REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
February 25, 2025
FROM
LEONARDO GONZALEZ, County Labor Relations Chief, Human Resources Department
SUBJECT
Title
Side Letter Agreement with the Sheriff’s Employees’ Benefit Association
End
RECOMMENDATION(S)
Recommendation
1. Approve an amendment to the Side Letter Agreement between San Bernardino County and the Sheriff’s Employees’ Benefit Association for the SEBA Healthcare Trust, to add Sheriff’s Trainees to the eligibility criteria of the Healthcare Trust and to provide a $1,521,557 loan for the development and implementation of a Voluntary Employee Benefit Association and related Healthcare Trust, with loan repayment, including interest at the County Treasury Pool rate, by January 1, 2027.
2. Authorize the County Administrative Office to record a general fund loan between the County General Fund and the Sheriff’s Employees’ Benefit Association.
(Presenter: Leonardo Gonzalez, County Labor Relations Chief, 387-5570)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Create, Maintain and Grow Jobs and Economic Value in the County.
Improve County Government Operations.
Operate in a Fiscally-Responsible and Business-Like Manner.
Provide for the Safety, Health and Social Service Needs of County Residents.
FINANCIAL IMPACT
Approval of this item will result in the use of additional Discretionary General Funding (Net County Cost). The loan amount is the value of the Employee and Employer Contribution for one pay period of associated costs to service the Healthcare and Dental plans of Sheriff’s Employees’ Benefit Association (SEBA) employees who opted into the SEBA Healthcare plans, which is calculated at $1,521,557. Approval will result in $1,521,557 being unavailable for County use.
Upon SEBA’s receipt of the loan, interest will accrue at the County Treasury Pool rate until December 31, 2025, and will be added to the principal. Effective January 1, 2026, interest will continue to accrue until the loan is repaid by SEBA over a twelve-month repayment term. The first payment is due on February 1, 2026.
BACKGROUND INFORMATION
On July 12, 2022 (Item No. 15), the Board of Supervisors (Board) approved successor Memoranda of Understanding (MOU) between San Bernardino County (County) and the Sheriff’s Employees’ Benefit Association (SEBA) for employees in the Safety Unit and Safety Management Unit that included Medical Trust articles.
On June 11, 2024 (Item No. 106), the Board approved a Side Letter Agreement that allowed for the implementation of a healthcare trust allowing SEBA members in the Safety Unit, Safety Management Unit and certain associate members to select the County-sponsored health plans or the SEBA-sponsored health plans offered through the Trust. This item also included approval of a $10 million budget adjustment for previously allocated funds in the County Labor Reserve to be transferred to SEBA.
The Sheriff’s Trainee classification is not currently eligible to participate in the Trust because they are not represented by SEBA and therefore do not meet the eligibility requirements. The proposed amendment would extend eligibility for participation in the Trust to the Sheriff’s Trainee classification to avoid any healthcare coverage disruptions.
The proposed amendment also includes a loan to SEBA to costs related to the development and implementation of its Healthcare Trust program. The loan amount is the value of the Employee and Employer Contribution for one pay period, to cover all associated costs to service the Healthcare and Dental plans of SEBA Safety Unit and Safety Management and Supervisory Unit Members who opted into the SEBA Healthcare plans.
If approved, the Amendment to the Side Letter Agreement would become effective February 25, 2025.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Cynthia O’Neill, Chief Assistant County Counsel, 387-5455) on February 11, 2025; Human Resources (Leonardo Gonzalez, County Labor Relations Chief, 387-5570) on February 6, 2025; Finance (Garrett Baker, Administrative Analyst, 387-3077) on February 11, 2025; and County Finance and Administration (Matthew Erickson, County Chief Financial Officer, 387-5423) on February 11, 2025.