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Title:
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Adoption of a Resolution Amending the City’s Contribution under the Public Employees’ Medical and Hospital Care Act.
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City of Culver City, California
Agenda Item Report
Meeting Date: 03/22/2010 Item Number: C-8
CITY COUNCIL AGENDA ITEM: Adoption of a Resolution Amending the City’s
Contribution under the Public Employees’ Medical and Hospital Care Act
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 (03/17/2010);
Department Approval:
Serena Wright (03/15/10)
City Attorney Approval:
Carol Schwab (by H. Baker) (03/17/10)
Chief Financial Officer Approval:
Mark Scott (by M. Noller) (03/17/10)
City Manager Approval:
Mark Scott (03/17/10)
RECOMMENDATION:
Staff recommends that the City Council adopt a Resolution amending the City’s
contribution under the Public Employees’ Medical and Hospital Care Act.
BACKGROUND:
On March 1, 2010, the City Council adopted a memorandum of understanding
(MOU) with the Culver City Police Officers Association (CCPOA). The MOU provides
for a two-tier cafeteria style medical plan.
The City currently contributes 95% of the premiums on all health benefit plans
except PERSCare. For PERSCare, the City contribution rate is 70% for all eligible
employees and annuitants. These medical benefits are established under the Public
Employees’ Medical and Hospital Care Act (PEMHCA) and updated periodically by
resolution. During negotiations, the City and CCPOA agreed to implement a tiered
medical program in which unit employees hired after January 1, 2010 would receive
a lesser health benefit. In order to effectuate this plan, the City needs to convert to
paying the minimum contribution under PEMHCA.
DISCUSSION:
PEMHCA requires that the City pay equal contributions for medical benefits for all
active and retired unit employees. With the adoption of a tiered medical program, the
City’s contribution will be amended to reflect the minimum dollar amount required City of Culver City, California
Agenda Item Report
under PEMHCA. The minimum dollar amount for 2010 is $105 per employee/retiree
per month. 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.
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 FY 09-10 adopted budget to cover health benefit
costs, and will also be included in the 10-11 proposed budget.
ATTACHMENTS:
1. Proposed Resolution
MOTION:
That the City Council:
1. Adopt a Resolution amending the City’s contribution under the Public
Employees’ Medical and Hospital Care Act.
MEETING DATE: 3/22/10
AGENDA ITEM: Adoption of a Resolution Amending the City's Contribution
under the Public Employees' Medical and Hospital Care
Act
ATTACHMENTS
Pages
1. Resolution 1 - 2RESOLUTION NO. 2010-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.
WHEREAS, Government Code Section 22892(a) provides that a local
agency contracting under the Public Employees' Medical and Hospital Care 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, hereinafter-referred to as Public
Agency, is a local agency contracting under the Act for participation by members of the
Culver City Police Officers' Association.
NOW, THEREFORE, the City Council of the City of Culver City, California,
DOES HEREBY RESOLVE as follows:
1. That the employees 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
$105 per month, plus administrative , fees and Contingency Reserve Fund Assessments;
and be it further,
2. That the City of Culver City and the Culver City Police Officers'
Association has fully complied with any and all applicable provisions of Government
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28Code Section 7507 in electing the benefits set forth above.
APPROVED and ADOPTED this day of , 2010.
ANDREW VVEISSMAN, Mayor
City of Culver City, California
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ATTEST:
MARTIN R. COLE
City Clerk
A10-00091