SANTA MONICA—On September 29, the City Council unanimously voted in favor of municipal employees contributing a portion of their health care benefits by the coming new year. At present the city manager will work to complete a memorandum of understanding along with the city’s unions, which represent firefighters as well as non-public safety workers.

Police were excluded as their current health care agreement does not expire until the end of2011. While the amount that employees will have to pay has not yet been determined, it is estimated that the city will save almost $1.1 million by having employees help cover the costs of health care. An undisclosed amount of funds from a trust account created in 2005 will help to cover a part of the costs required by employees to pay for health care benefits. Part time employees working for the city permanently will be given a choice of city-provided HMO insurance plans, along with the option of the more costly PPO plan with employees paying for the difference.

As a part of the new agreement the city will also provide a comprehensive wellness program for its staff in order to promote a healthy lifestyle. The same trust account will also help to create and operate the program with the costs estimated at $95,000. The city is committed to continue to provide at least $142 per month for each employee that is a part of the plan.

Adhi Reddy, union chair for Big Blue Bus drivers, has been vocal about his opposition of the plan believing that it was implemented to reduce the budget deficit, while the city maintains that the plan is needed to close the gap between revenue and spending.