City Council
259 N. Wilma Avenue
Ripon, CA 95366
MEMO
To: Honorable City Council
From: Kevin Werner, City Administrator
Date: 10/14/2025
Subject: 2026 Health and Welfare Plan for City Council and Employees RECOMMENDED ACTION:
Staff is recommending the City Council approve the attached resolution, which is summarized below:
1. Provide the following health and welfare plans to all City employees and Council Members during calendar year 2026:
• Kaiser Healthcare
• CSAC Blue Shield Healthcare
• Cypress Dental
• VSP-Sunlife Vision
• Sunlife Life Insurance
• Sunlife Long-term Disability
2. For Administrative Staff, Council Members, and Non-represented Police Department employees1participating in the Blue Shield healthcare plan for calendar year 2026, the City and plan participant are to share in the premium increase above the premium maximum of $2,285.
3. For Administrative Staff, Council Members, and Non-represented Police Department employees1participating in the Kaiser healthcare plan for calendar year 2026, the City and plan participant are to share in the premium increase above the premium maximum of $2,205.
BACKGROUND/DISCUSSION:
Relation Insurance Group (formerly named Bohannon’s) has received renewal quotes for the City provided health and welfare plans for calendar year 2026.
1 The negotiated Memorandum of Understanding for each represented group includes the same benefit.
Annual Cost Summary
Below is comparison of the calendar year 2025 health and welfare annual premium cost to the 2026 renewal quotes received:
Table 1 -- Annual Premium Renewal Summary
Plan 2025 2026 % Change
Kaiser Healthcare $1,170,652 $1,297,277 +10.8%
CSAC Blue Shield Healthcare $838,972 $954,983 +13.8%
Humana Dental (2025) /
Cypress Dental (2026)
$89,575 $86,623 -3.3%
VSP-Sunlife Vision $17,065 $17,065 n/c
Sunlife Life Insurance/LTD $25,992 $25,992 n/c
Total $2,142,256 $2,381,940 +11.2%
Humana Dental did not provide a renewal quote for calendar year 2026, but did indicate if a renewal quote was provided, the premium increase would be at least 30 percent.
Employee Monthly Premium Responsibility
As of January 1, 2015, the City and employees began sharing in premium increases above a defined baseline premium. Below is a summary of the maximum premium paid by the City before the employee and City share in the premium expenses:
The baseline premium was originally set in 2015 at $1,760 and $1,415 per month for Kaiser and Blue Shield participants, respectively.
During 2021, the baseline premium was increased to $1,850 and $1,650 per month for Kaiser and Blue Shield participants, respectively.
For calendar year 2023, the baseline premium was increased to $1,755 per month for Blue Shield participants.
For calendar year 2024, the baseline premium was increased to $2,050 and $2,050 per month for Kaiser and Blue Shield participants, respectively.
The following table evaluates the employee premium responsibility using the current baseline premium and a proposed baseline premium of $2,205 and $2,285 per month for those employees participating in the Kaiser healthcare and Blue Shield healthcare, respectively.
Table 2 -- Summary of Monthly Premiums
CATEGORY
2025
PREMIUM b
2026
PREMIUM b
EMPLOYEE
RESPONSIBILITY -
Current
EMPLOYEE
RESPONSIBILITY -
Proposed
Employees w/ Blue Shield Plan a
Employee Only $1,001.23 $1,133.25 $0 $0
Employee + Spouse $2,004.99 $2,270.12 $110.06 $0
Employee + Children $2,018.78 $2,282.66 $116.33 $0
Employee + Family $2,638.79 $2,980.74
$465.37
(2025: $294.40)
)
$347.87
(2025: $294.40)
) Employees w/ Kaiser Plan
Employee Only $904.06 $996.75 $0 $0
Employee + Spouse $1,979.49 $2,183.65 $66.82 $0
Employee + Children $1,820.30 $2,004.51 $0 $0
Employee + Family $2,730.42 $3,006.93
$478.47
(2025: $340.21)
$400.97
(2025: $340.21)
Note(s):
a. The reimbursement for deductible and co-insurance is not included. Employees participating in the Blue Shield plan are reimbursed 100 percent of the Blue Shield plan healthcare deductible cost. Also, the City reimburses these employees coinsurance cost after the first $2,000 is paid by the employee. The maximum reimbursement by the City is $3,000 individual/$8,000 family, per year.
b. Includes healthcare, dental, vision, and chiropractic premiums.
Staff is recommending the 2026 premium baseline for Kaiser participants be increased from $2,050 to $2,205 and for Blue Shield participants to be increased from $2,050 to $2,285 per month. This baseline premium increase will increase the employee’s annual contribution by nearly 20 percent for both the employees enrolled in the Blue Shield and Kaiser “Employee + Family” category for calendar year 2026.
The fiscal impact to the City is an increase of $65,000 related to health and welfare program premiums.
Reimbursement of Employee Deductible and Co-Insurance
Starting in 2013, the City changed the previously offered Blue Shield Gold Plan to a Silver Plan, which provided a significant premium savings, although included a higher deductible and coinsurance requirement. The City agreed to reimburse the employees for 100 percent of the deductible cost and co-insurance cost, after the employee pays the first $2,000 of the coinsurance.
Below is a summary of the premium savings realized from switching from the Blue Shield Gold Plan to the Silver Plan compared to the actual deductible and co-insurance reimbursement cost.
Table 3 -- Summary of Deductible and Co-Insurance Cost
Year Premium
Savings
Reimbursement
Cost
Annual
Savings
2013 $188,786 $31,377 $157,409
2014 $197,084 $52,953 $144,131
2015 $194,508 $47,877 $146,631
2016 $206,672 $35,648 $171,024
2017 $215,730 $34,935 $180,795
2018 $215,583 $49,950 $165,633
2019 $210,111 $37,398 $172,713
2020 $219,501 $27,800 $191,701
2021 $236,459 $25,816 $210,643
2022 $256,668 $32,573 $224,095
2023 $303,215 $41,912 $261,303
2024 $300,240 $44,117 $256,123
2025 $318,875 $49,738* $269,136
*Projected.
This program has allowed the City to continue to provide a high level of healthcare benefit to the employee during a time when healthcare costs were experiencing significant cost increases.
FISCAL IMPACT:
The budgeted Fiscal Year 2025-26 expense for health and welfare benefits is $2,291,579. Since the health and welfare benefits are contracted by calendar year, the Fiscal Year 2025-26 budget is only partially impacted by the 2026 health and welfare expenses.
The projected Fiscal Year 2025-26 expense for health and welfare benefits is $2,158,644 based on the actual quotes received for calendar year 2026 along with projected deductible reimbursement and employee premium contribution savings.
RESOLUTION NO. 25-33
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
RIPON ADOPTING THE HEALTH AND WELFARE PLANS
PROVIDED TO ALL EMPLOYEES AND COUNCIL
MEMBERS FOR CALENDAR YEAR 2026, INCLUDING
ESTABLISHING THE MAXIMUM PREMIUM AND
REIMBURSEMENT PAID BY THE CITY FOR NONREPRESENTED EMPLOYEES AND CITY COUNCIL
MEMBERS
WHEREAS, the City Council of the City of Ripon is desirous of providing health and welfare benefits for all employees of the City of Ripon (“Employees”) for calendar year 2026; and
WHEREAS, consistent with State law and pursuant to Ripon Municipal Code Chapter
2.04.010, each member of the City Council is entitled to receive health benefits at the same level, and including the same coverage, as City employees; and WHEREAS, pursuant to Ripon Municipal Code 2.04.010, prior to the City Council approving any increase in the cost of providing health benefits to City Council members, the City Council may consider whether to accept said increase at a public meeting after public input.
Thereafter, the City Council may adopt a resolution approving said increase, or a portion of said increase.
NOW, THEREFORE, BE IT RESOLVED, the following summarizes the health and welfare plans to be provided for calendar year 2026:
• Kaiser Healthcare
• CSAC Blue Shield Healthcare
• Cypress Dental
• VSP Sunlife Vision
• Sunlife Life Insurance
• Sunlife Long-term Disability
BE IT FURTHER RESOLVED that the City Council of the City of Ripon does hereby approve the increase in cost for the City to provide health benefits for calendar year 2026 to City employees and Council members, as described in the table below.
CATEGORY
2025
PREMIUM b
2026
PREMIUM b
EMPLOYEE
RESPONSIBILITY
CITY
RESPONSIBILITY
Employees w/ Blue Shield Plan a
Employee Only $1,001.23 $1,133.25 $0 $1,133.25
Employee + Spouse $2,004.99 $2,270.12 $0 $2,270.12
Employee + Children $2,018.78 $2,282.66 $0 $2,282.66
Employee + Family $2,638.79 $2,980.74
347.87
(2025: $294.40)
)
$2,632.87
Employees w/ Kaiser Plan
Employee Only $904.06 $996.75 $0 $996.75
Employee + Spouse $1,979.49 $2,183.65 $0 $2,183.65
Employee + Children $1,820.30 $2,004.51 $0 $2,004.51
Employee + Family $2,730.42 $3,006.93
$400.97
(2025: $340.21) $2,605.96
Note(s):
a. The reimbursement for deductible and co-insurance is not included. Employees participating in the Blue Shield plan are reimbursed 100 percent of the Blue Shield plan healthcare deductible cost. Also, the City reimburses these employees coinsurance cost after the first $2,000 is paid by the employee. The maximum reimbursement by the City is $3,000 individual/$8,000 family, per year.
b. Includes healthcare, dental, vision, and chiropractic premiums.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Ripon this 14th day of October, 2025, by the following vote:
RESULT: ADOPTED AS AMENDED BY CONSENT VOTE [UNANIMOUS]
MOVER: Leo Zuber, Council Member
SECONDER:Gary Barton, Vice Mayor
AYES: de Graaf, Barton, Uecker, Restuccia, Zuber
THE CITY OF RIPON,
A Municipal Corporation
By ________________________________
DANIEL DE GRAAF, Mayor
ATTEST:
By: ___________________________
LISA ROOS, City Clerk