HomeMy WebLinkAboutStaff Report 3.B 11/07/2005CITY OF PETALUNIA, CALIFORNIA
AGENDA BILL
Agenda Title: RESOLUTION AMENDING RESOLUTION 94-
208 N.C.S. REGARDING CONTINUATION OF HEALTH
BENEFITS FOR COUNCIL MEMBERS WHO LEAVE OFFICE
EITHER UPON RETIREMENT OR NON RE-ELECTION
November 7, 2005
Meeting Date: November 7, 2005
Meeting Time: ® 3:00 PM
❑ 7:00 PM
Category (check one): ® Consent Calendar ❑ Public Hearing ❑ New Business
❑ Unfinished Business ❑ Presentation
Department: Director: Contact Person: Phone Number:
Administrative Services Steven Carmichael Pamala Robbins, 778-4343
Division ,F1� an ger
Cost of Proposal: N/A `� Account Number: N/A
Amount Budgeted: N/A
Name of Fund: N/A
Attachments to Agenda Packet Item:
1. Resolution amending Resolution 94-208 N.C.S. regarding continuation of health benefits for
Council Members who leave office either upon retirement or non re-election.
2. Resolution 94-208 N.C.S.
Summary Statement:
It is recommended that existing Resolution 94-208 N.C.S., entitled "Resolution Providing Continued
Health Benefits For Council Members Who Leave Office Either Upon Retirement Or Non Re -Election" be
amended to accurately reflect current law. The law has changed since the adoption of Resolution 94-208
N.C.S. New law provides that Council members are only entitled to receive health benefits through the City
if they pay the full costs or if retired into CalPERS within 120 days of their separation from the Council,
and receive a retirement allowance from CalPERS.
Recommended Citv Council Action/Suggested Motion:
Approval of Resolution.
Reviewed by Admin. Svcs. Dir:
Date: /
L /VtW/M/
Todav's Date:
Reviewed by City Attornev:
R11aae
Revision # vised:
Approve(
File Code:
CITY OF PETALUMA, CALIFORNIA
NOVEMBER 7, 2005
AGENDA REPORT
FOR
RESOLUTION AMENDING RESOLUTION 94-208 N.C.S. REGARDING CONTINUATION OF
HEALTH BENEFITS FOR COUNCIL MEMBERS WHO LEAVE OFFICE EITHER UPON
RETIREMENT OR NON -ELECTION
1. EXECUTIVE SUMMARY: It is recommended that existing Resolution 94-208 N.C.S., entitled "Resolution
Providing Continued Health Benefits for Council Members Who Leave Office Either upon Retirement
or Non Re -Election," be amended to accurately reflect current law. The law has changed since the
adoption of Resolution 94-208 N.C.S. New law provides that Council Members are only entitled to
receive health benefits through the City if they pay the full costs or if retired into CalPERS within 120
days of their separation from the Council, and receive a retirement allowance from CalPERS.
2. BACKGROUND: In the 1990's, the City, along with other cities in California, adopted various
Resolutions relating to health benefits for Council Members. Resolution 94-208 N.C.S. was the last
Resolution adopted on Council Members' health benefits. It is reconnnended that it be amended to
reflect current law.
Since all current Council Members were elected after January 1, 1995, the provisions of Government
Code § 53201(c) apply to them, i.e., when the Council Members separate from the Council, they are
entitled to receive health benefits through the City only if they pay the full costs of such benefits, with
the following exception: if a Council Member retires into CalPERS within 120 days of his/her
separation from the Council, receives a retirement allowance from CalPERS, and participates in a
CalPERS medical plan, the Council Member is entitled to receive a monthly contribution for health
benefits from the City, which is currently set at $100/month.
The City provides health benefits through CalPERS, and therefore the City is subject to CalPERS and
the Public Employees' Medical and Hospital Care Act ("PEMHCA").
3. ALTERNATIVES:
Do not adopt Resolution.
4. FINANCIAL IMPACTS:
N/A
5. RECOMMENDATION:
Approval of the Resolution amending Resolution 94-208 N.C.S. regarding continuation of health
benefits for Council Members who leave office either upon retirement or non re-election.
M
Resolution No. 2005 -XX N.C.S.
of the City of Petaluma, California
RESOLUTION AMENDING RESOLUTION 94-208 N.C.S. REGARDING
CONTINUATION OF HEALTH BENEFITS FOR COUNCIL MEMBERS WHO LEAVE
OFFICE EITHER UPON RETIREMENT OR NON RE-ELECTION
WHEREAS, the City Council adopted Resolution 94-208 N.C.S. on August 1, 1994 to
provide Council Members who have retired or were not re-elected and who meet certain
eligibility requirements with continuation of health benefits; and,
WHEREAS, in 1995, State law was passed which clarifies that Council Members of
charter cities who are elected to a term of office that begins on or after January 1, 1995 are
prohibited from receiving health benefits unless the recipient participates on a self -pay basis;
and,
WHEREAS, CaIPERS has rendered an opinion that this prohibition does not apply to
health benefits governed by the Public Employees' Medical and Hospital Care Act
("PEMHCA").
NOW, THEREFORE, BE IT RESOLVED that Council Members' right to
continuation of health benefits after they leave office either upon retirement or non re-election is
as follows: Council Members who are elected to a term of office that begins on or after January
1, 1995 shall not receive City -paid health benefits upon their retirement or non re-election but
may participate in the City's health plan only if they pay the full cost of such benefits, with the
following exception: If the retired Council Member meets the Ca1PERS definition of
"annuitant" (i.e. retires into Ca1PERS within 120 days of separation from the City Council and
receives a retirement allowance from CalPERS), and is enrolled in a Ca1PERS health plan
through the City, the Council Member shall be entitled to receive a City -paid contribution toward
premium costs for such retiree health benefits in the same amount as the City pays other retired
City employees in accordance with PEMHCA.
f _solution No. 94-208
of the City of Petaluma. California
RESOLUTION PROVIDING CONTINUED HEALTH BENEFITS FOR
COUNCIL MEMBERS WHO LEAVE OFFICE a
EITHER UPON RETIREMENT OR NON RE-ELECTION
WHEREAS, City Council members are provided during
their terms of office the opportunity to participate in the
City of Petaluma's basic medical plan coverage for spouse
and dependents;
WHEREAS, Council members give to the City many
uncompensated hours;
WHEREAS, many cities throughout the State of
California offer continued coverage to their Council members
upon retirement or non re-election to office;
THEREFORE, BE IT RESOLVED that at the Council
member's option, exercised in writing within 30 days of
departure from office, the City will cover costs of medical
coverage benefits after retirement or non re-election for
the Councilmember as follows:
1. Monthly payments equivalent to the designated
premium of Non Represented Employees under
the PERS Medical and Health Care Act for City
Council members who
a. Meet the Retirement Criteria established
by PERS; and
b. Have reached age 50 years; and
c. Retire or is not re-elected to office;
and
2) In the event a Council member leaves office
or is not re-elected and meets the years of
service required under 1 (a) but has not met
the conditions of paragraph 1(b) above, the
City will pay an amount equal to the amount
in paragraph 1 to the former Council member.
It is the responsibility of the former
Council member to notify the City in writing
upon reaching age 50.
3) In the event a Council member is eligible to
retire under paragraph 1 above and has other
health insurance benefits, the retired
Council member may elect not to continue City
coverage but instead the City will provide an
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amount not to exceed the amount set forth in
paragraph 1 above.
4) The benefits provided in this resolution
insofar as they may be applicable, shall be
effective upon adoption of this resolution.
BE IT FURTHER RESOLVED that the City Manager is
authorized and directed to be responsible for the
appropriate administration of this resolution and to provide
the City Council periodic reports of costs incurred by the
City for the benefits provided hereunder.
Under the power and authority conferred upon this Council by the Charter of said City.
REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the Approved as to
Council of the City of Petaluma ata (Regular)XQ"ffial ) meeting form
on the .5...... .......... . day of_..—...i.11$S.ISY'_"___._..._.._._......, 19.4.._., by the��
following vote:
City Atto ney
AYES -Read, Hamilton, Shea, Vice Mayor Sobel, Mayor Hilligoss
NOES:None
ABSENT:Pa kerson, B
if�>
ATTEST: ......... _.._.......�..1=���2�.�.�.1...._�._......---
ity Clerk
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