City of Culver City, California
Agenda Item Report
Meeting Date: 01/23/12 Item Number: C-8
CITY COUNCIL AGENDA ITEM: Adoption of a Resolution Establishing the City’s
Medical Insurance Contribution under the Public Employees’ Medical and Hospital
Care Act for Safety Plan Members in the Police Management Group, Fire
Management Group, and Firefighters Group, and Rescinding Resolution No’s 2006-
R079, 2006-R080, and 2007-R048.
Contact Person/Dept.: Serena Wright Phone Number: 310-253-5640
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [] Attachments: [X]
Commission Action Required: Yes [] No [X] Dates:
Public Notification: (E-Mail) Meetings and Agendas – City Council (01/19/2012); Culver
City Police Management Group, Culver City Fire Management Group, and Culver City
Firefighters Association Local 1927, AFL-CIO (01/19/2012).
Department Approval:
Serena Wright (01/17/12)
City Attorney Approval:
Carol Schwab (by H. Baker) (01/18/12)
Chief Financial Officer Approval:
Jeff Muir (01/18/12)
City Manager Approval:
John M. Nachbar (01/19/12)
RECOMMENDATION:
Staff recommends that the City Council adopt resolutions establishing the City’s
medical insurance contribution under the Public Employees’ Medical and Hospital
Care Act (PEHMCA) consistent with the provisions of three (3) respective
Memoranda of Understanding (MOU’s).
BACKGROUND:
The City Council recently approved agreements with the Culver City Police
Management Group, Culver City Fire Management Group, and the Culver City
Firefighters Association Local 1927, AFL-CIO, which provide for a two-tier cafeteria
style medical plan. The medical benefits are established under PEMHCA. The
adopted MOU’s include implementation of a tiered medical program in which
employees hired on or after July 1, 2011 would receive a lesser health benefit. In
order to effectuate this plan, the City needs to convert to paying the minimum
contribution under PEMHCA.
City of Culver City, California
Agenda Item Report
DISCUSSION:
PEMHCA requires that the City pay equal contributions for medical benefits for all
active and retired unit employees. With the implementation of a tiered medical
program, the City’s contribution will be amended to reflect the $112 minimum
monthly dollar amount required under PEMHCA. Each year the minimum employer
contribution amount is adjusted based on the Medical Care Component of the
Consumer Price Index.
In addition, the City will provide a full flex cafeteria plan (Plan) in accordance with
IRS Code Section 125 for all active unit employees. Under the Plan, all participating
unit employees shall receive a monthly flex dollar allowance to purchase health
benefits. This amount includes the mandatory PEMHCA contribution.
It should be noted that amending the City’s contribution under PEMHCA will not
impact the level of negotiated medical benefits provided to unit employees or
retirees.
FISCAL ANALYSIS:
Funds are appropriated in the City Council Adopted Budget for Fiscal Year
2011/2012 to cover health benefit costs.
ATTACHMENTS:
1. Resolution for the Culver City Police Management Group
2. Resolution for the Culver City Fire Management Group
3. Resolution for the Culver City Firefighters Association Local 1927, AFL-CIO
MOTION:
That the City Council:
1. Adopt the Resolution establishing the City’s Contribution under the Public
Employees’ Medical and Hospital Care Act for employees in the Culver City
Police Management Group, and rescind Resolution #2007-R048; and,
2. Adopt the Resolution establishing the City’s Contribution under the Public
Employees’ Medical and Hospital Care Act for employees in the Culver City
Fire Management Group, and rescind Resolution #2006-R079; and
3. Adopt the Resolution establishing the City’s Contribution under the Public
Employees’ Medical and Hospital Care Act for employees in the Culver City
Firefighters Association Local 1927, AFL- CIO, and rescind Resolution #2006-
R080.
MEETING DATE: 01/23/12
AGENDA ITEM: Adoption of a Resolution establishing the City's Medical
Insurance Contribution under the Public Employees'
Medical and Hospital Care Act (PEMHCA) for Safety Plan
Members in the Police Management Group, Fire
Management Group, and Firefighters Group, and rescind
Resolution No's 2006-R079 and 2006-R080, and 2007-
R048
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3.
ATTACHMENT
Pages
Police Management Group Resolution 1-2
Fire Management Group Resolution 3-4
Firefighters Group Resolution 5-6 1
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RESOLUTION NO. 2012-R
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CULVER CITY, CALIFORNIA, FIXING THE EMPLOYER'S
CONTRIBUTION UNDER THE PUBLIC EMPLOYEES'
MEDICAL AND HOSPITAL CARE ACT WITH RESPECT TO
THE CULVER CITY POLICE MANAGEMENT GROUP AND
RESCINDING RESOLUTION NO. 2007-R048.
WHEREAS, Government Code Section 22892(a) provides that a local
agency contracting under the Public Employees' Medical and Hospital Care Act (the
"Act) shall fix the amount of the employer's contribution at an amount not less than the
amount required under Section 22892(b)(1) of the Act; and
WHEREAS, the City of Culver City (the "Employer') is a local agency
contracting under the Act for participation by members of the Culver City Police
Management Group.
NOW, THEREFORE, the City Council of the City of Culver City, California,
DOES HEREBY RESOLVE as follows:
1. The Employer's contribution for each employee or annuitant shall
be the amount necessary to pay the full cost of his/her enrollment, including the
enrollment of his/her family members, in a health benefits plan up to a maximum of
$1.12 per month, plus administrative fees and Contingency Reserve Fund Assessments;
and
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/11 L A. SCHWAB
Attorney
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2. The City of Culver City and the Culver City Police Management
Group have fully complied with any and all applicable provisions of Government Code
Section 7507 in electing the benefits set forth herein above.
APPROVED and ADOPTED this day of 2012.
MICHEAL O'LEARY, Mayor
City of Culver City, California
ATTEST:
MARTIN R. COLE
City Clerk
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RESOLUTION NO. 2012-R
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CULVER CITY, CALIFORNIA, FIXING THE EMPLOYER'S
CONTRIBUTION UNDER THE PUBLIC EMPLOYEES'
MEDICAL AND HOSPITAL CARE ACT WITH RESPECT TO
THE CULVER CITY FIRE MANAGEMENT GROUP AND
RESCINDING RESOLUTION NO. 2006-R079
WHEREAS, Government Code Section 22892(a) provides that a local
agency contracting under the Public Employees' Medical and Hospital Care Act (the
"Act") shall fix the amount of the employer's contribution at an amount not less than the
amount required under Section 22892(b)(1) of the Act; and
WHEREAS, the City of Culver City (the "Employer') is a local agency
contracting under the Act for participation by members of the Culver City Fire
Management Group.
NOW, THEREFORE, the City Council of the City of Culver City, California,
DOES HEREBY RESOLVE as follows:
1. The Employer's contribution for each employee or annuitant shall
be the amount necessary to pay the full cost of his/her enroliment, including the
enrollment of his/her family members, in a health benefits plan up to a maximum of
$112 per month, plus administrative fees and Contingency Reserve Fund Assessments;
and
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3 APPROVED AS TO-FORM:
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\-CitiROL A. SCHWAB
City Attorney City Attorney
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2. The City of Culver City and the Culver City Fire Management
Group have fully complied with any and all applicable provisions of Government Code
Section 7507 in electing the benefits set forth herein above.
APPROVED and ADOPTED this day of , 2012.
MICHEAL O'LEARY, Mayor
City of Culver City, California
ATTEST:
MARTIN R. COLE
City Clerk
All-00793 I
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RESOLUTION NO. 2012-R
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CULVER CITY, CALIFORNIA, FIXING THE EMPLOYER'S
CONTRIBUTION UNDER THE PUBLIC EMPLOYEES'
MEDICAL AND HOSPITAL CARE ACT WITH RESPECT TO
THE CULVER CITY FIREFIGHTERS GROUP AND
RESCINDING RESOLUTION NO. 2006-R080.
WHEREAS, Government Code Section 22892(a) provides that a local
agency contracting under the Public Employees' Medical and Hospital Care Act (the
'Act") shall fix the amount of the employer's contribution at an amount not less than the
amount required under Section 22892(b)(1) of the Act; and
WHEREAS, the City of Culver City (the "Employer) is a local agency
contracting under the Act for participation by members of the Culver City Firefighters
Group.
NOW, THEREFORE, the City Council of the City of Culver City, California,
DOES HEREBY RESOLVE as follows:
1. The Employer's contribution for each employee or annuitant shall
be the amount necessary to pay the full cost of his/her enrollment, including the
t
enrollment of his/her family members, in a health benefits plan up to a maximum of
$112 per month, plus administrative fees and Contingency Reserve Fund Assessments;
and
2. The City of Culver City and the Culver City Firefighters Group have
fully complied with any and all applicable provisions of Government Code Section 7507
in electing the benefits set forth above.
/I MARTIN R. COLE
City Clerk
A11-00794
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3. Resolution No 2006-R080 is hereby rescinded.
APPROVED and ADOPTED this day of p.2012.
MCNEAL O'LEARY, Mayor
City of Culver City, California
ATTEST: APPROVED AS ICI FORM:
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bi. A. CHVVAB —
Attorney