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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 (PEMHCA).
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City of Culver City, California
Agenda Item Report
Meeting Date: 10/10/11 Item Number: C-3
CITY COUNCIL AGENDA ITEM: Adoption of a Resolution Amending the City’s
Contribution Under the Public Employees’ Medical and Hospital Care Act
(PEMHCA)
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 (10/05/2011);
Department Approval:
Serena Wright
City Attorney Approval:
Carol A. Schwab (by H. Baker) (10/05/11)
Chief Financial Officer Approval:
Jeff Muir (by M. Noller) (10/05/11)
City Manager Approval:
John M. Nachbar (10/05/11)
RECOMMENDATION:
Staff recommends that the City Counciladopt a Resolution amending the City’s
contribution under the Public Employees’ Medical and Hospital Care Act (PEMHCA).
BACKGROUND:
The City Council recently adopted two (2) Memoranda of Understanding (MOU’s):
• May 23, 2011: Culver City Management Group (CCMG)
• June 13, 2011: Executive Compensation Plan; and,
• July 25, 2011: Culver City Employees’ Association (CCEA)
Both MOU’s provide for a two-tier cafeteria style medical plan.
For CCEA, CCMG, and the City’s Executive Managers, the City currently contributes
95% of the premiumtowards PERS health benefit plans except PERSCare. For
PERSCare, the City contributes 70% for eligible employees and annuitants. These
medical benefits are established under PEMHCA and updated periodically by
resolution. During negotiations, the City, CCMG, and CCEA agreed to implement a
tiered medical program in which unit employees hired after June 30, 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. Such changes would
also apply to those unrepresented employees covered by the Executive
Compensation Plan.
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 adoption of a tiered medical program,the
City’s contribution will be amended to reflect the minimum dollar amount required
under PEMHCA ($112 per montheffective January 1, 2012). 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
Internal Revenue 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 City Council Adopted Budget for Fiscal Year
2011/2012.
ATTACHMENTS:
1. Proposed Resolution
MOTION:
That the City Council:
Adopt a Resolution amending the City’s contribution under the Public
Employees’ Medical and Hospital Care Act.
1. Resolution
Pacies
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MEETING DATE: 10/10/11
AGENDA ITEM:
Adoption of a Resolution Amending the City's
Contribution under the Public Employees' Medical and
Hospital Care Act for Local Miscellaneous Plan
Members
ATTACHMENT 1
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RESOLUTION NO. 2011 -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 (Local Miscellaneous
Plan Members)
6 WHEREAS, Government Code Section 22892(a) provides that a local
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agency contracting under the Public Employees' Medical and Hospital Care Act shall fix
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the amount of the employer's contribution at an amount not less than the amount
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10 required under Section 22892(b)(1) of the Act; and
11 WHEREAS, the City of Culver City, hereinafter referred to as Public
12 Agency, is a local agency contracting under the Act for participation by members of the
13 Local Miscellaneous Plan,
14 II NOW, THEREFORE, the City Council of the City of Culver City, California,
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18 II the amount necessary to pay the full cost of his/her enrollment, including the enrollment
19 of his/her family members, in a health benefits plan up to a maximum of $112 per
20 month, plus administrative fees and Contingency Reserve Fund Assessments; and be it
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11 further,
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That the City of Culver City and Local Miscellaneous Plan Members have
fully complied with any and all applicable provisions of Government Code Section 7507
in electing the benefits set forth above.
APPROVED and ADOPTED this day of ,2011.
MICHEAL O'LEARY, Mayor
City of Culver City, California
ATTEST: APPROVED AS_TO FORM:
MARTIN R. COLE
City Clerk
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1.-- CAROL k SCHWAB
,471
City Attorney