City of Culver City, California
City Council Agenda Item Report
Meeting Date: 11/14/05 Item Number: C-7
AGENDA ITEM: Consideration of Resolutions Establishing the City’s
Contribution Cap for PERS Medical Insurance, Effective January 1, 2006, and
Rescinding Resolution Numbers 2004-R076, 2004-R077, 2004-R078, 2004-R079,
2004-R080, and 2004-R081.
Contact Person/Dept.: Linda Coll Phone Number: (310) 253-5645
Fiscal Impact: Yes [X] No [ ] General Fund: Yes [X] No [ ]
Public Hearing: [] Action Item: [x] Attachments: []
Public Notification: Master Notification List
Master Notification List and all Six (6) Employee Organizations Notified on 11/10/05.
Department Approval:
Serena Wright
CAO Approval:
Jerry Fulwood 11/9/05
City Controller Approval:
Marlee Chang 11/9/05
RECOMMENDATION
That the City Council approve the contribution cap for PERS medical insurance for
calendar year 2006, consistent with the provisions of the six (6) respective
Memoranda of Understanding (MOU).
BACKGROUND/DISCUSSION
The City provides medical insurance coverage through the Public Employees’
Retirement System (PERS) to employees and their eligible dependents, and retirees
and their eligible dependents. As PERS premiums change each January, the City’s
maximum contribution is recalculated and resolutions are adopted establishing the
City’s maximum contribution for the following calendar year pursuant to the
agreement contained in each of the six (6) MOU’s. During the past several months,
the City has been in the process of negotiating new MOU’s with the six (6)
recognized employee bargaining units. As of the date of this staff report, the
negotiation status for each of the bargaining units is set forth below, and 2006
medical insurance contributions will be established accordingly.
Culver City Firefighters and Culver City Fire Management Group
Negotiations have concluded with Culver City Firefighters (CCFF) and the Culver
City Fire Management Group (CCFMG). Pursuant to the terms of their new
MOU’s, CCFF and CCFMG have agreed to the following cost-sharing agreement
with the City, effective January 1, 2006:
33 City of Culver City, California
City Council Agenda Item Report
34
• Active employees and retirees shall pay five percent (5%) of their monthly
medical plan premium for all plans except PERSCare, and the City shall pay
the remaining ninety-five percent (95%) of the monthly medical plan premium.
• Active employees and retirees enrolled in PERSCare Basic or PERSCare
Combination shall pay an additional five percent (5%) over their current
monthly medical plan premium, and the City shall pay the remainder of the
monthly medical plan premium.
Culver City Police Management Group, Culver City Police Officers
Association, Culver City Management Group, and Culver City Employees’
Association
Negotiations are currently underway with the Police Officers’ Association (POA),
Culver City Management Group (CCMG) and Culver City Employees’
Association, and will commence in the near future with the Culver City Police
Management Group (CCPMG). Until such time when agreement is reached and
a new MOU is adopted by each of the employee units, the City shall establish the
2006 medical insurance contribution cap using the formula contained in their
current respective MOU’s as set forth below.
Effective January 1, 2006, the maximum monthly City contribution, on behalf of
CCEA, CCMG, CCPMG and POA unit employees, shall be capped at an amount
equal to one-half the difference between Kaiser and the most expensive plan,
PERSCare. Only those employees electing plans with premiums exceeding the
contribution cap are required to pay the difference. The following monthly rates
will go into effect for PERSCare (Los Angeles Area Region), which will result in
the following employee contribution rates:
Formula: (PERSCare rate – Kaiser rate)/2 + Kaiser rate = Cap that the City pays
Example: ($633.27 - $306.54)/2 + 306.54 = $469.91
PERSCare Employee 2006 PERSCare Employee
Group 2005 Rate Paid 2005 Cap 2006 Rate Paid 2006
Employee $ 576.96 $141.09 $ 469.91 $ 633.27 $163.36
Emp/Spouse $1,153.92 $282.18 $ 939.81 $1,266.54 $326.73
Family $1,500.10 $366.83 $1,221.75 $1,646.50 $424.75
City of Culver City, California
City Council Agenda Item Report
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As negotiations conclude and new MOU’s are adopted by each of the remaining
bargaining units, future resolutions may be brought to City Council for adoption in
the event that the agreement for payment of monthly medical insurance premiums is
different than the language contained in the respective current MOU.
FISCAL ANALYSIS
All PERS medical insurance plans available to Culver City employees have
experienced a rate increase. The average increase is approximately 10% above
2005 rates. The adopted budget includes sufficient funds for this expenditure in
each department.
ATTACHMENT
Resolutions for the six (6) bargaining units.
MOTION
That the City Council:
1. Adopt the Resolution setting the insurance cap for employees in the Culver City
Fire Management Group, and rescind Resolution #2004-R079;
2. Adopt the Resolution setting the insurance cap for employees in the Culver City
Firefighters Group and rescind Resolution #2004-R080;
3. Adopt the Resolution setting the insurance cap for employees in the Culver City
Police Officers’ Association, and rescind Resolution #2004-R076;
4. Adopt the Resolution setting the insurance cap for employees in the Culver City
Employees’ Association, and rescind Resolution #2004-R077;
5. Adopt the Resolution setting the insurance cap for employees in the Culver City
Police Management Group, and rescind Resolution #2004-R078; and
6. Adopt the Resolution setting the insurance cap for employees in the Culver City
Management Group, and rescind Resolution #2004-R081.
MEETING DATE 11/14/05
AGENDA ITEM Consideration of Resolutions Establishing the City's
Contribution Cap for PERS Medical Insurance, effective January 1 2006 and
Rescinding Resolution Numbers 2004-R076 2004-R077 2004-R078, 2004-
R079 2004-R080, and 2004-R081
ATTACHMENTS
Pages
Resolutions 1 — 12RESOLUTION NO 2005-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 HOSPTIAL CARE ACT, WITH RESPECT
TO THE CULVER CITY POLICE OFFICERS'
ASSOCIATION AND RESCINDING RESOLUTION NO
2004-R076
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) of the Act, and
WHEREAS, the City of Culver City (City) 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, DOES
HEREBY RESOLVE as follows|109| That the City's monthly contribution for the enrollment of 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 $469 91 with respect to employees or annuitants enrolled in self alone
$939 81 for an employee or annuitant for self and one (1) family member, and $1 221 75
for an employee or annuitant enrolled for self and two or more family members, plus
administrative fees and Contingency Reserve Fund Assessments
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/2 Pursuant to the negotiated Memorandum of Understanding between
the City and the Culver City Police Officers Association the City's contribution cap for
medical insurance coverage under PERS is effective January 1, 2006|109| That Resolution No 2004-R076 is hereby rescinded
APPROVED and ADOPTED this day of 2005
ALBERT VERA, MAYOR
City of Culver City California
ATTEST APPROVED AS TO FORM
CHRISTOPHER ARMENTA, City Clerk CAROL A SCHWAB, City Attorney
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(lam)RESOLUTION NO 2005-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 HOSPTIAL CARE ACT WITH RESPECT
TO THE CULVER CITY EMPLOYEES' ASSOCIATION AND
RESCINDING RESOLUTION NO 2004-R077
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) of the Act and
WHEREAS the City of Culver City (City), is a local agency contracting under
the Act for participation by members of the Culver City Employees' Association
NOW, THEREFORE the City Council of the City of Culver City, DOES
HEREBY RESOLVE as follows|109| That the City's monthly contribution for the enrollment of 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 $469 91 with respect to employees or annuitants enrolled in self alone
$939 81 for an employee or annuitant for self and one (1) family member and $1 221 75
for an employee or annuitant enrolled for self and two or more family members plus
administrative fees and Contingency Reserve Fund Assessments
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32 Pursuant to the negotiated Memorandum of Understanding between
the City and the Culver City Employees' Association the City s contribution cap for medical
insurance coverage under PERS is effective January 1 2006|109| That Resolution No 2004-R077 is hereby rescinded
ADOPTED this
day of , 2005
ALBERT VERA, MAYOR
City of Culver City, California
ATTEST APPROVED AS TO FORM
CHRISTOPHER ARMENTA City Clerk
CAROL A SCHWAB City Attorney
A05 00630
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28RESOLUTION NO 2005-R
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CULVER CITY CALIFORNIA FIXING THE EMPLOYERS
CONTRIBUTION UNDER THE PUBLIC EMPLOYEES'
MEDICAL AND HOSPTIAL CARE ACT WITH RESPECT
TO THE CULVER CITY POLICE MANAGEMENT GROUP
AND RESCINDING RESOLUTION NO 2004-R078
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) of the Act, and
WHEREAS, the City of Culver City (City), 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, DOES
HEREBY RESOLVE as follows|109| That the City's monthly contribution for the enrollment of 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 $469 91 with respect to employees or annuitants enrolled in self alone
$939 81 for an employee or annuitant for self and one (1) family member and $1,221 75
for an employee or annuitant enrolled for self and two or more family members plus
administrative fees and Contingency Reserve Fund Assessments
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Gam)
52 Pursuant to the negotiated Memorandum of Understanding between
the City and the Culver City Police Management Group the City s contribution cap for
medical insurance coverage under PERS is effective January 1 2006|109| That Resolution No 2004-R078 is hereby rescinded
APPROVED and ADOPTED this day of 2005
ALBERT VERA MAYOR
City of Culver City California
ATTEST APPROVED AS TO FORM
CHRISTOPHER ARMENTA City Clerk CAROL A SCHWAB, City Attorney
A05 00632
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(jam)RESOLUTION NO 2005-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 HOSPTIAL CARE ACT WITH RESPECT
TO THE CULVER CITY FIRE MANAGEMENT GROUP AND
RESCINDING RESOLUTION NO 2004-R079
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) of the Act and
WHEREAS, the City of Culver City (City) 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, DOES
HEREBY RESOLVE as follows|109| The City s monthly contribution for the enrollment of each employee or
annuitant, including the enrollment of his/her family members, in Blue Shield Kaiser PERS
Choice or PERS Care SM (Supplemental/Managed Medicare) shall be ninety-five percent
(95%) of the monthly health plan premium (based upon the region where the medical
provider is located) plus administrative fees and Contingency Reserve Fund Assessments
and|109| The City's monthly contribution for the enrollment of each employee or
annuitant including the enrollment of his/her family members in PERS Care B (Basic
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Gam)Monthly Rate), or PERS Care (Combination Monthly Rate) shall be seventy percent (70%)
of the monthly plan premium (based upon the region where the medical provider is
located) plus administrative fees and Contingency Reserve Fund Assessments|109| Pursuant to the negotiated Memorandum of Understanding between
the City and the Culver City Fire Management Group, the City's contribution cap for
medical insurance coverage under PERS is effective January 1 2006|109| That Resolution No 2004-R079 is hereby rescinded
APPROVED and ADOPTED this day of , 2005
ALBERT VERA MAYOR
City of Culver City California
ATTEST APPROVED AS TO FORM
CHRISTOPHER ARMENTA, City Clerk
CAROL A SCHWAB City Attorney
A05 00634
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RESOLUTION NO 2005-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 HOSPTIAL CARE ACT WITH RESPECT
TO THE CULVER CITY FIREFIGHTERS GROUP AND
RESCINDING RESOLUTION NO 2004-R080
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) of the Act, and
WHEREAS, the City of Culver City (City), 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, DOES
HEREBY RESOLVE as follows|109| The City s monthly contribution for the enrollment of each employee or
annuitant including the enrollment of his/her family members in Blue Shield, Kaiser, PERS
Choice or PERS Care SM (Supplemental/Managed Medicare), shall be ninety-five percent
(95%) of the monthly health plan premium (based upon the region where the medical
provider is located) plus administrative fees and Contingency Reserve Fund Assessments,
and|109| The City's monthly contribution for the enrollment of each employee or
annuitant, including the enrollment of his/her family members in PERS Care B (Basic
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Monthly Rate) or PERS Care (Combination Monthly Rate) shall be seventy percent (70%)
of the monthly plan premium (based upon the region where the medical provider is
located), plus administrative fees and Contingency Reserve Fund Assessments|109| Pursuant to the negotiated Memorandum of Understanding between
the City and the Culver City Firefighters Group the City s contribution cap for medical
insurance coverage under PERS is effective January 1 2006|109| That Resolution No 2004-R080 is hereby rescinded
APPROVED and ADOPTED this day of , 2005
ALBERT VERA, MAYOR
City of Culver City California
ATTEST APPROVED AS TO FORM
CHRISTOPHER ARMENTA City Clerk CAROL A SCHWAB, City Attorney
(jam)
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0RESOLUTION NO 2005-R
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CULVER CITY CALIFORNIA FIXING THE EMPLOYERS
CONTRIBUTION UNDER THE PUBLIC EMPLOYEES
MEDICAL AND HOSPTIAL CARE ACT WITH RESPECT
TO THE CULVER CITY MANAGEMENT GROUP AND
RESCINDING RESOLUTION NO 2004-R081
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) of the Act and
WHEREAS the City of Culver City (City), is a local agency contracting under
the Act for participation by members of the Culver City Management Group
NOW THEREFORE the City Council of the City of Culver City, DOES
HEREBY RESOLVE as follows|109| That the City's monthly contribution for the enrollment of 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 $469 91 with respect to employees or annuitants enrolled in self alone,
$939 81 for an employee or annuitant for self and one (1) family member and $1,221 75
for an employee or annuitant enrolled for self and two or more family members plus
administrative fees and Contingency Reserve Fund Assessments
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the City and the Culver City Management Group the City's contribution cap for medical
insurance coverage under PERS is effective January 1 2006|109| That Resolution No 2004-R081 is hereby rescinded
APPROVED and ADOPTED this day of 2005
ALBERT VERA, MAYOR
City of Culver City California
ATTEST APPROVED AS TO FORM
CHRISTOPHER ARMENTA, City Clerk
CAROL A SCHWAB, City Attorney
A05 00631
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