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19 82
/ii � 111
DATE:
TO:
FROM:
SUBJECT
STAFF REPORT CITY CLERK
CITY COUNCIL File # 720 - 40/720 -60
November 6, 2012
Honorable Mayor and City Councilmembers
Joni Pattillo City Manager""'
Revisions to Personnel System
Prepared by Angelica T. Smith, Administrative Analyst 11
EXECUTIVE SUMMARY:
City Staff was notified by California Public Employees Retirement System (CaIPERS) that the
City's medical contribution Resolutions adopted on October 2, 2012 did not include mandatory
language pertaining to Government Code Section 7507. This Staff Report adopts the City
Resolutions in the exact format as mandated by CaIPERS; no other changes to the previously
adopted Resolutions have been made.
FINANCIAL IMPACT:
Sufficient funds have been established by the adoption of the Fiscal Year 2012 -2013 Budget to
cover City paid health and welfare benefits.
RECOMMENDATION:
Staff recommends the City Council adopt the following Resolutions: 1) Resolution Fixing the
Employer's Contribution under the Public Employees' Medical and Hospital Care Act, 2)
Resolution Fixing Employer's Contribution Under Section 22893 of the Public Employees'
Medical and Hospital Care Act, and 3) Resolution Rescinding Resolution Nos. 169 -12 and
170 -12.
J
Submitted By
Human Resources Director
DESCRIPTION:
Reviewed By
Assistant City Manager
At its meeting of October 2, 2012 the Dublin City Council adopted Resolutions No. 169 -12 and
170 -12 which establishes monthly health premium contribution amounts for active City
employees, retired and vested retired former employees beginning in January 2013 (Attachment
1). Subsequently, City Staff was notified by California Public Employees Retirement System
Page 1 of 2 ITEM NO. 4.4
(CaIPERS) that the City's Resolutions did not include mandatory language pertaining to
Government Code Section 7507.
City Staff and the City Attorney's Office have reviewed Government Code Section 7507 and
found that this Section does not directly apply to insurance adjustments. However, CaIPERS is
holding a strict adherence to their standardized form and is unwilling to accept the City's
previous Resolutions without reference to Government Code Section 7507.
The attached Resolutions (Attachment 2 and Attachment 3) are in the exact format as mandated
by CaIPERS. No other changes to the previously adopted City Resolutions have been made.
Staff recommends that Council adopt the attached Resolutions and rescind Resolution No. 169-
12 and Resolution No. 170 -12 (Attachment 4).
NOTICING REQUIREMENTS /PUBLIC OUTREACH:
Not Applicable
ATTACHMENTS: 1. October 2, 2012 Staff Report
2. Resolution Fixing the Employer's Contribution Under the Public
Employees' Medical and Hospital Care Act.
3. Resolution Fixing Employer's Contribution Under Section 22893 of
the Public Employees' Medical and Hospital Care Act.
4. Resolution Rescinding Resolution Resolutions No. 169 -12 and
170 -12.
Page 2 of 2
or
19 82
/ii � 111
DATE:
TO:
FROM:
SUBJECT
STAFF REPORT
CITY COUNCIL
October 2, 2012
Honorable Mayor and City Councilmembers
Joni Pattillo City Manager""'
Revisions to the Personnel System
Prepared by Angelica Smith, Administrative Analyst 11
EXECUTIVE SUMMARY:
CITY CLERK
File #700 -40
This Staff Report identifies proposed changes to the City's current Personnel System. The
proposed modifications are based on the need to amend the City's medical contribution rate for
the 2013 calendar year and to reflect the adoption of the City's retirement contract with the
Board of Administration of the California Public Employees' Retirement System (CaIPERS)
implementing Employee Cost Sharing of Additional Benefits as defined in Section 20516 of the
California Public Employees Retirement Law (PERL).
The proposed medical contribution rate increase is effective with the January 1, 2013 premium
statements from CaIPERS. Sufficient funds have been established by the adoption of the Fiscal
Year 2012 -2013 Budget to cover City paid health and welfare benefits.
RECOMMENDATION:
Staff recommends the City Council adopt the following Resolutions: Resolution Fixing
Employer's Contribution Rate Under the Public Employees' Medical and Hospital Care Act;
Resolution Fixing Employer's Contribution Rate Vesting Requirement for Future Retirees under
the Public Employees' Medical and Hospital Care Act; and, Resolution Amending the Benefit
Plan.
J
U Submitted By
Human Resources Director
DESCRIPTION:
_0�Iccwm�
0d Revi wed y
Parks & Com unity
Services Director
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.
CaIPERS allows each participating agency to designate the amount to be contributed by the
employer. The City is required by CaIPERS to contribute the same premium amount for current
(active) employees as it does for retired employees. At the start of the current benefit plan
period, the City contributed a maximum amount toward each employee's medical premium that
Page 1 of 2 ITEM NO. 4.2
was equal to the full - family rate for Kaiser. In each subsequent year any increase to the full -
family rate for Kaiser was split 50/50 between the City and employees. During Fiscal Year
2012 -2013, the City will continue the current health contribution program with a 50/50 split with
employees of the increase to the Kaiser Family premium.
Presently, the City contributes a maximum of $1,254.68 per month per employee /retiree for
medical insurance. Premium amounts that exceed the City's maximum contribution are paid
directly by the employee /retiree. If an employee's /retiree's actual cost of coverage is less than
the maximum contribution, the employee does not receive a cash -out of the difference. Based
on the agreed 50/50 split of the increase to the Kaiser Family premium the City will increase its
contribution from $1,254.68 to $1,330.51 per month effective January 1, 2013.
As required by CaIPERS, the City must adopt two separate CaIPERS Resolutions fixing the
employer's contribution under the Public Employees' Medical and Hospital Care Act (PEMHCA).
The attached Resolution (Attachment 1) increase the City's contribution from $1,254.68 per
month to $1,330.51 for current (active) employees. Attachment 2 is the contribution rate for
those employees who were hired after April 1, 2004 and eligible for the City's plan under vesting
requirements for future retirees. This rate is set by the State (State Annuitant 100/90 formula),
and in 2013 the maximum amount is $1,515.00 per month and paid to future retirees based on a
vesting schedule. It is also necessary for the City to amend the City's Benefit Plan (Attachment
3) establishing the maximum medical insurance contribution at $1,330.51 effective January 1,
2013. Premium adjustments in future years will require the adoption of Resolutions based on
the 50/50 split formula or other method.
On September 18, 2012, the City Council adopted an Amendment to the Contract with the
Board of Administration of California Public Employees' Retirement System (CaIPERS) to
provide Employee Cost Sharing of Additional Retirement Benefits. The attached Resolution
(Attachment 3) adopts changes to the City's Benefit Plan to incorporate the City's CaIPERS
contract amendment and establishes the City's 2013 health care contribution rate.
NOTICING REQUIREMENTS /PUBLIC OUTREACH:
Not Applicable
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
Page 2 of 2
RESOLUTION NO. 169 -12
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 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
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 $1,330.51 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, 2013.
votes:
PASSED, APPROVED AND ADOPTED this 2nd day of October, 2012, by the following
AYES: Councilmembers Biddle, Hart, Hildenbrand, Swalwell, and Mayor Sbranti
NOES: None
ABSENT: None
ABSTAIN: None
Mayor
ATTEST:
City Clerk
Reso No. 169 -12, Adopted 10 -2 -12, Item 4.2 Page 1 of 1
RESOLUTION NO. 170 —12
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(x) 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 $1,515.00 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, 2013.
votes:
PASSED, APPROVED AND ADOPTED this 2"d day of October, 2012, by the following
AYES: Councilmembers Biddle, Hart, Hildenbrand, Swalwell, and Mayor Sbranti
NOES: None
ABSENT: None
ABSTAIN: None
Mayor
ATTEST:
City Clerk
Reso No. 170 -12, Adopted 10 -2 -12, Item 4,2 Page 1 of 1
RESOLUTION NO. XXX — 12
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
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) The City of Dublin is a local agency contracting under the Act; now,
therefore be it
RESOLVED, (a) 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 $1330.51 per month, plus
administrative fees and Contingency Reserve Fund Assessments;
and be it further
RESOLVED, (b) That City of Dublin has fully complied with any and all applicable
provisions of Government Code Section 7507 in electing the
benefits set forth above.
Adopted at a regular meeting of the City of Dublin City Council at
Dublin, California, this 6th day of November, 2012.
AYES-
NOES-
ABSENT-
ABSTAIN-
Signed-
Mayor
Attest:
City Clerk
ATTACHMENT 1
RESOLUTION NO. XXX —12
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
RESOLUTION FIXING THE EMPLOYER'S CONTRIBUTION UNDER SECTION 22893
OF 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 22893(a)(1) of the Act, and
WHEREAS, (2) The City of Dublin is a local agency contracting under the Act; now,
therefore be it
RESOLVED, (a) That the employer's contribution for each 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
$1,515.00 dollars per month plus Administrative fees and Contingency
Reserve Fund, but not more than 100 percent of the premium applicable
to him or her, nor less than the 100 percent of the weighted average of the
health benefits plan premiums for employees or annuitants enrolled for
self alone plus 90 percent of the weighted average of the additional
premiums required for enrollment of family members in the four health
benefits plans that have the largest number of enrollments; and be it
further
RESOLVED, (b) That City of Dublin has fully complied with any and all applicable
provisions of Government Code Section 7507 in electing the benefits set
forth above.
Adopted at a regular meeting of the City of Dublin City Council at Dublin,
California this 6t" day of November, 2012.
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTACHEMENT 2
Signed:
Attest:
Mayor
City Clerk
ATTACHMENT
RESOLUTION NO. XXX - 12
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
REPEALING RESOLUTION NO. 169 -12 ENTITLED "FIXING THE
EMPLOYER'S CONTRIBUTION UNDER THE PUBLIC EMPLOYEES' MEDICAL
AND HOSPITAL CARE ACT" AND RESOLUTION NO. 170 -12 ENTITLED
"FIXING THE EMPLOYER'S CONTRIBUTION VESTING REQUIREMENT FOR
FUTURE RETIREES UNDER THE PUBLIC EMPLOYEE'S MEDICAL
AND HOSPITAL CARE ACT, ADOPTED OCTOBER 2, 2012.
BE IT RESOLVED that the City Council of the City of Dublin does hereby rescind the
above - entitled resolution(s).
PASSED, APPROVED AND ADOPTED this 6t" day of November, 2012, by the
following votes-
AYES-
NOES-
ABSENT-
ABSTAIN-
ATTEST-
City Clerk
Mayor
ATTACHMENT 3