BLUE MEMO
City Council Regular Meeting
August 12, 2025
POST AGENDA ITEM
#D4
DATE: August 12, 2025
TO: Honorable Mayor and City Council
FROM: City Attorney’s Office
SUBJECT: Blue Memo – Agenda Item #D4, City Attorney Employment Agreement – Second Amendment
Since publication of the agenda packet, minor changes have been made to the following document for Discussion Item D4: City Attorney Employment Agreement – Second Amendment.
The following changes reflect that Internal Revenue Service regulations and rules and City policies apply to the treatment of cafeteria flex credit in the calculation of the retroactive payment, which is contemplated to be provided to the Employee.
The edits are to section III (subparagraph 5 of section 6) on page 2 of 3:
Health Benefits. Employee will be granted Medical Insurance and Health Benefits. Effective January 1, 2025, the City will pay the full premium cost (Plan Rate) each month for such medical insurance and benefits to cover the Employee and his family (Employee, spouse, and dependents) for the Kaiser 3- plus Medical Plan (also referred to as “Employee plus two or more”). City shall also provide Employee with $375 per month of cafeteria plan flex credit (flex credit), which Employee may utilize for cafeteria plan options offered by and through the City, including but not limited to non- medical insurance premiums, Flexible Savings Account contributions, dental coverage, vision coverage, and other options. The City shall reimburse Employee in a lump sum payment for all medical insurance premiums contributions and cafeteria flex dollar allocations made by or
on behalf of Employee prior to the date of execution of this Second Amendment for the Kaiser 3 -plus Medical Plan premium for the 2025 plan year. For 2025, the full Kaiser 3- plus monthly premium is $2,893.54, of which Employee has contributed $1,318.54 per month, pre- tax, and $375 per month ofwas City-provided flex credit, for a total monthly contribution to be reimbursed by City of up to $1,693.54, subject to applicable Internal Revenue Service (IRS) rules and regulations and City policies . If Employee chooses to enroll in any City -offered non- Kaiser Plan during Open Enrollment or other period allowed by law, the City’s contribution for Employee’s medical insurance shall not exceed the amount of the then established Kaiser 3+ Plan Rate premium applicable to the period of coverage for the selected non- Kaiser Plan, and City shall further provide Employee with flex credit as otherwise set forth in this paragraph. Except as otherwise provided in this paragraph, Employee will be granted Health Benefits in the same amounts and in the same manner as Management and Confidential Employees.