CITY COUNCIL STAFF REPORT
Meeting: November 7, 2023
Subject
Approve and update the health benefits for Elected Officials’ Compensation Program Recommended Action
Adopt Resolution No. 23-XXX revising the health benefits for the Elected Officials’ Compensation Program effective July 1, 2023 Reasons for Recommendation
Historically, Council has aligned the health benefits Elected Officials receive with the same health benefits full-time employees receive. On August 16, 2022, the City Council approved three-year Memoranda of Understanding (MOU’s) and compensation programs for union represented, unrepresented and appointed employees. The agreements also included a side letter that allowed for a wage and health reopener.
The City has since reached a tentative agreement with both Operating Engineer’s Local 3 (OE3) and Cupertino Employees’ Association/IFPTE Local 21 (CEA). As part of the Council packet for the November 7, 2023, City Council meeting, Council has been presented with the revised salary and terms and conditions of employment for successor MOUs and compensation programs, covering the period from July 1, 2022, through June 30, 2025. Based on that prior Council action, staff is requesting that Council adopt the health benefit changes to the Elected Officials’ Compensation Program. A summary of changes is as follows:
Effective January 1, 2024, the City shall contribute up to the Kaiser Family health premium cost per month applied to Elected Officials. Required contribution amounts exceeding this premium contribution of the City are the responsibility of the Elected Official.
For any change in the monthly medical plan premium charged by CalPERS in the plan year 2025 compared to the plan year 2024, the City’s maximum contributions shall be capped at no more than 6% for Elected Officials. Any required contribution amounts exceeding the premium contribution of the City are the responsibility of the Elected Official.
Sustainability Impact
There is no sustainability impact resulting from the recommended action in this report.
Fiscal Impact
The estimated cost for elected officials is estimated at $10,736 for both years of the compensation program. At the time of the adopted budget, costs related to the labor contracts were unknown, but estimates were included in the adopted budget. Budget estimates are sufficient to cover the additional estimated cost and no budget adjustment is needed.
California Environmental Quality Act (CEQA)
Not Applicable.
Prepared by: Vanessa Guerra, Human Resources Manager
Reviewed by: Kristina Alfaro, Director of Administrative Services Matt Morley, Assistant City Manager
Approved for Submission by: Pamela Wu, City Manager
Attachments:
A – Elected Officials’ Compensation Program - Clean
B – Elected Officials’ Compensation Program - Redline
C – Draft Resolution amending the Elected Officials’ Compensation