City of Culver City, California
Agenda Item Report
RECOMMENDATION:
It is recommended that the City Council consider a Resolution to approve a City
Council Compensation Guide which reduces retired City Council Members’ medical
insurance benefits to the statutory minimum City Contribution (currently $112 per
month).
BACKGROUND:
On March 12, 2012, the City Council unanimously voted to direct the City Attorney to
prepare a Resolution for the City Council’s consideration that, if adopted, would
modify existing and future City Council Members’ retiree medical benefits by
reducing the amount that the City contributes towards the retired Council Members
retiree medical premium to the statutory minimum under the Public Employees’
Medical and Hospital Care Act. The statutory minimum amount for 2012 is $112 per
month and may increase annually based on the medical care component of the CPI-
U.
DISCUSSION:
Since 1974, Council Members have received the same health benefits as
management employees, including retiree medical benefits. While serving in office,
Council Members are currently eligible to participate in the City’s medical insurance
program whereby the City provides up to $1,364 per month, based on plan
enrollment and family size, to purchase health care benefits such as medical, dental,
Meeting Date: 3/26/12 Item Number: C-3
CITY COUNCIL AGENDA ITEM: Adoption of a Resolution Approving a City
Council Compensation Guide which Reduces Retired City Council Members’
Medical Insurance Benefits to the Statutory Minimum City Contribution (Currently
$112 per Month).
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]
Public Notification: (E-Mail) Meetings and Agendas – City Council (03/21/12)
Department Approval:
Serena Wright (03/14/12)
City Attorney Approval:
Carol Schwab (by H. Baker) (03/21/12)
Chief Financial Officer Approval:
Jeff Muir (03/19/12)
City Manager Approval:
John M. Nachbar (03/21/12) City of Culver City, California
Agenda Item Report
vision, and life insurance. Upon retirement, Council Members are eligible to receive
up to $500.65 per month towards retiree medical premium costs, and up to an
additional $437.00 per month for pre-age 65 spousal/dependent coverage subject to
vesting.
Per City Council direction, staff is bringing forth this resolution for the City Council’s
consideration. If adopted as presented, the proposed resolution would modify the
retiree medical benefits for Council Members by reducing the amount paid by the
City for retired Council Members’ medical benefits to the statutory minimum
(currently $112 per month).
Any retiree medical premium expense incurred above the statutory minimum would
be borne by the retired Council Member.
Should the City Council adopt the proposed resolution as presented, the changes in
the City Council Members’ retiree medical benefits would become effective
immediately and would impact Council Members who retire on or after March 27,
2012.
FISCAL ANALYSIS:
Based on the current dollar amounts available, after completion of two terms a City
Council Member could be eligible to receive either $500.65 per month for individual
coverage or $762.85 per month ($500.65 plus 60% of $437) for individual plus one
spouse/domestic partner/dependent. By converting to the statutory minimum of
$112 per month, the City would save between $388.65 to $650.85 per month per
eligible City Council Members. The exact amounts will vary slightly in the future
based on premium inflation and adjustments to the statutory minimum.
ATTACHMENTS:
Proposed Resolution
MOTION:
That the City Council:
1. Adopt a Resolution approving a City Council Compensation Guide that
modifies retiree medical benefits for existing and future Council Members to
provide for a City contribution for retired Council Members in the statutory
minimum amount.
MEETING DATE: 03/26/12
AGENDA ITEM: Adoption of a Resolution Approving the City Council
Compensation Guide, Including Consideration of a
Modification of Council Members' Retiree Medical
Benefits
ATTACHMENT
Pages
1. Resolution including Exhibit A, City Council Compensation
1-3
Guide 1 RESOLUTION NO. 2012-R
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY
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OF CULVER CITY, CALIFORNIA, APPROVING THE
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CITY COUNCIL COMPENSATION GUIDE.
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WHEREAS, in July 1974, the City Council unanimously voted to allow
Council Members the option to participate in the same health insurance program as that
provided to the employees represented by the Culver City Management Group (CCMG)
and, since that time, Council Members' benefits have been equivalent to those provided
to the CCMG; and
WHEREAS, on March 12, 2012, the City Council unanimously voted to
direct the City Attorney to prepare a resolution for the City Council's consideration,
which if adopted, would modify Council Members' retiree medical benefits by reducing
the amount the City contributes towards the retired Council Members' retiree medical
premium to the statutory minimum under the Public Employees' Medical and Hospital
Care Act (PEMHCA), as set forth in the City Council Compensation Guide attached
hereto as Exhibit A and incorporated by reference; and
WHEREAS, the City Council wishes to adopt this Resolution, which
approves the attached City Council Compensation Guide, in order to implement a
modification to City Council Members' retiree medical benefits, as well as to document
City Council Members' current compensation and benefits,
NOW, THEREFORE, the City Council of the City of Culver City DOES
HEREBY RESOLVE AS FOLLOWS:
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28 OL A. SCHWAB, City Attorney
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.t The City Council Compensation Guide, attached hereto as Exhibit
2 A and incorporated herein by reference, is hereby approved.
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2. The City Manager is hereby authorized to execute, implement, and
4 administer the terms and conditions of the City Council Compensation Guide on behalf
5 of the City.
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3. The City Manager and Chief Financial Officer are hereby
7 authorized to adjust the budget and the records of City Council Members necessary to
8 pay the compensation and costs related to the terms of the approved City Council
9 Compensation Guide.
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APPROVED and ADOPTED this day of
2012.
ATTEST:
MARTIN R. COLE, City Clerk
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MICHEAL O'LEARY, MAYOR
City of Culver City, California
-2- EXHIBIT "A"
CITY COUNCIL COMPENSATION GUIDE
Salary
Each member of the City Council shall receive a monthly base pay in the amount of $485.11 as
may be adjusted in accordance with the Culver City Charter Article VI, Section 603 and
California Government Code Sections 36516 through 36516.5.
Meeting Stipends
Council Members may be eligible for incidental stipends as may be permitted by law due to
membership on other legislative bodies.
Cell Phone Allowance
In accordance with City Policy, Council Members shall receive a taxable stipend of $60 per pay
period to cover business related phone calls.
Medical
The City contracts with the Public Employees' Retirement System (PERS) for medical insurance
coverage. Council Members shall be eligible to receive a monthly flex dollar allowance up to
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benefits. Through the cafeteria plan, Council Members may purchase benefits offered such as
medical, dental, vision, and life insurance.
The City shall adjust the flexible dollar allowance up to an additional 4% towards the increased
cost of medical premiums in a calendar year. The average increase in HMO dental, vision, life
and PERS monthly health care premiums shall be calculated by subtracting the average cost of
premiums for all available City-offered health-care plans for the current year from the average
cost of premiums for all available City-offered health-care plans for the upcoming year. If this
percentage is less than 4%, then the City allowances shall be increased only by that
percentage. If this percentage equals or exceeds 4%, the City allowances shall be increased by
4%. If there is a year where the average premium increase is 0%, or there is an overall
decrease, the City contribution shall not be adjusted.
Retiree Medical
Council Members shall be eligible to receive a City contribution for retiree medical in
accordance with Government Code Section 22892. The City shall contribute an amount not to
exceed the monthly statutory minimum contribution, as determined by CalPERS on an annual
basis, in accordance with the California Public Employees' Medical and Hospital Care Act
(PEMHCA).
Pension
Council Members are eligible to participate in the California Public Employees Retirement
System (CalPERS). A member contribution is required.