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ITEM #13 <br />CITY OF COLTON <br />AGENDA REPORT <br />FOR COUNCIL MEETING OF DECEMBER 6, 2005 <br />TO: HONORABLE MAYOR AND CITY COUNCIL <br />FROM: CITY ATTORNEY <br />SUBJECT: RESOLUTION APPROVING RETIREE MEDICAL BENEFITS FOR <br />FORMER FIRE CHIEF HENDRIX <br />DATE: November 28, 2005 <br />BACKGROUND: <br />The City and former Fire Chief Thomas T. Hendrix entered into an Employment Agreement on <br />June 30, 2003. Shortly thereafter, the City adopted a new cafeteria plan for the provision of <br />medical and retiree medical benefits for its employees and retirees. Because of the possibility <br />that the new cafeteria plan would result in a reduction of retiree medical benefits enjoyed by <br />former Chief Hendrix, the City and former Chief Hendrix entered into an Addendum to his <br />Employment Agreement. This Addendum, executed on November 13, 2003, provides former <br />Chief Hendrix (and defined dependents), with retiree medical benefits at a monthly City -paid <br />premium of at least $823.50 for life. While the Addendum was executed by all parties, it was <br />never formally approved of by the City Council. After signing the Addendum former Chief Hendrix <br />continued to dutifully serve until he retired effective December 31, 2003. <br />DISCUSSION/ANALYSIS: <br />Because the Addendum to the Employment Agreement was never formally approved by the City <br />Council, there is some concern that adequately provides former Chief Hendrix with his bargained <br />for retiree medical benefits. Adoption of this Resolution would formally approve the Addendum, <br />ensuring that former Chief Hendrix receives the benefit he bargained for and closing any related <br />loopholes and, furthermore, preserving the medical benefit as it was prior to his retirement based <br />on his 30 years of service with the city. <br />FINANCIAL IMPACT: <br />Adoption of this Resolution will not result in any financial impact above the City's current obligation <br />to provide former Chief Hendrix with retiree medical benefits. <br />ENVIRONMENTAL IMPACT: <br />CONFLICT OF INTEREST — Gift Disclosure Requirements <br />(Exact Company Name) <br />President: (Name & Title) <br />Contact: (Name) <br />