To: Board of Supervisors
From: Ann Elliott, Human Resources Director
Report Title: Resolution establishing a Health Reimbursement Arrangement (HRA) for Rodeo-Hercules Fire Protection District Retirees.
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
ADOPT a Resolution which establishes a health reimbursement arrangement to provide Rodeo-Hercules Fire Protection District (RHFPD) retirees with the same post-retirement health benefits as they were receiving prior to the annexation of RHFPD to the Contra Costa County Fire Protection District, as recommended by the County Administrator.
FISCAL IMPACT:
The anticipated costs of providing healthcare benefits to the former RHFPD retirees is $425,000 for FY 2025-2026. This was included as a forecasted recurring cost in the annexation fiscal analysis and was included as a cost factor in the approved FY 2025-2026 Fire District Budget.
BACKGROUND:
Prior to the annexation of Rodeo Hercules Fire Protection District (RHFPD) to Contra Costa County Fire Protection District (CCCFPD) on July 1, 2025, RHFPD offered its retirees and their beneficiaries certain post-retirement health benefits. These benefits differ somewhat from those that were offered by CCCFPD. During the lead up to the annexation, RHFPD and its retirees sought to maintain the same level of post-retirement health benefits for retirees and their
beneficiaries post-annexation as they had received prior to the annexation.
Through a Health Reimbursement Arrangement (HRA) within the meaning of Internal Revenue Service Notice 2002-45, CCCFPD can offer RHFPD retirees and their beneficiaries the same level of health benefits that they received prior to the annexation. Under the HRA, retirees can submit claims for reimbursement of qualified medical expenses, which CCCFPD reimburses up to a preset level. The HRA would be effective as of the date of annexation on July 1, 2025, and only benefit those retirees and their beneficiaries who were retired from RHFPD prior to that date.
By adopting this resolution, the Board allows for the creation of an HRA that would be administered by the County’s Human Resources Director.
CONSEQUENCE OF NEGATIVE ACTION:
RHFPD retirees would not receive the same level of post-retirement health benefits as they were receiving prior to the annexation.
THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA
and for Special Districts, Agencies and Authorities Governed by the Board
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RESOLUTION NO. 2025-XX
A RESOLUTION OF THE BOARD OF SUPERVISORS OF COUNTY OF CONTRA COSTA, ACTING AS THE GOVERNING BOARD FOR THE CONTRA COSTA COUNTY FIRE PROTECTION DISTRICT, APPROVING THE ESTABLISHMENT OF THE CONTRA COSTA COUNTY FIRE PROTECTION DISTRICT HEALTH REIMBURSEMENT ARRANGEMENT
WHEREAS, the Contra Costa County Fire Protection District (the “District”) provides post-retirement health benefits to eligible retirees through the CalPERS Health Program and an agreement with CalPERS under the Public Employees’ Medical and Hospitality Act (PEMHCA); and
WHEREAS, the Rodeo-Hercules Fire Protection District (“Rodeo-Hercules”) was annexed to the District, effective July 1, 2025; and
WHEREAS, the District and Rodeo-Hercules discussed providing those Rodeo-Hercules employees who retired prior to July 1, 2025, with the same post-retirement health benefits for themselves and their beneficiaries following the annexation as they were receiving prior to the annexation; and
WHEREAS, to do so, the District wishes to establish a health reimbursement arrangement within the meaning of Internal Revenue Service Notice 2002-45 to provide tax-free benefits to eligible Rodeo-Hercules retirees and their beneficiaries to the maximum extent permitted under the Internal Revenue Code and the regulations issued thereunder.
NOW THEREFORE, BE IT RESOLVED, that the Board of Supervisors of the County of Contra Costa, acting as the governing board for the Contra Costa County Fire Protection District, hereby establishes the Contra Costa County Fire Protection District Health Reimbursement Arrangement (the “Plan”) in the form attached here to as Attachment A, effective July 1, 2025.
BE IT FURTHER RESOLVED that the Board delegates administrative authority under the Plan to the County of Contra Costa’s (the “County’s”) Human Resources Director, who shall be an administrator for the Plan; and may delegate any administrative duties relating to the Plan to appropriate departments; and
BE IT FURTHER RESOLVED that the Board authorizes the Human Resources Director of the County, or his or her designee, to take all necessary actions to implement and maintain the Plan in accordance with applicable accounting and legal requirements.
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I HEREBY CERTIFY that the foregoing is a true and correct copy of a Resolution passed and adopted by the Board of Supervisors of the County of Contra Costa at a meeting thereof on the 22nd day of July, 2025 by the following vote:
AYES:
NOES: None
ABSENT: None
ABSTAIN: None
______________________________
Candace Andersen, Board Chair
Attest:
_______________________________
Monica Nino, County Administrator
Clerk of the Board of Supervisors