Staff Report
PREPARED BY: Lisa Velasco
Human Resources Director
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 12/03/2019
ITEM NO: 5
DATE: November 20, 2019
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Adopt a Resolution for the California Public Employees’ Retirement System
Health Plan to Update the Region Name from Bay Area to Region 1
RECOMMENDATION:
Adopt a resolution (Attachment 1) for the California Public Employees’ Retirement System
health plan to update the region name from Bay Area to Region 1.
BACKGROUND:
The Town has an existing agreement with the California Public Employees’ Retirement System
(CalPERS) to provide its health program to active Town employees and retired annuitants. The
CalPERS health program is governed by the Public Employees Medical and Hospital Care Act
(PEMHCA), and the California Code of Regulations (CCR) of the California Public Employees
Retirement Law (PERL). PEMHCA contains all the rules and regulations that a contracting
agency must adhere to. PEMHCA is the health contract and the resolution is the method by
which an agency elects to become subject to PEMHCA. The Town currently has a resolution
(Attachment 2) adopted on December 16, 2014 that identifies the Town as a contracting agency
of PEMHCA and defines the calculation of th e employer health contribution for active
employees and retired annuitants.
DISCUSSION:
CalPERS provides its health program to public agencies and schools throughout California.
Since health care costs vary throughout California, CalPERS uses a regional pricing model to
reflect the actual cost of health care based upon specific regions. There are currently five
different regions and the Town of Los Gatos participates in the Bay Area region. In December
2018, the CalPERS Board approved a health pricing region change that will reallocate the five
regions into three regions. Beginning January 1, 2020, the Town will be designated in Region 1.
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SUBJECT: Adopt CalPERS Health Resolution to Update Region Name
DATE: November 20, 2019
DISCUSSION (continued):
Because the current adopted Resolution defines the calculation of the employer health
contribution method for active employees and retired annuitants based on Kaiser Bay Area
rates, CalPERS requires that the Town revise its contribution method by adopting a new
Resolution to reflect Kaiser Region 1.
CONCLUSION:
Staff recommends that the revised CalPERS Resolution is adopted to identify the Region change
in the employer contribution method so that the Town’s monthly health premium cost is
correctly calculated by CalPERS.
FISCAL IMPACT:
The revised resolution is an administrative change, therefore, there is no fiscal impact.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachments:
1. Proposed CalPERS Health Resolution
2. Current CalPERS Health Resolution