REPORT TO COUNCIL
SUBJECT
Title
Adopt Resolution Amending the City’s Salary Resolution to add a Life Insurance Benefit for Mayor and City Councilmembers
Report
BACKGROUND
The City currently provides a term life insurance benefit for employees in the classified service. The City covers the cost of the premium for the benefit, and employees pay income tax on the portion of the premium that applies to benefits over $50,000. Additionally, employees have the option to voluntarily enroll in a supplemental life insurance plan which is entirely employee-funded.
The City is interested in extending the life insurance benefit to the elected positions of Mayor and City Council who conduct business on behalf of the City of Sunnyvale residents.
EXISTING POLICY
City Council members are provided with retirement, medical, dental, and vision benefits, and the ability to voluntarily enroll in flexible spending, commuter transportation and deferred compensation (457(b) plan) benefits.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” with the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(4) in that it is a fiscal activity that does not involve any commitment to any specific project which may result in a potential significant impact on the environment.
DISCUSSION
California Government Code sections 36516(d) and 53208.5 allow cities to provide health and welfare benefits to councilmembers provided that those benefits are no greater than the most generous benefits received by the agency’s non-safety employees.
The functions of City Council are important for the effective operation and growth of the City. Elected officials often carry significant responsibilities, and their decisions impact the community. Extending the City’s current life insurance offering to the elected positions of Mayor and City Councilmembers could help enhance the appeal of public office roles, attracting dedicated individuals who might have financial concerns for their families.
The City proposes to offer a life insurance plan of $50,000 for the elected positions of Mayor and City Councilmembers, and the option to participate in an individually paid supplemental life insurance plan. If approved, the benefit would take effect July 6, 2025.
FISCAL IMPACT
The annual cost of a $50,000 Life Insurance plan for Mayor and Councilmembers is $617. If approved, this cost will be incorporated into the FY 2025/26 Recommended Budget.
PUBLIC CONTACT
Public contact was made by posting the Council meeting agenda on the City's official-notice bulletin board at City Hall, at the Sunnyvale Public Library and in the Department of Public Safety Lobby. In addition, the agenda and this report are available at the City Hall reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.
ALTERNATIVES
1. Adopt a Resolution amending the City’s Salary Resolution to add a life insurance benefit for Mayor and City Councilmembers.
2. Do not adopt a Resolution amending the City’s Salary Resolution to add a life insurance benefit for Mayor and City Councilmembers.
3. Provide alternative direction to staff.
STAFF RECOMMENDATION
Recommendation
Alternative 1: Adopt a Resolution amending the City’s Salary Resolution to add a life insurance benefit for Mayor and City Councilmembers.
Levine Act
LEVINE ACT
The Levine Act (Gov. Code Section 84308) prohibits city officials from participating in certain decisions regarding licenses, permits, and other entitlements for use if the official has received a campaign contribution of more than $500 from a party, participant, or agent of a party or participant in the previous 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html
An “X” in the checklist below indicates that the action being considered falls under a Levine Act category or exemption:
SUBJECT TO THE LEVINE ACT
___ Land development entitlements
___ Other permit, license, or entitlement for use
___ Contract or franchise
EXEMPT FROM THE LEVINE ACT
___ Competitively bid contract*
___ Labor or personal employment contract
___ Contract under $50,000 or non-fiscal
___ Contract between public agencies
_X_ General policy and legislative actions
* "Competitively bid" means a contract that must be awarded to the lowest responsive and responsible bidder.
Staff
Prepared by: Kristin Armbruster, Human Resources Manager
Reviewed by: Tina Murphy, Director, Human Resources
Reviewed by: Matthew Paulin, Director, Finance
Reviewed by: Sarah Johnson-Rios, Assistant City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. Resolution Amending the City’s Salary Resolution to Add a Life Insurance Benefit for Mayor and City Councilmembers