Agenda Item
City Council
Item #: 9.1. 3/14/2023 File #: 23-0155
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, Interim City Manager
FROM: Mary E. Binning, City Attorney
1. SUBJECT
Introduction and First Reading of Ordinance No. 02-23 authorizing City Councilmember health and retirement benefits.
2. SUMMARY
The proposed Ordinance provides City Councilmembers the option to receive medical, dental, and/or vision health benefits for themselves, paid by the City directly to the service provider, and also authorizes a defined contribution retirement plan.
3. RECOMMENDED ACTION
Introduce and conduct First Reading of Ordinance No. 02-23. An Ordinance of the City Council of the City of Orange amending Title 2 of the Orange Municipal Code by adding Chapter 2.09 relating to City Council health and retirement benefits.
4. FISCAL IMPACT
If all seven Councilmembers accept all health and retirement benefits and monthly compensation, the total annual expenditure for Ordinance No. 02-23 would be $90,636 for health benefits and $1,890 for retirement benefits and would be funded through General Fund (100).
5. STRATEGIC PLAN GOALS
Goal 4: Provide Outstanding Public Service
e: Attract, retain and develop quality employees dedicated to public service.
6. DISCUSSION AND BACKGROUND
Ordinance No. 02-23 proposes to reinstate health and retirement benefits for City Councilmembers.
Under this Ordinance, City Councilmembers would have the option of having medical, dental, and vision insurance, or any combination thereof. Any City-offered health plan would be available to the Councilmember. Only the Councilmember would be covered and only while actively serving in office.
The premiums would be paid by the City directly to the service provider. If a Councilmember elects not to receive any or all of the health insurance offered, they would not be entitled to any cash-in-lieu payment. A Councilmember may waive these benefits.
In addition, Ordinance No. 02-23 would establish a defined contribution retirement plan for Councilmembers who receive a monthly salary from the City. Such a plan is required by law for City of Orange Printed on 3/9/2023Page 1 of 2
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Item #: 9.1. 3/14/2023 File #: 23-0155
Councilmembers who receive a monthly salary from the City. Such a plan is required by law for employees receiving a salary from the City. In lieu of Social Security, which the City does not participate in, and in lieu of opting for membership in the California Public Employees’Retirement System (CalPERS), the retirement plan for City Councilmembers would be that designated by the City for part-time employees. Currently, that plan is administered by Empower, a retirement financial services company. The required amount to be contributed would be 3.75% by the Councilmember and 3.75% by the City.
Upon the adoption of Ordinance No. 02-23, City staff will proceed to modify any contracts relating to health and retirement benefits, as well as any Administrative Policies requiring revision.
7. ATTACHMENTS
· Ordinance No. 02-23
City of Orange Printed on 3/9/2023Page 2 of 2
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