100% of the cost of the employee's coverage and an amount equal to 50% of the cost of the employee's dependents through a cafeteria plan in accordance with Internal Revenue Code Section 125. Employees are responsible for paying any excess premium cost through a payroll deduction. 5.3 Dental Insurance. Each Unit member will be provided with dental insurance through their choice of dental insurance plans selected by the City. The City will contribute an amount equal to 100% of the cost of the employee's coverage and an amount equal to 75% of the cost of the employee's dependents, through a cafeteria plan in Resolution No. 23-5692 August 15, 2023 Exhibit 1 Side Letter Page 2 of 5 accordance with Internal Revenue Code Section 125 . Employees are responsible for paying any excess premium cost through a payroll deduction. 5.4 Vision Insurance. Each Unit member will be provided with vision insurance through their choice of vision insurance plans selected by the City. The City will contribute an amount equal to 100% of the cost of the employee's coverage, not including dependents, through a cafeteria plan in accordance with Internal Revenue Code Section 125. Employees are responsible for paying any excess premium cost through a payroll deduction. 5.5 Employee Opt Out. Employees who opt out of medical coverage provided by the City are required to show proof of other medical insurance coverage. Upon such a showing, the City will provide the employee with an "opt -out" stipend of: A. For employees hired before October 1, 2023, $600.00/month in lieu of medical insurance coverage; or B. For employees hired on or after October 1, 2023, $500/month in lieu of medical insurance coverage. The monthly "opt -out" is subject to all applicable state and federal withholdings and deductions. Employees electing to opt out of medical insurance coverage are required to provide proof of other medical insurance coverage during the City's open enrollment period each year. 5.6 Supplemental Benefit. A. This Section shall exclusively govern the terms for City's provision of supplemental benefits to unit members during the term of this MOU. B. The City will provide a supplemental benefit to employees in an amount of up to $1,744.00 per fiscal year to be used towards health premiums only. C. The City will no longer provide a cash benefit of up to $822 for employees using less than the full available amount under sub -section B. towards health premiums, with the exception of the grandfathered employees receiving this cash benefit before August 1, 2023. Total City contributions to health benefit premiums (Medical, Dental, Vision Insurance and Supplemental Benefits) received by employee may not exceed the amount below based on the following levels: For Calendar Year 2024: 4862-0958-9364 vi 2 Resolution No. 23-5692 August 15, 2023 Exhibit 1 Side Letter Page 3 of 5 Employee Only = $1,180 per month Employee +1 = $1,905 per month Employee +2 or More = $2,275 per month The total amounts for Calendar Year 2025 will be adjusted for each level according to the increases of the highest employee insurance premiums for medical, dental and vision, so that the amounts of the City's contributions change consistent with the percentages set forth in Sections 5.2, 5.3, and 5.4, respectively. 5.7 Retiree Health Insurance. A. Hire Date Before October 1, 2023. Upon retirement from the City during the term of this MOU, the City will contribute the following towards retiree's health benefits. 1. Medical Insurance. In accordance with Resolution No. 23-5690, the City will contribute 100% of the PEMHCA minimum which is set by CaIPERS annually. In addition to the PEMHCA minimum contribution made to CaIPERS directly, the City will contribute an amount equal to 100% the cost of the eligible retiree's coverage under the retiree's chosen plan and an amount equal to 50% towards the cost of the dependent coverage. The retiree is responsible for paying any excess premium costs. CaIPERS will collect the medical premium from retiree's pension less the PEMHCA minimum. The City contributions will be sent to retiree within the first week of each month of coverage. 2. Dental Insurance. The City will contribute 100% of the cost of the retiree's coverage, not including dependents. The retiree will pay any excess premium cost directly to the City, upon receipt of a bill from the City. 3. Vision Insurance. The City will contribute 100% of the cost of the retiree's coverage, not including dependents. The retiree will pay any excess premium cost directly to the City, upon receipt of a bill from the City. 4. Total health benefits (Medical, Dental and, Vision Insurance) received by retiree for Calendar Year 2024 may not exceed the amount below based on the following levels: 4862-0958-9364 vi 3 Resolution No. 23-5692 August 15, 2023 Exhibit 1 Side Letter Page 4 of 5 Retiree Only = $1,410 per month Retiree +1 = $1,540 per month Retiree +2 or More = $1,670 per month The total amounts for Calendar Year 2025 will be adjusted for each level according to the increases of the highest retiree insurance premiums for medical, dental and vision , so that the amounts of the City's contributions change consistent with the percentages set forth in Sections 5.7(A)(1)-(3), respectively. B. Hire Date on or after October 1, 2023. Employee must be employed full-time with the City a total of five consecutive years to receive the following retiree health benefits. 1. Medical Insurance. In accordance with Resolution No. 23-5690, the City will contribute 100% of the PEMHCA minimum which is set by CaIPERS annually. In addition to the PEMHCA minimum contribution, the City will contribute 50% towards the cost of the eligible retiree's coverage and 25% towards the cost of the dependent coverage. The retiree is responsible for paying any excess premium costs. CaIPERS will collect the medical premium from retiree's pension less the PEMHCA minimum. The City contributions will be sent to retiree within the first week of each month of coverage. 2. Dental Insurance. The City will contribute 50% of the cost of the retiree's coverage, not including dependents. The retiree will pay any excess premium cost directly to the City, upon receipt of a bill from the City. 3. Vision Insurance. In accordance with Resolution No. 23-5691, the City will contribute 50% of the cost of the retiree's coverage, not including dependents. The retiree will pay any excess premium cost directly to the City, upon receipt of a bill from the City. 4. Total health benefits (Medical, Dental and, Vision Insurance) received by retiree for Calendar Year 2024 may not exceed the amount below based on the following levels: 4862-0958-9364 v1 4 Resolution No. 23-5692 August 15, 2023 Exhibit 1 Side Letter em► Page 5 of 5 Retiree Only = $705 per month Retiree +1 = $770 per month Retiree +2 or More = $835 per month The total amounts for Calendar Year 2025 will be adjusted for each level according to the increases of the highest retiree insurance premiums for medical, dental and vision, , so that the amounts of the City's contributions change consistent with the percentages set forth in Sections 5.7(B)(1)-(3), respectively. APPROVALS: TEMPLE CITY EMPLOYEE ASSOCIATION CITY OF TEMPLE CITY: flIIIIM Adam Gull 'sident, TCEA Bryan Cook, City Manager Dated: 8/25/2°23 4862-0958-9364 vl 5 Dated: