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Home My WebLink About0364.095• " -... ,-""'. o City of Palo Alto City Manager's Report Yo: HONORABLE CIT\" COUNCIL FROM: CITY MANAGER DEPARTMENT: Ham •• R .. onrces AGENDA DATE: A.pst 7, 1995 CMR!364:95 SUBJECT: BFPl1EST Amendment to Contract tritlo tbe Pub6c Employees' Retireme.t System (PERS) t. fi1 lb. Employer') conlnllUtioD ander the Public Employ ... Medical and Hospital Care Act (PEMHCA) Hulll! Plu, ror Active and Retired Employees This request is lOr the approval of or. amendment to the City ofFalo Alto's cootract with PERS k> reflect IIlat the City of 1'&10 Alto trill continue 10 pay premlum costs foe employee and dejlenden( coverage lOr eligible active employees and single party coverage plus the required percentage, cunmtly I S%, of dependent covet1lge for eliglbJe retired employees, RECOMW:NDAIIONS This rq>OI1 recommends Council approval of the attached Resolutioos which ... ilI continue City eoolributioos fer the full cost of enrollimnt in the health benefit plan selected by the employee as per agreements with IAFF Loc8l B J 9, !ntematiooaI Association of Firefighters; Local 71 S, Service Employees' International Union, Management and C()nfKlential Employees and Palo Alto PeaCe Officen;' Association. The Resolutions will also allow the City 10 continue <:<>ntributioos 10 the PEMHCA health plans fur retked employees fur single party coverage plus "p 10 I S% of d<:penofent cQVerage. POUCX IMPLICATIONS The ameodmenrs 10 PERS contract does no! represent any cbange 10 existing p<>!icies, EXECUTIVE SUMMARY In June of 1993, the City amended its contract with PEltS 10 fix the amount of the premium paid fer each employee. lbe cost was fixed at lID amouot Ibat would ~maintain I fully-paid CM!U6US I'ai< I on • 8 (9 health plan for employees and their eligible dependents." The ma><imum fixed amount, as shown below. retlee's the PERS Care rates for 1991-1994. August 1993 Rales BOEk Sapplemeat Single Party 252 169 Two Party 478 • Three or more 637 • ·Paid by retirees with a cootrW.rtion by the City increasing by 5.00% each Ie&', efrectiv. August I, 1993. & of August I, 1995. the CiIy'scootribution will be increased 10 I W .. In 1994. all PEMHCA Health Plan providers reduced their cost. for the 17·mooth period !rom August 1,199510 December 31. 1996. PERS will reduce the overall cost «the PEMHCA Health Plans. How"""'. one of the pla.'lS, P£RSC:m, experienced a slight m-. .......... over the 1993 maximum rales. The 1995 PER5 Care rales are 5256, S512 and S666 for active employees and retirees not covered by M:dkare. $169, 5318 and 5469 for retirees covered by Medicare. The attached resolutions are ne<:essary 10 continue City cootrlbutioos in accordanc<: with the new PERSCare rates foe actl.'e employees and retired employees who select Ibe PER5Care plan. FISCAL IMPACf There is no new fiscal im~ Funding has been provided in the 1995.-96 fiscal year budget. . ENVIRONMENTAL ASSL§Ml·NT This is not a project for the purpose< of the California Envirorunental Quality Act. CMIU64:9S Page 2 013 "/j- • • , AlTACDMENlS I. Four Resolutioos PREPARED BY: Leonard Zucker, DEPARTMENT HEAD REVIEW: ~J}.~~~=~=== JA ~. R Dirednr of Human Resources CITYMANAGERAPPROVAL, ~I~ . fLEMlt~ City ager Pagel 00 IiEsowrrON NO. RESOV.JTION OF n!B COUNCIL OF THE CITY OF PALO ALTO FIXING THE EMPLOYER'S CONTRIBUTION UNDER THE PUBLIC EMP1oOlrEES' MEDICAL AND HOSPITAL CARE ACT laTH RESPECT TO MEMBERS OP LOCAL 115, SERVICE EMPLOlrBES INTER.'<lI.TIONAL UNION , .~ WHEREAS. Government Code section 22825 4 6 provides that a local agency cootractiog under the Act shall fix the amount of the employerps cOntribution at. an a.tnOUnt not less than the amount required under Section 22825 of the Act; and WHEREAS. Government Code section 22857 provides that a contracting agency .may fix tbe amount of the employer"'s contribution for employees and the employer" s contribution .for annuitan·ts at. different amounts. pr?""lded that the monthly contribution for annuitao.ts shall be annually in-creased by an amount not less than 5 percent of the monthly contribution for employees. until such time as the arr~ts are aqual; and WHEREAS .. pur~t to Resolution No. 1145~ the City of Palo Alto t·City·~. a local age~y contracting with the Public Employees' Retirement System~ ~lected to be subject to the Public Employees~ Medical and Hospital Care Act [the -Act-J with respect to Members of Local 715 ... Service E!:Ji>loyees International UniO!l,6 and to set the employer contributions for employees and annuitants; and WHEREAS.. the City desires to fix the employer's contribution for me.aibers of Local 7~5.. service Employees' In·ternational Onion, at the amoun·t necessary to pay the full cost of enrollmeo·t in the health benefits plan selected by the enployee; NOW, THEREFORE .. the council of tbe City of Palo Alto does hereby RESOLVE as follows: SSCTION 1. The City's employer contrib.Jtion for each employee shall .be the amount nEcessary to pay the cost of his or her enrollment, including the enrollment of his or her eligible family members, in the healt.h benefit.s plan. selected by the employee~ The errplcyer cootribution shall also include administrative fees and Contingency Reserve ~~ assessments. SECTION 2. The City'S employe-r contribution for each annuitant~ including his or her eligible family members, enrolled in a heal th benefits plan, shall be the amount necessary to pay the full single party premium cost for the plan sel~cted. SEC1IQlf :3 ~ The City's employer COlltriootio:l for each annuitant shall continue to increase annually by five percent (5\J of the monthly contribution for employees .. until su~h time as the contributions are equal¥ and the contributions for employees and annuitants shall be in addition to t:hose amounts contributed by the City for administrative fees and t.o the Contingency Reserve Fund. 1 9SI'124 be 0001171 ~""'-_:"._"."._q_"_~_ ....... __ -.-~~...;.,.,.._;o.~:~ .. -. . -"~~ SECTION i. rAe" Council finds that this is n<>t a project \m<!er the CoHfonJia Enviroomental QUality Act "CliQA'I. Therefore, no envirooa~ntal assessment is required. NOES, ABSl!lI'l' , ABSTENTIONS : A=: City Cl.erk Jl.!'PROVRO AS TO FORM: Senior Asst. City Attorney APPROV'ro: Mayor City M>nager Director of Adma~ services Ddrector of HumaD Resources , "~ : RBSOLlITlON NO. RESOLUTION OF THE COUNCIL OP""THB="'C-;CITY=-OF PALO ALTO FIXING THE EMP1.OYBR' S CONTltIB\JTION UNDER THE PUBLIC BMPWYEES' MEDICAL ~ HOSPITAL CAlU! ACT lI1TB RESPBCT "ro M!lM;lBRS OF THE PALO AL"l"O PEACE OFFICERS' ASSOCIATION WH.~" Government. Code soect.ion 226:25,.6 provid~s tbat a local a.gency contracting under the Act shall fix the amou,nt of the employer-' s contribU-tion at an amount Dot less than t.he amount required under Sect.ion 22825 of tile Act, and WHEREAS~ Government Code section 22857 provides that a contracting agency may fix the amount of the employer's contribution for employees and the employer·s contribution for annuitants at different amounts. pro~ded that the monthly contribution for annuitants shall be annually increased t,y an a.zI\CoIJ,nt not less than 50 percent of the monthly contribution for employees, until such time as thoe amounts az:e equali and ~\S~ pursuant to Resolution No. 7146, the City of Palo Alto (·City-i. a local agency cont~acting with the Public Fmployees' Retirement System, elected to he subject to the Public Employees· ~1cal and Bospital Care ~t {tbe 'Act·) with respect to Members of the Palo Alto Peace Officer's AssociatioD z and to set the empl~~er contributions for employees and annuitants; and WBERE-"S.. tbe City desires to fi~ t.he-eq>loyer's coceribution for members of tbe Palo Alto Peace Officers' Association at tbe amount necessary to pay the full cost of enrollment in tbe health benefits plan selected by tbe employee; NOW, THEREFORE" the Council Of the City of Palo Alto does hereby RESOLVB as follows, SBCTION 1. The City·s employer c~tributioo for each employee shall be tbe amount necessary ~o pay the cost of his or her enrollment, including the enrollment of his or her eligible family members, in t.he health benefits plan selected by the employee. The employer contribution shall also include admdnlstrative fees and C~tingency Reserve Fund assessments. SECTION 2.. The City's employer contribution for each annuitant~ including his or her eligible famdly members~ enrolled" in a health benefit.s plan. shall be the amount necessary to pay the full Single party premium cost for tbe plan SElected. SECTION 3. The City's employer contribution tor each annuitant: shall cont.iIlue to-increase ann'ually by five percent tS\} of the monthly contribution for employees. until su~h time as the contributions al"e equa1; and the contriootioo.s for eIIi>loyees and annuitants shall be in addition to those amounts con,tribUted by the Ci~y for administrative fees and to the CODtingency Reserve Fund. 1 950711 ke OOJ 11 7S --" -. -~----:-- ! SECTION t. The ~11 finds that this is n~ a p~oject under the ca.J.ifornia Enviroomental Quality Act ("CEQA"). Therefore, DO envlr~ntal assessment is r~~ired. . IIITRODtICBD AND PASS ED: .AYES: NOES. ABSENT: ABSTENTIONS: ArrEST: City Clerk APPItOVlID AS ro FORM. se~ior Asst. City Attorney APPROVED: Mayor City Manager Director of Admn. Services Director of Ruman Resources 2 USOLU'J'ION NO. RESOLUTION OF T'dB CITY OF PALO ALTO FIXING THE EMPLOYEJt'S CONTRIStll'ION UNDER T".!R PUBLIC EMPLOYEES' MlIDIClW AND HOSPITAL ORE M:r WITH i<ESPEC'r 'I'O )!EMBERS OF THE PALO ALTO PROFESSIONAL FIRE FIGllTBRS UNION, LOCAL 1319 . ~ .. '--- WHEREAS. Governrr~nt Code section 22B25~6 provides that a 10.21 agency contract.ing und.er the Act shall fix the amount of t.he employer's contribution ;tt, all amount not less t.han the amount required under Section 22825 of the Act; and WHEREAS ... Government Code section 22857 prO"..-tdes t.ha.t a contracting agency may fix the amount of the employer's contribution for employees and t.he employer's cont:ribution for annuitants at different ~ts~ provided that the monthly contribution for annuitants -shall be annually increased by an amount not less than 5 percent of the monthly cootribution for employe~s~ until su~b time as the amounts are equal; and "iilRBRE1lS ... pursuant to Resolution No. 714'1. the City of Palo Alto '-City-), a local agency contracting with the Public Employees· Retirement System~ elected to be sUbject to ~be PUblic Employees· Medica.l and Hospital care Act {the -Act-] vitb respect ~oMembers of the Palo Aito Professiona~ Fire Fignters Union, Local 13.19. and ·to set'.· t~e 8l!ployer contributions for employees and annuit.ants; and WHRREAS" the City desires to fix the emp1oyer~s cOlltributioll for members of the Palo Alto Professional Fire Fighters onion, Local 1119" at the amount necessary to pay the full cost of enrollment in the health benefits plan select.ed by t.he employee. NOW. THEREFORE" the Council of t.he City of -Palo Al to does bereby RESOLVE as follows: SRe'TIQN 1. The City's employer contributiOD for each emplo-fee shall be the amount necessary to pay tbe cost of his or her enrollment" including the eDroll~ent of his or ber eligible family members... in the health benefits plan select.ed by the employee. The employer contribution shall also include administrative fees and Con,tingency Reserve Fund assessments. SECTION 2. The City's e:nployer cvntribution for each annuitaot~ including bis or ber eligible famdly members, enrolled in a health. benefits plan" shall be the amount necessary to pay the full single patty premium cost for the ,plan selected. SECTION }. The City's employer -contribution for each annuitant shall con,tinue to increase annually by five per-cent (st) of the monthly contribution for employees" until such time as the contribUtions are equal; and tbe contributions for employees and 1 . ~~ . annuit.nts &hall be in additioo to those amount. contributed by t~e ~ty for administrative fees and to ~he Conticgency ~eserve Fund~ SlIC'IION i. The <:0\111<:11 finds that. this is n<X a project under the california Emrironmental Qu"lity Act {'CllQA"}. Therefore, no envi~onmental assessmen~ is required~ IN'l'R~ AND PlissBD: AYES: ROBS: lYlS!!N'r: J.BSTEN'l'IONS : A'l"l'BST: Cit.y <:lerk APPROVED AS TO FORM: Senior Asst. City Attorney 2 APPROV&D: Mayor City ~.anaset: Director of Aaron. Services O~rector of Ruman Resources . --:; '.--':;- '---< ·- ,". . USOLVl'ION NO. RESOLUTION OF TIIB COUNCIL OF THE CITY OF PALO A!.TO FIXING T:!B EMPLOYER'S CONTRI BUTION U"NDER THE PUBLIC EMl>LOYBSS' M!IDICAL AND HOSPITAL CARB ACT WITH RESPECT TO MEMBERS OP THE MANAGEMENT. CONFIDENTIAL AND COUNCIL APPOINTED AND ELECTED OFFICERS EMPLOYEE GROUF WHEREAS 6 Gove~~ent Code section 22825.6 provi~es that a local agency cootracting under the Act shall fix the amount of the empl.oyer's contribution at an amount not l~ss than the amount required under Section 22825 of the A~t; and WHBREAS, Government Code section 22851 provides that a contracting agency may fix t.he amount of the employer's contribution for employees a.nJ. the employer's contribution for annuitants at differ~nt amounts, provided that the monthly contribution for annuitants shall 00 annually increased by an amount not 1~s9 than S percent of the zroonthly contribution for employees, until su~h time as the amounts are equal; and WHEREAS, ~rBuant to Resolution No. 7148, the City of Palo ~to tICity-}p a local agen~y contracting vith tbe Public Emplcyees P Retirement System. elected to be subject to the Public Employees P Medical and Hospital Care Act {the -Act-) with respect to Members of the Management~ Confidential and Council Appointed aDd Elected Officers Employee Group., and to set the employer con,tributioc.s for employees and annuitants; and WHB.R.EAS., t.he City desires to fix the e.nployer'-s contribution for members of the Management., Cocfidential and Council Appoin·ted and Blected Officers Employee Group at the amount necessary ~o pay the fuli cost of enrollment in the health benefits plan selected by the en-.ployee; NOW# THERBFORB., the Council of the City of Palo Alto does hereby RESOLVE as follows: SECTION 1. The City's employer contribution for each employee shall be tbe amount necessary to pay the cost of his or her enrollmeot~ including the enrollment of his or her eligible family members.-in the health benefits plan selected by the employee. The Eo.tiployer contribution shall also include admdnistrative fees and COOtingency Reserve Fund assessments. ~~. The City'S employer contribution for eat:h annu1tant~ iocluding his or her eligible family mernbers~ enrolled in a health benefits plan, shall be the arnoun·t necessary to pay the full single party pr~um cost for the plan selected. SECTION 3. The City~s employer .contribution for each annuitant shall continue to increase annually by five percent (St) of the moothly contri&Jtion for employees., until su~h time as the contributions are equal; and the contributions for employees and 1 9.srm:4 * 00311~ \ " , a:muitants sball be in addition to thoge amount" contributed by the City tor admdn1strative tees and to the contingency ~eserve Fund~ SBCTIQN ... The Council findS that. this is DOt a. pro~ect uMer the ca~ifornia. EnvirOlla'eIltal ~a.lity Act ('C8QA'j. Therefore, no e-c.v1roomental assessmeIlt is required. tNTR.OOUCRD AND PASSED: AYBS: NOSS: ABSENT: ABS~IONS: ATTEST: APPROVED: City Clerk Mayor Ci ty Manager senior Asst. City Attorney Director of Admn. Services Director of Buman Resources 2 • .:.