HomeMy WebLinkAboutResolutions - 2013.06.13 - 20868MISCELLANEOUS RESOLUTION # 13160 June 13, 2013
BY: HUMAN RESOURCES COMMITTEE - JOHN SCOTT, CHAIRPERSON
IN RE: HUMAN RESOURCES DEPARTMENT - RESOLUTION EXEMPTING OAKLAND COUNTY
GOVERNMENT FROM THE PROVISIONS OF 2011 P.A. 152 FOR CALENDAR YEAR 2014
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS PA 152 of 2011, the "Publically Funded Health Insurance Contribution Act" was
enacted by the State of Michigan and given immediate effect on September 27, 2011; and
WHEREAS PA 152 sets forth various options that public employers may follow when providing
healthcare benefits to their eligible employees; and
WHEREAS acting pursuant to specific provisions of Act 152, Oakland County government
exercised its legal right to exempt itself from the Act for calendar year 2012 and 2013; and
WHEREAS the exemption was adopted in order to avoid costs of litigation, avoid the expense of
conducting delayed open enrollment processes and to allow the County to continue making
changes over time that yield significant reductions in health care costs in a manner that is fair to both
taxpayers and employees; and
WHEREAS the County Executive recommends that Oakland County again formally exercise its
legal right to exempt itself from the Act's limitations for calendar year 2014 for the same reasons as
existed in 2013; and
WHEREAS Oakland County has a long history of proactive budget practices that have resulted in
budgets that are balanced and fiscally sound, as demonstrated by decades of actual performance; and
WHEREAS the structure of Act 152 makes acceptance of the cap formula for self-insured plans
before the FY 2014 budget is adopted effectively impossible, for the reason that the Michigan Treasurer is
not required under the Act to adjust the maximum payment permitted under Section 3 of Act 152 for each
coverage category for medical benefit plan coverage years until October 1 of each year; and
WHEREAS Act 152's October 1 date to adjust the maximum payment permitted is simply too late
under the budget process mandated by Section 8 of 1973 P.A. 139, MCL 45.558(1) (d), which requires
the County Executive to submit a proposed budget to the Board of Commissioners "...not less than 90
days prior to the next succeeding fiscal year", (i.e., by July 3, 2012), a date 90 days before the October 1
commencement of the next succeeding fiscal year; and
WHEREAS the County's self-funded medical costs for this year are below the State determined
Cap levels for 2013, thus meeting the spirit of the legislation; and
WHEREAS the County will look at its actual medical costs in 2014 to determine if a contribution
increase is needed for 2015 and recommend changes in employee contributions if needed at that time;
and
WHEREAS the County Executive Recommended Triennial Budget for Fiscal Years 2014 - 2016
is balanced, maintains responsible general fund equity balances, and funds employee medical benefit
plans within existing revenues.
NOW THEREFORE BE IT RESOLVED that acting pursuant to the authority granted a county
under Section 8 of Public Act 152 of 2011, the Oakland County Board of Commissioners hereby exempts
Oakland County Government from the requirements of PA 152 for calendar year 2014.
Chairperson, on behalf of the Human Resources Committee, i move the adoption of the foregoing
resolution.
'HLINIAN RESOURCES COMMITTEE
HUMAN RESOURCES COMMITTEE
Motion carried unanimously on aroll cgINOte.
Resolution #13160 June 13, 2013
Moved by Taub supported by McGillivray the resolutions (with fiscal notes attached) on the amended
Consent Agenda be adopted (with accompanying reports being accepted).
AYES: Dwyer, Hatchett, Hoffman, Jackson, Long, Matis, McGillivray, Middleton, Quarles,
Runestad, Scott, Spisz, Taub, Weipert, Woodward, Zack, Bosnic, Crawford. (18)
NAYS: None. (0)
A sufficient majority having voted in favor, the resolutions (with fiscal notes attached) on the amended
Consent Agenda were adopted (with accompanying reports being accepted).
(---/
I HEREBY APPROVE THIS RESOLUTION
CHIEF DEPUTY COUNTY EXECUTIVE
ACTING PURSUANT TO MCL 45.559A (7)
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Lisa Brown, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true and
accurate copy of a resolution adopted by the Oakland County Board of Commissioners on June 13, 2013,
with the original record thereof now remaining in my office.
In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County of Oakland at
Pontiac, Michigan this 13th day of June, 2013.
Lisa Brown, Oakland County