HomeMy WebLinkAbout2018-04-10; City Council; ; Adopt a Resolution approving mandatory employee contributions to a post-retirement healthcare trust (TRUST) for Carlsbad Firefighters' Association, Inc. (CFA) employees pCA Review l,()v
~ CITY COUNCIL
• Staff Report
Meeting Date:
To:
From:
Staff Contact:
Subject:
April 10, 2018
Mayor and City Council
Kevin Crawford, City Manager
Donna Hernandez, Human Resources Manager
donna.hernandez@carlsbadca.gov or 760-602-7533
Adopt a Resolution approving mandatory employee contributions to a
post-retirement healthcare trust (TRUST) for Carlsbad Firefighters'
Association, Inc. (CFA) employees promoted to Fire Safety Management
and approving city contributions to the TRUST for CFA employees
promoted to Fire Safety Management.
Recommended Action
Adopt a Resolution approving mandatory employee contributions to a post-retirement
healthcare trust (TRUST) for Carlsbad Firefighters' Association, Inc. (CFA) employees promoted
to Fire Safety Management and approving city contributions to the TRUST for CFA employees
promoted to Fire Safety Management.
Executive Summary
The TRUST requires mandatory contributions of all participants to comply with Internal
Revenue Service standards for tax exemption status. The CFA Memorandum of Understanding
(MOU) requires mandatory participation in the TRUST for all CFA employees.
The current practice is for CFA employees promoted to Fire Safety Management to continue
their participation in the TRUST in order to avoid the loss of a benefit due to promotion.
However, there is no documentation requiring mandatory participation in the TRUST of CFA
employees promoted to Fire Safety Management.
The TRUST notified CFA that a Resolution adopting mandatory contributions by employees
promoted from CFA to Fire Safety Management is required by April 30, 2018 in order for these
employees to continue participation in the TRUST.
Discussion
On May 28, 2013 the city adopted Resolution No. 2013-122 to establish a TRUST for post-
retirement healthcare benefits for CFA employees. The CFA employees agreed to mandatory
employee contributions in the amount of one hundred dollars ($100) per month to the TRUST.
On June 13, 2017 the city adopted Resolution No. 2017-105 to provide city contributions in the
amount of twenty-five dollars ($25) per month per CFA employee to the TRUST.
April 10, 2018 Item #1 Page 1 of 4
Staff recommends adoption of a resolution to formalize and make mandatory the current
practice of voluntary employee contributions for CFA employees promoted to Fire Safety
Management and to provide city contributions in the amount of twenty-five dollars ($25) per
month per CFA employee promoted to Fire Safety Management. No retroactive contributions
for current members of Fire Safety Management are recommended.
Any future changes to mandatory employee contributions and city contributions for CFA
employees would result in a similar change to mandatory contributions for CFA employees
promoted to Fire Safety Management.
Fiscal Analysis
The fiscal impact of the city contributions to the TRUST for promoted CFA employees to Fire
Safety Management is two-thousand one hundred dollars ($2,100) annually. The Fire
department has sufficient funds in their fiscal year 2017-18 budget and no additional
appropriation is needed at this time.
Next Steps
Employee and city contributions would become effective as soon as administratively possible.
Environmental Evaluation (CEQA)
Pursuant to Public Resources Code section 21065, this action does not constitute a "project"
within the meaning of CEQA in that it has no potential to cause either a direct physical change
in the environment, or a reasonable foreseeable indirect physical change in the environment;
and therefore, does not require environmental review.
Public Notification
This item was noticed in accordance with the Ralph M. Brown Act and was available for viewing
at least 72 hours prior to the meeting date.
Exhibits
1. City Council Resolution.
April 10, 2018 Item #1 Page 2 of 4
RESOLUTION NO. 2018-048
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, APPROVING MANDATORY EMPLOYEE CONTRIBUTIONS TO
THE POST-RETIREMENT HEALTHCARE TRUST (TRUST) FOR CARLSBAD
FIREFIGHTERS' ASSOCIATION, INC. (CFA) EMPLOYEES PROMOTED TO FIRE
SAFETY MANAGEMENT AND APPROVING CITY CONTRIBUTIONS TO THE
TRUST FOR CFA EMPLOYEES PROMOTED TO FIRE SAFETY MANAGEMENT.
EXHIBIT 1
WHEREAS, the City Council of the City of Carlsbad, California has approved the establishment
of a post-retirement healthcare trust (TRUST), which provides a tax-favored medical expense
reimbursement benefit for medical expenses for retired fire fighters who meet the eligibility rules of
the plan; and
WHEREAS fire fighter employees of the City of Carlsbad who are in the bargaining unit
represented by Local 3730 participate in this TRUST by mandatory employee contributions under the
Carlsbad Firefighters' Association, Inc.; and
WHEREAS management fire fighter employees promoted out of Local 3730 have requested to
also participate in this TRUST through mandatory employee contributions; and
WHEREAS the City Council of the City of Carlsbad has the authority to require mandatory
deductions from employee payroll for contributions to such Trust; and
WHEREAS the City Council of the City of Carlsbad approved city contributions for fire fighter
employees of the City of Carlsbad who are in the bargaining unit represented by Local 3730 who
participate in this TRUST; and
WHEREAS the City Council of the City of Carlsbad has the authority to approve city contributions
for fire fighter employees of the City of Carlsbad who are in the bargaining unit represented by Local
3730 and promoted to City of Carlsbad Fire Safety Management.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as
follows:
1. That the above recitations are true and correct.
2. That as soon as administratively possible, the City shall impose a $100.00 per
employee per month mandatory payroll deduction to be deposited with the TRUST for
each eligible employee, as defined by the TRUST, who promotes out of the Local 3730
bargaining unit to City of Carlsbad Fire Safety Management. This amount shall be
April 10, 2018 Item #1 Page 3 of 4
EXHIBIT 1
adjusted whenever, and in the same amount that, the contribution amount in the
bargaining agreement with Local 3730 is adjusted.
3. That as soon as administratively possible, the City will provide contributions in the
amount of twenty-five dollars ($25) per month for each employee promoted from the
Carlsbad Firefighters' Association (CFA) into Fire Safety Management. No retroactive
contributions for current members of Fire Safety Management will be made. This
amount shall be adjusted whenever, and in the same amount that, the contribution
amount in the bargaining agreement with Local 3730 is adjusted.
4. That the Fire department has sufficient funds in their fiscal year 2017-18 budget to
cover this expense and no additional appropriation is needed.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of
Carlsbad on the 10th day of April, 2018, by the following vote, to wit:
AYES:
NOES:
ABSENT:
M. Hall, K. Blackburn, M. Schumacher, C. Schumacher, M. Packard.
None.
None.
M HALL, Mayor
BA~SON,fr Clerk
{SEAL)
April 10, 2018 Item #1 Page 4 of 4