HomeMy WebLinkAbout0373.093. .1
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JUf'.e 21:, lS93-
THE HONORABLE C!T'i COUNCIL
Palo ~.lto I Cal i f(Jrni.a.
~liIIalth Care ae.nefitns_ .tor city Employees ~_nd J<:_~ __ 't . .!r@'es
Members of the Council:
Report in ~ __ 4!:--'-
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This report recommends approval of resolutions necessary to amend
the City contracts "With thoe Public E:nployees' Retirenent System
(PERS) to continue to maintain fully-paid single and dependent
coverage for active employees and single-party cov~rage for
retirees under the PEMHCA health plans during t:he pendency of
negotiations.
Backaround.
Health benefits for City employee;,; and retirees are provided under
the provisions of the Public Emplo}'ee Medical Health Care Act
(FEMHCA) . PEMHCA incl1.ldes di fferent health rlainte.nance organi
zation ana preferred provider plans available. to employees and
retirees according to service area.
Existing PEMHCA agreements provide for the City of Palo Alto's
contributions to cove.r the total costs of an:{ of the options
selected for emplcyee and dependent coverage, and any optiol".
selected for retiree single-party coverage. However, effective
August 1, 1993, the P:;RS health plan costs for the 1993/1994
contract year .,.,i11 be increased.
C'.J.rrent labor agreements 'oolith all employee groups have. expired or
will expire on June 30. At the present time negotiations are
continuing for successor agreerr,ents~ During the pendency of these
negotiations, the city must maintain the status quo in health
benefit contributions. Accordingly, this report recommends
approval of tne resolutions nece$sary to maintain fully-paid
employee and dependent contributions for active employees, and
fully-paid, single-party coverage for retirees. If completed 12tbor
agreements include different provisions for City contributions, the
hp.alth plan agreements ..... ill be amended again to reflect such
agreements.
Cest Increases
eecause many of the various plan rates are increasing by only a
small amount, the City's current contribution maximums 'Will be
sufficient to cover all plan5 except PERS Care health plan option~
CMR:373:9J
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In order to paintain a fully-paid health plan for employees and
their dependents electing PERS Care. th~ City ma~irnum contribution
rate will incre~s~ as fOllo~s:
---
Current Rates August Ra.tes
Ba!lic: su."p~men!: Basic supplement
sinql. Party 234 152 252 159 -
I'wo party 443 • 478 •
Three or more 590 • L_.~J7 • ---=
"Paid. by Retiree ... itr~ CO!;",t..L' ibu::ion by the. Ci ty increasi~'::; by 5-t
each year, effective August 1. 1993.
On an anT:u~l basis, tt-e cost increases associated ;.rlt!i raising the
City contribution rates as recommended in this repor't. are as
fol10 .... s:
Basic Plan Actives:
Basic Plan Reti~ees:
supplemental Plan Retirees:
Total
$54,8(10
Sll/448
~.22
$89,100
Funding for this increase is provided in the 1993-94 budget.
Recommen<1a tin Q,l1
staff ['"Ecommpnds epproval of the attached four resolutions
increasing the City of Palo Alt.o's el!':ployer contribution for health
pla.n premiums.
R«~~ectfullY submitted,
(,)" ,iJ ,~_ ~V--t
JAY C. ROUNDS
Director of Human Resources
("
JCRjkl
Attachments
CMR:373,93
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RESOLU1'ICN Ni).
RESOLUTION OF TH:C CI1'l-05' PALO-~ FIXING THE
EMPLOYER'S CONTRIBUTION UNDER 'THE PUBLIC
Er-"'..PL-!JYEES' MEDICAL .AA'T' H.')$PI'I'AL CARE ACT WI'f:r
RESPECT TO MEMBERS OF THe ?ALO ~?O
PR,OPESS rOR~ FIRE F !,:;HTERS ,[.INIeN, LOCAL 1319
WHEREAS, Government Code Se~tion 22825.6 p:ravidee that a
local agency contracting under the Act shall fix the ~ount of the
employer's contrib-rtio!l at an amOU:1t not less than the a.mour:,:
required under Section 22825 of the Act; and
WHEREAS, Goverr.ment Code Section 22857 p::-ovides t:hat a
contra.r:ting agency tnay fix the am01..~nt of the employer's
contribution for employees ::lnd the emploj'€r-' S cO::1tribution for
annui tants at. different amounts. provided that the mont, hI y
contribution for annuitants shall be annt:ally increased by an
amou.rlt: net less than 5 percent of the monthly contribution for
employees, until such time as the amounts are equal; and
WHEREAS, pursuant to Resolution No. 7147, the City of
Palo Alto ("'City"), a local agency cont_racting wit:.h t.he Public
Employees' Retir~~ent System, el~cted to be subject to the Public
Employees' Medical and Hospital Care Act (the ~Act·) ~ith respect
to MemlJers of the Palo Alto Professional Fire Fighters Union, Lo!;al
~31.9. and to set the emplcj'er cont ributions for employees and
annuitant9; and
WHZRE.b.S, the City
contribution for member~ of
Fighters Union. Local 1319, at
aforesaid Resolution No. 1147.
desi:ces
the Palo
an amount
to fix the employer's
Alto Professional Fire
higher than fixed by the
NOW, THEREFORE, the Council of the City of Pa.lo Alto does
her.aby ?BSOLVE as follo ..... s:
SECTION 1. The City's eropl oye:-r:o~-;t.ribution tor each
employee 9hall be the amount necessary to pay the cost of his or
her enrollment, including the enrollment of his or her eligible
family members, in a health benefits plan up to a maximum at:
N\JJrlber of PersQns
Employee Only
Employee Plus One
~ployee Plus Tw~
Oi: More
Mgnthly City CCJJ_t,:.(ibn;ion
Premium for pla.n selected but
not to exceed $252.
Premilli~ for p:a~ selected b~t
not to exceed $478.
?remiu.."'TI. for plan selected but
not to exceed $637.
'Ihe em-ployer contribution shall also include administrative fees
and Contingency Reserve Fund assessments.
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~crJ_Q_~Lb 7he City's employer cor;.tributioD f 0r eaC::'
annuitant shall be the amount necessary to pay the full cost of his
or her enrollment, !ncluding enrollm~nt ct his or he:::-elig:ble
f~~ily members, in a health benefits plan at the cost of the single
party prerni~ for the pla~ selected.
~ION __ :L... The City's employer cO:1tribc;tion for eact.
an..'"luitar..t shall continue to ir.,.:orease annually by fh',::! percent (:::t)
of the monthly contributio:1 fo:: employees, 1Jnc.i 1 such tit':'.e as the
contributions are equal; and the contribut ions fo:::-employees and
an."lUitdnts shall be in add it j on to "hose arr.ounts contributed by the
City for ad.'"T1.inistrative fees ar~d to the Cont ingency Resen.'-e Fund.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS,
ATTEST, APPROVED:
City Clerk Mayor
APPROVRD AS TO FORM:
City Manager
Senior AEst. City Attorney
Director of H~Tan Resources--
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RESOLFTIon NO.
RESOLlJT!ON' OF 'THE CITY OF PALO AL'r'O FIXING THE
EMPL-OYER'S CO!l.TRIBUTION U!IDBR TrlE" PUBLIC
FY.PLOYEZS' MED!CAL AND HOSr:'ITJt....!." CJ.o.RE 1\·:'T WITH
RESPECT TO MEMBERS OF '1"=>4:£ PALO ALTO PEACE
OFFICERS' ASSOCIATION
WHBREAS, Goverr~ent Code Section 22825.6 pTovides that a
local agency contracting under the Act shall fix the aJl'lOunt of the
employer's contribution at an ali',ount :-.. ot. les<s than the amo\.,;.nt
required ~nder Section 22825 of the Act; a~d
WHEREAS, Goverrtrnent Code Section 22857 prcwides that a
coneracting agency may fix the a .... no=.mt of the employer's
contribut1on for employe-:s and the e.'11ployer's contribution for
annuitants at difterer..'C amDunts. provided that the monthly
contribution for annuitants shall be anr..'.lally increased by an
amount not less than 5 per-:ent of the monthly contribution for
e...~loyees, until such time as the amount-e are equal; and
WHEREAS. p1..:,rsuant to Resolutio:l. No. 7146~ the City of
Palo Alto {"City"). a local agency contracting with the P":.lblic
Employees' R~tirement System, elected to be subject to the Public
Employees' Medical and Hospital Care Act (the "Act") with respect
to Members of the Palo Al to Peace Officer's ASo90ciaticn, and to set
the employer contributions for employees ar2d ar-..nuitar:ts; and
the WHEREAS. th~ City desires to ~ix
contribution tor members of the Palo Alto
Association at an amount higher than fixed
Peace
by the
employer's
Officers'
aforesaid
Resolution No. 7146.
NOW, T:-rBREFORE, the Council of the City of Pal'? .Alto does
hereby RESOLV'E ae fellows:
sBcrrON 1, The City's employer conrributio!'l for each
employee shall be tne amount necessary to pay the cost of his or
her enrollmenL including the enrollment of his or her eligible
family membe,.:s. in a health benefits plan up to a Inaximum of:
Errrplo::tee Only
Employee Plus One
Employee Plus Two
or Mere
PI'erniUM for plan selec;:;;:d but
not to exceed $252.
Pr2rnium for plan select.ed but
not to exceed $478.
Premium for plan selected but
not to exceed $~31.
The employer contribution shall also include administrative fe.es
and Contingency Reserve Fund assessments.
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SECTION 2. 7he City' 9 e:r.plcyer cont.ribLi.:.ion fOr" each
annuitant, including his 0:; her ~ligible family membEors r enrolled
in a health benefits plan. shall be the a..'l"'.o'.mt necessary to pay the
full single party premium cost for the plar. s~lected.
SECTION 3 The City's employer contribution for eacr-.
annuitant shall continue to increasE: aIUlUaily by five percent (5\")
of the monthly contr.ibution for emplcyees, "..lntii S'.Jcr~ time as the
cont"('ibutions are equal; and the cO!ltributi'~n:s for employees and
annuitants shall be in additiQn to those a~ounts contributed by the
City for ad..'"T'linistrative fees ana to the Continge!1cy Reserve Fund.
INTRODUCED AND PASSED:
NOES:
ABSENT~
ABSTENTIONS,
APPROVED:
City Cler"Jc;:--------Mayor
APPROVED AS TO FORM,
City Manage-::-
Senior Asst~ City Attorn.~y
Dire:ct-:lr of Fir..ance
Director of Human Resources
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RESC~1J'T!0N NO.
RESOLUTION OF jrtE CITY OF P~O ALTO FIXING r.-rE
EM?LOYER'S C0t-."TRIP'L"'TION u""NDE-? THE PUBLIC
£1.'f.FLOY~ES~ MEDICAL AND HCSPITA:' CA.'I;'.E J1.CT WITH
RESt?ECT TO MEMBERS OF :-;:"':E 1t'A.~GEMhNT.
CONFIDE~'TIAL AND COtr.NCIIJ ~_FPOniTED AND ELECTSD
OFFICERS EMPLOYE!! GROt:P
WHEREAS, Goverr..ment Code Section 22B2S.6 provides tt"4a.t a
local agency contracting under the .r.ct shall fix thE'; amount of the
employer:' s contrib1.,;.cj.on at ar:. an;ount net less than the a.."1'lQunt
required under Section 22825 of the Act; and
WHEREAS, Goverr.ment Code S~c~ion 22857 provides that a
contracting agency r.13y fix the amount of tr"e emp:'oyer' 5
con~ribution for employees and t.he employer's contribut ion for
annui~ant9 at different arr~unts, provided that the monthly
contribution for annui t.ants shall be annuillly increased by an
amount not less than 5 percent of r.he mont.hly con.t.r'ibuticn for
employees, until such time as the amounts are equal; an~
.,lHEREAS, pursuant to Resolution No. 7148, t.he City of
Palo Alto {"City"). a local agel:cy coneraccing wi th the Public
Employees' Retirement System, ele~ted to be subject to the Public
Employees' Medical and Hospital Care Act (the ~Act~J with respect
to Members of the Managemer.t l Confidential and CO"..1ncil Appc.dnted
and Elected Officers Employee Group. and to set the employer
contril:l'.,;.tions for employees and annuitants; and
WHEREAS. the City desires to fix the employer's
contribution for Members cf the Y~nagement, Confidential arrd
Cou..,-··lC-:il AppOinted and Ele:cted Officers En.ploree Group at an amount
higher than fixed by the aforesaid Rescluti<:m N:'I. 7148.
NOW. THEREFO:t<E, the Council of the <:i ty of Palo Al to does
hereby RESOLVE as follo~s:
.s~I_~ Tr4e City~ s employer contribl.lt.ion fer ea('.h
employee shall be the-amount necessary to pay the cost of hi:;:; or
her enrollment, including the enrollment of [de o~ her eliqible
family members, in a health benefits plan up to a maxirr.um of:
Employee Only
Employee Plus One
Employee Plus Two
or More
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Monthly ___ City Car~-ribl.ltig..n
Premium for plan selected b1....t
nat to exceed $252.
Premium for plan selected but
not to ~xceed $478.
Premium for plan selected but
not to exceed $637.
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The employe=-contribution shall also irv:lu'.i.r: ,;I.d,rr.inis:rativE: fees
and Contingency F.eserve Fund dssessmE!'":C-S.
SECrIQN-.L The City's employel. contributicn fer eac!1
annuitant shall be the amount necessary to pay the full cost of his
or her enrollment, including enrollment cf his or her eligible
family members, i:1 a health benefits plan at the ccst of the s~r.glE'
party premium fOl" the plar.. selected.
SECTION .3. The City's employer contribution for each
annuitant shall continue to increase annually by five percent 15t)
of the monthly contribution for employees, unti.l 9uc::-h time as the
ccntributior..s are equal; and the contrib'..lt ions for employees and
annuitants shall be in additl.,=,n to those amounts contributed by the
Cit:y for adrr.inistrative fees and to tr;e Conting~nc,/ Reserve Fund.
INTRODUCED A."ID PASSED:
AYES:
NOBS:
ABSEFT:
ABSTENTIONS:
ATI'EST: APPROVED;
City C'l~e=rk~-----------Mayor
APPROVED AS TO FORM: cTtY !'o'"..anage:::
Sen·ior Asst. City Attorney
DirectDr of Finance
Di rector 'Of Human Resources-
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RESO~:'''TION NO.
RESOLlrtroN OF THE CITY OF PAL6'ALTO FIXING THR
E!4PLCYER'S CGNTP,!BlT'l'ION urt'BR TEE P'JBL!C
EM.?I..QYEES· MEDICAL k"'ID HOSPITAL CARE ACT ~IITH
RES?Et:T TO MEMBERS OF LO~ 715, SERVICE
E."1PLOYEES INTERNATIONAl" tJNID~;
WrlEREAS, GO'~'2rJll':'lent Code Section 228-25.'6 provides that. a
local agency contracting under the Act shall fix the a~aunt oE the
employer' 8 con":.ribution at an a...\\ount nQt leSe t.han the amO"..lnt
r~quired unGer Sectio~ 22825 of the A~t; and
WHEREAS. Gove~~ent Code Section 22857 provides that a
contracting agency rt'Iay fix the amount of tce employer' 9
contribution for employees and the employer's ':ontribution for
annuitarlts at different amounts, provided th3.t;. the monthly
c<'"lntribution for a.r.rtuitants shall be ar..nuall}' increased by an
amount not less than S percent of the monthly c:ono::ribution tor
employees, until such time a~ the amounts are equal; and
WHEREAS, pursuant to ~esGluti~n No. 7145. the City of
Palo AI to (·ei ty"), a local agency contracting 'With the Public
Employees' Retirement System.. elected to be s'L.',bject to th~ P.,J.bl ie
Employees' Medical and H0spital Care Ar:t (the "Act") ""'ith respect
to M(;n\bers of Local 71S~ Se.rvice Employees International Union, and
to set the employer contributions for employees and annuitants; and
-wEEREAS.. the Ci ty desires to fJ.x the employer:' s
Ser.rice Employees'
than fixed by the
contribution for members of Local 715,.
International Union, at an amount higher
aforesaid Resolution No. 7145.
NOW, THEREFOkB~ the CounCl-l oE the City of palo Alto does
bereby RESOL~ as follows:
~.Qli.....J---,--The Cityl s ernpl~yer COlltributio!':. fot' eaC\l
employee shall be the Qffiount necessary to pay the cost of his or
her earollroent. including the enrollment of his or her eligible
family members, in a health benefits plar. up to a ITl;;tximwn of:
Nurnb€r of pers.'2ns
Employee Only
Employee Plus One
Employee Plus Two
or More
Monthly C __ i.ty ___ .J~ont ributiop
Premium for plan selected but
not to exceed $252~
PLemiwn tor plan selected but
not to exc~ed $479.
Premium for plan selected bu:
not to exceed $637~
The employer contributio~ shall also include administrative fees
and Contingency Reserve Fund assessments.
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S~1'i.-2...:.. The C'ity's empl~lyer contribution for ea.ch
annuitant shall be the ~~OU4t necessary to pay the full cost of his
or her enrTlllment., including el'1rol1mer.t of his or he-r el igible
family members, in a hea::i.th benefits pIa:::. at the co.::-t of tho: single
party premilli~ for the plan selected.
SEcri9N :;. Tho: City' 5 employer-contribut ion for ea::h
annuitant shall continue to increase annually' by five percent i5\)
of the monthly' contribution for employees, until s;J.ch tirr.e as the
contributions '3re equal j and the contributions for emp:'..c,yees and
an.--mitants :::hall b,:: in addition to those arr.ounts contriblJ.ted by the
City for admir..ie,trative fees and to the Ccntingen,::y Reser"e Ft::nd.
INTRODUCED )L~ PASSEu:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST: APPROVED:
City Clerk Mayo:c
APPROVED AS TO FOR..'1:
City Manager
Senior Asst. Ci ty .2\ttarney
Director of Firrarce
Director of HI.L-nanResources-
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