CC - Item No. 7D - Adopting of CalPERS Resolution regarding Public Employees Medical and Hospital Care ActROSEMEAD CITY COUNCIL
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNCIL MEMBERS
FROM: JEFF ALLRED, CITY MANAGER L-ffi
DATE: NOVEMBER 8, 2011
SUBJECT: ADOPTION OF CALPERS RESOLUTION TO FIX THE CITY'S
CONTRIBUTION TO CALPERS UNDER PUBLIC EMPLOYEES
MEDICAL AND HOSPITAL CARE ACT
SUMMARY
The City presently contracts with CalPERS to provide medical benefits for current and
retired employees under the Public Employees Medical and Hospital Care Act
( "PEMHCA "). To participate in PEMHCA, the City adopted Resolution 2001 -20 in July
2001. In 2007, the City negotiated and obtained agreement with employees to change
its practices in terms of amounts allocated to current and retired employees; however,
the City did not amend its PEMHCA resolution at that time. By taking action to amend
its PEMHCA resolution, the City will achieve consistency with its employee agreements
and related current practices.
Recommendation:
The City Attorney and staff recommend adopting the amended PEMHCA resolution to
achieve consistency with its employee agreements and related practices in its
administration of the benefits. (Attachment A).
BACKGROUND /ANALYSIS
In July of 2001 the City Council adopted Resolution 2001 -20 which stated that the City
would pay the full cost of healthcare premiums for all eligible employees and retirees.
Subsequently, in June of 2007, the City negotiated and obtained agreement with
employees to implement a cafeteria style benefit allowance for current employees as
well as reduce contributions for future retirees through the CalPERS PEMHCA program.
However, at that time the City did not amend its PEMHCA resolution to reflect the
changes.
The City Attorney and staff have determined that an amendment to the City's PEMHCA
resolution is necessary to ensure consistency with the provisions of its MOU with the
Rosemead Employees Association, other employee agreements, and its related
practices. In discussing options with CalPERS staff, it was determined that the City
ITEM NO. -IF)_
City Council Meeting
November 8, 2011
Page 2 of 2
should adopt an amended PEMHCA resolution. The amended resolution has been
prepared using a template approved by CalPERS.
CalPERS has advised that if the amended resolution is adopted, the City must take
certain steps for it to take effect. City staff will ensure that the required steps are
completed so that the amended resolution can take effect on January 1, 2012.
Prior to the effective date, City staff will make concentrated outreach efforts to ensure
that all current and retired employees are aware of and understand the amended
resolution.
FINANCIAL IMPACT
There is no financial impact from the adoption of this Resolution, and all current
employees and retirees will continue to receive the benefits they are entitled.
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Prep by
ared by:
Matthew E. Hawkesworth
Assistant City Manager
RESOLUTION 2011 -59
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD,
CALIFORNIA, FIXING THE CITY'S CONTRIBUTION UNDER THE PUBLIC
EMPLOYEES' MEDICAL AND HOSPITAL CARE ACT
WHEREAS, Government Code Section 22892(a) provides that a local agency
contracting under the Public Employees' Medical and Hospital Care Act shall fix the
amount of the employer's contribution at an amount not less than the amount required
under Section 22892(b)(1) of the Act, and
WHEREAS, The City of Rosemead is a local agency contracting under the Act; now,
therefore be it
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ROSEMEAD, DOES
HEREBY RESOLVE, FIND, DETERMINE, AND ORDER AS FOLLOWS:
SECTION 1: The employer's contribution for each employee or annuitant shall be the
amount necessary to pay the cost of his /her enrollment, including the
enrollment of his /her family members, in a health benefit plan, up to a
maximum of the amount required by Government Code Section 22892 (b)
(1) ($112 per month effective January 1, 2012), plus administrative fees
and Contingency Reserve Fund Assessments.
SECTION 2: This resolution is consistent with the City of Rosemead's currently
applicable MOUs, resolutions, and practices, and Resolution No. 001 -20
dated July 10, 2001, has been superseded and is no longer in force.
SECTION 3: The City of Rosemead has fully complied with any and all applicable
provisions of Government Code Section 7507 in electing the benefits set
forth above.
PASSED, APPROVED AND ADOPTED THIS 8TH DAY OF NOVEMBER, 2011.
Ly, Mayor
ATTEST:
Gloria Molleda, City Clerk
APPROVED AS TO FORM:
Rachel H. Richman, City Attorney
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES ) SS
CITY OF ROSEMEAD 1
I, Gloria Molleda, City Clerk of the City of Rosemead, do hereby certify that the
foregoing Resolution was duly introduced and placed upon its first reading a
regular meeting of the City Council on the day of , and that thereafter,
said Resolution was duly adopted and passed at a regular meeting of the City Council
on the day of , by the following vote, to wit:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
Gloria Molleda, City Clerk