Item Number: 19
City Council / Board of Directors
Written Communications
Meeting of: January 16, 2024
Submitted By:
Sophie L. Smith, Deputy City Manager
Josefina Trevino, Human Resources Officer
Subject:
Fringe Benefits Update - Resolution No. 24-003
Recommendation:
That the Honorable City Council approve Resolution No. 24-003 which revises the fringe benefits available to Council members who are also CalPERS retirees, retroactive to July 1, 2023
Fiscal Impact:
$6,000 for FY 23-24
Background:
Below are the fringe benefits currently offered to City Council Members, as approved in Benefits Resolution 23-038 adopted with the FY 23-24 budget:
Fringe – The amount of $900 per month is provided by the City for health, dental, and vision coverage for all Council Members. If eligible family members are enrolled, they must be enrolled in the same coverage as elected by the Council Member. The maximum cashback benefit for Council Members waiving medical benefits is $400 per month. Council Members may purchase dental and vision coverage with this amount. Any remaining balance may be deposited into a flexible spending account or included as taxable income on their paychecks.
The City of Victorville contracts with CalPERS to provide all medical plans to active employees, as well as its retirees. CalPERS offers two categories to differentiate between active and retired employees. The medical plans available to Council Members fall within the “active” category.
Because Mayor Becerra is a retiree from the City of Victorville, she is currently enrolled in a “retiree” medical program through CalPERS. She has earned this benefit through 3 4
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her past employment with the City of Victorville. As a Council Member, although she is entitled to an additional benefit up to $900, she must waive the Council Member medical benefits provided through an “active” plan, and instead take the cashback benefit of $400 monthly. She cannot enroll in the “active” plan to try to take advantage of the full Council Member benefit of $900 because of her status as a CalPERS retiree. Mayor Becerra inquired whether she could access the “active” employee medical insurance plan, instead of the retiree plan. According to CalPERS, the retiree cannot be enrolled in the active plan unless they are reinstated from retirement, or “un-retire.” With this restriction, a CalPERS retiree does not have access to the full benefit provided to all Council Members of $900 per month. The maximum amount they may receive is $400 per month. This scenario would not apply to any retirees from other agencies, including CalSTRS, since CalPERS is a separate entity.
In order for a Council Member, who is also a CalPERS retiree, to receive the full $900 monthly benefit, the proposed language would need to be added the Benefits Resolution (please see italics)
Any Council Member who is a CalPERS retiree and not allowed to enroll in the City’s active plan, may receive a maximum of $900 per month cash back.
Discussion:
At the December 5, 2023 Council meeting, then-Mayor Pro Tem Becerra requested, and the City Council unanimously agreed, to add an item for discussion and possible action at the December 19, 2023 meeting. The discussion was in reference to the Council's benefits. Specifically, whether or not a Council Member, who is also a CalPERS retiree, is entitled to the same benefits as the rest of the Council. Then-Mayor Pro Tem Becerra also questioned if a CALSTRS retiree is similarly impacted. Mayor Pro Tem Becerra requested discussion and possible action to potentially reach a solution.
At the December 19, 2023 Council meeting, the issue involving fringe benefits for a Council member who is also a CalPERS retiree was discussed among the three Council members present (Mayor Becerra, Councilmember Irving and Councilmember Harriman).
Mayor Becerra called for a motion to approve the revised language outlined in the staff report, retroactive to July 2023. As the discussion was moving toward a motion, the City Attorney advised Mayor Becerra that adopting the changes at the December 19 meeting could be problematic as she likely needed to recuse herself from voting on the item due to a conflict of interest.
The City Manager recommended staff could be directed to bring back, at a future meeting, an amendment to the currently adopted benefits resolution to reflect the additional language that was suggested in the December 19 staff report to address the issue.
Because there were only three Council members present at the December 19 meeting, Mayor Becerra’s recusal would leave the Council without a quorum. The City Attorney advised that a motion directing staff to bring a Resolution with the suggested language change to the next Council meeting, as suggested by the City Manager, would be 3 4
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appropriate. The three Council members voted for the item to return at the January Council meeting.
Staff remains available for any questions or comments you may have.
Attachments: A. Resolution No. 24-003