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CITY COUNCIL AGENDA ITEM NO. 7

Meeting Date: June 10, 2003

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 a Resolution that adjusts the health benefits contribution as provided in 2003/04 – 2007/08 Brentwood Police Officers’ Association (BPOA) bargaining unit labor agreement. Funding for 2003/04 is included in the proposed 2003/05 City Budget.

PREVIOUS ACTION
The City Council approved Resolutions 2879 on May 27, 2003, adjusting the employer health benefits contribution for all bargaining units and employee groups except BPOA for CalPERS health benefits effective July 1, 2003.

BACKGROUND
Recent information resulting from the CalPERS Health Benefits Committee meeting held on May 13, 2003, regarding health insurance premiums, revealed that rate increases over the next several years are expected to equal 20 – 30% per year. The proposed plan to address the impact this increase will have to the city is included in the Memoranda of Understanding (MOU) between the city and BPOA. The plan provides for the city’s share of the premium to increase to $611.41 per month effective July 1, 2003. Subsequent increases will occur when rates change, typically January of each year. The city and sworn employees will share the rate increases to the full family Kaiser rate 70% city – 30% employee, until the city’s contribution is equal to that of the Kaiser plan employee plus one dependent. The city’s contribution will remain at this level for the term of the five-year MOUs beginning July 1, 2003 through June 30, 2008.

Staff recommends approval of the attached resolution in order to adopt the new city contribution level of $611.41 per month, provided for in the MOU document. 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. This resolution covers all sworn employees. The attached resolution, if adopted, will be recognized by CalPERS as the official document to formally adjust the employer health benefits contribution.

FISCAL IMPACT
Funds for 2003/04 and 2004/05 are included in the proposed 2003/05 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 (PUBLIC SAFETY)

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 Brentwood Police Officers’ Association.

NOW, THEREFORE BE IT RESOLVED that effective July 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 $611.41 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 June 10, 2003 by the following vote:

City Administration
City of Brentwood City Council
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