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Current Council Agenda and Past Meeting Information

 

CITY COUNCIL AGENDA ITEM NO. 6

Meeting Date: October 24, 2006

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

Prepared by: Patti Standley, Human Resources Manager

Submitted by: Karen L. Chew, Assistant City Manager

RECOMMENDATION
Approve two Resolutions to adjust the employer health benefits contribution for public safety and non-public safety employees as provided in 2003/04 – 2007/08 bargaining unit labor agreements. Funding for 2006/07 is included in the adopted 2005/06 – 2006/07 Operating Budget and funding for 2007/08 will be included in the proposed 2007/08 Operating Budget.

PREVIOUS ACTION
The City Council approved Resolution 2006-31 and Resolution 2006-32 on February 14, 2006, adjusting the employer health benefits contribution for all bargaining units and employee groups effective January 1, 2006. The City Council approved Resolution 2005-143 on June 14, 2005 adopting the 2005/06 - 2006/07 Operating Budget.

BACKGROUND
As provided in the adopted Memoranda of Understanding (MOU), the City and bargaining units signed agreements that include a plan to address the impact of premium increases. The plan provides for the city’s share of the premium to increase when rates change, typically January of each year. The city and sworn employees will share the rate increases to the full family Kaiser rate as defined by applicable MOU, 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 resolutions in order to adopt the new city contribution levels of $900.35 per month for non-sworn staff and $924.38 per month for sworn staff, as 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. These resolutions cover all benefited employees. If adopted, CalPERS will recognize the attached resolutions as the official documents to formally adjust the employer health benefits contributions.

FISCAL IMPACT
Funds for 2006/07 are included in the adopted 2005/06 – 2006/07 Operating Budget. Funding for 2007/08 will be included in the proposed 2007/08 Operating Budget.

Attachments
Resolutions (2)

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 (NON 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 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, 2007, the employer’s contribution for each non-public safety 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 $900.35 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 October 24, 2006 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 (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 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, 2007, the employer’s contribution for each public safety 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 $924.38 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 October 24, 2006 by the following vote:
 

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