Adoption of a Resolution Amending the City s Contribution under the Public Employees Medical and Hospital Care Act. City of Culver City California Agenda Item Report Meeting Date: 03/22/2010 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 Item Number: C 8 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) Chief Financial Officer Approval: Mark Scott (by M. Noller) (03/17/10) City Attorney Approval: Carol Schwab (by H. Baker) (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 medi...
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