Fremont City Council Meeting: 09/08/26 07:00 PM
3300 Capitol Avenue Div/Dept: Human Resources
Fremont, CA 94538 Category: Labor Relations
SCHEDULED
Sponsors:
COUNCIL STAFF REPORT (ID # 5818) DOC ID: 5818
Updated: 9/4/2026 11:05 AM by Alberto Quintanilla Page 1 City of Fremont Health Benefit Allowance for City Councilmembers - Consideration of a Resolution Authorizing and Restating the City's Contribution to Health and Welfare Benefits for Active City Councilmembers Contact Persons:
Name: Tina Gallegos Brian Stott
Title: Human Resources Director Assistant City Manager
Div/Dept: Human Resources City Manager's Office
Phone: 510-494-4652 510-494-4660
E-Mail: [email protected] [email protected]
Executive Summary: On September 1, 2026, the Fremont City Council gave direction to implement certain governance and organizational modifications including, but not limited to, updating the monthly Health Benefit Allowance (HBA) for active City Councilmembers to be commensurate with the HBA provided to part-time nonsafety employees.
The proposed update would increase the HBA from $450 to $1,450 per month and represents 50% of the monthly HBA provided to regular full-time City employees. This approach is consistent with the City’s standard practice of prorating employee benefits based on full-time equivalent (FTE) status or regularly scheduled work hours for those working less than full-time.
Background: The City Council proposes to reauthorize and restate the health and welfare benefits available to active members of the City Council, as set forth in this Staff Report, and Exhibit A of the proposed Resolution.
Upon adoption of the proposed Resolution, each City Councilmember will be eligible to receive the same monthly health benefit allowance (HBA) as the City provides to part-time unrepresented management employees. Any premium cost for a medical insurance plan selected by a Councilmember that exceeds the applicable health benefit allowance will be paid by the Councilmember. Councilmembers will not be entitled to receive cash in lieu of any unused portion of the City’s HBA. All benefits provided under the proposed Resolution terminate upon the expiration of a Councilmember’s term of office.
Discussion/Analysis:
Consistent with the currently approved HBA increases for part-time unrepresented management employes, the restated monthly HBA for Councilmembers will be as follows:
Council Staff Report (ID # 5818) Meeting of September 8, 2026 Updated: 9/4/2026 11:05 AM by Alberto Quintanilla Page 2
Effective October 1, 2026, the City Council’s monthly health benefit allowance will be increased from $450.00 to $1,450 per month.
Effective January 1, 2027, the City Council’s monthly health benefit allowance will be increased from $1,450.00 to $1,550 per month.
Effective January 1, 2028, the City Council’s monthly health benefit allowance will be increased from $1,550.00 to $1,650 per month.
Effective January 1, 2029, the City Council’s monthly health benefit allowance will be increased from $1,650.00 to $1,750 per month.
If the City approves future increases to the monthly HBA provided to part- time unrepresented management employes, City Councilmembers will be entitled to the same increase to their monthly HBA.
Fiscal Impact: The FY 2026/27 adopted General Fund operating budget includes a monthly HBA of $450 for the Mayor and each Councilmember. The additional costs associated with increasing the HBA for the Mayor and Councilmembers to align with the monthly HBA for part-time unrepresented management employees summarized above could total up to $46,200 in FY 2026/27, depending on the actual cost of premium payments for medical insurance. If approved, staff will incorporate these changes into the FY 2026/27 General Fund operating budget.
Environmental Review: The proposed approval of an increase to health benefit allowance is exempt from and not subject to review under the California Environmental Quality Act (CEQA) because, without limitation, it is not a “project” as defined in CEQA Guidelines Section 15378(b)(2) and/or 15378(b)(5), and it has no possibility of having a significant effect on the environment, as specified in CEQA Guidelines Section 15061(b)(3), each as a separate and independent basis for CEQA compliance.
ATTACHMENTS:
• Benefits Summary 9-2-2026
• Resolution Authorizing and Restating Councilmember Health and Welfare Benefits
Council Staff Report (ID # 5818) Meeting of September 8, 2026 Updated: 9/4/2026 11:05 AM by Alberto Quintanilla Page 3 Recommendation: Adopt a resolution authorizing and restating the City’s contribution to health and welfare benefits for active members of the City Council.