DATE: SEPTEMBER 23, 2025
DEPARTMENT: HUMAN RESOURCES
FROM: MARINA HORTA-GALLEGOS, HUMAN RESOURCES DIRECTOR TITLE: AMENDMENT TO MEMORANDUM OF UNDERSTANDING FOR ASSOCIATION OF MANAGEMENT PERSONNEL OF SALINAS RECOMMENDED MOTION:
It is recommended that the City Council approve a resolution:
Amending the Association of Management Personnel of Salinas (AMPS) Memorandum of Understanding (MOU) to extend the current City contribution for health premiums through December 31, 2026; and Authorizing an increase in the corresponding health benefit appropriations within the respective funds in an amount up to $43,000.
EXECUTIVE SUMMARY:
The proposed amendment to the AMPS MOU is to extend the current City contribution for health premiums through December 31, 2026.
BACKGROUND:
The City offers several different health benefit plans to employees, each with different premium amounts. The City currently contributes toward the monthly health benefits premiums an amount equal to 95% of the premium for the plan selected, up to a maximum of 90% of the cost of the premium for the PERS Platinum Health Plan (one of the plans offered by PERS). In November 2023, the City Council approved a resolution approving the AMPS MOU which included a provision for a City’s health premium contribution in an amount equal to 95% of the premium for the plan selected and decreased of up to 90% of the California Public Employees’ Retirement System (PERS) Platinum plan premium effective January 1, 2025; a contribution of 95% of the premium for the plan selected and a further decrease of up to 85% of the PERS Platinum plan premium, effective January 1, 2026.
Staff recommends maintaining the City’s current 2025 premium contribution of 95% of the plan selected, up to 90% of the PERS Platinum plan premium through December 31, 2026 to maintain parity with other employee groups and support recruitment and retention.
CEQA CONSIDERATION:
Not a Project. The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378).
CALIFORNIA GOVERNMENT CODE §84308 APPLIES:
No.
STRATEGIC PLAN INITIATIVE:
The proposed action supports the City Council 2025 Strategic Goal of City Services City Services, ensuring fiscal responsibility and finance management.
DEPARTMENTAL COORDINATION:
The Human Resources Department collaborated with the Administration and Finance departments in this effort.
FISCAL AND SUSTAINABILITY IMPACT:
The projected cumulative total for the proposed action represents a cost of approximately $43,000 in the current fiscal year. While some or most of the additional expenditures may be absorbed through salary savings, staff is requesting authority to increase the salary & benefits appropriations in the event that there is no savings within a department.
Fund
Appropriation
Appropriation
Name
Total Appropriation
Amount for recommendation
FY 25-26Operating Budget Page
Last Budget Action (Date, Resolution)
Various
61.1100-61.9950
Salaries & Benefits
$0
Up to $43,000
N/A
N/A
ATTACHMENTS:
Resolution
CalPERS 2026 Health Premiums
RESOLUTION NO. _________ (N.C.S.)
A RESOLUTION OF THE SALINAS CITY COUNCIL APPOVING AN AMENDMENT TO THE MEMORANDUM OF UNDERSTANDING FOR THE ASSOCIATION OF MANAGEMENT PERSONNEL OF SALINAS RELATED TO CITY CONTRIBUTION TO HEALTH PREMIUMS BE IT RESOLVED BY THE CITY COUNCIL OF SALINAS that Section 6 – Health, Dental, and Vision Plan of the Association of Management Personnel of Salinas Memorandum of Understanding is amended to reflect a City premium contribution of 95% of the premium for the plan selected up to 90% of the PERS Platinum Plan through December 31, 2026.
BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF SALINAS that an increase in the corresponding health benefit appropriations within the respective funds in an amount up to $43,000 is hereby approved.
PASSED AND APPROVED this 23rd day of September 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN: APPROVED:
____________________________________ Dennis Donohue, Mayor ATTEST:
______________________________
Patricia M. Barajas, City Clerk
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