City Council
259 N. Wilma Avenue
Ripon, CA 95366
MEMO
To: Honorable City Council
From: Lisa Roos, City Clerk & Finance Director
Date: 09/08/2026
Subject: Special District Risk Management Authority (SDRMA) MOU RECOMMENDED ACTION:
This resolution approves the updated Memorandum of Understanding (MOU) with the Special District Risk Management Authority (SDRMA) who provides the Blue Shield health coverage option for City employees. This MOU better aligns with the pool participants, the SDRMA provider of health and employee benefit programs, and industry norms and authorizes continued participation in the SDRMA’s Health Benefits Program.
BACKGROUND:
The City of Ripon has been offering Blue Shield health insurance through the Special District Risk Management Authority (“SDRMA”) since 2010. Participation in the SDRMA programs requires the City to execute and entering into a Memorandum of Understanding (“MOU”) which states the purpose and participation requirement for the Health Benefit Program. An original MOU was signed in 2010 when we began offering these benefits to employees and was updated in 2019.
DISCUSSION/ANALYSIS:
At the June 24, 2026 SDRMA Board Meeting, the SDRMA Board of Directors approved amendments to the SDRMA Health Benefits Memorandum of Understanding. The amendments were made to better align the MOU with our pool participants, the SDRMA provider of health and employee benefit programs, and industry norms. Below is a table outlining the previous language, revised language and description of the change:
Section Previous Language Revised Language Description of Change Definitions Various terms and
definitions, some not
clearly defined or
missing.
Expanded and clarified definitions
for "Committee," "Coverage
Documents," "Program Participation
Agreement," "Program," and
Improved clarity and
specificity of key terms
for better understanding
and administration.
The City of Ripon participates in SDRMA’s Health Benefits program for our Blue Shield PPO Health Insurance. The SDRMA is requesting that we execute a new MOU in order to continue to participate in their Health Benefit Program.
"Program Documents."
Entry into
Program
ENTITY shall enroll in
the Program by making
application through
SDRMA.
ENTITY shall apply for participation
by executing all forms prescribed by
SDRMA, subject to approval by the
Program's Underwriter.
Clarifies the application
process and emphasizes
underwriter approval.
Maintenance
of Effort
Program provides
health benefits to all
participants of the
ENTITY.
Specifies eligible participants (active
employees, retired employees,
dependents, public officials) and
outlines optional participation for
some groups.
Clarifies eligibility and
participation
requirements.
Premiums ENTITY will remit
monthly premiums
based on rates
established by
SDRMA.
Premiums and rates are set by the
Committee; SDRMA adds an
administrative fee. Details on billing,
penalties for late payment, and
termination for non-payment added.
Adds detail on premium
calculation, billing, and
consequences for late
payment.
Benefits Benefits as set forth in
ENTITY’s Plan
Summary.
Benefits must be agreed upon with
employee organizations and
approved by the Program
underwriter.
Adds requirement for
underwriter approval of
plan selections.
Assessments
& Dividends
Assessments/dividends
used sparingly;
allocation based on
premiums paid.
Committee may impose premium
assessments if funds are insufficient;
details on liability for withdrawn
entities and dividend formula.
Expands on funding
adequacy, assessment
process, and dividend
distribution.
Withdrawal ENTITY may
withdraw with 90 days’
notice.
Notice period extended to 120 days
prior to January 1; rescission
deadline added; 3-year waiting
period for re-entry after withdrawal.
Tightens withdrawal
process and re-entry
requirements.
Arbitration Not previously
specified.
Adds binding arbitration clause for
disputes, specifying Sacramento, CA
as venue.
Introduces formal
dispute resolution
process.
Amendment Amendments require
written agreement by
both parties.
Clarifies amendment process,
including SDRMA’s right to
terminate if ENTITY does not
execute required amendments.
Strengthens amendment
and termination
provisions.
Staff recommends that the City continue to offer the Blue Shield health insurance through the SDRMA, and execute this MOU by November 1, 2026.
FISCAL IMPACT:
None.
Attachments:
1. SDRMA - 2026 Revised MOU for Health Benefits - City of Ripon
2. Revised-MOU for Health Benefits 2026 Redline
RESOLUTION NO. 26-32
A RESOLUTION OF THE OF THE CITY COUNCIL OF THE
CITY OF RIPON APPROVING THE FORM OF AND
AUTHORIZING THE EXECUTION OF A MEMORANDUM OF
UNDERSTANDING AND AUTHORIZING PARTICIPATION
IN THE SPECIAL DISTRICT RISK MANAGEMENT
AUTHORITY’S HEALTH BENEFITS PROGRAM
WHEREAS, City of Ripon, a public agency duly organized and existing under and by virtue of the laws of the State of California (the “ENTITY”), has determined that it is in the best interest and to the advantage of the ENTITY to participate in the Health Benefits Program offered by Special District Risk Management Authority (the “Authority”); and WHEREAS, the Authority was formed in 1986 in accordance with the provisions of California Government Code 6500 et seq., for the purpose of providing risk financing, risk management programs and other coverage protection programs; and WHEREAS, participation in Authority programs requires the City of Ripon to execute and enter into a Memorandum of Understanding which states the purpose and participation requirements for the Health Benefits Program; and WHEREAS, all acts, conditions and things required by the laws of the State of California to exist, to have happened and to have been performed precedent to and in connection with the consummation of the transactions authorized hereby do exist, have happened and have been performed in regular and due time, form and manner as required by law, and the City of Ripon is now duly authorized and empowered, pursuant to each and every requirement of law, to consummate such transactions for the purpose, in the manner and upon the terms herein provided.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF RIPON AS FOLLOWS:
Section 1. Findings. The City Council of the City of Ripon hereby specifically finds and determines that the actions authorized hereby relate to the public affairs of the ENTITY.
Section 2. Memorandum of Understanding. The Memorandum of Understanding, to be executed and entered into by and between the City of Ripon and the Authority, in the form presented at this meeting and on file with the City Clerk of the City of Ripon, is hereby approved. The City Council of the City of Ripon and/or Authorized Officers (“The Authorized Officers”) are hereby authorized and directed, for and in the name and on behalf of the City of Ripon, to execute and deliver to the Authority the Memorandum of Understanding.
Section 3. Program Participation. The City Council of the City of Ripon approves participating in the Special District Risk Management Authority’s Health Benefits Program.
Section 4. Severability. If any provision of this resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of the resolution which can be given effect without the invalid provision or application, and to this end the provisions of this resolution are severable.
Section 5. Other Actions. The Authorized Officers of the City of Ripon are each hereby authorized and directed to execute and deliver any and all documents which are necessary in order to consummate the transactions authorized hereby and all such actions heretofore taken by such officers are hereby ratified, confirmed and approved.
Section 6. Effective Date. This resolution shall take effect immediately upon its passage.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Ripon this 8th day of September, 2026, by the following vote:
RESULT: ADOPTED AS AMENDED BY CONSENT VOTE [UNANIMOUS]
MOVER: Daniel de Graaf, Council Member
SECONDER:Michael Restuccia, Council Member
AYES: Gary Barton, Dean Uecker, Michael Restuccia, Daniel de Graaf ABSENT: Leo Zuber
THE CITY OF RIPON,
A Municipal Corporation
By ________________________________
GARY BARTON, Mayor
ATTEST:
By: ___________________________
LISA ROOS, City Clerk