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 CITY COUNCIL AGENDA ITEM NO. 14



Meeting Date: November 12, 2002

Subject/Title: California Public Employees’ Retirement System (CalPERS) 
Health Benefits Employer Contribution

Submitted by: Patti Standley, Human Resources Manager

Approved by: John Stevenson, City Manager



RECOMMENDATION
Approve two Resolutions that adjust the health benefits contribution as provided in 2000/01 - 2002/03 bargaining unit labor agreements. Funding for 2002/03 is included in the proposed 2001/03 City Budget.


PREVIOUS ACTION
The City Council approved Resolutions 2553 and 2554 that adjusted the employer health benefits contribution for CalPERS effective July 1, 2002.


BACKGROUND
Beginning January 1, 2003, health benefits premiums will increase about 26 percent on average. Approved MOU documents provide for an adjustment of the City’s contribution toward the monthly health benefit premium. Per the MOUs, increases subsequent to December 2000 will occur as follows: “The City will then increase its contribution to share the increase of full family Kaiser as follows: January 1, 2003, increase by 50% of full family Kaiser premium increase up to $25.” In addition to this provision, “A re-opener will apply to this item if the percentage to the full family Kaiser premium increases by more than 10% effective January 2002 and 2003.” Meet and confer is currently underway with regard to the re-opener provision.

Staff recommends approval of the attached resolutions in order to adopt the $25 increase provided for in the MOU documents. Adopting the recommended resolutions at this time will ensure the timely application by CalPERS of the increase to the employer contribution. 

A resolution is required by CalPERS each time there is an adjustment to employer contributions. Two resolutions are required by CalPERS. One resolution covers non-sworn employees and the other resolution covers sworn employees. The attached resolutions, if adopted, will be recognized by CalPERS as the official documents to formally adjust the employer health benefits contribution.

FISCAL IMPACT
Funding for 2002/03 is included in the proposed 2001/03 City Budget.


RESOLUTION NO.


A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD FIXING THE EMPLOYER’S CONTRIBUTION UNDER THE PUBLIC EMPLOYEES’ MEDICAL AND HOSPITAL CARE ACT

WHEREAS, Government Code Section 22825.6 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 22825 of the Act, and

WHEREAS, the City of Brentwood, hereinafter referred to as Public Agency is a local agency contracting under the Act for participation by members of the City of Brentwood Employees’ Association (Miscellaneous Office and Public Works Divisions), as well as Management, Mid-Management and Confidential Employees. 

NOW, THEREFORE BE IT RESOLVED that effective January 1, 2003, the employer’s contribution for each employee or annuitant shall be the amount necessary to pay the full cost of his/her enrollment, including the enrollment of his/her family members, in a health benefits plan or plans up to a maximum of $571.44 per month, plus administrative fees and Contingency Reserve Fund Assessments.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting held on November 12, 2002 by the following vote:

RESOLUTION NO.


A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD FIXING THE EMPLOYER’S CONTRIBUTION UNDER THE PUBLIC EMPLOYEES’ MEDICAL AND HOSPITAL CARE ACT

WHEREAS, Government Code Section 22825.6 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 22825 of the Act, and

WHEREAS, the City of Brentwood, hereinafter referred to as Public Agency is a local agency contracting under the Act for participation by members of the City of Brentwood Police Officers’ Association (BPOA). 

NOW, THEREFORE BE IT RESOLVED that effective January 1, 2003, the employer’s contribution for each employee or annuitant shall be the amount necessary to pay the full cost of his/her enrollment, including the enrollment of his/her family members, in a health benefits plan or plans up to a maximum of $571.44 per month, plus administrative fees and Contingency Reserve Fund Assessments.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting held on November 12, 2002 by the following vote:

City Administration
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