BOARD AGENDA MEMORANDUM
Government Code § 84308 Applies: Yes ☐ No ☒
(If “YES” Complete Attachment A - Gov. Code § 84308)
SUBJECT: Title
Approve the Continuation of Health Benefits for Formerly Elected Board Members Via Self-Pay Option.
End
RECOMMENDATION: Recommendation
Approve the continuation of health benefits for formerly elected Board Members via self-pay option.
Body
SUMMARY:
California Government Code Section 53201, subsection (c), prohibits Board of Director members who were first elected to office on or after January 1, 1995, from receiving employer paid retiree health benefits when they leave office. The provision further holds that where the former elective members of the legislative body first took office after on or after January 1, 1995, the legislative body of the local agency provides for the continuation of any health and welfare benefits so long as the former elective member proceeds on a self-pay basis where he or she pays the full costs of the health and welfare benefits.
All of Valley Water’s elective members (Board members) holding office as of November 1, 2025, were first elected to office after January 1, 1995, so the Board may authorize the continuation of health benefits to them after they leave office on a self-pay basis. Staff is recommending that the Board approve the continuation of such benefits with the elements set forth below (A-E):
A. Starting October 1, 2025, former Valley Water Board members who have served one or more terms of office and who were first elected to office on or after January 1, 1995, shall be entitled to continue health insurance coverage through Valley Water after leaving office so long as they proceed on a self-pay basis where they pay for the full cost of the benefit;
B. Eligible dependents under such medical coverage shall be limited to those who were designated as dependents on such insurance at the time the former Board member left office and who continue to meet all eligibility requirements under Valley Water’s health insurance plan;
C. To the extent the former Board member was eligible for and obtained Valley Water’s retiree health benefit through their service as regular employees of Valley Water in the classified and/or unclassified service, their retiree health benefit shall not be impacted or reduced as a result of their subsequent service on Valley Water’s Board of Directors;
D. To remain eligible, the former Valley Water Board member and their dependents must enroll in Medicare upon turning age 65. Once enrolled, Medicare will become the primary coverage, and Valley Water’s coverage will be the secondary coverage; and
E. Provision of this self-pay option shall not, and is not intended to, create a vested right to such benefit, and Valley Water retains absolute discretion to modify or cancel this benefit in the future.
ENVIRONMENTAL JUSTICE IMPACT:
There are no Environmental Justice impacts associated with this item.
FINANCIAL IMPACT:
There are no financial impacts associated with this item.
CEQA:
The recommended action does not constitute a project under CEQA because it does not have potential for resulting in direct or reasonably foreseeable indirect physical change in the environment.
ATTACHMENTS:
None.
UNCLASSIFIED MANAGER: Manager
Patrice McElroy, 408-630-3159