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Current Council Agenda and Past Meeting Information

CITY COUNCIL AGENDA ITEM NO. 17

Meeting Date: October 9, 2007

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 a Resolution to adjust the employer health benefits contribution for sworn and non-sworn staff as provided in 2003/04 – 2007/08 bargaining unit labor agreements. Funding for 2007/08 and 2008/09 is included in the adopted 2007/08 – 2008/09 Operating Budget.

PREVIOUS ACTION
The City Council approved Resolution 2006-263 and Resolution 2006-264 on October 24, 2006, adjusting the employer health benefits contribution for all bargaining units and employee groups effective January 1, 2007. The City Council approved Resolution 2007-150 on June 26, 2007 adopting the 2007/08 - 2008/09 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 resolution in order to adopt the new city contribution levels of $972.24 per month for non-sworn staff and $996.27 per month for sworn staff, as provided for in the MOU documents. Adopting the recommended resolution 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. The resolution covers all benefited employees. If adopted, CalPERS will recognize the attached resolution as the official document to formally adjust the employer health benefits contributions.

FISCAL IMPACT
Funds for 2007/08 and 2008/09 are included in the adopted 2007/08 – 2008/09 Operating Budget.

Attachments
Resolution

RESOLUTION NO.

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

WHEREAS, Government Code Section 22892(a) provides that a local agency contracting under the California 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) of the Act, and

WHEREAS, City of Brentwood is a local agency contracting under the Act; now, therefore be it

RESOLVED That 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 family members, in a health benefits plan up to a maximum of:
Contribution
Code Bargaining Unit Per Month

001 EES ASSOC MGT MID-MGT CONF $972.24
002 POLICE OFFICERS ASSN $996.27

Plus administrative fees and Contingency Fund assessments.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting held on October 9, 2007 by the following vote:

 

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