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HomeMy WebLinkAboutReso 2021-069RESOLUTION NO. 2021-069 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING THE SECOND AMENDMENT TO THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF CHULA VISTA AND THE ASSOCIATION OF CHULA VISTA EMPLOYEES COVERING THE PERIOD OF DECEMBER 12, 2017 TO JUNE 30, 2020 REGARDING THE ADDITION OF A POST-EMPLOYMENT HEALTH PLAN (PEHP) WHEREAS, in response to requests from staff to address the cost of health care post retirement, the Human Resources Department is proposing to enter into a Post Employment Health Plan (“PEHP”) with Nationwide for the Association of Chula Vista Employees bargaining group represented employees at no cost to the City and amending the labor agreement as appropriate; and WHEREAS, a PEHP is a tax-exempt Voluntary Employee’s Beneficiary Association (“VEBA”) Trust, which provides employee benefits pursuant to IRC Code section 501(c)(9); and WHEREAS, a PEHP creates a defined contribution health reimbursement program that allows for money to be set aside to pay for future medical insurance premiums; and WHEREAS, a PEHP may be funded with Employer contributions, mandatory Eligible Employee contributions or combination of both on behalf of the eligible employees in a manner permitted under the Plan, but with regard to the proposed PEHP it will be funded with mandatory Eligible Employee contributions, specifically any unused vacation and compensatory time off (CTO) balances due to the employee at the time of retirement will be rolled over into the PEHP. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it hereby does adopt the Second Amendment to the 2017-2020 MOU between the City of Chula Vista and Association of Chula Vista covering the Period of December 12, 2017 to June 30, 2020 regarding the addition of a Post-Employment Health Plan (PEHP), a copy of which is on file in the City Clerk’s Office. [SIGNATURES ON THE FOLLOWING PAGE] DocuSign Envelope ID: 4984A3CB-665D-485E-B777-D839105AC730 Resolution No. 2021-069 Page No. 2 Presented by Approved as to form by Courtney Chase Glen R. Googins Director of Human Resources /Risk Management City Attorney PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 4th day of May 2021 by the following vote: AYES: Councilmembers: Cardenas, Galvez, McCann, Padilla, and Casillas Salas NAYS: Councilmembers: None ABSENT: Councilmembers: None Mary Casillas Salas, Mayor ATTEST: Kerry K. Bigelow, MMC, City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Kerry K. Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 2021-069 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 4th day of May 2021. Executed this 4th day of May 2021. Kerry K. Bigelow, MMC, City Clerk DocuSign Envelope ID: 4984A3CB-665D-485E-B777-D839105AC730