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SR-602-001 F:\PERSON\MISC\COUNCIL\STAFFRPT\COUNCL43 Santa Monica, California December 5, 2000 TO: Mayor and City Council FROM: City Staff SUBJECT: Recommendation to Adopt Resolution to Provide Coverage for Domestic Partners Under the CalPERS Health Plan for Safety (Police and Fire) Members INTRODUCTION This report recommends that the City Council adopt the attached resolution stating its intent to provide coverage for domestic partners under the CalPERS health plan for safety members. The attached resolution complies with the procedure required by CalPERS. BACKGROUND The City of Santa Monica contracts with CalPERS to provide a retirement plan for its permanent safety (Police and Fire) and miscellaneous (non-safety) employees. The City also contracts with CalPERS for health coverage for safety members. CalPERS now allows the City to elect to provide domestic partner medical insurance coverage under the CalPERS health plan for safety members. The health insurance plans 1 for miscellaneous (non-safety) employees (CIGNA and Kaiser) already offer domestic partner insurance coverage. BUDGET/FINANCIAL IMPACT There are no budget or financial impacts to the City as a result of adding domestic partner coverage for safety members. In accordance with the Memorandums of Understanding which cover safety employees, the City is obligated to contribute $475 per month for medical insurance for each active employee. The City uses a composite medical insurance rate to calculate the cost of the insurance. If the composite rate is less than $475 per month, the difference is paid into a Medical Trust for Police employees and a Post Employment Health Plan for Fire employees. If the composite rate is more than $475 per month, the employees reimburse the City the amount of the premium above the $475 City contribution cap. Adding domestic partners to the medical insurance plans would result in an increase in the total monthly insurance premiums. However, the Citys = financial obligation would remain capped at $475 per month per employee. RECOMMENDATION It is recommended that the City Council adopt the attached resolution to elect to provide domestic coverage under the CalPERS health plan for safety members. 2 Prepared by: Karen Bancroft, Director of Personnel Attachment A: Resolution 3 ATTACHMENT A RESOLUTION NUMBER ____ (CCS) (CITY COUNCIL SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA DECLARING THE CITYS INTENTION TO ELECT TO BE SUBJECT TO THE PUBLIC = EMPLOYEES MEDICAL AND HOSPITAL CARE ACT = WHEREAS, Government Code Sections 22850 and/or 22850.3 allow a local agency contracting with the Public Employees Retirement System to provide the benefits of the = Public Employees Medical and Hospital Care Act (the Act) to its employees; and =A@ WHEREAS, City of Santa Monica, hereinafter referred to as the Contracting Agency, is a local agency contracting with the Public Employees Retirement System under the Act; and WHEREAS, Government Code Section 22873 allows a Contracting Agency to provide benefits to the domestic partners of employees and annuitants of local agencies contracting under the Act upon proper application; and WHEREAS, the Contracting Agency desires to obtain for its employees and annuitants the benefit of Section 22873 and to accept the liabilities and obligations of a Contracting Agency under the Section, 4 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY RESOLVE AS FOLLOWS: 1. SECTION 1. The City hereby gives notice of intention to elect to be subject to the provisions of Section 22873 of the Government Code. 2. SECTION 2. The City Clerk shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect. APPROVED AS TO FORM: __________________________ MARSHA JONES MOUTRIE City Attorney 5