HomeMy WebLinkAboutReso 2009-285RESOLUTION NO. 2009-285
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ADOPTING THE CITY OF CHULA VISTA
CAFETERIA BENEFITS PLAN FOR 2010
WHEREAS, the Internal Revenue Code requires that the Section 125 Cafeteria Benefits
Plan offered by the City to its employees be in a written document and that the document be
formally adopted by the City Council on or before the first day of the plan year; and
WHEREAS, in June 1998, the City established its first Section 125 Cafeteria Benefits
Plan; and
WHEREAS, in compliance with Internal Revenue Code §125(d) the City Council
annually adopts a written plan document prior to the first day of the plan year; and
WHEREAS, the first day of the City's plan year is January 1, 2010; and
WHEREAS, this Plan Document lays out how the City offers eligible employees the
choice between cash and certain nontaxable benefits (such as health insurance), thereby allowing
employees to pay for the benefits they choose on a pre-tax basis; and
WHEREAS, the specific health plans offered and their structure aze not part of this
Cafeteria Plan Document; and
WHEREAS, they are included in what is known as the Summary Plan Document that
was given to eligible employees as part of their open enrollment materials to assist them in
making their benefit choices; and
WHEREAS, the plans offered and their structure are determined after our broker, Barney
and Barney, extensively markets and negotiates with providers to provide coverage comparable
to the prior year while keeping the increase in costs to the City and its benefited employees to a
minimum; and
WHEREAS, all employee groups aze advised of the offers and the plan structures that will
provide the least increase in premium costs; and
WHEREAS, under current cafeteria plan regulations having an approved written plan is
critical; and
WHEREAS, without a written plan or if the written plan does not comply with applicable
requirements regarding content and timing of adoption, then the plan is not a cafeteria plan and
employees' elections will be taxable; and
Resolution No. 2009-285
Page 2
WHEREAS, the City has timed its open enrollment period for 2010 to comply with these
regulations and to meet provider cutoff deadlines for enrollment to ensure employees are covered
without interruption; and
WHEREAS, The City's Plan includes the following required information: description of
available benefits, participation rules, election procedures, manner of contributions, maximum
amount of contributions, the plan year, and the plans provisions for complying with flexible
spending arrangements (FBA's).
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista does hereby adopt the City of Chula Vista Cafeteria Benefits Plan for 2010.
Presented by
r.CL.«Y a6< 1 ~ ~~~-
elle
Director of Human Resources
Approved as to form by
Bart C. Miesf
City Attorne
Resolution No. 2009-285
Page 3
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 15th day of December 2009 by the following vote:
AYES: Councilmembers: Bensoussan, Castaneda, Ramirez, Thompson and
Cox
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
Cheryl Cox, ayo
ATTEST:
- ~v`'r'vw`K o ..~.
Donna R. Norris, C C, City Clerk
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
CITY OF CHULA VISTA
I, Donna R. Norris, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2009-285 was duly passed, approved, and adopted by the City Council at a
regular meeting of the Chula Vista City Council held on the 15th day of December 2009.
Executed this 15th day of December 2009.
Donna R. Noms, CMC, City Clerk