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Home My WebLink AboutAgenda Bill 3B 10/05/2009~~ CITY OF PETALUMA, CALIFORNIA ~. ~ ~ ~, ®ct®ber 5, 2009 Agenda.Title: Meeting Date: RESOLUTION FIXING THE EMPLOYER'S CONTRIBUTION UNDER October 5, 2009 THE PUBLIC EMPLOYEES' MEDICAL AND HOSPITAL CARE ACT Meeting Time: 7:00 PM Categoryz ^ Presentation' ^ Appointments ~ Consent ^ Public Hearing ^ Unfinished Business ^ New Business Department: Director: Contact Person: Phone Number: City Manager John Brown ~P R ~b ins ~" •778-4343 Total Cost of Proposalor Proiect° N/A Name of Fund: Amount Budgeted: N/A Account Number: Current Fund Balance: .Recommendation: It is recommended that the City Council take the following action: .Approve the Resolution that will fix the City of Petaluma's employer's contribution to Ca1PERS for• health benefits for retired annuitants of the Petaluma Peace Officers' Association (Unit 6) at $90.00 per month effective January 1, 2010. 1. ^ First reading of Ordinance approved unanimously, or with unanimous vote to allow posting prior to second reading 2. ^ Firstxeading of Ordinance approved without unanimous vote: Ordinance•has-been published/posted prior to second reading; see Attachment 3. ^ Other action requiring special notice: Notice has been given, see Attachment Summary Statement: The California Public Employees' Retirement System (CaIPERS) requires the City to adopt a resolution when it wishes to fix. an employer contribution under the Public Employees' Medical... and Hospital Care Act (PEMHCA) that is different than the PEMHCA formula. In the case of the Petaluma Peace Officers' Association (PPOA) - Unit 6, the City of Petaluma and the PPOA have agreed that the fixed amount of the employer's contribution for retired annuitants effective January 1, 20.10 shall be $90.00 per month. Effective January 1, 2010 the PEMHCA formula;regtzires $89.25 per month. The agreed upon;fixed.arnount of $90.00 per month is greater than $89.25 per month. Therefore, the City must fix the amount of its moritHly contributions for Unit 6 annuitants by resolution. Attachments to Agenda Packet Item: 1. Resolution Fixing the Employer's Contribution under the Public Employees' Medical and Hospital Care Act. Reviewed by Finance Director: :Reviewed by City Attorney: A rov, d Mana er: ~ -~ ate: , ~~ Date: Date: 1 Rev. # Date Last Revised:' File: ~N CITY ®F PETAI,UlVIA, CALIF®1~NIA OCTOBER 5, 2009 AGENDA REPORT FOR ICES®I,IJ'I'ION FIXING'I'IIE EIVIPI.,O~'ER'S C®NT'RI~IJ'TI®N iJNDER T'IIE ElVIPI.®YEES' 1VIEDICAI., AND IIOSPITAI, CARE ACT' 1. RECOMMENDATION: Approve the Resolution. 2. BACKGROUND: The City contracts with CaIPERS under the PEMHCA for health benefits for active employees and retired annuitants. Legislation changed the minimum amount the City is required to contribute monthly for health premiums for both active employees and retired annuitants who are enrolled in Ca1PERS health plans. The law also changed the formula for determining the employer's contribution. Effective January 1, 2010, and for the 2010 calendar year, the PEMHCA minimum employer contribution for each active City employee is $105.00 per month. .Effective January 1, 2010, and for the 2010 calendar year, the PEMHCA minimum employer contribution for each PPOA annuitant is $89.25 per month (The City of Petaluma PPOA has been. in the PEMHCA program for 17 years multiplied by 5 percent = 85% tunes fhe monthly contribution~of $105.00 = $89.25). The City of Petaluma and the PPOA have an expired IVIOU but continue to work under the terms and conditions of the expired MOU pending negotiations .and a successor agreement. The City of Petaluma and the PPOA have negotiated the fixed amount of $90.00 per month, which is greater than the PEMHCA minimum formula amount of $89.25 per month. Therefore, Ca1PERS requires the City to fix the amount of its monthly contributions for PPOA annuitants by resolution. Last year and under the same. requirement, the City Council adopted Resolution No. 2008-210 effective November 17, 2008 which fixed the employer contribution for the PPOA retired annuitants in calendar year 2009 at $85.00 per month. CaIPERS requires an original resolution no later than November 9, 2009 if the City wishes to make the fixed amount effective January 1, 2010. 3. FINANCIAL IMPACTS: The Resolution fixing the employer's contribution for PPOA annuitants in 2010 does not impact the budget. The City budgets each fiscal year for its anticipated costs for active and retiree health benefits. The 2010 contribution for the retired annuitants of the PPOA was known at the time the budget was prepared and was included in the budgeted amount. Resolution No. 2009-XX N.C.S. of the City of Petaluma, California RESOLUTION FIXING THE EMPLOYER'S CONTRIBUTION UNDER THE PUBLIC EMPLOYEES' MEDICAL AND HOSPITAL CARE ACT WHEREAS, (1) Government Code Section 22892(a) 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 22892(b)(1) of the Act, and WHEREAS, (2) Government Code Section 22892(c) provides that a contracting agency may fix the amount of the employer's contribution for employees and the employer's contribution for annuitants at different amounts, provided that the monthly contribution for annuitants is annually increased to equal an amount not less than the number of years the contracting agency has been subject to this subdivision multiplied by 5 percent of the current monthly contribution for employees, until such time as the amounts are equal; and WHEREAS, (3) City of Petaluma, hereinafter referred to as Public Agency, is a local agency contracting under the Act for participation by members of the Petaluma Peace Officers' Association; and WHEREAS, (4) The City of Petaluma and the Petaluma Peace Officers' Association (PPOA) have agreed that the fixed amount of the employer's contribution for retired •annuitants effective January 1, 2010 shall be $90.00 per month; and WHEREAS, (5) The. Public Employees' Medical and Hospital Care Act (PEMHCA) formula requires a minimum contribution of $89.25 per month (The City of Petaluma PPOA has been in the program for 17 years multiplied by 5 percent = 85% times the monthly contribution of $105.00 = $89.25); and WHEREAS, (6) The agreed upon fixed amount of $90.00 per month is greater than $89.25 per month; NOW THEREFORE, BE IT RESOLVED, (a) That the employer's contribution for each employee 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 up to a maximum of $105.00 per month effective January 1, 2010; and be it further RESOLVED, (b) That the employer's contribution for each 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 up to a maximum of $90.00 per month in calendar year 2010; and be it further RESOLVED, (c)' That the City of Petaluma has fully~complied with any and all applicable provisions of Government Code Section 7507 in electing the benefits set forth above. 3 Adopfed at a regular meeting of the Petaluma City Council at Petaluma, California this 5th day of October 2009. Signed: (President, Chairman, etc.) Attest: . (Secretary' or appropriate officer)