Staff Report Updating Subchapter 3.05.030 of the Colma Administrative Code regarding the Retirement Health Savings Plan Page 1 of 2
STAFF REPORT
TO: Mayor and Members of the City Council
FROM: Juan Rumayor, Management Analyst
VIA: Dan Barros, City Manager
MEETING DATE: 2/12/2025
SUBJECT: Amendment to Colma Administrative Code Subchapter 3.05.030: Relating to the Retirement Health Savings Plan
RECOMMENDATION
Staff recommends that the City Council adopt the following:
RESOLUTION AMENDING COLMA ADMINISTRATIVE CODE SECTION 3.05.030 REGARDING THE RETIREMENT HEALTH SAVINGS PLAN PURSUANT TO CEQA GUIDELINE 15378
COUNCIL ADOPTED VALUES
The Staff recommendation is consistent with the Council adopted values of:
•Responsibility: Making decisions after prudent consideration of their financial impact, taking into account the long-term financial needs of the agency. •Fairness: Treat all persons, claims and transactions in a fair and equitable manner.
BACKGROUND
As a result of the Town’s labor negotiations with the Peace Officers Association (POA) and the Dispatch/Records Association (DRA), the Retirement Health Savings Plan contribution amounts have changed. Employer RHSP contributions have increased from 1.5% to 2.5%, which includes eligible unrepresented employees and City Council members. This increase will assist members to pay for medical expenses in retirement. The Colma Administrative Code will be updated to reflect these changes.
ITEM #4
Staff Report Updating Subchapter 3.05.030 of the Colma Administrative Code regarding the Retirement Health Savings Plan Page 2 of 2
ANALYSIS
Colma Administrative Code (CAC):
The following changes to Chapter 3 of the CAC as it relates to the Town’s Retirement Health Savings Plan will apply to all members Hired on or After January 1, 2017, including unrepresented employees and City Council Members.
Eligible employees hired on or after January 1, 2017 receive a monthly Employer contribution to an individual account under the Retirement Health Savings Plan (RHSP). The Town shall contribute to the Member’s individual RHSP account an amount equivalent to one and one-half percent (1.5%) two- and one-half percent (2.5%) of the Member’s monthly base salary as shown in the Town’s adopted salary schedule. The base salary for the initial month of service and final month of service shall be prorated based on actual base salary paid in those months.
The member shall contribute to the Member’s individual RHSP account an amount equivalent to one- and one-half percent (1.5%) of the Member’s monthly base salary as shown in the Town’s adopted salary schedule. The base salary for the initial month of service and final month of service shall be prorated based on actual base salary paid in those months.
FISCAL IMPACT
The approval of the attached resolution will increase the Town’s RHSP contribution by 1% for all eligible City Council Members elected after January 1, 2017. The Town’s annual cost increase will be $449.64.
CONCLUSION
Staff recommends that the City Council adopt the resolution.
ATTACHMENTS
A. Resolution
Res. 2025-_ - CAC Subchapter 3.05.030 Regarding Retirement Health Savings Plan
ATTACHMENT A
RESOLUTION NO. 2025 – XX
OF THE CITY COUNCIL OF THE TOWN OF COLMA
RESOLUTION AMENDING COLMA ADMINISTRATIVE CODE SECTION 3.05.030
REGARDING THE RETIREMENT HEALTH SAVINGS PLAN PURSUANT TO CEQA GUIDELINE 15378
The City Council of the Town of Colma hereby resolves:
ARTICLE 1. COLMA ADMINISTRATIVE CODE SUBCHAPTER 3.05.030 AMENDED Section 3.05.030(b)(4)(i) is hereby amended to read as follows with all other language in Section
3.05.030 remaining:
3.05.030 Medical and Hospital Insurance
(4)Supplemental Benefit for Annuitants Hired on or After January 1, 2017 i)Mandatory Participation – Members Hired on or after January 1, 2017 Eligible employees hired on or after January 1, 2017 receive a monthly Employer contribution to an individual account under the Retirement Health Savings Plan (RHSP).
The Town shall contribute to the Member’s individual RHSP account an amount equivalent to one and one-half percent (1.5%), two- and one-half percent (2.5%) of the Member’s monthly base salary as shown in the Town’s adopted salary schedule. The base salary for the initial month of service and final month of service shall be prorated based on actual base salary paid in those months.
The member shall contribute to the Member’s individual RHSP account an amount equivalent to one- and one-half percent (1.5%) of the Member’s monthly base salary as shown in the Town’s adopted salary schedule. The base salary for the initial month of service and final month of service shall be prorated based on actual base salary paid in those months.
The Town’s RHSP is administered by a third-party administrator selected by the Town.
The design of the RHSP is intended to be a tax-advantaged savings plan to be used exclusively for qualifying medical expenses during retirement. [History: Adopted by Res 2008-03, 2/13/08; Amended by Res 2014-04, 2/13/14; Res 2016-01, 1/13/16; Res 2017-10, 2/8/17; Res 2020-01, 1/8/20; Res 2021-44, 12/8/21; Res 2025-XX, 2/12X/25]
Res. 2025-_ - CAC Subchapter 3.05.030 Regarding Retirement Health Savings Plan
ATTACHMENT A
ARTICLE 3. SEVERABILITY.
Each of the provisions of this resolution are severable from all other provisions. If any article, section, subsection, paragraph, sentence, clause or phrase of this resolution is for any reason held by a court of competent jurisdiction to be invalid, such a decision shall not affect the validity of the remaining portions of this resolution. The City Council hereby declares that it intended do and would have adopted each and every provision of this resolution independent of any other provision of this resolution.
ARTICLE 4. NOT A CEQA PROJECT.
The City Council finds that adoption of this resolution is not a "project," as defined in the California Environmental Quality Act (CEQA) because it is more akin to an administrative activity under CEQA Guideline 15378 and does not have a potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment and concerns general policy and procedure making.
ARTICLE 5. EFFECTIVE DATE.
This resolution shall be effective upon its adoption by the City Council. //
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Res. 2025-_ - CAC Subchapter 3.05.030 Regarding Retirement Health Savings Plan
ATTACHMENT A
CERTIFICATE OF ADOPTION
I certify that the foregoing Resolution No. 2025-_ was duly adopted at a regular meeting of said City Council held XXXX, 2025 by the following vote:
Name Voting Present, Not Voting Absent
Aye No Abstain Not Participating
Ken Gonzalez, Mayor
Carrie Slaughter, Vice Mayor
Helen Fisicaro, Councilmember
Joanne F. del Rosario,
Councilmember
Thomas Walsh, Councilmember
Voting Tally
Dated
Ken Gonzalez, Mayor
Attest:
Michelle Estabillo, City Clerk