01-18-2005 - Reconsider Adoption of Resolution 2004-87 (Relating to City Council Benefits)i
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City of West Covina
Memorandum
AGENDA
TO: Andrew G. Pasmant, City Manager ITEM NO. 1-5
and City Council
DATE January 18, 2005
FROM: Artie A. Fields, Assistant City Manager
SUBJECT: RECONSIDER ADOPTION OF RESOLUTION 2004-87 (RELATING TO
CITY COUNCIL BENEFITS)
RECOMMENDATION:
It is recommended that the City Council provide staff direction on this matter.
DISCUSSION:
Councilmember Steve Herfert requested that this item be agendized for the City Council's
reconsideration. Resolution 2004-87, a resolution related to the adjustment in eligible benefits
for the City Council, was adopted by the City Council on October 19, 2004.
Below is an outline of the change in benefits that the City Council received with the adoption of
Resolution 2004-87.
■ Dental Insurance - City contribution changed from $30/ month to up to $166.53/month.
Previously, the City provided $30/month to be used towards the purchase of dental
insurance from a City provider. Any cost above the $30/month was the responsibility of
the Councilmember.
Current benefit pays up to the full cost for dental insurance (Delta Indemnity) for
Councilmember and eligible family members.
■ Health Insurance —City contribution changed from $794/month to up to $1,500.10/month.
Previously, the City provided $794/month (Kaiser Family Plan) to be used towards the
purchase of health insurance from a City provider. Any cost for an alternative and more
expensive health plan offered by the City was the responsibility of the Councilmember
Current benefit pays the full cost for health insurance (PERSCare) for Councilmember
and eligible family members.
This benefit is, and was, eligible to be cashed out by Councilmember if qualified under
another health benefit plan. In addition, any funds that remain after the purchase of
health coverage under a different or less expensive plan, can be taken as cash.
■ Auto Allowance— City contribution changed from $300/month to $910/month.
■ Tuition Reimbursement — City contribution changed from up to $1,500/year to up to
$2,500/year.
■ Life Insurance — City pays for a life policy with the same monetary value of the City
Manager. Previously, City Council had life insurance in the amount of $100,000. This
benefit has increased to $274,000.
Below is an outline of the new benefits that the City Council received with the adoption of
Resolution 2004-87.
■ Medicare Reimbursement — New benefit where the City reimburses the 1.45% Medicare
deduction (Approximately $150/month).
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■ Annual Physical — New benefit where the City pays up to $500/year for an annual
physical.
FISCAL IMPACT:
The fiscal impact will be dependent on the benefits, itemized above, that each Councilmember
elects to receive.
Prepared by:
cc a:�
Chris Freeland
Special Assistant to the City Manager
Attachment: Staff Report of October 19, 2004
Memorandum
AGENDA
ITEM NO. F4
DATE October 19, 2004
TO: Andrew G. Pasmant, City Manager
and City Council
FROM: Artie Fields, Assistant City Manager/
Interim Human Resources Director
SUBJECT: CITY COUNCIL BENEFIT ADJUSTMENTS
RECOMMENDATION:
Staff is seeking policy direction on whether or not to. amend the City Council benefits resolution
in order to link their benefits to those of the City Manager. If direction to do so is given, the
following resolution would need to be adopted:
RESOLUTION NO. ?,W4-67 A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA,
AMENDING RESOLUTION NO. 2002-24 AND 2003-96 RELATING
TO ADJUSTMENTS IN ELIGIBLE BENEFITS AND
COMPENSATION FOR CITY COUNCIL.
DISCUSSION:
Due to general inquiries in the past as to why City Council benefits are linked to Department Heads
as opposed to the City Manager, staff is bringing this item forward. It should be noted that this staff
report only deals with City Council benefits and not their salaries, which have not been adjusted for
the past 15 years.
Section 53208.5 (b) of the State Government Code allows City Council benefits to be linked to, but
not greater than the benefits being received by any category of non -safety employees. Although the
City of West Covina Council benefits are currently linked to Department Heads, it is not uncommon
for cities to provide City Council member benefits that correspond to the benefits provided to the
City Manager. The justification for linking benefits in this manner is that the magnitude and impact
of City Council decisions are more in line with the City Manager as opposed to his subordinates.
A review of the 12-city labor market, utilized by the City of West Covina in determining benefits
fc.r its employees, indicates that several cities link their benefits to the City Manager (Allambra,
Fallerton, and Montebello) and two cities have stand-alone benefits (Burbank and Whittier).
ALTERNATIVES:
The following alternatives are provided for the City Council's consideration:
1. Amend the current City Council benefits resolution (See Attachment 1) linking City
Council benefits with the City Manager.
2. Do not amend the current City Council benefit resolution.
3. Defer this matter to a latter date.
FISCAL IMPACT:
The fiscal impact of linking the City Council benefits to the City Manager will vary from $0 to
approximately $4,000 per City Council member, depending upon the utilization of the benefits
by the City Council. The exact amount cannot be calculated until final benefits are selected by
the City Council, consistent with this resolution. However, there would not be a need to
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appropriate additional funds to link the City Council benefits to the City Manager, because staff
has determined that the increase could be absorbed in the current fiscal year budget.
Prepared by:
Y: Personnel City Council — benefits October 19, 2004
Page 2
RESOLUTION NO. 2004-87
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST
COVINA, CALIFORNIA, AMENDING RESOLUTION NO. 2002-24 AND
2003-96 RELATING TO ADJUSTMENTS IN ELIGIBLE BENEFITS AND
COMPENSATION FOR CITY COUNCIL
WHEREAS, the City of West Covina provides compensation and benefits to members
of City Council as provided under the law; and
WHEREAS, the City of West Covina. has examined the compensation and I benefits
provided to other cities; and
WHEREAS, the City of West Covinahas conducted a market survey of other public
agencies; and
WHEREAS, compensation and benefits have been deemed appropriate as a means to
recognize the significant amount of time required to serve as a member of an elected body.
NOW, THEREFORE, the City Council of the City of West Covina, California, does
resolve that Resolution No. 2002-04 . and 2003-96 relating to City Council compensation and
benefits is hereby amended as follows:
SECTION 1. The City Council shall be afforded all benefits provided to the City
Manager.
SECTION 2. The City Clerk shall certify to the adoption of this Resolution.
APPROVED AND ADOPTED this 191h day of October, 2004.
Mayor Michael L. Miller
ATTEST:
City Clerk Janet Berry
1, JANET BERRY, CITY CLERK of the City of West Covina, do hereby certify that the
foregoing resolution was duly adopted by the City Council of the City of West Covina,
California, at a regular meeting thereof held on the 19th day of October, 2004, by the following
vote of the City Council:
AYES:
Herfert, Hernandez, Sanderson
NOES:
Wong, Miller
ABSENT:
None
ABSTAIN:
None
City Clerk Janet Berry
APPROVED AS TO FORM:
City Attorney Amo Alvarez-Glasman