Agenda — Norco City Council, March 13, 2024

AGENDA
City Council
Wednesday, March 13, 2024
City Hall – Norco City Hall
2820 Clark Avenue, Norco, CA 92860
Join Zoom Meeting
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Passcode: 408178 +16694449171,,85309294650#,,,,*408178# US CALL TO ORDER 4:45 PM
ROLL CALL Kevin Bash, Mayor
Greg Newton, Mayor Pro Tem
Katherine Aleman, Council Member
Robin Grundmeyer, Council Member
Berwin Hanna, Council Member
PLEDGE OF ALLEGIANCE Mayor Bash

1. PUBLIC COMMENTS
This is the time when persons wishing to address the presiding governmental body regarding the Consent Calendar, Legislative Matters or items within the subject matter jurisdiction of the legislative body. Please submit a speaker card to the Meeting Clerk. Please limit comments to three minutes or less. The Ralph M. Brown Act limits the governmental body’s ability to respond to comments on non-agendized matters at the time such comments are made. The governmental body shall not discuss or act relative to any general public comment.

2. WORKSHOP - 4:45 PM
Bleachers

2.A. Consider Options and Recommendation for the Replacement of the Moreno Arena Bleacher System.

RECOMMENDATION:

Consider Options and Recommendation for the Replacement of the Moreno Arena Bleacher System.

Staff Report - Pdf

3. WORKSHOP - APPROX. 6:00 PM
Retiree Health Care Benefits
City Council Agenda - March 13, 2024

3.A. Workshop to Discuss Changes to Administration of Retiree Health Care benefits, and consider rescinding Resolution 2024-03, a Resolution of the City Council of the City of Norco, California, Fixing the Employer Contribution Under the Public Employees' Medical Hospital Act at an Equal Amount for Employees and Annuitants
RECOMMENDATION:

It is recommended that the Council discuss the change to retiree medical benefits for new hires after July 1, 2023, and the related administrative changes to medical benefits for existing retirees that are required to implement the new tier.

If the Council determines to consider rescinding Resolution 2024-03, the actions will be as follows:

1. Motion to reconsider is made, and seconded, then a vote is taken. If it passes –

2. Motion to rescind Resolution No. 2024-03 is made and seconded. If it passes -

3. Motion to adopt CalPERS Resolution No. 2024-XX to reinstate citycontributions for retiree health for all retirees prior to the adoption of Resolution No. 2024-03.

Ultimately, whether or not the Council determines to revert Resolution 2024-03 for more discussions and analysis before implementation, it is still recommended that the City reduce retiree medical benefits for new hires to the PEMCHA minimum for those hired after July 1, 2023.

Staff Report - Pdf

4. ADJOURNMENT
In compliance with the Americans with Disabilities Act, any person who requires a modification or accommodation in order to participate in this meeting is encouraged to contact the City Clerk’s Office at (951) 270-5623 or [email protected] at least 48 hours prior to the meeting so that reasonable arrangements can be made to ensure accessibility. Staff reports are on file in the City Clerk’s Office.

Any writings or documents provided to a majority of the presiding governmental body regarding any item on this agenda will be available for public inspection at the City Clerk’s Office during normal business hours at Norco City Hall, located at 2870 Clark Avenue in Norco. The meeting is recorded.

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City Council

STAFF REPORT
Date: March 13, 2024 Agenda Item:

2.A.

To: Honorable Mayor and City Council Members
From: Amanda Hamilton, Facilities and Maintenance
Director
Prepared By: Amanda Hamilton, Facilities and Maintenance Director
Department: Facilities and Maintenance
SUBJECT:

Consider Options and Recommendation for the Replacement of the Moreno Arena Bleacher System.

RECOMMENDATION:

Consider Options and Recommendation for the Replacement of the Moreno Arena Bleacher System.

SUMMARY:

On November 15, 2023, a bleacher workshop was held to inform the Council of the current condition of the Moreno Arena bleacher system along with repair, replacement, and expansion options. At the workshop, the Council requested that staff meet with the Ingalls Event Center's various stakeholder groups to collect valuable information so that the Council can make the best informed decision about the replacement options for the bleacher system.

BACKGROUND:

On December 12, 2023, staff held a stakeholder meeting with the Norco Rodeo Committees (Committees). The Committees reviewed the various bleacher options and were favorable to the expansion options.

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The Committees discussed changes to their current layouts to accommodate for bleacher expansion and liked Option 3 but also requested a 5th option for 3,500 seats.

Overall, the Committees agreed that the expanded seating options would be optimal for their events.

On January 10, 2024, staff held a stakeholder meeting with our dog agility show clients.

Representatives from Tjark Productions, Rhino Dog Agility, and the Belgian Tervuren AKC Show discussed the various bleacher options and expressed their concern for bleacher expansion. Their main concern is the potential loss of usable space under their arena cover for shade, kennels, vendors, and staging for competition. These groups rely on the cover during the summer months to protect their animals. In addition, the animals must remain close to the arena during competition timeslots. In addition, our dog agility show clients have cancelled shows at outside venues in order to only show at the Ingalls Event Center. If one of the bleacher expansion options is chosen, they may need to consider other venues for their shows, creating a loss in revenue for the Event Center. Overall, these groups were not agreeable to any expansion options and would like the bleacher footprint to remain the same.

It is important to note that our dog agility show clients bring in approximately 45% of the revenues at Moreno Arena. Below is the estimated Fiscal Year 2023-24 revenue for Moreno Arena. As noted below, the dog agility shows are the dominant revenue source for Moreno Arena.

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During our dog agility stakeholder meeting, the idea to transfer our dog show clients to Clark Arena was addressed. This prompted another stakeholder meeting with our local equestrian clubs that predominantly use Clark Arena. On January 31, 2024, we met with Norco Wranglers, Pacific Coast Miniatures, and Modjeska Mavericks to discuss the use of Moreno Arena in lieu of Clark Arena for their events.

The local equestrian clubs focused on the reduction in visibility and how the northern and southern gates would be crowded with Options 3 and 5. In addition, they had concerns about horses that would be distracted or have a "flight" response due to the potential for additional noise coming from the bleachers when spectators are in attendance.

The local clubs noted that the horses currently do not like the bleachers and with the potential for added noise, it could be a safety concern. The local equestrian clubs also expressed concerns about parking a trailer under the Moreno Arena cover for announcing and timekeeping. With the bleacher expansion options, this would significantly impact space for trailers, vendors, and contestants. Overall, the clubs were more agreeable to Option 3 than Options 4 or 5.

It is important to note that revenues for Clark Arena are predominantly driven by other events like team roping, Saddle and Harness, Western States Mounted Officers, California Junior Rodeo, and other private equestrian and non-equestrian events. Our local equestrian clubs also predominately use Clark Arena because it is a larger arena and has easily accessible horse trailer parking. Our local equestrian clubs will use

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Moreno Arena when needed due to maintenance or unforeseen circumstances, but it is not ideal for their events. The dimensions of the riding areas are as follows:
 Moreno Arena - 250' x150'
 Clark Arena is 280' x180'
Below is the estimated Fiscal Year 2023-24 revenue for Clark Arena. As noted below, other events are the dominant revenue source for Clark Arena.

Options & Costs
Staff has worked with Herk Edwards Inc., who attended the first Bleacher Workshop, to obtain estimates and options for the Council to consider. This cost estimate will include the installation of a pony wall to keep water and debris out of the undercarriage of the bleacher system; inspection and maintenance costs; and the installation of a drainage system to reduce flooding. In addition, staff has provided a brief overview of each option.

Option 1 ($803,000 - Minimal Repair Standard) - This option would be to replace the front 15 structural section and seats for the bleacher system with seating for (18" seats 1,917 or 24" seats - 1,460). This option would allow for a new front section of the bleacher system but does not take into consideration the amount of wear and damage

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to the 10 remaining structural sections that have been exposed to routine moisture. In addition, the 10 remaining rows would be 20 years older than the new bleacher section and could cause issues with realignment and consistency. In addition, the life expectancy of the 10 remaining rows is undetermined due to the moisture exposure.

This option is not recommended and in our previous workshop was removed from consideration.

Option 2 ($1,420,000 - Recommended) - This option is the recommended action in moving forward with the bleacher system and would replace the existing 25 row bleacher system with seating for (18" seats 1,917 or 24" seats - 1,460). This option would allow for a consistent seating experience, updated standards, and a new structural section that would be free from previous damage. With the addition of the pony wall and drainage system, this option would allow for a fresh start to the new bleacher system that would have an estimated useful life of 40 years.

Option 3 ($2,800,000) - This option would allow for additional seating in Moreno Arena (18" seats - 3,986 or 24" seats - 3,002). This would include the replacement of the existing 25 row bleacher system and would accommodate 3,000 seats with a 24" width per seat. This option would also include the wall and drainage improvements, but this option is more than double the amount of the cost for the replacement of the current bleacher set. This option would have an estimated useful life of 40 years but would increase inspection and maintenance costs for future years, as is larger than the replacement project.

Option 4 ($3,650,000) - This option would allow for the largest amount of seating in Moreno Arena (18" seats - 5,392 or 24" seats - 4,000). This would include the replacement of the existing 25 row bleacher system that would accommodate for 4,000 seats with a 24" width per seat. This option would also include the wall and drainage improvements, but this option has a significant price difference due to the amount of seating that would be gained. This option would have an estimated useful life of 40 years but would increase inspection and maintenance costs for future years, again because it is a larger set of bleachers.

Option 5 ($3,350,000) - This option would allow for additional seating in Moreno Arena (18" seats - 4,691 or 24" seats - 3,502). This would include the replacement of the existing 25 row bleacher system that would accommodate for 3,500 seats with a 24" width per seat. This option would also include the wall and drainage improvements, but this option has a significant price difference due to the amount of seating that would be gained. This option would have an estimated useful life of 40 years but would increase inspection and maintenance costs for future years, again because it is a larger set of bleachers. This option would reduce the arena by 10' on the north and south side of the arena for a total reduction of 20'.

Below is a 15 year projected cost for each option. These costs include the cost for the repair along with drainage and wall upgrades. Each option includes a 4% escalator for maintenance costs per year.

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Overall Findings
The Ingalls Event Center has been known as a "chameleon" facility that can adapt to any type of event. While bleacher expansion options are favorable for our rodeo events, it may not be optimal for other events. Bleacher rentals are utilized for four events each year (Norco Horseweek, Day of the Cowboy, Norco Mounted Posse Rodeo, and the Norco Fair). If Options 3, 4, or 5 are approved, this will have impacts to our current clients and will cause Moreno Arena to be less versatile.

The recommended action is for Council to consider Option 2 for the replacement of the bleacher system without expansion. To assist the Norco Rodeo Committee's events, instead of a permanent expansion of bleacher seating, the Council may consider a 50/50 cost share with the Committees to help alleviate costs associated with bleacher rentals. Currently, each group is paying approximately $30,000 in bleacher rentals for a total of $90,000 annually for all three Norco Rodeo Committee events (Day of the Cowboy - not included).

Below is a graph that shows the costs for Option 2 along with the option for a 50% cost share for bleachers. The 50% cost share has a built-in annual 4% escalator to help project rising costs. The total combined cost for Option 2 plus the cost share option will cost $550,000 less than Option 3. If considered, funding for the project and the cost share is recommended to be funded through Measure R.

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If Option 2 is approved, City staff will work with Herk Edwards, Inc. on a sole source contract for the procurement and installation of the Sturdisteel bleacher system. An additional appropriation of funds for this project will be needed from both the Measure R Citizens' Oversight Committee and the City Council for Fiscal Year 2023-24. The material is estimated to be available in Fall 2024 and staff would coordinate installation of the block wall, drainage system, and bleacher installation for completion by February 2025. Staff will also continue to contract with Herk Edwards, Inc. for annual inspections.

FISCAL IMPACT:

The Moreno Arena Bleacher Repairs were approved as a Capital Improvement Project (CIP) in Fiscal Year 2023-24 in the amount of $600,000. Based on Option 2 for the bleacher replacement, an additional appropriation of $962,000 in Measure R funds is needed to fund the full project amount including the 10% contingency for an estimated project cost of $1,562,000. Additional funds will be required if the cost share option is desired. Future maintenance costs will be included in subsequent CIP budgets.

RELATIONSHIP TO STRATEGIC PLAN:

Strategic Directive No. 5 – Infrastructure and Asset Management: Ensure timely preservation, replacement, improvement and acquisition of infrastructure and capital assets.

REVIEWED AND APPROVED BY:

Certified as to Availability of Funds: Lisette Free, Finance Director Approved by: Lori Sassoon, City Manager
Approved as to Form: Harper and Burns, LLC, City Attorney

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ATTACHMENT(S):

Option 1&2 _ Bleacher Config
OPTION 4,5,6

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OPTION 1 & 2

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132'-0"

EXISTING BLEACHER SEATING
55'-5" 60'-6"
44'-11316"
44'-1
13 16
"

NEW AISLE ADDED TO MEET CODE RAMP RAMP
25'-11"
30'-8" 132'-0" 35'-9"
25'-11"

SEATING PLAN
JOB NUMBER:

SHEET NUMBER: REVISIONS CHECKER DRAFTER Rev. Date Date Description

THIS DRAWING AND ALL INFORMATION THEREIN
IS THE PROPERTY OF STURDISTEEL, INC., A
DIVISION OF SCHULTZ INDUSTRIES. IT MAY NOT

BE REPRODUCED OR COPIED WITHOUT PRIOR
WRITTEN CONSENT OF STURDISTEEL, INC. THE

DRAWING IS LOANED AND SUBJECT TO RETURN
UPON DEMAND. DRAWING IS PROTECTED UNDER
U.S. AND INTERNATIONAL COPYRIGHT LAW.

A Division of Schultz Industries, Inc.

P.O. Box 2655 ● Waco, Texas 76702
800.433.3116 Tel ● 254.666.4472 Fax NORCO, CA ADDITIONS TO EXISTING BLEACHERS - OPTION #2
A1 A FD 6/13/23 - - SALES DRAWINGS

DETAIL A
NTS
C
B
G1340
G1340
G1066 G1067
PB114 (PIPE BRACKET)
(8) REQ'D
FOOTBOARD ROW 3
5'-8" (DOUBLE WC AREA)
3'-0" (SINGLE WC AREA)
#62-114 (PLUG)
(8) REQ'D G1066 G1067
RISER, 1X6 (RS625A)
ROW 2
(1) RS625A-5-9 RISER
(W/C FILLER) G1001 G1340 G1340 G1001

WALKWAY

FOOTBDS
(4) AP114R-5-8 (DBL WC AREA)
(4) AP114R-3 (SINGLE WC AREA)

SECTION C
NTS

DETAIL D
NTS
(1) MBG5/16X1
(1) HN-5/16-G
(1) LW-5/16-G
(8) REQ'D PB114
ATTACH WITH CBG3/8X1 1/2
(1) HN-3/8-G
G1066 (LT. END)
G1067 (RT. END)
(1) MBG5/16X1
(1) HN-5/16-G
(1) LW-5/16-G
W/C FILLER BDS.
(2) FB10-5-10
(2) FB4-5-10
SEE DETAIL "D"

WALKWAY FOOT BOARDS
G1340
FB4A
ECL-2
ECL-0-8
POST
AFL7-2 DR316
(DRIVE RIVET)
FIELD NOTE:

1. INSTALL AFL7 CLOSURE PLATE BEHIND POST.

2. INSTALL ECL-0-8 VERTICAL END CAP AND
ATTACH WITH DR316 RIVETS.

3. INSTALL ECL-2 HORZ. END CAP AND ATTACH
DR316 RIVETS.
=
=
=
= 24" SEATING CAPACITY
STANDARD 24" SEATS

W/C SPACES
18" COMPANION SEATS

TOTAL SEATING
23 3002
23 2956

UNLESS SPECIFIED OTHERWISE ECONOMICAL MILL FINISH

FOOTBOARDS WILL BE USED FOR ALL ALUMINUM WALKING
SURFACES IN THIS CONTRACT. THESE MILL FINISH FOOTBOARDS

WILL LIKELY HAVE WATER STAINS PRESENT RESULTING FROM

UNAVOIDABLE CONDENSATION THAT OCCURS DURING PACKAGING,
TRANSPORTING AND STORAGE PRECEDING INSTALLATION.

REMOVAL OF THESE STAINS OR BOARD REPLACEMENT UPON

COMPLETION OF INSTALLATION IS NOT PART OF THIS CONTRACT

BECAUSE STAINED MILL FINISH BOARDS MEET ALL SPECIFIED
REQUIREMENTS. CLEAR ANODIZED ALUMINUM MAY BE

PURCHASED TO AVOID ANY WATER STAINS IF SELECTED AS AN

UPGRADE FINISH AT ADDITIONAL COST BY SIGNED CONTRACT
CHANGE ORDER PRIOR TO THE START OF FABRICATION.

B
A2
C
A4
A
A2
=
=
=
=
23 3986
23 3940
18" SEATING CAPACITY
STANDARD 24" SEATS

W/C SPACES
18" COMPANION SEATS

TOTAL SEATING
OPTION 3

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132'-0"

EXISTING BLEACHER SEATING
55'-5" 60'-6"
67'-35
8 " 50'-7
316
"50'-716
3 "
67'-3
5 8
"
NEW AISLE ADDED TO MEET CODE RAMP RAMP 32'-2
716
" 17'-95
8 " 30'-8" 132'-0" 35'-9"
17'-9
5 8
" 32'-2
716
" 5'-6
1 2
" 5'-6
1 2
"

SEATING PLAN
JOB NUMBER:

SHEET NUMBER: REVISIONS CHECKER DRAFTER Rev. Date Date Description

THIS DRAWING AND ALL INFORMATION THEREIN
IS THE PROPERTY OF STURDISTEEL, INC., A
DIVISION OF SCHULTZ INDUSTRIES. IT MAY NOT

BE REPRODUCED OR COPIED WITHOUT PRIOR
WRITTEN CONSENT OF STURDISTEEL, INC. THE

DRAWING IS LOANED AND SUBJECT TO RETURN
UPON DEMAND. DRAWING IS PROTECTED UNDER
U.S. AND INTERNATIONAL COPYRIGHT LAW.

A Division of Schultz Industries, Inc.

P.O. Box 2655 ● Waco, Texas 76702
800.433.3116 Tel ● 254.666.4472 Fax NORCO, CA ADDITIONS TO EXISTING BLEACHERS - OPTION #1
A1 A FD 6/13/23 - - SALES DRAWINGS

WALKWAY

FOOTBDS
(4) AP114R-5-8 (DBL WC AREA)
(4) AP114R-3 (SINGLE WC AREA)

SECTION C
NTS

WALKWAY FOOT BOARDS
G1340
FB4A
ECL-2
ECL-0-8
POST
AFL7-2 DR316
(DRIVE RIVET)
FIELD NOTE:

1. INSTALL AFL7 CLOSURE PLATE BEHIND POST.

2. INSTALL ECL-0-8 VERTICAL END CAP AND
ATTACH WITH DR316 RIVETS.

3. INSTALL ECL-2 HORZ. END CAP AND ATTACH
DR316 RIVETS.
=
=
=
= 24" SEATING CAPACITY
STANDARD 24" SEATS

W/C SPACES
18" COMPANION SEATS

TOTAL SEATING
30 4000
30 3940

UNLESS SPECIFIED OTHERWISE ECONOMICAL MILL FINISH

FOOTBOARDS WILL BE USED FOR ALL ALUMINUM WALKING
SURFACES IN THIS CONTRACT. THESE MILL FINISH FOOTBOARDS

WILL LIKELY HAVE WATER STAINS PRESENT RESULTING FROM

UNAVOIDABLE CONDENSATION THAT OCCURS DURING PACKAGING,
TRANSPORTING AND STORAGE PRECEDING INSTALLATION.

REMOVAL OF THESE STAINS OR BOARD REPLACEMENT UPON

COMPLETION OF INSTALLATION IS NOT PART OF THIS CONTRACT

BECAUSE STAINED MILL FINISH BOARDS MEET ALL SPECIFIED
REQUIREMENTS. CLEAR ANODIZED ALUMINUM MAY BE

PURCHASED TO AVOID ANY WATER STAINS IF SELECTED AS AN

UPGRADE FINISH AT ADDITIONAL COST BY SIGNED CONTRACT
CHANGE ORDER PRIOR TO THE START OF FABRICATION.

A
A2
B
A2
C
A4
=
=
=
=
30 5392
30 5332
18" SEATING CAPACITY
STANDARD 18" SEATS

W/C SPACES
18" COMPANION SEATS

TOTAL SEATING
OPTION 4

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132'-0"

EXISTING BLEACHER SEATING
55'-5" 60'-6"
44'-11316"

NEW AISLE ADDED TO MEET CODE RAMP RAMP
25'-11"
30'-8" 132'-0" 35'-9"
SEATING PLAN 50'-716
3 "
67'-3
5 8
"
17'-9
5 8
" 32'-2
716
" 5'-6
1 2
"
JOB NUMBER:

SHEET NUMBER: REVISIONS CHECKER DRAFTER Rev. Date Date Description

THIS DRAWING AND ALL INFORMATION THEREIN
IS THE PROPERTY OF STURDISTEEL, INC., A
DIVISION OF SCHULTZ INDUSTRIES. IT MAY NOT

BE REPRODUCED OR COPIED WITHOUT PRIOR
WRITTEN CONSENT OF STURDISTEEL, INC. THE

DRAWING IS LOANED AND SUBJECT TO RETURN
UPON DEMAND. DRAWING IS PROTECTED UNDER
U.S. AND INTERNATIONAL COPYRIGHT LAW.

A Division of Schultz Industries, Inc.

P.O. Box 2655 ● Waco, Texas 76702
800.433.3116 Tel ● 254.666.4472 Fax NORCO, CA ADDITIONS TO EXISTING BLEACHERS - OPTION #3
A1 A FD 6/13/23 - - SALES DRAWINGS

WALKWAY

FOOTBDS
(4) AP114R-5-8 (DBL WC AREA)
(4) AP114R-3 (SINGLE WC AREA)

SECTION C
NTS

WALKWAY FOOT BOARDS
G1340
FB4A
ECL-2
ECL-0-8
POST
AFL7-2 DR316
(DRIVE RIVET)
FIELD NOTE:

1. INSTALL AFL7 CLOSURE PLATE BEHIND POST.

2. INSTALL ECL-0-8 VERTICAL END CAP AND
ATTACH WITH DR316 RIVETS.

3. INSTALL ECL-2 HORZ. END CAP AND ATTACH
DR316 RIVETS.
=
=
=
= 24" SEATING CAPACITY
STANDARD 24" SEATS

W/C SPACES
18" COMPANION SEATS

TOTAL SEATING
27 3502
27 3448

UNLESS SPECIFIED OTHERWISE ECONOMICAL MILL FINISH

FOOTBOARDS WILL BE USED FOR ALL ALUMINUM WALKING
SURFACES IN THIS CONTRACT. THESE MILL FINISH FOOTBOARDS

WILL LIKELY HAVE WATER STAINS PRESENT RESULTING FROM

UNAVOIDABLE CONDENSATION THAT OCCURS DURING PACKAGING,
TRANSPORTING AND STORAGE PRECEDING INSTALLATION.

REMOVAL OF THESE STAINS OR BOARD REPLACEMENT UPON

COMPLETION OF INSTALLATION IS NOT PART OF THIS CONTRACT

BECAUSE STAINED MILL FINISH BOARDS MEET ALL SPECIFIED
REQUIREMENTS. CLEAR ANODIZED ALUMINUM MAY BE

PURCHASED TO AVOID ANY WATER STAINS IF SELECTED AS AN

UPGRADE FINISH AT ADDITIONAL COST BY SIGNED CONTRACT
CHANGE ORDER PRIOR TO THE START OF FABRICATION.

C
A4
A
A2
=
=
=
=
27 4691
27 4637
18" SEATING CAPACITY
STANDARD 24" SEATS

W/C SPACES
18" COMPANION SEATS

TOTAL SEATING
OPTION 5

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City Council

STAFF REPORT
Date: March 13, 2024 Agenda Item:

3.A.

To: Honorable Mayor and City Council Members
From: Lori Sassoon, City Manager
Prepared By: Lori Sassoon, City Manager
Department: Administration
SUBJECT:

Workshop to Discuss Changes to Administration of Retiree Health Care benefits, and consider rescinding Resolution 2024-03, a Resolution of the City Council of the City of Norco, California, Fixing the Employer Contribution Under the Public Employees' Medical Hospital Act at an Equal Amount for Employees and Annuitants RECOMMENDATION:

If the Council determines to consider rescinding Resolution 2024-03, the actions will be as follows:

1. Motion to reconsider is made, and seconded, then a vote is taken. If it passes –

2. Motion to rescind Resolution No. 2024-03 is made and seconded. If it passes -

3. Motion to adopt CalPERS Resolution No. 2024-XX to reinstate city-contributions for retiree health for all retirees prior to the adoption of Resolution No. 2024-03.

SUMMARY:

The purpose of the workshop is to provide an opportunity for the City Council to discuss this matter, hear from retirees, and answer any questions regarding next steps, and for City Council to provide direction to staff as it may deem appropriate. It also includes consideration to rescind Resolution 2024-03 as discussed and agendized at the March 6, 2024 City Council meeting.

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At the workshop, the City’s outside counsel and the City’s actuarial will participate (via Zoom) to answer questions. We will also provide a Zoom link for retirees to participate as we have several who live out of the area.

BACKGROUND:

The Public Employees’ Medical & Hospital Care Act (PEMCHA) is the state statute that governs the CalPERS health program. The City has for many years contracted with PEMCHA to provide employee and retiree medical benefits. PEMCHA provides a mechanism for public agencies of many sizes to pool their employees and retirees into a large group, which then can negotiate for the best possible medical insurance rates and plan designs for members of the pool. Participating agencies do not need to contract for the CalPERS retirement program to participate in PEMCHA. PEMCHA provides for a variety of options for HMOs, PPOs, and other types of medical insurance to its member agencies. Contracting with PEMCHA does obligate participating agencies to comply with various state statutes regarding how these benefits are paid for active employees and retirees.

One of PEMCHA’s rules is called the “equal and minimum” contribution rule. This rule requires that PEMCHA agencies must pay an equal amount to retirees for medical benefits as they do to active employees. It also sets a minimum dollar amount for this contribution for both retirees and employees, which is adjusted annually on January 1st based on the annual percentage change in the medical care component of the CPI-U; the current amount is $157 per month.

Since 1984, the City has provided a retiree medical benefit to its employees. Retiree medical benefits are an employer-paid supplement to a retiree for their health insurance expenses in retirement. These benefits generally require the retiree to enroll in Medicare once eligible, and then the benefits can be used to supplement the Medicare benefit. Retiree medical benefits are considered Other Post Employment Benefit (OPEB) obligations pursuant to the Governmental Accounting Standards Board (GASB) accounting rules, and these liabilities are accounted for on the City’s financial statements. The value of a City’s OPEB obligation is calculated by an actuary; in Norco, these valuations are updated every other year.

In Norco, retiree medical benefits and the requirements to receive them have been changed from time to time over the years. At one point, the monthly benefit was equal to the monthly benefit of $1,250 received by employees at that time. Retirees could be eligible for this benefit after any length of service with Norco before retirement.

In 2004, the City adopted what is known as a Vesting Schedule; the vesting schedule was reaffirmed in 2010 to acknowledge the various employee groups of the City. The vesting schedule provides for a sliding scale of retiree medical benefits based on a minimum of five years of service in Norco, and a total of 10 years of service in the CalPERS system.

Prior to adoption of the vesting schedule, a retiree could be eligible for retiree medical benefits with no minimum service requirement. With the vesting schedule, 20 years of service and at least five of those years with Norco, the retiree qualifies for 100% of their medical premiums in retirement. The vesting schedule is as follows:

Page 16 of 71 ends

Credit Years of Service Percentage of Employer Contribution 10 50%
11 55%
12 60%
13 65%
14 70%
15 75%
16 80%
17 85%
18 90%
19 95%
20 100%
The vesting schedule resolution also increased the maximum dollar amount that retirees could receive; under the schedule, retirees can receive a percentage of or up to the “full premium” in retirement, depending upon where they fall on the vesting schedule. This means that fully-vested employees may elect to be covered by any PEMCHA plan for themselves, their spouse, and their dependents with no dollar maximum per month. For those that retire pre-Medicare eligibility, this may mean that their medical insurance benefit in retirement is higher than the benefit they received as active employees (currently a maximum of $1,500 per month, increasing to $1,550 on July 1 for most bargaining groups).

In addition to benefits under the vesting schedule, another PEMCHA statute provides that after 20 years of service with Norco, if an employee leaves and subsequently retires from another agency, the former employee can still receive the retiree medical benefit from Norco if it is greater than, and made in lieu of, a contribution paid to the retiree by another agency.

The following chart illustrates the cost of employee and retiree medical benefits over the last 10 years. The FY 2022-23 increase in employee costs was related to the addition of 12 full-time positions that year, as well as a significant increase in medical premiums:

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The costs for retiree medical have been paid monthly to PEMCHA by the city.

In 2018, the Governmental Standards Accounting Board (GASB) began requiring cities to show the actuarial value of their liability for Other Post Employment Benefits (OPEB) on their financial statements. OPEB refers to other benefits after retirement in addition to pensions; retiree medical benefits are the most common kind of OPEB obligations.

In FY 2008-09, the City established a trust account with CalPERS to begin to set aside funds for these OPEB obligations. As of the June 30, 2021 valuation date, which is the most recent valuation, the total value of the City’s total OPEB liability is $19 million and the trust held assets of $12.1 million, resulting in a net OPEB Liability of $6.94 million, or 63% funded status. The City has a goal to fund at least 70% by setting aside funds in the OPEB trust on an annual basis, subject to the availability of funds. As of December 2023, the assets in the OPEB Trust are $13.3 million and the next scheduled valuation will be for June 30, 2023.

Establishing a mechanism to pre-fund OPEB is one important tool to manage OPEB liabilities. Benefit changes for future employees is another common and important change that cities have been implementing over the last two decades. This strategy does not address current obligations but reduces future obligations so as to result in cost avoidance and bring positive financial benefits to the City in the long run.

Current Issue
During negotiations with the City’s employees in the spring of 2023, the City reached an agreement on a new MOU with the Norco General Employees Association (NGEA) and also updated resolutions with the other unrepresented employees (Executive Management and Mid-Management/Confidential employees) to limit retiree medical contributions for employees hired after July 1, 2023 to the PEMCHA minimum contribution. This change was implemented to limit the growth of OPEB liabilities and ultimately reduce the pay-as-you-go cost for retiree medical premiums over time, as the existing retiree medical plans would be effectively capped to those hired before the effective date. This change does not impact benefits to retirees, or current employees (hired before July 1, 2023) who will be retiring in the future.

While retiree medical benefits were somewhat common in the past, they are not frequently offered by most public agencies for new hires. As the following survey of several area cities indicates, many of our neighboring agencies have already tiered off for new hires in prior years. Some of these agencies instead make flat contributions to

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retiree health savings accounts, HSA’s, or other types of tax-advantaged savings accounts to help employees save for medical costs during retirement. These types of accounts do not result in future costs to the employer or create OPEB liabilities.

City Retiree Medical For New
Hires? Notes
Corona No. PEMCHA minimum only Tiered off between 1999-2006, depending on the employee group
Eastvale No. PEMCHA minimum only Never had retiree medical Jurupa Valley No. Does not participate in
PEMCHA Never had retiree medical
Riverside
No. For some groups, there is a
City/Union joint fund that each
contribute to provide a modest
retiree medical contribution
Moreno Valley No. PEMCHA minimum only Tiered off in 2001 for general employees
Temecula No. PEMCHA minimum only Tiered off in 2005
To administer this change for new employees after July 2023 while continuing to meet the PEMCHA equal and minimum contribution rule, the City has moved forward to restructure how benefits are paid to current retirees in accordance with direction from CalPERS and in consultation with legal counsel. The goal of this is to keep retirees whole while preserving the tax-free status of the retiree medical reimbursements.

Consulting with our legal counsel on this matter, the HRA is the tool available to comply with IRS rules and meet that goal.

To that end, the City contracted with its existing Health Savings Account (HSA) administrator, P&A group, to administer a Health Reimbursement Arrangement (HRA) for our retirees. The HRA plan is a tax-advantaged account that can be used to fund medical premiums. The City then adopted Resolution 2024-03, which was provided by CalPERS and is attached here along with its staff report. That resolution applies to retirees hired before 2004 who have not opted into the Resolution 2010-68 vesting schedule. Those 39 retirees have already been transitioned to the new administrative system, which is as follows:
 The City pays CalPERS the PEMCHA minimum contribution of $157 for each retiree.
 CalPERS calculates the difference between the retiree’s medical premium and the $157 paid by the City, and deducts that amount from the retiree’s pension payment.
 The City determines the amount to pay based on their eligibility percentage and pays the retiree’s HRA account.
 The HRA sends a reimbursement to the retiree for the amount deducted from their pension payment (via check for the first payment, but subsequently by direct deposit when they enroll in that option). That payment will be timed to be issued on or before the first of each month.

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For example, a retiree that is enrolled in a Kaiser two-party plan and is 100% covered is now going to pay the difference between the Kaiser two-party monthly premium and the PEMHCA monthly minimum ($1,730.82 - $157 = $1,573.82) via withholding from their CalPERS pension checks. In turn, the HRA will reimburse the retirees for the paid amount monthly at the beginning of each month via check or direct deposit in the amount of $1,573.82.

Subsequent to adoption of Resolution 2024-03, CalPERS recently notified the city that additional resolutions must be adopted for each relevant employee group to repeal the retiree vesting schedule with CalPERS; the City must then adopt those same vesting schedules for administration by the City and its agent, P&A Group. The Norco General Employees Association will likely be in the form of a side letter containing the same language as the resolution. A draft of that resolution is attached. It contains the same vesting schedule as the prior resolution, as follows:

Credit Years of Service Percentage of Employer Contributions 10 50%
11 55%
12 60%
13 65%
14 70%
15 75%
16 80%
17 85%
18 90%
19 95%
20 100%
To complete implementation of the new administrative system, separate but identical resolutions will need to be adopted that contain this vesting schedule for each of the impacted employee groups (NGEA, Management, and Mid-Management). Until those resolutions are adopted, the change in benefits administration has not yet been made for the 48 retirees who are on the vesting schedule. Those resolutions are on hold to allow for this workshop and additional discussion with the City Council, employees, and retirees; however a draft from CalPERS that includes the required language is attached.

Once the resolutions are adopted, the administrative system for retirees on the vesting schedule will be the same as the retirees who are not and are already transitioned:
 The City pays CalPERS the minimum contribution of $157 for each employee.  CalPERS calculates the difference between the retiree’s medical premium and the $157 paid by the City, and deducts that amount from the retiree’s pension payment.
 The City determines the amount to pay based on their eligibility percentage and pays the retiree’s HRA account.
 The HRA sends a reimbursement to the retiree for the amount deducted from their pension payment (via check for the first payment, but subsequently by direct

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deposit when they enroll in that option). That payment will be timed to be issued on or before the first of each month.

The City’s participation in PEMCHA requires compliance with the PEMCHA statutes related to how retiree medical is administered by PEMCHA. However, OPEB obligations exist separately from PEMCHA. The City could elect to obtain medical benefits for employees and retirees through other insurance pools or separately broker its benefits, and the City’s obligations to retirees would be the same.

Questions and Concerns
A number of questions and concerns have been raised by our retirees and others regarding these changes. Below is a discussion on many of the major themes of these questions and concerns.

What does the change to administration through the HRA mean for retiree medical benefits?
 This change impacts the way the benefits are paid, not the benefits themselves.

The benefits remain unchanged. We should have done a better job communicating with our retirees about this from the beginning.

Doesn’t the HRA plan document need additional scrutiny and an actuarial valuation?
 The HRA plan document is attached. The HRA document is not specific to Norco and contains standard language so as to make sure that the benefits that pass through it are tax-advantaged. It does not create liabilities; therefore, it does not require an actuarial valuation. Our actuarial firm has confirmed this via letter (attached).

The new vesting schedule could create new benefits for those that would otherwise not receive them under the current vesting schedule.  No, the vesting schedule in the draft resolutions will be exactly the same as the current one.

Can using the HRA to pay benefits eliminate the City’s OPEB liability?  No. OPEB liability is not determined by how benefits are paid to retirees; it is based on the prior commitments of the City to future retirees, in accordance with case law around this issue. The attached letter from the City’s actuarial firm also confirms this.

Couldn’t a future City Council eliminate retiree medical benefits if the HRA is used?
 Whether it is administered through an HRA or through CalPERS, all future City Councils have OPEB obligations. Using CalPERS to administer our benefits or vesting schedule does not change that. If that were true, then if a City left PEMCHA it could eliminate its obligations to retirees; that is not the case.

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Why was the HRA Plan not reviewed by City Council?
 The HRA plan was reviewed and approved at the staff level since it is administrative in nature. A copy has since been provided to all interested parties and is attached here.

The HRA Plan creates administrative work for the City.
 Yes, there is administrative work on a monthly basis, as the City will need to reconcile each month’s medical billing from CalPERS and process reimbursement amounts for retirees through the P&A Group HRA portal. In addition, staff will need to administer and determine eligibility for vesting based on retirees’ years of service (CalPERS and the City of Norco).This staff time will yield future savings to the City as previously noted in this report.

Who did the City consult with about this change?
 The City consulted with CalPERS health contracts personnel and a specialty attorney who deals with PEMCHA retiree medical issues.

The first round of retirees did not receive their reimbursement checks from P&A Group.
 City staff has been in close contact with P&A regarding this as it has taken an unusually long time for these checks to arrive at retirees’ homes. Checks were mailed on February 26th, but as of March 5th a number of retirees had not yet received checks. We are working with P&A to develop strategies to address this issue. As of March 7th, 17 have confirmed they have received their checks, 5 have not received their checks, 8 have not returned our phone call or email, and 9 we were not able to contact. New checks for the 5 retirees still waiting on reimbursement were overnighted to them late Thursday, March 7. For future reimbursements after this first one, retirees are strongly encouraged to return their direct deposit forms to P&A group or apply online so that they may receive their reimbursement directly to their bank accounts on or before the first business day of each month.

What happens if the City Council rescinds Resolution 2024-03? If the resolution is rescinded and the new resolution adopted to rescind, that will return that first group of transitioned retirees to the prior system effective May 1, because CalPERS has a delay in implementation of one month. So that group will still see deductions in their April 1 pension payment for their medical premiums, and receive reimbursement from the HRA around that date, either by direct deposit if they have enrolled, or by check if they have not submitted direct deposit paperwork.

Next, the City Council will need to determine next steps as to whether or not to move forward with the change to retiree medical benefits for new hires.

FISCAL IMPACT:

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Tiering off on retiree medical benefits for new hires will reduce long-term OPEB costs to the City, contribute to the City’s financial stability, and free up funds that can be used to keep employee salaries and benefits in line with labor market conditions over time.

A pause on implementation will not impact this future savings, but if the new tier is not implemented, the City's costs for retiree medical will continue to grow over time.

RELATIONSHIP TO STRATEGIC PLAN:

This action is consistent with Strategic Plan Direction No. 2 - Human Capital: Build a sustainable workforce to meet the needs of all stakeholders.

REVIEWED AND APPROVED BY:

Certified as to Availability of Funds: Lisette Free, Finance Director Approved by: Lori Sassoon, City Manager
Approved as to Form: Harper and Burns, LLC, City Attorney ATTACHMENT(S):

Staff Report and Final Reso 2024-03 CC Jan 17
DRAFT Resolution to Rescind Vesting Schedule
Actuary Letter - 2024.03.05_FF_NorcoCity_OPEB_Tier_2_Implementation_Letter City of Norco CalPERS Retiree HRA Plan Document effective 2024-03-01 DRAFT Resolution Adopting Vesting Schedule Internally
DRAFT Resolution Revert 2024-03

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City Council

STAFF REPORT
Date: January 17, 2024 Agenda Item:

3.K.

To: Honorable Mayor and City Council Members
From: Lori Sassoon, City Manager
Prepared By: Cindy Balderas, Human Resources Manager
Department: Human Resources
SUBJECT:

Consideration of Approval of California Public Employees’ Retirement System (CalPERS) Resolution Fixing the Employer Contribution Under the Public Employees' Medical and Hospital Care Act (PEMHCA) at an Equal Amount for Employees and Annuitants
RECOMMENDATION:

Approval of Resolution No. 2024-03 Fixing the Employer Contribution Under the Public Employees' Medical and Hospital Care Act (PEMHCA) at an Equal Amount for Employees and Annuitants.

SUMMARY:

This action will restructure the payment of medical benefits for Norco General Employees Association; Middle Management, Professional, and Confidential Employees; and Management Employees, and retirees from those groups that qualify to participate in the CalPERS medical insurance program (“annuitants”) in order to minimize future retiree medical costs for new employees hired after July 1, 2023.

BACKGROUND:

The City of Norco (City) participates in the CalPERS medical insurance program through PEMHCA. PEMHCA and the related sections of the California Code of Regulations (CCR) set out the rules that a contracting agency (as well as participating employees and annuitants) must adhere to, including, but not limited to eligibility requirements, enrollment deadlines, minimum and equal contribution rules, etc.. The resolution is the mechanism by which an agency elects to become subject to PEMHCA and designates its PEMHCA contribution amount for purposes of the PEMHCA equal and minimum contribution rules. CalPERS requires that employers contribute equal PEMHCA amounts on behalf of participating employees and annuitants. The 2024 minimum is $157 per month but changes yearly.

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As part of the City's focus on long-term fiscal sustainability, the City has examined ways to reduce OPEB liabilities, primarily retiree health care, by limiting the benefits for future hires.

In accordance with that goal, in 2023, the City Council approved Resolutions with the Norco General Employees Association (Resolution No. 2023-43), Middle Management, Professional, and Confidential Employees (Resolution No. 2023-46), and Management Employees (Resolution No. 2023-45) to change the City’s designated PEMHCA contribution to the PEMHCA minimum (2024 - $157 per month). However, the total amount of City-paid health contributions that current employees and retirees receive will not be impacted. The City will continue to make the same contributions for active employees as it does now. The portion of the total contribution designated as the PEMHCA contribution is all that is changing, and it will not have a financial impact on them. Current retirees (annuitants) will be reimbursed the monetary difference between the PEMHCA minimum and their current benefit via a Health Retirement Arrangement (HRA). This change will have no financial impact on them.

An HRA is an employer-sponsored plan where employer funds are deposited to reimburse medical expenses. Here, the HRA reimburses retirees for the portion of the CalPERS medical insurance premiums that will not be paid by the City directly to CalPERS (anything above the currently statutory minimum of $157 per month).

Retirees’ monthly benefit checks are reduced by the amount of their premium that is not paid directly to CalPERS by the City. The HRA reimbursement keeps these retirees whole, so that these changes do not have a negative financial impact on them.

For example, a retiree that is enrolled in a Kaiser two-party plan and is 100% covered is now going to pay the difference between Kaiser two-party monthly premium and the PEMHCA monthly minimum ($1,730.82 - $157 = $1,573.82) via withholding from their CalPERS benefit checks. In turn, the HRA will issue retirees reimbursements for the paid amount on a monthly basis at the beginning of each month via direct deposit of $1,573.82.

These changes will allow the City to implement a new retiree medical benefit tier for new hires hired after July 1, 2023. New hires in the new tier will only be able to receive the PEMHCA minimum at their retirement. In the long term, reducing the health retirement contributions to PEMHCA minimum will result in a reduction of the Other Post Employment Benefits (OPEB) liability for funding the health benefits that employees receive as they retire. Actuaries use economic and demographic data to determine the current value of OPEB liabilities.

FISCAL IMPACT:

In the long term, reducing the health retirement contributions to PEMHCA minimum should result in a reduction of the Other Post Employment Benefits (OPEB) liability for funding the health benefits that employees receive as they retire. There is a minimal cost for the administration of the HRA plan that is estimated at $5,000 annually.

RELATIONSHIP TO STRATEGIC PLAN:

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This action is consistent with Strategic Plan Direction No. 2 - Human Capital: Build a sustainable workforce to meet the needs of all stakeholders.

REVIEWED AND APPROVED BY:

Certified as to Availability of Funds: Lisette Free, Finance Director Approved by: Lori Sassoon, City Manager
Approved as to Form: Harper and Burns, LLC, City Attorney ATTACHMENT(S):

Resolution 2024-03 PEMHCA

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Health Resolution Template Packet
Contract vs. Resolution
The CalPERS Health Program is governed by the Public Employees Medical and Hospital Care Act (PEMHCA), and the California Code of Regulations (CCR), of the California Public Employees Retirement Law (PERL). PEMHCA contains all the rules and regulations that a contracting agency must adhere to. We define PEMHCA as the actual health contract, and the resolution as the method by which an agency elects to become subject to PEMHCA.

Resolution Type (Enclosed)
PA Vesting 22893 Resolution Purpose
Format:

All, New
All, Change
All, Rescind
By Group, New
By Group, Change
× By Group, Rescind
Pursuant to PEMHCA Government Code 22893, a public agency must file a vesting resolution to:
1) Establish that certain employees are subject to a postretirement health benefit vesting requirement under Government Code 22893; and
2) Designate the postretirement monthly employer health contribution that an annuitant who is subject to vesting would receive based on years of credited service.

Instructions
• The enclosed resolution should be completed by filling in the editable fields with the information requested in the field tab. Contracting agencies may not add, edit, or remove language in the enclosed resolution, other than the editable fields. CalPERS may reject resolutions that are submitted with additional changes.
• The certification shown following the resolution is to be completed by those individuals authorized to sign for the contracting agency in legal actions and is to include the name of the governing body (i.e. Board of Directors, Board of Trustees, etc.), and the location and the date of signing. • This resolution serves as a legally binding document, and we require the original resolution, certified copy with original signatures, or a copy of the resolution with the agency’s raised seal.

Please complete and include the enclosed cover sheet when mailing the resolution.

Questions or Additional Information
The Health Resolutions & Compliance Unit is responsible for authoring and maintaining this document.

The unit can be contacted directly at [email protected].

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CalPERS Health Resolution (Public Agency Vesting 22893), Revised October 2023 Please staple on top of your health resolution(s) or cover letter.

This will ensure that the CalPERS mailroom expedites delivery to our office.

Mail packet to either:

Overnight Mail Service Regular Mail
California Public Employees’ Retirement System
Health Resolutions & Compliance Services, HAMD
400 Q Street
Sacramento, CA 95811
California Public Employees’ Retirement System
Health Resolutions & Compliance Services, HAMD
PO BOX 942714
Sacramento, CA 94229-2714
HEALTH

RESOLUTION
CalPERS ID # 3093388325
Agency Name City of Norco
Desired Effective Date May 1, 2024

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CalPERS Health Resolution (Public Agency Vesting 22893), Revised October 2023 RESOLUTION NO. Number
ELECTING TO RESCIND PUBLIC AGENCY VESTING UNDER SECTION 22893 OF THE PUBLIC EMPLOYEES’ MEDICAL AND HOSPITAL CARE ACT

WITH RESPECT TO A RECOGNIZED EMPLOYEE ORGANIZATION
WHEREAS, (1) City of Norco is a contracting agency under Government Code Section 22920 and subject to the Public Employees’ Medical and Hospital Care Act (the “Act”) for participation by members of 001 Miscellaneous; and WHEREAS, (2) City of Norco is a contracting agency and has filed a resolution with the Board of the California Public Employees’ Retirement System to provide a postretirement health benefit vesting requirement to employees who retire for service in accordance with Government Code Section 22893; now, therefore be it
RESOLVED, (a) City of Norco elects to rescind postretirement health benefits vesting requirements; and be it further
RESOLVED, (b) That employees first hired on or after September 1, 2004 will no longer be subject to vesting as established by Resolution No. 2004-41; and be it further RESOLVED, (c) City of Norco has fully complied with any and all applicable provisions of Government Code Section 7507 in electing the benefits set forth above; and be it further
RESOLVED, (d) That the participation of the employees and annuitants of City of Norco shall be subject to determination of its status as an “agency or instrumentality of the state or political subdivision of a State” that is eligible to participate in a governmental plan within the meaning of Section 414(d) of the Internal Revenue Code, upon publication of final Regulations pursuant to such Section.

If it is determined that City of Norco would not qualify as an agency or instrumentality of the state or political subdivision of a State under such final Regulations, the California Public Employees’ Retirement System may be obligated, and reserves the right to terminate the health coverage of all participants of the employer; and be it further
RESOLVED, (e) That the executive body appoint and direct, and it does hereby appoint and direct, Position Title or Name of Person to file with the Board a verified copy of this resolution, and to perform on behalf of City of Norco all functions required of it under the Act.

Adopted at a regular or special meeting of the Governing Body at Location, this Day day of Month, Year.

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CalPERS Health Resolution (Public Agency Vesting 22893), Revised October 2023 Signed: _________________________________
(President, Chairman, etc.)
Attest: _________________________________
(Secretary or appropriate officer)

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WITH RESPECT TO A RECOGNIZED EMPLOYEE ORGANIZATION
WHEREAS, (1) City of Norco is a contracting agency under Government Code Section 22920 and subject to the Public Employees’ Medical and Hospital Care Act (the “Act”) for participation by members of 002 Safety; and WHEREAS, (2) City of Norco is a contracting agency and has filed a resolution with the Board of the California Public Employees’ Retirement System to provide a postretirement health benefit vesting requirement to employees who retire for service in accordance with Government Code Section 22893; now, therefore be it
RESOLVED, (a) City of Norco elects to rescind postretirement health benefits vesting requirements; and be it further
RESOLVED, (b) That employees first hired on or after September 1, 2004 will no longer be subject to vesting as established by Resolution No. 2004-41; and be it further RESOLVED, (c) City of Norco has fully complied with any and all applicable provisions of Government Code Section 7507 in electing the benefits set forth above; and be it further
RESOLVED, (d) That the participation of the employees and annuitants of City of Norco shall be subject to determination of its status as an “agency or instrumentality of the state or political subdivision of a State” that is eligible to participate in a governmental plan within the meaning of Section 414(d) of the Internal Revenue Code, upon publication of final Regulations pursuant to such Section.

Adopted at a regular or special meeting of the Governing Body at Location, this Day day of Month, Year.

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WITH RESPECT TO A RECOGNIZED EMPLOYEE ORGANIZATION
WHEREAS, (1) City of Norco is a contracting agency under Government Code Section 22920 and subject to the Public Employees’ Medical and Hospital Care Act (the “Act”) for participation by members of 003 Management; and WHEREAS, (2) City of Norco is a contracting agency and has filed a resolution with the Board of the California Public Employees’ Retirement System to provide a postretirement health benefit vesting requirement to employees who retire for service in accordance with Government Code Section 22893; now, therefore be it
RESOLVED, (a) City of Norco elects to rescind postretirement health benefits vesting requirements; and be it further
RESOLVED, (b) That employees first hired on or after February 1, 2011 will no longer be subject to vesting as established by Resolution No. 2010-68; and be it further RESOLVED, (c) City of Norco has fully complied with any and all applicable provisions of Government Code Section 7507 in electing the benefits set forth above; and be it further
RESOLVED, (d) That the participation of the employees and annuitants of City of Norco shall be subject to determination of its status as an “agency or instrumentality of the state or political subdivision of a State” that is eligible to participate in a governmental plan within the meaning of Section 414(d) of the Internal Revenue Code, upon publication of final Regulations pursuant to such Section.

Adopted at a regular or special meeting of the Governing Body at Location, this Day day of Month, Year.

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WITH RESPECT TO A RECOGNIZED EMPLOYEE ORGANIZATION
WHEREAS, (1) City of Norco is a contracting agency under Government Code Section 22920 and subject to the Public Employees’ Medical and Hospital Care Act (the “Act”) for participation by members of 004 Mid-Management/ Confidential; and
WHEREAS, (2) City of Norco is a contracting agency and has filed a resolution with the Board of the California Public Employees’ Retirement System to provide a postretirement health benefit vesting requirement to employees who retire for service in accordance with Government Code Section 22893; now, therefore be it
RESOLVED, (a) City of Norco elects to rescind postretirement health benefits vesting requirements; and be it further
RESOLVED, (b) That employees first hired on or after February 1, 2011 will no longer be subject to vesting as established by Resolution No. 2010-68; and be it further RESOLVED, (c) City of Norco has fully complied with any and all applicable provisions of Government Code Section 7507 in electing the benefits set forth above; and be it further
RESOLVED, (d) That the participation of the employees and annuitants of City of Norco shall be subject to determination of its status as an “agency or instrumentality of the state or political subdivision of a State” that is eligible to participate in a governmental plan within the meaning of Section 414(d) of the Internal Revenue Code, upon publication of final Regulations pursuant to such Section.

Adopted at a regular or special meeting of the Governing Body at Location, this Day day of Month, Year.

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WITH RESPECT TO A RECOGNIZED EMPLOYEE ORGANIZATION
WHEREAS, (1) City of Norco is a contracting agency under Government Code Section 22920 and subject to the Public Employees’ Medical and Hospital Care Act (the “Act”) for participation by members of 005 General Employees; and
WHEREAS, (2) City of Norco is a contracting agency and has filed a resolution with the Board of the California Public Employees’ Retirement System to provide a postretirement health benefit vesting requirement to employees who retire for service in accordance with Government Code Section 22893; now, therefore be it
RESOLVED, (a) City of Norco elects to rescind postretirement health benefits vesting requirements; and be it further
RESOLVED, (b) That employees first hired on or after February 1, 2011 will no longer be subject to vesting as established by Resolution No. 2010-68; and be it further RESOLVED, (c) City of Norco has fully complied with any and all applicable provisions of Government Code Section 7507 in electing the benefits set forth above; and be it further
RESOLVED, (d) That the participation of the employees and annuitants of City of Norco shall be subject to determination of its status as an “agency or instrumentality of the state or political subdivision of a State” that is eligible to participate in a governmental plan within the meaning of Section 414(d) of the Internal Revenue Code, upon publication of final Regulations pursuant to such Section.

Adopted at a regular or special meeting of the Governing Body at Location, this Day day of Month, Year.

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411 Borel Avenue, Suite 620 San Mateo, CA 94402 ꞏ (650) 377-1600 ꞏ www.foster-foster.com

March 5, 2024
Lori Sassoon
City Manager
City of Norco
2870 Clark Avenue
Norco, CA 92860
Re: Retiree Medical Benefit Changes
Dear Ms. Sassoon:

Foster & Foster has been asked to comment on the actuarial impact of the implementation of a new retiree medical benefit tier and the administrative changes resulting from the new tier. This letter summarizes the new retiree medical tier and provides our comments on the actuarial impact.

Background
The City contracts with CalPERS for medical benefits under the Public Employees’ Medical & Hospital Care Act (PEMHCA). For retirees hired before July 1, 2023, the City currently pays either the medical premium capped at $1,250 per month (or $1,500 in some cases) or is based on a vesting schedule which determines the percentage of the medical premium the City will pay based on hire dates and prior resolutions. Under the vesting schedule, the City pays 50% of the medical premium if the retiree has 10 years CalPERS service and grades up to paying 100% of premium at 20 years of CalPERS service (5 years of service must be with the City). We understand the vesting schedule, which is currently being administered by CalPERS, may be repealed and replaced by the same vesting schedule that is administered by the City. From an actuarial perspective, there is no difference in who is administering the vesting schedule, and this will not impact the calculation of actuarial liabilities.

New Retiree Medical Tier
For employees hired on or after July 1, 2023, the City will pay only up to the PEMHCA minimum benefit at retirement, as prescribed by Government Code Section 22892 of PEMHCA. The PEMHCA minimum employer contribution is the minimum amount under PEMHCA rules that an employer can contribute to employees and retirees for medical benefits through PEMHCA. In 2023, the PEMHCA minimum employer contribution was $151/month. In 2024, it is $157/month. The amount is adjusted annually to reflect changes in the medical care component of CPI-U.

Due to CalPERS system limitations, it cannot maintain different tiers of contributions for a single employer. Therefore, CalPERS invoices the employer the lowest benefit tier amount for all employee groups (in this case the PEMHCA minimum employer contribution) and has the retiree pay the rest of the premium. The City then reimburses the difference (outside of CalPERS) between the PEMHCA minimum and the actual benefit owed to retirees hired before July 1, 2023.

Foster & Foster prepares biennial actuarial valuations for the City’s retiree medical benefits. These valuation reports determine the actuarial obligations of the City at the valuation date of the benefits “earned” through the valuation date based on an actuarial cost method. The benefit valued (actuarial liability) is the total amount the City pays toward the retiree medical premiums and is unaffected by the administrative procedures of how much is paid directly to CalPERS and how much is paid to retirees outside of CalPERS. That is, the administrative procedures do not affect the amount of liability calculated in the actuarial valuations.

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Lori Sassoon
March 5, 2024

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411 Borel Avenue, Suite 620 San Mateo, CA 94402 ꞏ (650) 377-1600 ꞏ www.foster-foster.com The City’s upcoming June 30, 2023 retiree medical actuarial valuation report will not reflect the new benefit tier because it will only include participants as of the valuation date (those hired before 7/1/23).

Future valuations will recognize the savings from the lower benefit tier, but the savings will be gradual as new hires with the lower benefit reflect a larger portion of the City’s workforce over time.

We understand that in addition to the new retiree medical tier, the City will implement a Health Reimbursement Arrangement (HRA). Because the HRA is a defined contribution plan, not a defined benefit plan, there are no actuarial calculations that need to be performed regarding the HRA and it will not be included in the future retiree medical actuarial valuation reports.

Please let me know if you have any questions about the information above.

Sincerely,
Drew Ballard
Senior Consulting Actuary
c: Cathy Wandro, Foster & Foster, Inc.

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City of Norco
City of Norco
2870 Clark Avenue
Norco, CA 92860
City of Norco CalPERS Retiree HRA Plan
Plan Document
Effective March 01, 2024

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TABLE OF CONTENTS
I. ARTICLE - DEFINITIONS

01. "PLAN ADMINISTRATOR"

02. "CODE"

03. "COVERAGE PERIOD"

04. "EFFECTIVE DATE"

05. "ELIGIBLE RETIRED EMPLOYEE"

06. "EMPLOYER"

07. "EMPLOYER CONTRIBUTION"

08. "PARTICIPANT"

09. "PERMISSIBLE EMPLOYEE CLASS(ES)"

10. "PLAN YEAR"

11. "PREMIUMS"

12. "QUALIFYING EXPENSES"

13. "RETIRED EMPLOYEE"
II. ARTICLE - PARTICIPATION

01. ELIGIBILITY

02. EFFECTIVE DATE OF PARTICIPATION

03. TERMINATION OF PARTICIPATION
III. ARTICLE - BENEFITS

01. ESTABLISHMENT OF HRA

02. NONDISCRIMINATION REQUIREMENTS

03. HEALTH REIMBURSEMENT ARRANGEMENT CLAIMS

04. RECOVERY OF EXCESS OR MISTAKEN PAYMENTS
IV. ARTICLE - PLAN PROVISIONS

01. CLAIM FOR BENEFITS

02. NAMED FIDUCIARY

03. GENERAL FIDUCIARY RESPONSIBILITIES

04. NONASSIGNABILITY OF RIGHTS
V. ARTICLE - ADMINISTRATION

01. HRA ADMINISTRATION

02. EXAMINATION OF RECORDS

03. INDEMNIFICATION OF ADMINISTRATOR
VI. ARTICLE - AMENDMENT OR TERMINATION OF HRA

01. AMENDMENT

02. TERMINATION
VII. ARTICLE - MISCELLANEOUS

01. ADOPTION BY OTHER EMPLOYERS

02. HRA INTERPRETATION

03. GENDER AND NUMBER

04. WRITTEN DOCUMENT

05. EXCLUSIVE BENEFIT

06. NOT EMPLOYMENT CONTRACT

07. ACTION BY THE EMPLOYER

08. NO GUARANTEE OF TAX CONSEQUENCES

09. INDEMNIFICATION OF EMPLOYER BY PARTICIPANTS

10. FUNDING

11. GOVERNING LAW

12. SEVERABILITY

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13. HEADINGS

14. HEALTH INSURANCE PORTABILITY AND ACCOUNTABILITY ACT

15. UNIFORMED SERVICES EMPLOYMENT AND REEMPLOYMENT RIGHTS ACT

16. HIPAA PRIVACY STANDARDS

17. HIPAA ELECTRONIC SECURITY STANDARDS
VIII. Appendix A
IX. Appendix B

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City of Norco CalPERS Retiree HRA Plan

INTRODUCTION
City of Norco hereby establishes effective March 01, 2024, a health reimbursement arrangement, known as the City of Norco CalPERS Retiree HRA Plan (the "HRA"), the terms of which are set forth in this document. The HRA provides for the reimbursement of expenses as described in the Appendices of this document that have been incurred by Eligible Retired Employees, who are former employees of the Employer.

It is intended that the HRA meet the requirements for qualification under Code Section 105 with respect to Retired Employees, and that benefits paid Retired Employees hereunder be excludible from their gross incomes pursuant to Code Section 105(b).

As used in this HRA, the following words and phrases shall have the meanings set forth herein unless a different meaning is clearly required by the context:

01. "Plan Administrator" means the individual(s) or committee appointed by the Employer to carry out the administration of the HRA. In the event the Administrator has not been appointed, or resigns from an appointment, the Employer shall be deemed to be the Administrator.

02. "Code" means the Internal Revenue Code of 1986, as amended.

03. "Coverage Period" means the period of the current plan year in which the individual is an eligible employee on or after his or her plan entry date.

04. "Effective Date" means March 01, 2024.

05. "Eligible Retired Employee" means a Retired Employee who meets the eligibility requirements set forth under the HRA as set forth in the Section titled: "Eligibility".

06. "Employer" means City of Norco, a Government Entity or any successor which shall maintain this HRA and any predecessor which has maintained this HRA. In addition, unless the context requires otherwise, the term "Employer" shall include any Participating Employer which shall adopt this HRA.

07. "Employer Contribution" means the amounts contributed to the HRA by the Employer.

08. "Participant" means any Eligible Retired Employee who has satisfied the requirements of the Section titled: "Eligibility" and has not for any reason become ineligible to participate further in the HRA.

09. "Permissible Employee Class(es)" means the permitted classifications for distinguishing among employees defined by law.

10. "Plan Year" means, for the first plan year, the period beginning March 01 and ending December

31. For subsequent plan years, "Plan Year" means the 12-month period beginning January 01 and ending December 31.

11. "Premiums"mean the Participant’s cost for any health plan coverage, including Medicare or other similar coverage as provided under the Social Security Act.

12. "Qualifying Expenses" means any expenses as described in the Appendices of this document that meets the definition of "qualified expenses" (within the meaning of Code Section 213(d) and as allowed under Code Section 105 and the rulings and Treasury regulations thereunder) of the Participant, the Participant’s spouse or a Dependent and that are not otherwise used by the Participant as a deduction in determining the Participant’s tax liability under the Code or reimbursed under any other health coverage, including a health Flexible Spending Account.

13. "Retired Employee" means any person who has retired from previous employment by the Employer or such other qualification requirements as set forth by the Employer.

I. ARTICLE - DEFINITIONS

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01. Eligibility
A Retired Employee shall be eligible to participate in the HRA if such person meets the Employer’s eligibility requirements as established by the Employer hereunder.

A Retired Employee must satisfy the following requirements to be eligible for this plan:

The Retired Employee must have 0 years of service with the Company and; The Retired Employee must be at least 0 years old at the time of retirement.

02. Effective Date of Participation
Any Retired Employee shall be eligible to participate in the HRA if such person meets the Employer's eligibility requirements as separately established by the Employer hereunder on the date such Employee is enrolled in the Employer's group medical plan.

03. Termination of Participation
Participating Retired Employees may continue to participate in the HRA, while amounts remain in the HRA, and any unused amounts shall be forfeited. In the case of the death of the Participant, any remaining balances may only be paid out as reimbursements for Qualifying Expenses as stated in the Section titled: "Health Reimbursement Arrangement Claims" under the Article title:
"Benefits" and shall not constitute a death benefit to the Participant's estate and/or the Participant's beneficiaries. Similarly, if there are no surviving Dependent(s) who may be located to be able to utilize any unused amounts upon the Retired Employee's death after a reasonable search, such remaining balances shall be forfeited and returned to the Plan for further use in defraying other Plan administrative costs or as further contribution allocations as determined by the Employer. A Participant shall be permitted at least annually to opt out of the HRA and waive future reimbursements from the HRA. The above notwithstanding, any Participant who is re-hired by the Employer for any period shall cease to be considered as a Participating Retired Employee for that period of time in which such individual remains actively employed, and no further payments can be made to such Participant during that remaining employment period of service with the Employer.

II. ARTICLE - PARTICIPATION

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01. Establishment of HRA
a. The HRA is intended to qualify as a Health Reimbursement Arrangement under Code Section 105 and shall be interpreted in a manner consistent with such Code Section and the Treasury regulations thereunder.
b. Participants in this Health Reimbursement Arrangement may submit claims for the reimbursement of Qualifying Expenses as defined under the HRA. c. The Employer shall make available to Participant an Employer Contribution in the amounts listed in the Appendices of this document.

The amounts provided to the HRA by The Employer will be made available pro rata on a monthly basis.
d. This HRA shall not be coordinated or otherwise connected to the Employer's cafeteria plan (as defined in Code Section 125), except as permitted by the Code and the Treasury regulations thereunder in order for this HRA to be maintained as a Health Reimbursement Arrangement. No salary reduction contributions may be made to this Health Reimbursement Arrangement.
e. If the Employer maintains Health Savings Accounts for Participants, this Arrangement shall be operated in accordance with the restrictions under Code Section 223.

02. Nondiscrimination Requirements
a. It is the intent of this Health Reimbursement Arrangement to not discriminate in violation of the Code and the Treasury regulations thereunder.
b. If the Administrator deems it necessary in order to avoid discrimination under this Health Reimbursement Arrangement, it may, but shall not be required to reduce benefits provided to "highly compensated individuals" (as defined in Code Section 105(h)) in order to assure compliance with this Section. Any act taken by the Administrator under this Section shall be carried out in a uniform and nondiscriminatory manner.

03. Health Reimbursement Arrangement Claims
a. The Participant will submit all claims to the Claims Administrator for processing. The Claims Processor will process claims according to the Employer's HRA plan design then send a check or direct deposit, if Participant enrolls in direct deposit, for the amount that is eligible for reimbursement through this HRA. The Participant is responsible to pay the Provider for billed amounts not covered by this HRA.
b. Claims of Qualifying Expenses incurred in any Coverage Period shall be paid as soon after a claim has been received as administratively practicable. If any claim is not submitted within 90 days immediately following the end of the Coverage Period (that is, by 03/31), those Expense claims shall not be eligible for reimbursement by the Administrator. c. Payments under this HRA shall be made directly to the Participant. d. If the maximum amount available for reimbursement for a Coverage Period is not utilized in its entirety, refer to Appendix A for information on how these funds will be handled. e. Reimbursement requests for Terminated Employees must be received within 0 days following the date of termination, or remaining funds will be forfeited.

04. Recovery of Excess or Mistaken Payments
If any reimbursement or other payment made under this HRA Plan is subsequently found to have been excessive or made in error, the Plan shall notify the Participant and be entitled to recover the amount of such mistaken payments in accordance with the procedures set forth in this subsection.

The Administrator and the Employer shall pursue recovery of mistaken payments utilizing one or more of the following correction methods: (a) Require the Participant or other person receiving the mistaken payment to reimburse the Plan for the amount of the mistaken payment; (b) If the HRA Administrator and the Employer are unable to obtain repayment per (a) above, deny the Participant reimbursement of subsequently submitted claims incurred during the same Plan Year until the amount of the mistaken payment is fully recovered by the Plan; or (c) Take such other action that the HRA Administrator and Employer reasonably deem necessary to ensure recovery of mistaken payments and that such mistaken payments do not recur. If none of the above correction methods are successful in recovering a mistaken payment, the Employer, consistent with its business practice, may treat the amount owed by the Employee as it would any other business III. ARTICLE - BENEFITS

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debt. To the extent the Employer forgives the debt after requesting payment consistent with collection procedures for other business debt, the Employer shall report the amount of the mistaken payment to the Employee and IRS as taxable wages. Any of the above correction methods shall be pursued only in accordance with and to the extent permitted by applicable law.

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01. Claim for Benefits
Any claim for Benefits shall be made to the Administrator. The following time frames for claims and the rules below apply:

Notification of whether claim is accepted or denied 30 days Extension due to matters beyond the control of the Plan 15 days Insufficient information on the claim:

Notification of 15 days
Response by Participant 45 days
Review of claim denial 60 days
The Administrator will provide written or electronic notification of all claim denials. The notice will state:

1. Information sufficient to identify the claim involved, including the date of service, the health care provider, the claim amount (if applicable), the diagnosis code and its corresponding meaning, and the treatment code and its corresponding meaning.

2. The specific reason or reasons for the adverse determination.

3. Reference to the specific HRA provisions on which the determination is based.

4. A description of any additional material or information necessary to perfect the claim and an explanation of why such material or information is necessary.

5. A description of the HRA's internal review procedures and time limits applicable to such procedures, available external review procedures .

6. That upon request and free of charge, the following will be provided: a copy of any internal rule, guideline, protocol or other similar criterion that was relied upon in making the adverse determination regarding the claim, and an explanation of the scientific or clinical judgment for a determination that is based on a medical necessity, experimental treatment or other similar exclusion or limit.

7. In the case of a claim involving urgent care, a description of the expedited review process applicable to such claim.

When the Participant receives a notice of a decision of denial, the Participant shall have 180 days following receipt of the notification within which to appeal the decision. The Participant may submit written comments, documents, records, and other information relating to the Claim. If the Participant requests, the Participant shall be provided, free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to the Claim.

The period of time within which a denial on review is required to be made will begin at the time an appeal is filed in accordance with the procedures of the HRA. This timing is without regard to whether all the necessary information accompanies the filing.

A document, record, or other information shall be considered relevant to a Claim if it:

1. was relied upon in making the claim determination;

2. was submitted, considered, or generated in the course of making the claim determination, without regard to whether it was relied upon in making the claim determination;

3. demonstrated compliance with the administrative processes and safeguards designed to ensure and to verify that claim determinations are made in accordance with HRA documents and that HRA provisions have been applied consistently with respect to all claimants; or

4. constituted a statement of policy or guidance with respect to the HRA concerning the denied claim.

The review will take into account all comments, documents, records, and other information submitted by the claimant relating to the Claim, without regard to whether such information was submitted or considered in the initial claim determination. The review will not afford deference to the initial denial and will be conducted by a fiduciary of the HRA who is neither the individual who made the adverse determination nor a subordinate of that individual.

IV. ARTICLE - PLAN PROVISIONS

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After receiving notice of an adverse benefit determination or a final internal adverse benefit determination, a claimant may file with the HRA a request for an external review. A claimant may request from the Administrator additional information describing the HRA's external review procedure.

02. Named Fiduciary
The "named Fiduciaries" of this HRA are (1) the Employer and (2) the Administrator. The named Fiduciaries shall have only those specific powers, duties, responsibilities, and obligations as are specifically given them under the HRA including, but not limited to, any agreement allocating or delegating their responsibilities, the terms of which are incorporated herein by reference. In general, the Employer shall have the sole responsibility for providing benefits under the HRA; and shall have the sole authority to appoint and remove the Administrator; and to amend or terminate, in whole or in part, the HRA. The Administrator shall have the sole responsibility for the administration of the HRA, which responsibility is specifically described in the HRA. Furthermore, each named Fiduciary may rely upon any such direction, information or action of another named Fiduciary as being proper under the HRA, and is not required under the HRA to inquire into the propriety of any such direction, information or action. It is intended under the HRA that each named Fiduciary shall be responsible for the proper exercise of its own powers, duties, responsibilities and obligations under the HRA. Any person or group may serve in more than one Fiduciary capacity.

03. General Fiduciary Responsibilities
The Administrator and any other fiduciary shall discharge their duties with respect to this HRA solely in the interest of the Participants and their beneficiaries and a. for the exclusive purpose of providing Benefits to Participants and their beneficiaries and defraying reasonable expenses of administering the HRA; b. with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent man acting in like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims;

04. Nonassignability of Rights
The right of any Participant to receive any reimbursement under the HRA shall not be alienable by the Participant by assignment or any other method, and shall not be subject to the rights of creditors, and any attempt to cause such right to be so subjected shall not be recognized, except to such extent as may be required by law.

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01. HRA Administration
The operation of the HRA shall be under the supervision of the Administrator. It shall be a principal duty of the Administrator to see that the HRA is carried out in accordance with its terms, and for the exclusive benefit of Retired Employees entitled to participate in the HRA. The Administrator shall have full power to administer the HRA in all of its details . The Administrator's powers shall include, but shall not be limited to the following authority, in addition to all other powers provided by this HRA:
a. To make and enforce such rules and regulations as the Administrator deems necessary or proper for the efficient administration of the HRA;
b. To interpret the HRA, the Administrator's interpretations thereof in good faith to be final and conclusive on all persons claiming benefits under the HRA; c. To decide all questions concerning the HRA and the eligibility of any person to participate in the HRA and to receive benefits provided under the HRA; d. To limit benefits for certain highly compensated individuals if it deems such to be desirable in order to avoid discrimination under the HRA in violation of the applicable provisions of the Code;
e. To approve reimbursement requests and to authorize the payment of benefits; f. To appoint such agents, counsel, accountants, consultants, and actuaries as may be required to assist in administering the HRA; and
Any procedure, discretionary act, interpretation or construction taken by the Administrator shall be done in a nondiscriminatory manner based upon uniform principles consistently applied and shall be consistent with the intent that the HRA shall continue to comply with the terms of Code Section 105(h) and the Treasury regulations thereunder.

02. Examination of Records
The Administrator shall make available to each Participant, Eligible Retired Employee and any other Retired Employee of the Employer, for examination at reasonable times during normal business hours, such records as pertain to that person's interest under the HRA.

03. Indemnification of Administrator
The Employer agrees to indemnify and to defend to the fullest extent permitted by law any Employee of the employer who otherwise assists the Administrator in its obligations under this Plan against all liabilities, damages, costs and expenses (including attorney's fees and amounts paid in settlement of any claims approved by the Employer) occasioned by any act or omission to act in connection with the HRA, if such act or omission is or was in good faith.

V. ARTICLE - ADMINISTRATION

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01. Amendment
The Employer, at any time or from time to time, may amend any or all of the provisions of the HRA without the consent of any Retired Employee or Participant.

02. Termination
The Employer is establishing this HRA with the intent that it will be maintained for an indefinite period of time. Notwithstanding the foregoing, the Employer reserves the right to terminate the HRA, in whole or in part, at any time. In the event the HRA is terminated, no further reimbursements shall be made.

VI. ARTICLE - AMENDMENT OR TERMINATION OF HRA

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01. Adoption by Other Employers
Notwithstanding anything herein to the contrary, and with the consent of the Employer, any other corporation or entity, whether an affiliate or subsidiary or not, may adopt this HRA and all of the provisions hereof, and participate herein and be known as a "Participating Employer", by a properly executed document evidencing said intent and will of such Participating Employer.

02. HRA Interpretation
All provisions of this HRA shall be interpreted and applied in a uniform, nondiscriminatory manner.

This HRA shall be read in its entirety and not severed except as provided in the Section titled:
"Severability".

03. Gender and Number
Wherever any words are used herein in the masculine, feminine or neuter gender, they shall be construed as though they were also used in another gender in all cases where they would so apply, and whenever any words are used herein in the singular or plural form, they shall be construed as though they were also used in the other form in all cases where they would so apply.

04. Written Document
This HRA, in conjunction with any separate written document which may be required by law, is intended to satisfy the written HRA requirement of Code Section 105 and any Treasury regulations thereunder.

05. Exclusive Benefit
This HRA shall be maintained for the exclusive benefit of the Retired Employees who participate in the HRA.

06. Not Employment Contract
This HRA shall not be deemed to constitute an employment contract between the Employer and any Participant or Retired Employee, or to be a consideration or an inducement for the employment of any Participant or Retired Employee. Nothing contained in this HRA shall be deemed to give any Participant or Employee the right to be retained in the service of the Employer or to interfere with the right of the Employer to discharge any Participant or Retired Employee at any time regardless of the effect which such discharge shall have upon him as a Participant of this HRA.

07. Action by the Employer
Whenever the Employer under the terms of the HRA is permitted or required to do or perform any act or matter or thing, it shall be done and performed by an authorized representative of the Employer.

08. No Guarantee of Tax Consequences
Neither the Administrator nor the Employer makes any commitment or guarantee that any amounts paid to or for the benefit of a Participant under the HRA will be excludable from the Participant's gross income for federal or state income tax purposes, or that any other federal or state tax treatment will apply to or be available to any Participant. It shall be the obligation of each Participant to determine whether each payment under the HRA is excludable from the Participant's gross income for federal and state income tax purposes, and to notify the Employer if the Participant has reason to believe that any such payment is not so excludable. Notwithstanding the foregoing, the rights of Participants under this HRA shall be legally enforceable.

09. Indemnification of Employer by Participants
If any Participant receives one or more payments or reimbursements under the HRA that are not for a permitted Expense such Participant shall indemnify and reimburse the Employer for any liability it may incur for failure to withhold federal or state income tax or Social Security tax from such payments or reimbursements. However, such indemnification and reimbursement shall not exceed the amount of additional federal and state income tax (plus any penalties) that the Participant would have owed if the payments or reimbursements had been made to the Participant as regular cash compensation, plus the Participant's share of any Social Security tax that would have been paid on such compensation, less any such additional income and Social Security tax actually paid by the Participant.

10. Funding
VII. ARTICLE - MISCELLANEOUS

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Unless otherwise required by law, amounts made available by the Employer need not be placed in trust, but may instead be considered general assets of the Employer. Furthermore, and unless otherwise required by law, nothing herein shall be construed to require the Employer or the Administrator to maintain any fund or segregate any amount for the benefit of any Participant, and no Participant or other person shall have any claim against, right to, or security or other interest in, any fund, account or asset of the Employer from which any payment under the HRA may be made.

11. Governing Law
This HRA and Trust shall be construed and enforced according to the Code and the laws of the state of California, other than its laws respecting choice of law .

12. Severability
If any provision of the HRA is held invalid or unenforceable, its invalidity or unenforceability shall not affect any other provisions of the HRA, and the HRA shall be construed and enforced as if such provision had not been included herein.

13. Headings
The headings and subheadings of this HRA have been inserted for convenience of reference and are to be ignored in any construction of the provisions hereof.

14. Health Insurance Portability and Accountability Act Notwithstanding anything in this HRA to the contrary, this HRA shall be operated in accordance with HIPAA and the regulations thereunder.

15. Uniformed Services Employment and Reemployment Rights Act Notwithstanding any provision of this HRA to the contrary, contributions, benefits and service credit with respect to qualified military service shall be provided in accordance with USERRA and the regulations thereunder.

16. HIPAA Privacy Standards
a. If this HRA is subject to the Standards for Privacy of Individually Identifiable Health Information (45 CFR Part 164, the "Privacy Standards"), then this Section shall apply. b. The HRA shall not disclose Protected Health Information to any member of Employer's workforce unless each of the conditions set out in this Section is met. "Protected Health Information" shall have the same definition as set forth in the Privacy Standards but generally shall mean individually identifiable information about the past, present or future physical or mental health or condition of an individual, including information about treatment or payment for treatment.
c. Protected Health Information disclosed to members of Employer's workforce shall be used or disclosed by them only for purposes of HRA administrative functions. The HRA's administrative functions shall include all HRA payment functions and health care operations.

The terms "payment" and "health care operations" shall have the same definitions as set out in the Privacy Standards, but the term "payment" generally shall mean activities taken to determine or fulfill HRA responsibilities with respect to eligibility, coverage, provision of benefits, or reimbursement for health care.
d. The HRA shall disclose Protected Health Information only to members of the Employer's workforce who are authorized to receive such Protected Health Information, and only to the extent and in the minimum amount necessary for that person to perform his or her duties with respect to the HRA. "Members of the Employer's workforce" shall refer to all Retired Employees and other persons under the control of the Employer. The Employer shall keep an updated list of those authorized to receive Protected Health Information.

1. An authorized member of the Employer's workforce who receives Protected Health Information shall use or disclose the Protected Health Information only to the extent necessary to perform his or her duties with respect to the HRA.

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ii. appropriate sanctions against the persons causing the breach which, depending upon the nature of the breach, may include oral or written reprimand, additional training, or termination of employment;
iii. mitigation of any harm caused by the breach, to the extent practicable; and iv. documentation of the incident and all actions taken to resolve the issue and mitigate any damages.
e. The Employer must provide certification to the HRA that it agrees to:

1. Not use or further disclose Protected Health Information other than as permitted or required by the HRA documents or as required by law;

2. Ensure that any agent or subcontractor to whom it provides Protected Health Information received from the HRA, agrees to the same restrictions and conditions that apply to the Employer with respect to such information;

3. Not use or disclose Protected Health Information for employment-related actions and decisions or in connection with any other benefit or Retired Employee benefit plan of the Employer;

4. Report to the HRA any use or disclosure of the Protected Health Information of which it becomes aware that is inconsistent with the uses or disclosures permitted by this Section, or required by law;

5. Make available Protected Health Information to individual HRA members in accordance with Section 164.524 of the Privacy Standards;

6. Make available Protected Health Information for amendment by individual HRA members and incorporate any amendments to Protected Health Information in accordance with Section 164.526 of the Privacy Standards;

7. Make available the Protected Health Information required to provide an accounting of disclosures to individual HRA members in accordance with Section 164.528 of the Privacy Standards;

8. Make its internal practices, books and records relating to the use and disclosure of Protected Health Information received from the HRA available to the Department of Health and Human Services for purposes of determining compliance by the HRA with the Privacy Standards;

9. If feasible, return or destroy all Protected Health Information received from the HRA that the Employer still maintains in any form, and retain no copies of such information, when no longer needed for the purpose for which disclosure was made, or, if and only if such return or destruction is not feasible, limit further uses and disclosures to those permitted purposes that make the return or destruction of the information infeasible; and

10. Ensure adequate separation between the HRA and members of the Employer's workforce, as required by Section 164.504(f)(2)(iii) of the Privacy Standards and set out in (d) above.

17. HIPAA Electronic Security Standards
If this HRA is subject to the Security Standards for the Protection of Electronic Protected Health Information (45 CFR Part 164.300 et. seq., the "Security Standards"), then this Section shall apply as follows:
a. The Employer agrees to implement reasonable and appropriate administrative, physical and technical safeguards to protect the confidentiality, integrity and availability of Electronic Protected Health Information that the Employer creates, maintains or transmits on behalf of the HRA. "Electronic Protected Health Information" shall have the same definition as set out in the Security Standards, but generally shall mean Protected Health Information that is transmitted by or maintained in electronic media.
b. The Employer shall ensure that any agent or subcontractor to whom it provides Electronic Protected Health Information shall agree, in writing, to implement reasonable and appropriate security measures to protect the Electronic Protected Health Information. c. The Employer shall ensure that reasonable and appropriate security measures are implemented to comply with the conditions and requirements set forth in the Section titled:
"HIPAA Privacy Standards".
d. The HRA shall not disclose Protected Health Information to any member of Employer's

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workforce unless each of the conditions set out in this Section is met. "Protected Health Information" shall have the same definition as set forth in the Privacy Standards but generally shall mean individually identifiable information about the past, present or future physical or mental health or condition of an individual, including information about treatment or payment for treatment.
e. Protected Health Information disclosed to members of Employer's workforce shall be used or disclosed by them only for purposes of HRA administrative functions. The HRA's administrative functions shall include all HRA payment functions and health care operations.

The terms "payment" and "health care operations" shall have the same definitions as set out in the Privacy Standards, but the term "payment" generally shall mean activities taken to determine or fulfill HRA responsibilities with respect to eligibility, coverage, provision of benefits, or reimbursement for health care.
f. The HRA shall disclose Protected Health Information only to members of the Employer's workforce, who are authorized to receive such Protected Health Information, and only to the extent and in the minimum amount necessary for that person to perform his or her duties with respect to the HRA. "Members of the Employer's workforce" shall refer to all Retired Employees and other persons under the control of the Employer. The Employer shall keep an updated list of those authorized to receive Protected Health Information.

2. In the event that any member of the Employer's workforce uses or discloses Protected Health Information other than as permitted by this Section and the Privacy Standards, the incident shall be reported to the HRA's privacy officer. The privacy officer, or the Employer, shall take appropriate action, including:
i. investigation of the incident to determine whether the breach occurred inadvertently, through negligence or deliberately; whether there is a pattern of breaches; and the degree of harm caused by the breach;
ii. appropriate sanctions against the persons causing the breach which, depending upon the nature of the breach, may include oral or written reprimand, additional training, or termination of employment;
iii. mitigation of any harm caused by the breach, to the extent practicable; and iv. documentation of the incident and all actions taken to resolve the issue and mitigate any damages.
g. The Employer must provide certification to the HRA that it agrees to:

1. Not use or further disclose Personal Health Information other than as permitted or required by the HRA documents or as required by law;

2. Ensure that any agent or subcontractor, to whom it provides Protected Health Information received from the HRA, agrees to the same restrictions and conditions that apply to the Employer with respect to such information;

3. Not use or disclose Protected Health Information for employment-related actions and decisions or in connection with any other benefit or Retired Employee benefit plan of the Employer;

5. Make available Protected Health Information to individual HRA members in accordance with Section 164.524 of the Privacy Standards;

7. Make available the Protected Health Information required to provide an accounting of disclosures to individual HRA members in accordance with Section 164.528 of the Privacy Standards;

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9. If feasible, return or destroy all Protected Health Information received from the HRA that the Employer still maintains in any form, and retain no copies of such information when no longer needed for the purpose for which disclosure was made, or, if and only if such return or destruction is not feasible, limit further uses and disclosures to those permitted purposes that make the return or destruction of the information infeasible; and

10. Ensure the adequate separation between the HRA and members of the Employer's workforce, as required by Section 164.504(f)(2)(iii) of the Privacy Standards and set out in (d) above.

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Appendix A - HRA Plan Benefit
Employee Class
Retirees
Qualified benefits
Including Qualified Individual Insurance premiums
Health Insurance Premiums
Reimbursement Schedule
The HRA will pay $0.00 of qualifying expenses up to a max benefit limit of $0.00.

Unused HRA Funds
Unused benefits at the end of the coverage period shall be forfeited.

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By:

Name:

Title:

Execution Agreement
IN WITNESS WHEREOF, City of Norco has caused its authorized officer to execute this Plan document as of ______________________, the same to be effective March 01, 2024, unless otherwise indicated herein.

City of Norco
03/01/2024
Lori Sassoon
City Manager

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By:

Name:

Title:

CERTIFICATE OF RESOLUTION
The undersigned authorized representative of City of Norco (the Employer) hereby certifies that the following resolutions were duly adopted by the governing body of the Employer on ______________________, and that such resolutions have not been modified or rescinded as of the date hereof:

RESOLVED, that the form of Welfare Benefit Plan, effective March 01, 2024, presented to this meeting (and a copy of which is attached hereto) is hereby approved and adopted, and that the proper agents of the Employer are hereby authorized and directed to execute and deliver to the Administrator of said Plan one or more counterparts of the Plan.

RESOLVED, that the Administrator shall be instructed to take such actions that the Administrator deems necessary and proper in order to implement the Plan, and to set up adequate accounting and administrative procedures for the provision of benefits under the Plan.

RESOLVED, that the proper agents of the Employer shall act as soon as possible to notify the employees of the Employer of the adoption of the Plan and to deliver to each employee a copy of the Summary Plan Description of the Plan, which Summary Plan Description is attached hereto and is hereby approved.

The undersigned further certifies that attached hereto as Exhibits, are true copies of City of Norco's Benefit Plan Document and Summary Plan Description approved and adopted at this meeting.

City of Norco

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CITY OF NORCO CALPERS RETIREE HRA

APPENDIX B

PLAN DOCUMENT
II. ARTICLE – PARTICIPATION

01. Eligibility
The following paragraph is deleted in its entirety:
“A Retired Employee shall be eligible to participate in the HRA if such person meets the Employer’s eligibility requirements as established by the Employer hereunder.

A Retired Employee must satisfy the following requirements to be eligible for this plan:

The Retired Employee must have 0 years of service with the Company and; The Retired Employee must be at least 0 years old at the time of retirement.” and substituted with:
“A Retired Employee shall be eligible to participate in the HRA if such person meets the Employer’s eligibility requirements as established by the Employer.”

02. Effective Date of Participation
The following paragraph is deleted in its entirety:
“Any Retired Employee shall be eligible to participate in the HRA if such person meets the Employer's eligibility requirements as separately established by the Employer hereunder on the date such Employee is enrolled in the Employer's group medical plan.”
and substituted with:
“Any Retired Employee shall immediately become eligible to participate in the HRA once such person meets the Employer's eligibility requirements as separately established by the Employer. Enrollment in the Employer’s group medical plan is not required.”
III. ARTICLE – BENEFITS
The following paragraph is deleted in its entirety:
“03. Health Reimbursement Arrangement Claims
b. Claims for the reimbursement of Qualifying Expenses incurred in any Coverage Period shall be paid as soon after a claim has been filed as is administratively practicable. However, if a Participant fails to submit a claim within 75 days immediately following the end of the Coverage Period (that is, by 3/15), those Expense claims shall not be eligible for reimbursement by the Administrator.”
and substituted with:
“b. Claims for the reimbursement of Qualifying Expenses incurred in any Coverage Period shall be issued on or before the first of each month. Retirees can receive their reimbursements by check (3-5 business days to receive) or direct deposit into Retiree’s bank account (1-2 business days).”
The following paragraph is deleted in its entirety:
“e. Reimbursement requests for Terminated Employees must be received within 0 days following the end of the Plan Year, or remaining funds will be forfeited.”
and substituted with:
“e. Reimbursement requests for Terminated Employees must be received within 75 days following the end of the Plan Year.”

CITY OF NORCO CALPERS RETIREE HRA

APPENDIX B

PLAN DOCUMENT
The following is deleted in its entirety:

Appendix B

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“APPENDIX A - HRA PLAN BENEFIT
Employee Class
Retirees
Qualified Benefits
Including Qualified Individuals Insurance premiums
Health Insurance Premiums
Reimbursement Schedule
The HRA will pay $0.00 of qualifying expenses up to a max benefit limit of $0.00.

Unused HRA Funds
Unused benefits at the end of the coverage period shall be carried forward to the next coverage period.” and substituted with:
“APPENDIX A – HRA PLAN DOCUMENT
Employee Class
Retirees
Qualified Benefits
The purpose of this plan is to reimburse retirees for a portion of their CalPERS medical insurance premiums.

Reimbursement Schedule
The amount reimbursed will depend on the bargaining unit, years of service and CalPERS plan the retiree has enrolled in.

Premiums are deducted from the retiree’s retirement check each month, the HRA will reimburse them for those premiums or a portion of those premiums.

Unused HRA Funds
Unused benefits at the end of the coverage period shall be carried forward to the next coverage period.”

CITY OF NORCO CALPERS RETIREE HRA

APPENDIX B
Summary Plan Description
I. ELIGIBILITY
The following paragraph is deleted in its entirety:
“01. What Are the Eligibility Requirements for this HRA? You will be eligible to join the HRA once you meet the Employer's eligibility requirements for retirement below:

You must have 0 years of service with the Company and;
You must be 0 years old at the time of your retirement.” and substituted with
“01. Eligibility
“You shall be eligible to participate in the HRA if you meet the Employer’s eligibility requirements as established by the Employer.”
The following paragraph is deleted in its entirety:
“02. When is My Entry Date?
Your entry date is the date you satisfy the Employer's retirement eligibility requirements.” and substituted with:
“02. When is My Entry Date? Page 64 of 71
Your entry date is on the first day of the month on or after you first satisfy any applicable age or service requirements.” II. BENEFITS
The following paragraph is deleted in its entirety:
“01. What Benefits Are Available?
The HRA allows for reimbursement for expenses as described in the Appendices of this document. The expenses that qualify are those permitted by Section 213(d) of the Internal Revenue Code.

The amounts provided to the HRA by your employer will be made available on the first day of the plan year.

Expenses are considered "incurred" when the service is performed, not necessarily when it is paid for. Any amounts reimbursed under the HRA may not be claimed as a deduction on your personal income tax return or reimbursed by other health plan coverage.

If the maximum amount available for reimbursement for a Coverage Period is not utilized in its entirety, refer to Appendix A for information on how these funds will be handled.” and substituted with:
“01. What Benefits Are Available?
The Plan allows eligible retirees to be reimbursed for a portion of their retiree medical insurance premiums. Because these premiums are deducted from the retiree’s retirement check each month, the HRA will reimburse eligible retirees for those premiums or a portion of those premiums. The amount reimbursed will depend on the bargaining unit, years of service and CalPERS/Medicare plan the eligible retiree is enrolled in. ” The following paragraph is deleted in its entirety:
“04. How are payments made from the HRA?
You may submit requests for reimbursement of expenses you have incurred during the course of a Coverage Period in accordance with the instructions of the Plan Administrator. The Plan Administrator will provide you with further details.

However, you must make your requests for reimbursements no later than 90 days after the end of the Coverage Period (that is, no later than 3/31). In addition, you must submit to the Plan Administrator, in accordance with the instructions of the Plan Administrator, proof of the expenses you have incurred and that they have not been paid by any other health plan coverage. If the request qualifies as a benefit or expense that the HRA has agreed to pay, you will receive a reimbursement payment soon thereafter.”
and substituted with:
“04. How are payments made from the HRA?
Because these premiums are deducted from the Retiree’s retirement check each month, the employer will notify P&A of the amount to reimburse each Retiree under the HRA for those premiums or a portion of those premiums. Retirees will not submit any claims, or out-of-pocket expenses for reimbursement. Reimbursements will be issued on or before the first of each month. Retirees can receive their reimbursements by check (3-5 business days to receive) or direct deposit into Retiree’s bank account (1-2 business days).”

CITY OF NORCO CALPERS RETIREE HRA

APPENDIX B

PLAN DOCUMENT
The following is deleted in its entirety:
“APPENDIX A - HRA PLAN BENEFIT
Employee Class
Retirees
Qualified Benefits
Including Qualified Individuals Insurance premiums
Health Insurance Premiums
Reimbursement Schedule
The HRA will pay $0.00 of qualifying expenses up to a max benefit limit of $0.00.

Unused HRA Funds
Unused benefits at the end of the coverage period shall be carried forward to the next coverage period.”

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and substituted with:
“APPENDIX A – HRA PLAN DOCUMENT
Employee Class
Retirees
Qualified Benefits
The purpose of this plan is to reimburse retirees for a portion of their CalPERS medical insurance premiums.

Reimbursement Schedule
The amount reimbursed will depend on the bargaining unit, years of service and CalPERS plan the retiree has enrolled in.

Premiums are deducted from the retiree’s retirement check each month, the HRA will reimburse them for those premiums or a portion of those premiums.

Unused HRA Funds
Unused benefits at the end of the coverage period shall be carried forward to the next coverage period.”

Page 66 of 71 ends

RESOLUTION NO. 2024-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NORCO,

CALIFORNIA, APPROVING AND ADOPTING HEALTH RETIREMENT

BENEFITS VESTING SCHEDULE FOR CALPERS MEDICAL
RETIREMENT GROUPS MISCELLANEOUS, SAFETY, MIDMANAGEMENT/CONFIDENTIAL AND MANAGEMENT WHEREAS, the City adopted Resolution 2024-23 reducing the employer contribution for retiree health benefits to the Public Employees’ Medical Hospital Act effective March 1, 2024;
WHEREAS, the City elected to rescind resolutions 2004-41 and 2010-68 for postretirement health benefit vesting requirements with CalPERS effective May 1, 2024; WHEREAS, the City wants to maintain a vesting schedule for current retirees and employees hired on or before June 30, 2023;
NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Norco at a regular meeting held on March XX, 2024, approved:

The City provides health insurance through the Public Employees’ Medical and Hospital Care Act (“PEMHCA”) administered by the California Public Employees’ Retirement System (“CalPERS”).

1. Current Employees
a. The City will contribute directly to CalPERS on behalf of each employee the PEMHCA statutory minimum monthly employer contribution amount set annually by CalPERS. In 2024, the PEMCHA statutory minimum contribution is $157 per month. In addition, the City will contribute through a cafeteria plan the difference between the PEMHCA statutory minimum contribution and $1,500 per month. For example, for 2024, the additional contribution will be $1,343 per month.
b. Effective July 1, 2024, the City agrees to pay up to $1,550 a month through a cafeteria plan. The City will continue to contribute directly to CalPERS on behalf of each employee the PEMHCA statutory minimum monthly employer contribution amount set annually by CalPERS. In 2024, the PEMCHA statutory minimum contribution is $157 per month. In addition, the City will contribute through a cafeteria plan the difference between the PEMHCA statutory minimum contribution and $1,550 per month. For example, the additional contribution will be $1,393 per month.
c. Any eligible employee who elects to opt-out of health benefits will be paid a monthly cash amount equal to the lowest basic single rate premium in the CalPERS Other Southern California Region in lieu of health benefits, providing the following requirements are met:

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Resolution No. 2024-

Page 2 ends

March XX, 2024
i. An election form to opt-out of health benefits is completed. ii. Satisfactory proof of other coverage is provided.

2. Retirees
a. For employees hired on or before June 30, 2023, who retire from the City and qualify as an “annuitant” under PEMHCA, the City will contribute directly to CalPERS on behalf of each annuitant the PEMHCA statutory minimum contribution set annually by CalPERS. In 2024, the PEMCHA statutory minimum contribution is $157 per month. In addition, for employees who retire from the City and qualify as an “annuitant” under PEMHCA, and who have five or more years of service with the City, the City will contribute the difference between the PEMHCA statutory minimum contribution and the full PEMHCA annuitant and dependent contribution rates (100/100) calculated for the purposes of the statutory vesting schedule under Government Code section 22893 and in accordance with the following vesting schedule:

Credited Years
of Service
Percentage of
Employer
Contributions
10 50%
11 55%
12 60%
13 65%
14 70%
15 75%
16 80%
17 85%
18 90%
19 95%
20 or more 100%
b. Employees hired on or after July 1, 2023, who retire from the City and qualify as an “annuitant” under PEMHCA, the City will contribute directly to CalPERS on behalf of each annuitant the PEMHCA statutory minimum contribution set annually by CalPERS.

PASSED AND ADOPTED by the City Council of the City of Norco, California, at a regular meeting held on March XX, 2024.
__________________________
Kevin Bash, Mayor
City of Norco, California

Page 68 of 71 ends

Resolution No. 2024-

Page 3 ends

March XX, 2024
ATTEST:
________________________
Dana Roa, CMC, City Clerk
City of Norco, California
I, DANA ROA, CMC, City Clerk of the City of Norco, California do hereby certify that the foregoing Resolution was introduced and adopted by the City Council of the City of Norco, California, at a regular meeting held on Mach XX, 2024 by the following vote of the City Council:

AYES:

NOES:

ABSENT:

ABSTAIN:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Norco, California on March XX, 2024. ________________________
Dana Roa, CMC, City Clerk
City of Norco, California

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RESOLUTION NO. 2024-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NORCO,

CALIFORNIA, FIXING THE EMPLOYER CONTRIBUTION UNDER THE
PUBLIC EMPLOYEES’ MEDICAL HOSPITAL CARE ACT AT AN

EQUAL AMOUNT FOR EMPLOYEES AND ANNUITANTS
WHEREAS, City of Norco is a contracting agency under Government Code Section 22920 and subject to the Public Employees’ Medical and Hospital Care Act (the “Act”); and
WHEREAS, Government Code Section 22892(a) provides that a contracting agency subject
to Act shall fix the amount of the employer contribution by resolution; and WHEREAS, Government Code Section 22892(b) provides that the employer contribution shall be an equal amount for both employees and annuitants, but may not be less than the amount prescribed by Section 22892(b) of the Act; now, therefore be it NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Norco at a regular meeting held on March 13, 2024, approved:

1. That the employer contribution for each employee or annuitant shall be the amount necessary to pay the full cost of his/her enrollment, including the enrollment of family members, in a health benefits plan up to a maximum of:
plus administrative fees and Contingency Reserve Fund assessments; and

2. City of Norco has fully complied with any and all applicable provisions of Government Code Section 7507 in electing the benefits set forth above; and

3. That the participation of the employees and annuitants of City of Norco shall be subject to determination of its status as an “agency or instrumentality of the state or political subdivision of a State” that is eligible to participate in a governmental plan within the meaning of Section 414(d) of the Internal Revenue Code, upon publication of final Regulations pursuant to such Section. If it is determined that City of Norco would not qualify as an agency or instrumentality of the state or Medical Group Monthly Employer Health Contribution
Self Self+1 Self+ Family
001 Miscellaneous $1,250.00
002 Safety $1,250.00
003 Management $1,500.00
004 Mid-Management $1,500.00
005 General Employees $1,500.00
006 Public Works/Parks No Change
008 City Council No Change

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Resolution No. 2024-

Page 2 ends

March 13, 2024
political subdivision of a State under such final Regulations, CalPERS may be obligated, and reserves the right to terminate the health coverage of all participants of the employer; and

4. That the executive body appoint and direct, and it does hereby appoint and direct, Position Title or Name of Person to file with the Board a verified copy of this resolution, and to perform on behalf of City of Norco all functions required of it under the Act; and

5. That coverage under the Act be effective on May 1, 2024.

PASSED AND ADOPTED by the City Council of the City of Norco, California, at a regular meeting held on March 13, 2024.
__________________________
Kevin Bash, Mayor
City of Norco, California
ATTEST:
________________________
Dana Roa, CMC, City Clerk
City of Norco, California
I, DANA ROA, CMC, City Clerk of the City of Norco, California do hereby certify that the foregoing Resolution was introduced and adopted by the City Council of the City of Norco, California, at a regular meeting held on March 13, 2024 by the following vote of the City Council:

AYES:

NOES:

ABSENT:

ABSTAIN:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Norco, California on March 13, 2024. ________________________
Dana Roa, CMC, City Clerk
City of Norco, California

Page 71 of 71 ends

Norco City CouncilMarch 13, 2024

Norco City Council
March 13, 2024