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Home My WebLink AboutAGENDA REPORT 2004 1103 CC REG ITEM 10FITEM _L0, F CITY OF MOORPARK, CALIFORNIA City Council Meeting of MOORPARK CITY COUNCIL ACTION: 11dQ . Qd�A .�4_ 5U5 AGENDA REPORT MV_ 2 -T V _ , dpoy -A xL_D BY: 50-_ TO. Honorable City Council FROM: Deborah S. Traffenstedt, ATCM /City Clerk DATE: October 26, 2004 (CC Meeting of 11/3/04) SUBJECT: Consider Resolution Fixing the Employer's Contribution Under the Public Employees' Medical and Hospital Act for Eligible Competitive Service and Non - Competitive Service /Management Employees and Annuitants and Amending Resolution No. 97 -1326, and Resolution Fixing the Employer's Contribution Under the Act for Active (Sitting) City Councilmembers BACKGROUND The City of Moorpark elected to participate in the California Public Employees' Retirement System (CalPERS) medical insurance program in 1997 and Resolution No. 97 -1326 was adopted, which elected participation and fixed the City's contribution for medical insurance premiums for employees and annuitants (retirees and survivors). Pursuant to the Memorandum of Agreement (MOA) with Service Employees International Union AFL - CIO, CLC Local 998 approved on July 21, 2004, the monthly amount the City pays for medical insurance will be revised effective January 1, 2005, and CalPERS requires a new City Council resolution to document the change. A second resolution is required to implement the recently approved City Council medical insurance benefit. Ordinance No. 307 was adopted on October 6, 2004, which amended Section 2.04.055 of Chapter 2.04, Title 2, of the Moorpark Municipal Code to add the following language to the end of Section 2.04.055: Effective January 1, 2005, all sitting councilmembers shall be entitled to the same health insurance and life insurance benefits afforded the city's Honorable City Council November 3, 2004, Regular Meeting Page 2 competitive service employees as such benefits exist on January 1, 2005, and as such may be amended from time to time for the city's competitive service employees. Ordinance No. 307 will go into effect on November 6, 2004, and insurance benefits are directed to be effective as of January 1, 2005. A draft resolution is attached that is required by Ca1PERS to allow the Council to enroll in the medical insurance program. DISCUSSION Both of the attached draft resolutions reference Section 22892 of the Government Code, which establishes the minimum employer contribution per calendar year for contracting agencies. For example, during calendar year 2005, the minimum contribution is $48.40 per month and in 2006, the minimum contribution will increase to $64.60 per month. For competitive service and management employees, the contribution will be the same for employees and annuitants. For City Councilmembers, the annuitant benefit is not included pursuant to Ordinance No. 307, which limited insurance benefits to sitting Councilmembers. Because the Government Code was amended in 2004 pertaining to the Public Employees' Medical and Hospital Care Act, includina revisions to sections pertaining to contracting agencies, and staff has not received final confirmation from CalPERS on implementing resolution language requirements, staff is recommending that the Council adopt the attached resolutions subject to final language approval by the City Manager. STAFF RECO14MENDATION Adopt Resolution No. 2004- and Resolution No. 2004 - subject to final language approval by the City Manager, Attachments: Draft Resolutions 900-1 c RESOLUTION NO. 2004- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA, FIXING THE EMPLOYER'S CONTRIBUTION UNDER THE PUBLIC EMPLOYEES' MEDICAL AND HOSPITAL CARE ACT FOR ELIGIBLE COMPETITIVE SERVICE AND NON - COMPETITIVE SERVICE /MANAGEMENT EMPLOYEES AND ANNUITANTS AND AMENDING RESOLUTION NO. 97 -1326 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 22892(b(1) of the Act; and WHEREAS, City of Moorpark is a local agency contracting under the Act for participation by City designated competitive service and non - competitive service /management members; and WHEREAS, City Council Resolution No. 97 -1326 initiated City participation under the Act with respect to competitive service and non - competitive /management members and fixed the City of Moorpark's contribution for employees and annuitants at different amounts; and WHEREAS, the City intends to revise the employer contribution amount for employees and annuitants to be consistent with Government Code Section 22892 et seq. and amend Resolution No. 97 -1326 relative to fixing the employer's contribution. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The employer's monthly contribution for each eligible employee or annuitant (retiree or survivor) shall be the amount specified in Government Code Section 22892 et seq., plus administrative fees and Contingency Reserve Fund assessments, so long as the eligible employee or annuitant is enrolled in a California Public Employees' Retirement System (CalPERS) medical insurance plan. SECTION 2. The City Council hereby appoints and directs the City Clerk to file with the Board of Administration of CalPERS a certified copy of this resolution, and appoints and directs the City Manager to perform on behalf of the City of Resolution No. 2004 - Page 2 Moorpark all functions required of said Public Agency under the Act and Regulations of the Board of Administration. SECTION 3. Revised coverage under the Act pursuant to this resolution shall be effective January 1, 2005, or as required by Section 22892(a) of the Government Code. SECTION 4. Resolution No. 97 -1326 is hereby amended to revise the employer's contribution for employees and annuitants effective January 1, 2005, or other effective date of revised coverage under the Act as required by Section 22892(a) of the Government Code. SECTION 5. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original resolutions. PASSED AND ADOPTED this 3rd day of November, 2004. Patrick Hunter Mayor ATTEST: Deborah S. Traffenstedt City Clerk RESOLUTION NO. 2004- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA, FIXING THE EMPLOYER'S CONTRIBUTION UNDER THE PUBLIC EMPLOYEE'S MEDICAL AND HOSPITAL CARE ACT FOR ACTIVE (SITTING) CITY COUNCILMEMBERS 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 22892(b(1) of the Act; and WHEREAS, City of Moorpark is a local agency contracting under the Act for participation by local miscellaneous members and there is no exclusion for elected official; and WHEREAS, the City Council by adoption of Ordinance No. 307 has determined that effective January 1, 2005, all sitting Councilmembers shall be entitled to the same health insurance benefits afforded the City's competitive service employees as such benefits exist on January 1, 2005, and as such may be amended from time to time for the City's competitive service employees; and WHEREAS, pursuant to Resolution No. 2004- the City Council fixed the Employer's Contribution Amount for the City's competitive service employees to be a monthly contribution as specified in Government Code Section 22892 et seq., plus administrative fees and Contingency Reserve Fund assessments, subject to enrollment in a California Public Employees' Retirement System (CalPERS) medical insurance plan. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1, The employer's monthly contribution for each active (sitting) City Councilmember shall be the amount specified in Government Code Section 22892 et seq., plus administrative fees and Contingency Reserve Fund assessments, so long as the eligible Councilmember is enrolled in a Ca1PERS medical insurance plan. SECTION 2. The City Council hereby appoints and directs the City Clerk to file with the Board of Administration of Resolution No. 2004 - Page 2 CalPERS a certified copy of this resolution, and directs the City Manager to perform on behalf of the City of Moorpark all functions required of said Public Agency under the Act and Regulations of the Board of Administration. SECTION 3. Coverage under the Act pursuant to this resolution shall be effective no earlier than January 1, 2005. SECTION 4. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original resolutions. PASSED AND ADOPTED this 3rd day of November, 2004. Patrick Hunter Mayor ATTEST Deborah S. Traffenstedt City Clerk 1) J�:3 -1 ..._