HomeMy WebLinkAbout4.02 Personnel System Revisions
CITY CLERK
File # DLIJ~[O]-ff][Q]
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: November 21,2006
SUBJECT: Revisions to the Personnel System
Report Prepared by: Julie Carter, Assistant to the City Manager
ATTACHMENTS: 1. Resolution Fixing Employer's Contribution Rate Under the
Public Employees' Medical and Hospital Care Act.
2. Resolution Fixing Employer's Contribution Rate Vesting
Requirement For Future Retirees Under the Public Employees'
Medical and Hospital Care Act.
3. Resolution Amending the Benefit Plan
RECOMMENDATION: /(z;J> 1. Adopt Resolutions.
FINANCIAL STATEMENT:
Sufficient funds have been included in the City's Fiscal Year 2006-
2007 budget to cover the cost associated with funding City provided
health and welfare benefits.
DESCRIPTION:
The City currently contracts with the California Public Employees' Retirement System (CaIPERS) for the
provision of health benefits as do a number of other public agencies. CalPERS allows each participating
agency to designate the amount to be contributed by the employer. The City is required by CalPERS to
contribute the same premium amount for current (active) employees as it does for retired employees.
During the Fiscal Year 2005-2006 health and welfare benefit discussions, City employees agreed to the
City Council's proposal to increase the City's current health contribution to a 50/50 split of the increase to
the Kaiser Family premiums starting with the 2006 calendar year. The 50/50 cost split agreement
continues for three fiscal years (through Fiscal Year 2007-2008).
Presently, the City contributes $967.29 per month per employee/retiree for medical insurance. Premium
amounts that exceed the City's maximum contribution are paid directly by the employee/retiree. Based on
the agreed 50/50 split of the increase to the Kaiser Family premiums the City will increase it's
contribution from $967.29 to $1,021.62 per month effective January 1,2007.
As required by CaIPERS, the City must adopt two separate CalPERS Resolutions fixing the employer's
contribution under the Public Employees' Medical and Hospital Care Act (PEMHCA). The attached
Resolutions (Attachment 1 and 2) increase the City's contribution from $967.29 per month to $1,021.62
for current (active) employees and current/future retirees. It is also necessary for the City to amend the
City's Benefit Plan (Attachment 3) establishing the maximum medical insurance contribution at $1,021.62
effective January 1,2007. Premium adjustments in future years will require the adoption of resolutions
based on the 50/50 City/Employee split formula and yet to be determined monthly premiums.
COPIES TO:
ITEM NO.
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The proposed increase is effective with the January 1, 2007 premium statements from CaIPERS.
Sufficient funds have been established by the adoption of the Fiscal Year 2006-2007 Budget to cover City
paid health and welfare benefits.
Staff recommends the City Council adopt the attached Resolutions.
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RESOLUTION NO. :xxx - 2006
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A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
* * * * * * * * *
FIXING THE EMPLOYER'S CONTRIBUTION UNDER THE
PUBLIC EMPLOYEES' MEDICAL AND HOSPITAL CARE ACT
WHEREAS, Government Code Section 22892(a) provides that a local agency contracting
under the Public Employees' Medical and Hospital Care Act shall fix the amount ofthe employer's
contribution at an amount not less than the amount required under Section 22893(1) ofthe Act; and
WHEREAS, the City of Dublin 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 cost of his/her enrollment, including the enrollment of
his/her family members, in a health benefit plan, up to a maximum of $1 ,021.62 dollars per month plus
administrative fees and Contingency Reserve Fund assessments.
BE IT FURTHER RESOLVED that the changes contained herein shall be effective January 1,
2007.
PASSED, APPROVED AND ADOPTED this 21st day of November, 2006.
AYES:
NOES:
ABSENT:
ABSTAIN:
Mayor
ATTEST:
City Clerk
Attachment 1
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RESOLUTION NO. :xxx - 2006
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A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
* * * * * * * * *
FIXING THE EMPLOYER'S CONTRIBUTION VESTING REQUIREMENT FOR
FUTURE RETIREES UNDER THE PUBLIC EMPLOYEES' MEDICAL
AND HOSPITAL CARE ACT
WHEREAS, 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 22893 (1) of the Act; and
WHEREAS, the City of Dublin is a local agency contracting under the Act.
NOW THEREFORE BE IT RESOLVED that the employer's contribution for each active and
retired employee first hired on or after April 1, 2004 shall be the amount necessary to pay the cost of
his/her enrollment, including the enrollment of his/her family members, in a health benefit plan, up to a
maximum of $1 ,021.62 dollars per month plus administrative fees and Contingency Reserve Fund
assessments.
BE IT FURTHER RESOLVED that the changes contained herein shall be effective January 1,
2007.
PASSED, APPROVED AND ADOPTED this 21 st day of November, 2006.
AYES:
NOES:
ABSENT:
ABSTAIN:
Mayor
ATTEST:
City Clerk
Attachment 2
RESOLUTION NO. XX- 2006
3C63
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
*********
AMENDING THE BENEFIT PLAN
WHEREAS, the Personnel System Rules requires the City Council to adopt a Benefit Plan; and
WHEREAS, the Benefit Plan prescribes the current benefits provided to employees by the City.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin hereby
amends Resolution 109-91 and subsequent amendments to include the following:
Section 2. Medical Insurance: All City employees who are members of the Public Employees Retirement
System (PERS) shall be eligible to select from plans administered by the Public Employees Medical and
Hospital Care Act.
Beginning with the January 1, 2007 premium, the City of Dublin will contribute a maximum of up
to $1,021.62 per month premium, exclusive of administrative charges, towards medical insurance.
If the cost of coverage exceeds the amount of the City contribution, the additional cost will be paid
by the employee through payroll deductions or at the employee's option to the extent allowed by
Section 4 of the Benefit Plan.
PASSED, APPROVED AND ADOPTED this 21 st day of November, 2006.
AYES:
NOES:
ABSENT:
ABSTAIN:
Mayor
ATTEST:
City Clerk
Attachment 3