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CC - Item 3D - Public Employees Medical and Hospital Care Act• • ROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR AND CITY COUNCIL FROM: OLIVER CHI, INTERIM CITY MANAGER ot- e'` DATE: AUGUST 14, 2007 SUBJECT: ADOPTION OF RESOLUTION ELECTING TO CEASE TO BE SUBJECT TO THE PUBLIC EMPLOYEES MEDICAL AND HOSPITAL CARE ACT SUMMARY Based on City Council action taken at the June 12, 2007 Budget Study Session, staff has prepared and brought back for City Council approval a resolution that would formalize the transition away from PERS as the City's health care provider. By approving Resolution 2007-28 (Attachment A), the City Council will formally cease to be subject to the Public Employees Medical and Hospital Care Act retroactive to June 30, 2007. Staff Recommendation Staff recommends that the City Council adopt Resolution No. 2007-28 to cease to be subject to the Public Employees Medical and Hospital Care Act, ending the City's participation in the medical plans offered by the PERS healthy system effective June 30, 2007. PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. APPROVED FOR CITY COUNCIL AGENDA: 0 • • RESOLUTION NO. 2007-28 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD TO CEASE TO BE SUBJECT TO THE PUBLIC EMPLOYEES MEDICAL AND HOSPITAL CARE ACT WHEREAS, Government Code Section 22853 provides that a contracting agency which has elected to be subject to the Public Employees Medical and Hospital Care Act may cease to be so subject by proper application by the contracting agency; and, WHEREAS, the City of Rosemead is a contracting agency under the Act for participation by employees and City Council; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Rosemead that the City of Rosemead does hereby elect to cease to be subject to the Public Employees Medical and Hospital Care Act; and, BE IT FURTHER RESOLVED by the City Council of the City of Rosemead that coverage of the Act shall cease on June 30, 2007. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ROSEMEAD DOES RESOLVE AS FOLLOWS: The Mayor shall sign and the City Clerk shall certify to the passage and adoption of this Resolution and thereupon the same shall take effect and be in force. PASSED, APPROVED and ADOPTED this 14th day of August, 2007. John Tran Mayor ATTEST: Nina Castruita City Clerk