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employees with reduced HR assistance. The annual cost of this service is $11 per employee per month, or about $8,448 per year based on the City's current enrollment. Ms. Lasher reported that this would be for a two-year commitment. Staff is recommending that the City Council approve Gallagher Benefit Services, Inc. as the new Agent/Broker of Record and terminate the Agent/Broker of Record relationship with CBIZ effective July 1, 2010. Acting Chair Jeffrey commented on Monterey Benefits — that the price was extremely high and the conflict of interest listed. He clarified that the conflict of interest did not enter into the decision at that point to which Ms. Lasher replied it did not. He continued that he had spoken with Councilmember Dehen and he (Dehen) is fine with Gallagher but wanted staff to explore Bloom Health. He described what Bloom Health is and suggested that if this is something up and coming, he would agree staff should look into it. Councilmember McGlone inquired if this service will make the job easier with regard to human resources and also be a benefit to the employees. Deputy City Administrator Nelson explained that the City has had a relationship with CBIZ for several years and described what they did as Agent/Broker of Record; therefore, this is not a new service. Staff felt it was time to go out to the market and look at others that maybe had more human resources support as well as good benefits for the employee. Motion by Councilmember McGlone, seconded by Acting Chair Jeffrey to recommend that the City Council adopt Resolution #10-06-XXX approving the appointment of Gallagher Benefit Services, Inc. as the City's new agent/Broker of Record and terminate the Agent/Broker of Record relationship with CBIZ, effective July 1, 2010. Motion carried. Voting Yes: Acting Chair Jeffrey and Councilmember McGlone. Voting No: None. Absent: Councilmember Dehen. 4.02 Consider Resolution Approving 2010 Labor Agreement with LELS-Patrol Human Resources Technician Lasher reported that on June 9, 2010, staff was notified that LELS-Sergeants had voted to settle the 2010 Labor Agreement. The contract, which is good for one year, (2010) is for a 0% COLA with step increases for those who are eligible. She summarized the rest of the contract touching on compensatory time, holidays, insurance, etc. She pointed out that the 2010 tentative agreement includes assurances that no member of the LELS-Sergeants group will be laid off or furloughed during 2010. Acting Chair Jeffrey noted this appears to be a budget neutral or better settlement, but wondered how we could guarantee we will not lay anyone off and would they have rights to buy -down to Patrol. Deputy City Administrator Nelson stated she would have to check on that. Councilmember McGlone asked if because Sergeants is a different union — would something like a buy -down have to be agreed upon mutually between the unions. Personnel Committee / June 22, 2010 Page 2 of 4