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Home My Public Portal About14-087RESOLUTION NO. 14-087 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARSON, CALIFORNIA, ESTABLISHING THE CITY OF CARSON'S VESTING CONTRIBUTION UNDER SECTION 221893.1 OF THE PUBLIC EMPLOYEES' MEDICAL AND HOSPITAL CARE ACT (PEMHCA) WHEREAS., (1) Government Code 22893.1 provides that the City of Carson contracting under the Public Employees' Medical and Hospital Care Act shall establish a post retirement vesting requirement to employees who retire for service, and WHEREAS, (2) The City of Carson certifies unrepresented employees ( At -Will Exempt, Elected Officials, City Council, Unclassified -Non Represented) are not represented by a bargaining unit and there is no applicable memorandum of understanding, and t� WHEREAS, (3) The City of Carson certifies are, certain employees ( Supervisors Association, Assoc. of MGT Employees, AFSCME 809 Council 36/Class, Confidential Employees, Professional Association, Unclassified AFSCME Represented) are represented by a bargaining unit and subject to a memorandum of understanding, and WHEREAS, (4) The contracting agency shall provide to the board in the manner prescribed by the board a notification for the agreement established pursuant to this section and any additional information necessary to implement this section; now, therefore be it RESOLVED, (a) That employees hired on or after January 1, 2014 shall be subject to the requirements defined in this vesting resolution; and be it further RESOLVED, (b) The contribution for active employees cannot be less than what is defined in Section 22892(b); and be it further RESOLVED, (c) That the employer's contribution for each annuitant subject to this provision shall be the amount necessary to pay the cost of his/her enrollment, including the enrollment of family members, in a health benefits plan up to a maximum of - Code Bargaining Unit 001 SUPERVISORS ASSOCIATION 002 ASSOC. OF MGT EMPLOYEES 001) AFSCME, 809, COUNCIL 36/CLASSIFIED 004 AT -WILL EXEMPT 005 ELECTED OFFICIALS 006 CONFIDENTIAL EMPLOYEES 007 CITY COUNCIL 008 PROFESSIONAL ASSOCIATION 009 UNCLASSIFIED-AFSCME-REPRESENTED 010 UNCLASSIFIED -NON -REPRESENTED Contribution Per Month $1,542.63 $1,542.63 $1,542.63 $1,542.63 $1,542.63 $1,542.63 $1,542.63 $1,542.63 $122.00 $122.00 Plus administrative fees and Contingency Fund Assessments; and be it further Resolution No. 14-087 September 2, 2014 Page 2 C� RESOLVED, (d) Employer contributions for post-retirement health benefits shall not be paid to annuitants with less than 5 years of credited service with the City of Carson. The percentage of the employer's contribution payable for post-retirement health �enefits for each annuitant shall be based on the annuitant's completed years of credited service with the City of Carson: Credited Years of Service Percentage of Employer Contribution 0-4.99 years 0% 5 vears 50% 6 vears 60% 7 years 70% 8 years 800/0' 9 years 90% 10 years 100% and be it further RESOLVED, (e) In order to receive the employer's contribution payable for post- retirement health benefits, annuitants who retire for disability must meet the credited years of service requirement set forth in RESOLVED (d); and be it further RESOLVED, (f) That the City of Carson has fully complied with any and all applicable provisions of Government Code Section 7507 in electing the benefits set forth above; and be it further RESOLVED, (g) That coverage under the Act be effective on January 1, 2015. PASSED, APPROVED and ADOPTED this 2 "d day of September, 2014, Mayor Jim Dear ATTEST: V_ City Clerk Donesia L. Gause, CMC APPROVED AS TO FORM: Cit��ttorney \.j Resolution No. 14-087 September 2, 2014 Page 3 In STATE OF CALIFORNIA COUNTY OF LOS ANGELES ss. CITY OF CARSON 1, Donesia L. Gause, City Clerk of the City of Carson, California, do hereby certify that the whole number of members of the City Council is five; that the foregoing resolution, being Resolution No. 14-087 was duly and regularly adopted by said Council at a regular meeting duly and regularly held on the 2 nd of September, 2014, and that the same was passed and adopted by the following vote: AYES: COUNCIL MEMBERS: Mayor Dear, Santarina, Gipson, Davis -Holmes, and Robles NOES: COUNCIL MEMBERS: None ABSTAIN: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None City Clerk Donesia L. Gause, CMC City of Carson Report to Mayor and City Council September 2, 2014 New Business Consent SUBJECT: CONSIDERATION OF RESOLUTION NO. 14-085 FIXING THE EMPLOYE' 'S I IT CONTRIBUTION UNDER THE PUBLIC EMPLOYEES' MEDICAL AND HOSP �AL CARE ACT AND RESOLUTION NO. 14-087 ESTABLISHING THE VESTING CONTRIBUTION UNDER SECTION 22893.1 Submitted by Bob Blackwood Approved by Nelson Hernandez Interim Human Resources Officer City Manager 1. SUMMARY Resolution No. 14-085 (Exhibit No. 1) and Resolution No. 14-087 (Exhibit No. 2) being presented to the City Council for adoption are required by the California Public Employees' Retirement System (CaIPERS) in order to amend the City's monthly health insurance allowance and vesting contribution for City employees and annuitants covered by bargaining unit and unrepresented groups. 11. RECOMMENDATION TAKE the following actions: I . WAIVE ftirther reading and ADOPT Resolution No. 14-085 "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARSON, CALIFORNIA, FIXING THE EMPLOYER'S CONTRIBUTION UNDER THE PUBLIC EMPLOYEES' MEDICAL AND HOSPITAL CARE ACT (PEM14CA)." 2. WAIVE further reading and ADOPT Resolution No. 14-087 "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARSON, CALIFORNIA, ESTABLISHING THE CITY OF CARSON'S VESTING CONTRIBUTION UNDER SECTION 22893.1 OF THE PUBLIC EMPLOYEES' MEDICAL AND HOSPITAL CARE ACT (PEMHCA)." ALTERNATIVES None. This item has been negotiated as part of the current multi-year agreements with the various bargaining units, and previously approved by the City Council. IV. BACKGROUND The City's current Memoranda of Understanding (MOU) with the represented bargaining units — the American Federation of State, County and Municipal Employees Council 36, Local 809 (AFSCME), the Association of Confidential Employees (ACE), the Professional and Supervisors Association (CPSA), and the Association of Management Employees (AME) provide that effective January 1, 2015, the City shall pay the medical premium increase of the highest full -family 13 City of Carson Report to Mayor and City Council September 2, 2014 HMO rate up to a cap of seven and a half percent (7.5%) above the January 1, 2014, allowance. The highest HMO premium for year 2015 in the Los Angeles service area is Anthem Traditional - HMO with an increase of 14.90% over year 2014 premiums. Therefore, to comply with the current MOUs of the above-named bargaining units, effective January 1, 2015, the City will provide a monthly health insurance allowance of $1,542.63 per full-time employee. The $1,542.63 monthly health insurance allowance will also be provided to annuitants within the AFSCME, ACE, CPSA and AME bargaining units. The City shall provide the Mayor and City Council, the City Clerk and City Treasurer, the Unclassified Exempt Management group, and annuitants the same amount to pay for their health insurance premiums as provided to represented full- time employees. In addition, effective January 1, 2015, the minimum contribution for each part- time employee that meets the CalPERS membership requirements and elects to participate in the health insurance coverage shall be $122.00 per month. The minimum employer contribution rate has been established in conjunction with California Government Code Section 22892 of the Public Employees' Medical and Hospital Care Act (PEMHCA) and the Board to reflect any changes in the medical care component of the CPI -U. Additionally, Resolution No. 14-087 establishes the City's post retirement vesting contribution for year 2015. Effective January 1, 2014, Governor Jerry Brown approved and signed assembly Bill No. 1144 (AB 1144) establishing the City of Carson's post retirement vesting schedule for employees hired on or after January 1,2014. The City of Carson post retirement vesting schedule is as follows: Credited Years of Service Percentage of Employer Contribution 0-4.99 years 0% 5 years 50% 6 years 60% 7 years 70% 8 years 80% 9 years 90% 10 years 100% V. FISCAL IMPACT The cost for the increase in the monthly health allowance for the last six months of this fiscal year is approximately $87,000.00. The increase of the health insurance allowance will have no fiscal impact on the FY 2014/15 budget due to the savings of existing vacant funded positions. IF) ity of Carson Report to Mayor and City Council September 2, 2014 V1. EXHIBITS I - Resolution No. 14-085. (pg. 4) 2. Resolution No. 14-087. (pgs. 5-6) Prepared by: Bob Blackwood, Interim Human Resources Officer TO:RevO7-02-2014 Reviewed by: City Clerk City Treasurer Administrative Services Public Works Community Development I Community Services Action taken by City Council Date Actio RESOLUTION NO. 14-085 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARSON, CALIFORNIA, FIXING THE EMPLOYER'S CONTRIBUTION UNDER THE PUBLIC EMPLOYEES, MEDICAL AND HOSPITAL CARE ACT (PEMHCA) WHEREAS, Government Code Section 22892(a) provides that a local agency contracting under the Public Employees' Medical and Hospital Care Act (PEMHCA) 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, the City of Carson, California, is a local agency contracting under the Act. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CARSON, CALIFORNIA, DOES HEREBY RESOLVE, FIND, DETERMINE FOLLOWS: AND ORDER AS Section 1. That the employer's contribution for each employee or annuitant shall be the amount necessary to pay the full cost of his/her enrollment, including the enrollment of family members, in a health benefits plan up to a maximum of. Code 01 Rgggnipy_,� Contributio Month Supervisors Association amE.—M 02 03 Association of Management Employees $1,542.63 $1,542.63 04 AFSCME, 809 Council 36 -Classified $1,542.63 05 At -Will Exempt $1,542.63 06 Elected Officials $1,542.63 07 Association of Confidential Employees $1,542.63 08 City Council Professional Association $1,542.63 09 Unclassified-AFSCME-Represented $1,542.63 $ 122.00 10 Unclassified -Non -Represented $ 122.00 Plus administrative fees and C . ontingency Fund assessments. Section 2. That the City of Carson has fully complied with any and all applicable provisions of Government Code Section 7507 in electing the benefits set forth above. PASSED, APPROVED and ADOPTED this 2 nd day of September, 2014. ATTEST: City Clerk Donesia_L_-G�auseCMC APPROVED AS TO FORM: City Attorney Exhibit No. I Mayor Jim Dea—r Z4 RESOLUTION NO. 14-087 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARSON, CALIFORNIA, ESTABLISHING THE CITY OF CARSON'S VESTING CONTRIBUTION UNDER SECTION 22893.1 OF THE PUBLIC EMPLOYEES' MEDICAL AND HOSPITAL CARE ACT (PEMHCA) WHEREAS, (1) Government Code 22893.1 provides that the City of Carson contracting under the Public Employees' Medical and Hospital Care Act shall establish a post retirement vesting requirement to employees who retire for service, and WHEREAS, (2) The City of Carson certifies unrepresented employees ( At -Will Exempt, Elected Officials, City Council, Unclassified -Non Represented) are not represented by a bargaining unit and there is no applicable memorandum of understanding, and WHEREAS, (3) The City of Carson certifies are, certain employees ( Supervisors Association, Assoc. of MGT Employees, AFSCME 809 Council 36/Class, Confidential Employees, Professional Association, Unclassified AFSCME Represented) are represented by a bargaining unit and subject to a memorandum of understanding, and WHEREAS, (4) The contracting agency shall provide to the board in the manner prescribed by the board a notification for the agreement established pursuant to this section and any additional information necessary to implement this section; now, therefore be it RESOLVED, (a) That employees hired on or after January 1, 2014 shall be subject to the requirements defined in this vesting resolution; and be it further RESOLVED, (b) The contribution for active employees cannot be less than what is defined in Section 22892(b); and be it further RESOLVED, (c) That the employer's contribution for each annuitant subject to this provision shall be the amount necessary to pay the cost of his/her enrollment, including the enrollment of family members, in a health benefits plan up to a maximum of - Code Bargaining Unit 001 SUPERVISORS ASSOCIATION 002 ASSOC. OF MGT EMPLOYEES 003 AFSCME, 809, COUNCIL 36/CLASSIFIED 004 AT -WILL EXEMPT 005 ELECTED OFFICIALS 006 CONFIDENTIAL EMPLOYEES 007 CITY COUNCIL 008 PROFESSIONAL ASSOCIATION 009 UNCLASSIFIED-AFSCME-REPRESENTED 010 UNCLASSIFIED -NON -REPRESENTED Contribution Per Month $1,542.63 $1,542.63 $1,542.63 $1,542.63 $1,542.63 $1,542.63 $1,542.63 $1,542.63 $122.00 $122.00 Plus administrative fees and Contingency Fund Assessments; and be it further Exhibit No. 2 Resolution No. 14-087 September 2, 2014 Page 2 RESOLVED, (d) Employer contributions for post-retirement health benefits shall not be paid to annuitants with less than 5 years of credited service with the City of Carson. The percentage of the employer's contribution payable for post-retirement health benefits for each annuitant shall be based on the annuitant's completed years of credited service with the City of Carson: Credited Years of Service Percentage of Employer Contribution 0-4.99 years 0% 5 years 50% 6 years 60% 7 years 70% 8 years 80% 9 years 90% 10 years 100% and be it further RESOLVED, (e) In order to receive the employer's contribution payable for post- retirement health benefits, annuitants who retire for disability must meet the credited years of service requirement set forth in RESOLVED (d); and be it further RESOLVED, (f) That the City of Carson has fully complied with any and all applicable provisions of Government Code Section 7507 in electing the benefits set forth above; and be it further RE SOLVED, (g) That coverage under the Act be effective on January 1, 2015. PASSED, APPROVED and ADOPTED this 2 nd day of September, 2014. Mayor Jim Dear ATTEST: City Clerk Donesia L. Gause, CMC APPROVED AS TO FORM: City Attorney