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HomeMy WebLinkAboutStaff Report City Council., City of Palo Alto City Manager's Report TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: HUMAN RESOURCES DATE: JANUARY 24, 2005 CMR: 124:05 SUBJECT: APPROVAL OF RESOLUTIONS AMENDING PAPOA MEMORANDUM OF AGREEMENT AND COMPENSATION PLAN TO EXTEND THE CITY OF PALO ALTO PORAC MEDICAL INCENTIVE PLAN THROUGH JUNE 30, 2007 RECOMMENDATION This report recommends that Council approve two resolutions implementing the attached side letter agreement between the City and the Palo Alto Police Officer Association (PAPOA), which extends to the end of the current PAPOA contract to fund the PAPOA Medical Incentive Plan. BACKGROUND In 2002, Police. employees enrolled in the most expensive PERSCare Preferred Provider Organization (PPO) option were offered the opportunity to elect the PERS Choice PPO in exchange for a cash incentive, or to elect the Peace Officers Research Association (PORAC) Health Plan with the City paying the difference in the out-of-pocket maximum co-payments between PORAC and PERSCare. The cash incentive program was discontinued effective 12/31/03 but, in an effort to encourage the 19 employees still enrolled inPERS Care to shift to PORAC (which saved $73,428 in annual premiums), staff recommended the City continue the self-funded maximum co-payment program. To date, no eligible employee has requested reimbursement under this plan. In 2005, only 4 Police employees are enrolled in PERSCare. DISCUSSION The PAPOA Medical Incentive Plan entitles active members of PAPOA, who are enrolled in the PORAC health plan to receive reimbursement from the City once an employee's out-of-pocket expenses have exceeded the PERSCare annual maximum co-payment responsibility of $2,000 per . plan member, or $4,000 per family. PORAC's maximum co-payment responsibility is $5,000 per person. This medical incentive plan allows police employees and depe~dents enrolled in PORAC to submit eligible expenses incurred that exceed $2,000 per member/$4,000 per family for covered services recei ved from a preferred provider to the Human Resources Department for reimbursement. CMR: 124:05 Pagelof-2 3 RESOURCE IMPACT The resource impact is difficult to determine. During 2003 and 2004, there was no cost as no one submitted a request for reimbursement under this plan. If, in future years, four. eligible employees submitted the maximum allowed, the cost could be a~ high as $12,000 per year. POLICY IMPLICATIONS This request does not represent any change to existing City policy. ENVIRONMENTAL REVIEW This is not a project under the California Environmental Quality Act (CEQ A). ATTACHMENTS 1. Resolution amending Merit Rules to incorporate side letter to P APOA Memorandum of Agreement 2. Resolution amending PAPOA Compensation Plan DEPARTMENT HEAD: ___ ----'o.Jek~·=--..:::.....:;,.. .. ----'~""_' __ --=--' _____ _ LESLIE LOOMIS CITY MANAGER APPROV AL:--..J.d-----.,.L....:....L.~~~~~---- Assistant City Manager CMR: 124:05 Page2of2 " follows: NOT YET APPROVED RESOLUTION NO. RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING SECTION 1601 OF THE MERIT SYSTEM RULES AND REGULATIONS REGARDING THE MEMORANDUM OF AGREEMENT BETWEEN THE CITY OF PALO ALTO AND THE PALO ALTO PEACE OFFICERS' ASSOCIATION, TO ADD THE CITY OF PALO ALTO PORAC MEDICAL INCENTIVE PLAN THROUGH JUNE 30, 2007 The Council of the City of Palo Alto does RESOLVE, as SECTION 1. Section 1601 of the Merit System Rules and Regulations is hereby amended as follows: 1601. Memorandwn of agreement incorporated by reference. That certain memorandum of agreement by and between the Ci ty of Palo Al to and Palo Alto Peace Officers' Association, consisting of Preamble and Sections 1 through 50, and Appendix A, for a term commencing July I, 2001, and expiring June 30, 2007, as amended to add the City of Palo Alto PORAC Medical Incentive Plan through June 30, 2007, is hereby incor- porated into these Merit System Rules and Regulations by reference as though fully set forth herein. Said memorandum shall apply to all employees in classifications of police officer trainee, police officer, police agent, and police sergeant, except where specifically provided otherwis'e herein. In the case of conflict with this chapter and any other provisions of the Merit System Rules and Regulations, this chapter will prevail over such other provisions as to employees represented by said Palo Alto Peace Officers' Association. SECTION 2. The Memorandum of Agreement ("MOA") incorporated into the Merit System Rules and Regulations ("Merit Rules") by Section 1 is a revision of the MOA incorporated into the Merit Rules by Resolution No. 8083, and adds a Section 53 to 1 050118 syn 0091555 NOT YET APPROVED tha t MOA as shown on Exhibi t incorporated herein by reference. "A" I attached hereto and SECTION 3. The changes provided for in this resolution shall not affect any right established or accrued, or any offense or act committed, or any penalty of forfeiture incurred, or any prosecution, suit, or proceeding pending or any judgment rendered prior to the effective date of this resolution. SECTION 4. The Council finds that this is not a project under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. INTRODUCED AND PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST: City Clerk APPROVED AS TO FORM: Senior Assistant City Attorney 050118 syn 0091555 2 Mayor APPROVED: City Manager Director of Administrative Services Director of Human Resources ') Tentative Agreement Pending Council Authorization (Scheduled for January 24, 2005) PAPOA MEDICAL INCENTIVE PLAN The following is a summary of the Medical Incentive Plan for active employees of the Palo Alto Police Officers Association. For active members of the Palo Alto Police Officers Association (PAPOA) enrolled in the PORAC Police & Fire Health Plan (PORAC), the City shall self fund the difference in the "Copayment Responsibility" IOut-of-Pocket maximum between PERSCare Medical Plan and PORAC Prudent Buyer Plan. PERSCare's maximum copayment responsibility per calendar year is two thousand ($2,000) per plan member, not to exceed four thousand ($4,000) per family. PORAC's maximum copayment responsibility is $5,000 per person. Employees and dependents enrolled in PORAC may submit eligible expenses incurred between 2005 to the end of the P APOA contract in 2007 that exceed $2000 per member/$4000 per family for covered services received frolp. a preferred provider to the Human Resources Department for reimbursement. For example, Employee A is in PORAC as an individual member. He/she has to pay $4000.00 of covered out-of-pocket expenses during the 2005 calendar year under the PORAC plan. If Employee A had been in PERS Care, he/she would have reached his/her out-of-pocket maximum at $2000.00. Under the self insurance plan, Employee A shall submit to Human Resources the Explanation of Benefit from Blue Cross for the additional out-of-pocket services and this amount shall be reimbursed. EXHIBIT "A" follows: NOT YET APPROVED RESOLUTION NO. RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE COMPENSATION PLAN FOR POLICE NON-MANAGEMENT PERSONNEL ADOPTED BY RESOLUTION NO. 8082 AND AMENDED BY RESOLUTION NOS. 8244, 8253 AND 8346, TO ADD THE CITY OF PALO ALTO'S PERS CHOICE/PORAC MEDICAL INCEN~IVE PLAN THROUGH JUNE 30, 2007 The Council of the City of Palo Alto does RESOLVE as SECTION 1. Pursuant to the provisions of Section 12 of Article III of the Charter of the' City of Palo Alto, the Compensation Plan for Police Non-Management Personnel, adopted by Resolution No. 8082 and amended by resolutions Nos. 8244, 8253 and 8346, is hereby amended by adding the PERS Choice/PORAC Medical Incentive plan through June 30, 2007, as set forth in Exhibit "A", attached hereto and incorporated herein by reference. SECTION 2. ,The Director of Administrative Services is authorized to implement the, amended compensation plan as set forth in Section 1. SECTION 3. The Council finds that this is not a project under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ' ATTEST: City Clerk Mayor 1 050118 syn 0091556 NOT YET APPROVED APPROVED AS TO FORM: Senior Asst. City Attorney 050118 syn 0091556 APPROVED: City Manager Director of Administrative Services Director of Human Resources 2 '. ., .. · Tentative Agreement Pending Council Authorization (Scheduled for January 24, 2005) PAPOA MEDICAL INCENTIVE PLAN The following is a summary of the Medical Incentive Plan for active employees of the Palo Alto Police Officers Association. For active members of the Palo Alto Police Officers Association (PAPOA) enrolled in the PORAC Police & Fire Health Plan (PORAC), the City shall self fund the difference in the "Copayment Responsibility" IOut-of-Pocket maximum between PERSCare Medical Plan and PORAe Prudent Buyer Plan. PERSCare's maximum copayment responsibility per calendar year is two thousand ($2,000) per plan member, not to exceed four thousand ($4,000) per family. PORAC's maximum copayment responsibility is $5,000 per person. Employees and dependents enrolled in PORAC may submit eligible expenses incurred between 2005 to the end of the PAPOA contract in 2007 that exceed $2000 per memberl$4000 per family for covered services received from a preferred provider to the Human Resources Department for reimbursement. For example, Employee A is in PORAC as an individual member. He/she has to pay $4000.00 of covered out-of-pocket expenses during the 2005 calendar year under the PORAC plan. If Employee A had been in PERS Care, he/she would have reached his/her out-of-pocket maximum at $2000.00. Under the self insurance plan, Employee A shall submit to Human Resources the Explanation of Benefit from Blue Cross for the additional out-of-pocket services and this amount shall be reimbursed. EXHIBIT "A"