HomeMy WebLinkAbout4.2 Personnel System Revised
STAFF REPORT CITY CLERK
File #720-60
CITY COUNCIL
DATE:October 1, 2013
TO:
Honorable Mayor and City Councilmembers
FROM:
Joni Pattillo, City Manager
SUBJECT:
Revisions to the Personnel System
Prepared by Angelica Smith, Administrative Analyst II
EXECUTIVE SUMMARY:
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 2014 calendar year, to reflect the adoption of the City’s retirement contract with the Board of
Administration of the California Public Employees’ Retirement System (CalPERS) implementing
Employee Cost Sharing of Additional Benefits as defined in Section 20516 of the California
Public Employees Retirement Law (PERL), and to authorize the City Manager to renew contract
services with third party benefit providers (Wageworks, Vision Care Plan, and Delta Dental of
California).
FINANCIAL IMPACT:
CalPERS medical contribution rate increase are set to increase effective with the January 1,
2014 premium statements from CalPERS. Sufficient funds have been appropriated in the Fiscal
Year 2013-2014 Budget to cover City paid health and welfare benefits.
RECOMMENDATION:
Resolution
Staff recommends the City Council adopt the following Resolutions: (1) 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
Resolution
the Public Employees’ Medical and Hospital Care Act; (3) Amending the Benefit
Resolution
Plan; (4) Authorizing the City Manager to Execute Contract Renewal and
Amendment with Wageworks To Provide Third Party Administrator Services for Flexible
Resolution
Spending Account Benefit, (5) Authorizing the City Manager to Execute Contract
Resolution
Renewal and Amendment with Vision Services Plan, and (6) Authorizing the City
Manager to Execute Contract Renewal and Amendment with Delta Dental of California.
Submitted By Reviewed By
Human Resources Director Assistant City Manager
ITEM NO. 4.2
Page 1 of 3
DESCRIPTION:
The City currently contracts with the California Public Employees’ Retirement System
(CalPERS) for the provision of health benefits. 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. At the start of the current benefit plan period, the City contributed a maximum
amount toward each employee’s medical premium that 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 2013-2014, 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 $1,330.51 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 the employees’/retirees’ 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 $1,330.51 to $1,426.83 per month effective January 1, 2014.
As required by CalPERS, 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 Resolution (Attachment 1) increases the City’s contribution from $1,330.51 per
month to $1,426.83 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 the maximum amount for 2014 is $1,559.00 per month and is paid to future retirees based
on a vesting schedule based on CalPERS years of service. It is also necessary for the City to
amend the City’s Benefit Plan (Attachment 3) establishing the maximum medical insurance
contribution at $1,426.83 effective January 1, 2014. Premium adjustments in future years will
require the adoption of similar Resolutions based on the 50/50 split formula or other method.
The City currently provides health and welfare benefit through several third party contracts that
require renewal ever few years. Additionally, when parts of the health care law take effect in
2014 these third party vendor are making necessary updates to their contracts to account for
change in dependent children to age 26 and various nomenclature codes for vision/dental
procedures. The attached Resolutions (Attachment 4, 5 and 6) authorize the City Manager to
execute a renewal contract with each of the City’s ancillary health and welfare vendors.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
Not Applicable
ATTACHMENTS:
1.Resolution Fixing The Employer’s Contribution Under The Public
Employees’ Medical and Hospital Care Act
2. Resolution Fixing The Employer’s Contribution Rate Under Section
22893 Of The Public Employees’ Medical and Hospital Care Act
3. Resolution Amending the Benefit Plan
4. Resolution Authorizing City Manager to Execute Contract Renewal
with Wageworks to Provide Third Party Administrator Services for
Flexible Spending Account Benefit
Page 2 of 3
5. Resolution Authorizing City Manager to Execute Contract Renewal
and Amendment with Vision Service Plan to Provide a Group Vision
Care Plan for Eligible City Employees
6. Resolution Authorizing City Manager to Execute Contract Renewal
and Amendment with Delta Dental of California
Page 3 of 3
RESOLUTION NO. XXX – 13
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 $1,426.83per 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
st
Dublin, California, this 1 day of October, 2013.
AYES:
NOES:
ABSENT:
ABSTAIN:
Signed: _________________________________
Mayor
Attest: _________________________________
City Clerk
ATTACHMENT 1
RESOLUTION NO. XXX –13
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
$1,559.00dollars 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) ThatCity 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,
st
California 1 day of October, 2013.
AYES:
NOES:
ABSENT:
ABSTAIN:
Signed: _________________________________
Mayor
Attest: _________________________________
City Clerk
ATTACHMENT 2
RESOLUTION NO. XXX –13
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 does
hereby amend Resolution 109-91 and subsequent amendments to include the following:
Section 2. Medical Insurance: All City employees who are members of the California Public
Employees Retirement System (CalPERS) shall be eligible to select from plans administered
by the Public Employees Medical and Hospital Care Act (PEMHCA).
Beginning with the January 1, 2014 premium, the City of Dublin will contribute a maximum of
up to $1,426.83 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.
st
PASSED, APPROVED AND ADOPTED
this 1 day of October, 2013, by the following
vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
________________________________
Mayor
ATTEST
:
_______________________________________
City Clerk
ATTACHMENT 3
RESOLUTION NO. XX - 13
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
* * * * * * * * * * *
AUTHORIZING CITY MANAGER TO EXECUTE CONTRACT RENEWAL WITH
WAGEWORKS TO PROVIDE THIRD PARTY ADMINISTRATOR SERVICES FOR FLEXIBLE
SPENDING ACCOUNT BENEFIT
WHEREAS,
the City of Dublin desires to provide a Flexible Spending Account Benefit for
eligible City employees; and
WHEREAS,
the City of Dublin has determined the continued need to contract with a third
party administrator for the administrator services of a Flexible Spending Account.
NOW, THEREFORE, BE IT RESOLVED
that the City Council of the City of Dublin
hereby authorizes the City Manager to execute a contract renewal agreement with WageWorks
for Third Party Administrator Services.
st
PASSED, APPROVED AND ADOPTED
this 1 day of October, 2013, by the following
vote:
AYES
:
NOES
:
ABSENT
:
ABSTAIN
:
______________________________
Mayor
ATTEST
:
_________________________________
City Clerk
ATTACHMENT 4
RESOLUTION NO. XX - 13
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
* * * * * * * * * * *
AUTHORIZING CITY MANAGER TO EXECUTE CONTRACT RENEWAL AND AMENDMENT
WITH VISION SERVICE PLAN TO PROVIDE A GROUP VISION CARE PLAN FOR ELIGIBLE
CITY EMPLOYEES
WHEREAS,
the City of Dublin desires to provide a Group Vision Plan for eligible City
employees; and
WHEREAS,
the City of Dublin has entered into an agreement with Vision Services Plan to
provide a Group Vision Care Plan to eligible City employees.
NOW, THEREFORE, BE IT RESOLVED
that the City Council of the City of Dublin
hereby authorizes the City Manager to execute the contract renewal and amendment to the
agreement with Vision Services Plan for a Group Vision Care Plan.
st
PASSED, APPROVED AND ADOPTED
this 1 day of October, 2013, by the following
vote:
AYES
:
NOES
:
ABSENT
:
ABSTAIN
:
______________________________
Mayor
ATTEST
:
_________________________________
City Clerk
ATTACHMENT 5
RESOLUTION NO. XX - 13
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
* * * * * * * * * * *
AUTHORIZING CITY MANAGER TO EXECUTE CONTRACT RENEWAL AND AMENDMENT
WITH DELTA DENTAL OF CALIFORNIA
WHEREAS
, the City of Dublin has entered into an agreement with Delta Dental of
California to provide dental insurance to eligible City employees; and
WHEREAS
, the existing contract requires amending.
NOW, THEREFORE, BE IT RESOLVED
that the City Council of the City of Dublin
hereby authorizes the City Manager to execute the contract renewal and amendment to the
agreement with Delta Dental of California.
st
PASSED, APPROVED AND ADOPTED
this 1 day of October, 2013, by the following
vote:
AYES
:
NOES
:
ABSENT
:
ABSTAIN
:
______________________________________
Mayor
ATTEST
:
_______________________________________
City Clerk
ATTACHMENT 6