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Item No. 4 (continued) Discussion ensued regarding other available plans and their viability, the collective bargaining issue, the need to rewrite whole articles on health insurance under current labor agreements, the impact of additional health care costs on the availability of funds for other projects, the budget tightening process now underway in the City, and how information regarding PERS Health Plan would be disseminated and by whom. The following people spoke in favor of the City providing PERS Health Plan to all employees and retirees: Kathleen Mc Kenny, Redwood City Park, Recreation and Community Services Dept. Joe Brenner, Field Representative of Local 715, SEIU who agreed to provide information to his constituents about the PERS Health Plan recognizing the members will make the final decision. Mary Spore - Alhadef, Redwood City Library, member of the Joint Labor Health Care Committee M /S: Claire /Buchan to accept recommendation of the Personnel Committee including the seven (7) conditions, annual cost not to exceed $1,904,604 and PERS and bargaining units to provide information to constituents. Councilman Murray expressed the view that a decision about a new health plan belongs to the collective bargaining process; the integrity of our agree- ments made in good faith must be maintained; and it would be setting an unacceptable precedent to make decisions on unexpected labor issues without going through the collective bargaining process. Vice Mayor LaBerge expressed concern that the increased expenditures required by the PERS Health Care system would severely impact the 60,000 residents of Redwood City; every City employee and retiree has been provided with access to health care in the current system and thus the commitment to abide by budget constraints in all areas overrides this particular situation. Councilmembers Buchan, Bury, Claire and Mayor Greenalch advised that the recommendation to provide PERS Health Plan is based on the understanding that this is not a renegotiation of any kind, that this is an offer to all bargaining units to either accept or reject this proposal on its merits, that all bargaining units must approve all aspects of the proposal, namely the seven (7) conditions enumerated in the subject report, and if unanimity does not prevail, the PERS proposal will be withdrawn, and the search for accessible, affordable and effective health care will continue. Carried by the following roll call vote: AYES: Councilmembers Buchan, Bury, Claire and Mayor Greenalch NOES: Councilman Murray and Vice Mayor LaBerge MINUTE ORDER NO. 89 -103 ---------------------------------------------------------------------------------- Council recessed from 10:35 p.m. to 10 :45 p.m. ---------------------------------------------------------------------------------- Reg.Mtg. 7/24/89 Page 4 MINUTE BOOK NO. 49 Page No. 47