R 4553 RESOLUTION NO. 4553
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ARROYO GRANDE ADOPTING A MEASUREMENT
PERIOD FOR IMPLEMENTATION OF THE PATIENT
PROTECTION AND AFFORDABLE CARE ACT
("ACA")
WHEREAS, The Patient Protection and Affordable Care Act ("ACA") was enacted on
March 23, 2010; and
WHEREAS, ACA added Section 4980H, Shared Responsibility for Employers
Regarding Health Care Coverage, to Title 26 of the United States Code, the Internal
Revenue Code (Section 4980H); and
WHEREAS, Section 4980H imposes an assessable payment on an applicable large
employer when (1) it fails to offer "substantially all" of its full-time employees (and their
dependents) the opportunity to enroll in minimum essential coverage or offers coverage
to "substantially all" of its full-time employees (and their dependents) that is
"unaffordable" or does not provide "minimum value" and (2) any full-time employee is
certified to the employer as having received a subsidy for coverage through the
exchange ("Assessable Payment"); and
WHEREAS, the City of Arroyo Grande ("the City") is considered an applicable large
employer because it employed an average of at least 50 full-time employees (including
full-time equivalents) on business days during the preceding calendar year; and
WHEREAS, the Department of Treasury issued proposed regulations regarding Section
4980H, that permit the City to adopt the Look Back Measurement Method Safe Harbor
("Look Back Safe Harbor") in order to determine the status of an employee as full-time
for purposes of determining and calculating the Assessable Payment (78 Federal
Register 218, 243, January 2, 2013); and
WHEREAS, the City hereby intends to adopt the provisions of the Look Back
Measurement Method Safe Harbor in order to determine the full-time status of
employees for purposes of the Assessable Payment.
NOW THEREFORE, BE IT RESOLVED, by the City Council for the City of Arroyo
Grande as follows:
1) The City establishes the Look Back Measurement Method Safe Harbor
with regard to all ongoing employees as follows:
RESOLUTION NO. 4553
PAGE 2
a. The City establishes a twelve (12) month standard measurement
period for ongoing employees.
b. Starting on December 1, 2013, a standard measurement period will
start each year on December 1st, and end the following year on
November 30th.
c. The standard measurement period will be the period during which an
ongoing employee's hours are measured.
2) When an employee takes special unpaid leave (i.e. unpaid leave under
the Family and Medical Leave Act of 1993, unpaid leave under the Uniformed Services
Employment and Reemployment Rights Act of 1994, or unpaid leave on account of jury
to determine hours of service the City will compute the average after excluding
any periods of special unpaid leave during the measurement period and apply that
average for the entire measurement period.
3) The City establishes the Look Back Measurement Method Safe Harbor
with regard to new variable hour employees as follows:
a. The City establishes a twelve (12) month initial measurement period
for each new employee.
b. The initial measurement period will start the first day of the first
calendar month after the start date, unless the start date is the first of a
calendar month in which case the initial measurement period will start
on that date.
c. The administrative period shall start the day following the last day of
the initial measurement period and shall end no later than the last day
of the first calendar month beginning on or after the first anniversary of
the employee's start date.
d. The City establishes a twelve (12) month stability period associated
with the initial measurement period.
e. If the new variable hour employee does not measure as a full-time
employee during the initial measurement period, the stability period
associated with the initial measurement period must not exceed the
remainder of the standard measurement period (plus any associated
administrative period).
RESOLUTION NO. 4553
PAGE 3
4) A new employee's hours will be measured during the first complete
standard measurement period for which he/she is employed. This means that a new
employee's status may be tested under an initial measurement period and at the same
time be measured under the overlapping standard measurement period.
On motion of Council Member Guthrie, seconded by Council Member Costello, and on
the following roll call vote, to wit:
AYES: Council Members Guthrie, Costello, Brown, and Mayor Ferrara
NOES: None
ABSENT: None
the foregoing Resolution was passed and adopted this 12`h day of November 2013.
RESOLUTION NO. 1553
PAGE 4 r
TONY FER'e MAYOR
ATTEST:
I / _
KELLY WETM ',RE, CITY CLERK
APPROVED AS TO CONTENT:
STEVEN ADAMS, CITY MANAGER
APPROVED AS TO FORM:
( J__
TIMOTHY J. CARMEL, CITY ATTORNEY
OFFICIAL CERTIFICATION
I, KELLY WETMORE, City Clerk of the City of Arroyo Grande, County of San Luis
Obispo, State of California, do hereby certify under penalty of perjury, that the attached
Resolution No. 4553 is a true, full, and correct copy of said Resolution passed and
adopted at a Regular meeting of the City Council of the City of Arroyo Grande on the
12th day of November, 2013.
WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 13th day of
November 2013.
KELLY W TM f' E, CITY CLERK