1998 AGN MAY 05 I04 - Laserfiche WebLink

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CITY OF COLTON AGENDA REPORT VUK UiOUNUIL MEE I1AU UY MAY 59 1998 TO: HONORABLE MAYOR & CITY COUN IL FROM: HENRY T. GARCIA, CITY MANAG SUBJECT: RETIREE HEALTH BENEFITS FOR DENNIS MORRIS DATE: April 22, 1998 BACKGROUND: The City Council, at its February 17, 1998 meeting, agreed that Mr. Morris should be eligible for retiree health benefits after five years of service with the City. Generally, City employees must serve the City for twenty years to become eligible for retiree health benefits as provided in City of Colton Resolution No. 4598. DISCUSSION/ANALYSIS: Retirement benefits are part of the contemplated compensation of city employees and, therefore, are consideration of employment. The City Council agreed to provide retirement benefits to Dennis Morris after five years of service with the City. In order to fulfill this agreement, it is necessary to approve an exception to Resolution No. 4598, which requires twenty years of service before a city employee becomes eligible for retiree health benefits. ALTERNATIVES: Not to provide Mr. Morris retiree health benefits after five years of service. FINANCIAL IMPACT: The precise fiscal impact for providing Mr. Morris with retiree health benefits after five years of service is uncertain at this time. The fiscal impact could vary depending on how long Mr. Morris remains in the City's employ and when he actually retires. Additionally, the fiscal impact could be mitigated by factors such as Medicare contribution. RECOMMENDATION: Staff recommends that City Council of the City of Colton adopt Resolution providing retiree health benefits to Dennis Morris after five years of service. Item # 4