DATE:
September 8, 2026
CATEGORY:
Consent
DEPT.:
Human Resources
TITLE: Employer Health Contribution for Safety
Employees and Annuitants Under the
Public Employees’ Medical and Hospital
Care Act
RECOMMENDATION
1. Adopt a Resolution of the City Council of the City of Mountain View Fixing the Employer Contribution at an Equal Amount for Employees and Annuitants Under the Public Employees’ Medical and Hospital Care Act with Respect to a Recognized Employee Organizatio n (Group 001 Safety—Fire), to be read in title only, further reading waived (Attachment 1 to the Council report).
2. Adopt a Resolution of the City Council of the City of Mountain View Fixing the Employer Contribution at an Equal Amount for Employees and Annuitants Under the Public Employees’ Medical and Hospital Care Act with Respect to a Recognized Employee Organizatio n (Group 002 Safety —Police), to be read in title only, further reading waived (Attachment 2 to the Council report).
BACKGROUND
In March 2014, the Mountain View Professional Firefighters (MVFF), Local 1965; and Mountain View Police Officers Association (POA) migrated to the California Public Employees’ Retirement System (CalPERS) health benefit program administered under the Public Employees’ Medical and Hospital Care Act (PEMHCA). Accordingly, the City contracts with CalPERS to provide health insurance benefits to sworn active employees and sworn retirees. Benefit levels and cost-sharing based on the premiums, including calculation of City contributions, were agreed upon by both bargaining groups. The agreed -upon terms were based on the analysis of a study conducted jointly between the MVFF and the City by a labor management committee, which hired an actuarial consultant to advise the City.
In October 2015, the City adopted new resolutions to clarify the employer contribution as required by CalPERS, annually to maintain the City’s contribution structure to premium rates as intended and outlined in Memorandums of Understanding (MOU) with both groups. Since 2019, the City Council has adopted updated resolutions annually at the direction of CalPERS as an administrative requirement to incorporate the required specific contribution amounts and
Employer Health Contribution for Safety Employees and Annuitants Under the Public Employees’ Medical and Hospital Care Act September 8, 2026
preserve the contribution structure agreed upon with the labor groups. These annual resolutions do not change the City's benefit structure or policy but ensure continued compliance with CalPERS requirements.
ANALYSIS
In July 2026, the CalPERS Board approved new rates for 202 7 health insurance plans, and City contributions for the new plan year have been calculated according to labor agreements. The deadline to file new resolutions with CalPERS is November 30, 2026. However, CalPERS encourages adoption sooner to align with their open enrollment period of September 14, 2026 through October 9, 2026. The resolutions are included in this report as Attachments 1 and 2 and specify the contribution amounts, based on 202 7 premium rates and the contribution structure in the MOUs.
The City has engaged with the leadership of MVFF, POA, and unrepresented sworn management regarding the need to adopt a PEMHCA resolution for 2027 employer contributions and has shared the updated employer contributions in the attached resolutions with all parties. The attached resolutions are updated to outline City contributions to comply with CalPERS requirements, maintain the intent of the curre nt employer contribution structure as outlined in MOUs, and support the adoption of new resolutions as soon as possible to ensure employees and eligible annuitants have the open enrollment information needed to make informed medical insurance decisions during the CalPERS open enrollment period.
FISCAL IMPACT
The increased employer contributions associated with the 2027 premium rates are included in the Fiscal Year 2026-27 Adopted Budget. No additional appropriation is required as a result of the recommended actions.
LEVINE ACT
California Government Code Section 84308 (also known as the Levine Act) prohibits city officials from participating in any proceeding involving a “license, permit, or other entitlement for use” if the official has received a campaign contribution exceeding $500 from a party, participant, or agent of a party or participant within the last 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to- play-limits-and-prohibitions.html
Please see below for information about whether the recommended action for this agenda item is subject to or exempt from the Levine Act.
Employer Health Contribution for Safety Employees and Annuitants Under the Public Employees’ Medical and Hospital Care Act September 8, 2026
EXEMPT FROM THE LEVINE ACT
☒ Labor or personal employment contract
☒ Contract between two or more state or local government agencies
ALTERNATIVES
1. Direct staff to provide additional information.
2. Provide other direction.
PUBLIC NOTICING
Agenda posting and copies to the Mountain View Professional Firefighters, Local 1965 and the Police Officers Association.
Prepared by:
Lindsey Bishop
Assistant Director of Human Resources
Maxine Gullo
Human Resources Director
Approved by:
Arn Andrews
Assistant City Manager
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Attachments: 1. Resolution—Fixing Employer Contribution for Employees and Annuitants with Respect to Safety—Fire
2. Resolution—Fixing Employer Contribution for Employees and Annuitants with Respect to Safety—Police