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HomeMy WebLinkAboutAgenda Statement 1984/12/11 Item 16 COUNCIL AGENDA STATEMENT Item 16 Meeting Date 12/11/84 ITEM TITLE: Resolution //x'475 Approving Health Benefit Allowance for the Mayor and Members of the City Council ;UBMITTED BY: Assistant City Manage 464" (4/5ths Vote: Yes No x ) EVIEWED BY: City Manager ACKGROUND ne year ago, the City Council appointed a two member City Council subcommittee to study the ealth benefit allowances for the Mayor and the members of the City Council . A copy of he subcommittee's report is attached as Exhibit A. The subcommittee's recommendation rovided for health benefit allowances for the Mayor equal to those provided for executive anagement personnel ($2,200 per year for FY 1983-84) . Members of the City Council had NO orations: 1 . A Councilmember could elect to take group health coverage under the Travelers or Kaiser plan, with the cost of the Travelers plan being borne by the City for both the member and his/her dependents' coverage (1983-84 cost of said coverage was $406.68 employee only, and $1158.54 for employee and dependent) . 2. A Councilmember could elect not to enroll in either health plan and, in that event, $550 per member would be placed in a market basket to be used for medical , dental , eye care or other market basket benefits. :COMMENDATION: Adopt resolution providing the Mayor an annual market basket equivalent to iat now in effect for 1984-85 for executive management personnel ($2,700) and provide member the City Council the option of electing to purchase Travelers*or Kaiser health insurance 1r the member and/or his/her dependents, with the City paying the premium for said iployee/dependent coverage under the Travelers Insurance plan (currently $2,117.44 per year) • if a member elects not to purchase group health insurance under either plan, a market sket amount of one half the total annual cost of employee/dependent group insurance Overage under the Travelers plan will be made available under the market basket concept for ch member's use for medical, dental , eye care or other market basket benefits, ARDS/COMMISSIONS RECOMMENDATION: N.A. SCUSSION e recommendation represents an extension of the subcommittee's 1983 proposal which was bsequently adopted by the City Council . It is the intention of the recommendation to tie e Mayor's health benefit allowance, for 1984-85 and in the future, to the allowance ero- ded for executive management personnel . It is also the intent of the recommendation to ovide members of the City Council with the option of selecting group health coverage ✓ the Councilmember and/or his/her dependents, with the full cost of said coverage under e Travelers plan being paid by the City or, if health care coverage is not desired or eded, one half of the current and future costs for the employee/dependent health benefit Dvided under the Travelers program would be made available to the member in a market sket program ($1 ,058.72 for FY 1984-85). -ravelers or any subsequent carrier that may replace current carrier. arm A-113 (Rev. 11/79) Page 2, Item 16 Meeting Date 12/11/84 =INANCIAL IMPACT: The maximum annual cost under the current benefit plan for Mayor and ;ouncilmembers is $5,008.54. Under the proposed program, 1984-85 maximum annual cost would )e $8,053.63 if the four members of the City Council continue to select the same option :hat they each now have. :RA:mab