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ITEM 24

City Council Memorandum Human Resources Memo No. N/A

Date:

October 14, 2024

To:

Mayor and Council

Thru:

Joshua H. Wright, City Manager
Tadd Wille, Assistant City Manager
Rae Lynn Nielsen, Human Resources Director

From:

Fernanda Acurio, Benefits & Compensation Manager

Subject:

Agreement No. 4046, Calendar Year 2025 Amendment, with Anthem Life Insurance Company, for Public Safety Personnel Long-Term Disability Insurance

Proposed Motion:

Move City Council approve Agreement No. 4046, Calendar Year 2025 Amendment, with Anthem Life Insurance Company, for public safety personnel long-term disability insurance, in an amount not to exceed $200,000, for the period of one year, beginning January 1, 2025, through December 31, 2025, and authorize the City Manager or designee to extend the Agreement for an additional year, beginning January 1, 2026, through December 31, 2026 (CY2024), subject to the same terms and conditions.

Background/Discussion:

The city provides a long-term disability insurance benefit for public safety personnel as a component of the public safety employee benefits package. The benefit is paid by the city.

Evaluation:

City staff review the employee benefits package each year with the assistance of an employee benefits consulting firm. The long-term disability insurance is designed to assist public safety personnel by helping replace income in the event of a long-term illness. This Agreement has been in effect since 2004. Staff recommends extension of this Agreement for the term of January 1, 2025, through December 31, 2025 and recommends City Council authorize the City Manager or designee to extend the Agreement for an additional year, beginning January 1, 2026, through December 31, 2026 (CY2024), subject to the same terms and conditions.

Financial Implications:

This City-funded insurance benefit is paid from all public safety cost centers in the General Fund where sworn employees reside and calculated at $0.36 for every $100 of wages. The funds are then collected in a payroll clearing liability account to pay the total amount due to the insurance company. The City has budgeted approximately $200,000 for this benefit.

Fiscal Impact

Account No.

Fund Name

Program Name

Dollar Amount

CIP Funded Y/N

101.xxxx.5122.0.0.0

General Fund

N/A

$200,000

Attachments

Agreement