REPORT TO THE CITY COUNCIL August 20, 2015 FROM: JEFF CARDELL, Director Personnel Services Department SUBJECT ..Title RESOLUTION - Amend the City's Contribution for Health and Welfare Benefit Premiums for Elected Officials from 80% to 75%, effective September 1, 2015 ..Body RECOMMENDATION It is recommended that the City Council approve the attached Resolution reducing the City's contribution for the Health and Welfare benefit premium for the Mayor and the City Council members, to an amount which matches the contribution for the majority of City employees. EXECUTIVE SUMMARY To maintain health and welfare contributions for the Mayor and City Council members consistent with the provisions of Memoranda of Understanding (MOUs) with various employee organizations and the Salary Resolution as it relates to unrepresented employees, the City Council must establish contribution rates by Resolution. Approval of the attached Resolution will adjust City health and welfare benefit contributions for elected officials to rates consistent with the majority of City employees, effective September 1, 2015. BACKGROUND In 2006, the City Council approved a Resolution which established the City's contribution of Health and Welfare benefit premiums at 80% of the monthly rates set by the City of Fresno Health and Welfare Trust. At the time, this was the established rate for the majority of City employees. Through subsequent MOU negotiations and revision of the Salary Resolution as it relates to unrepresented employees, the City contribution has been adjusted to 75% of the health and welfare benefit premiums for the established period July 1, 2014 through June 30, 2015, with increases on or after July 1, 2015, to be shared equally, with 50% paid by the City and 50% paid by the employee with the employees' share capped at 30%. Should the employees' share reach the cap of 30%, the City's share will be 70%. The attached Resolution implements the adjustment in the City's contribution for health and welfare benefit premiums for the Mayor and City Council members to a percentage comparable with City employee groups, effective September 1, 2015. ENVIRONMENTAL FINDINGS Not applicable. LOCAL PREFERENCE Not applicable. FISCAL IMPACT Approval of the Resolution will reduce City costs for health and welfare benefit expenses for elected official premiums from $940.80 to $859.00 per month, for each elected official. The FY 2016 General Fund 10 month savings is $6,544. Attachment: Resolution