Adoption of a Resolution Amending the City s Contribution Under the Public Employees Medical and Hospital Care Act (PEMHCA). City of Culver City California Agenda Item Report Meeting Date: 10/10/11 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 Item Number: C 3 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 Chief Financial Officer Approval: Jeff Muir (by M. Noller) (10/05/11) City Attorney Approval: Carol A. Schwab (by H. Baker) (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 the Executive Compensation Pla...
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