PURPOSE

The purpose of this staff report is to recommend that City Council authorize the City Treasurer to open a temporary bank account with the Burbank City Employees� Federal Credit Union (BCEFCU) to provide for employee deposits for the benefit of the Burbank Employees� Retiree Medical Trust.

BACKGROUND

The City is in the process of implementing the Burbank Employees� Retiree Medical Trust. Once established, this Trust will provide post-retirement medical reimbursements to eligible City employees.  This program had previously been approved by City Council through the recently adopted Memorandums of Understanding.

The Burbank Management Association (BMA), the International Brotherhood of Electrical Workers (IBEW), the Burbank City Employees� Association (BCEA), Executives, and unrepresented employees will be participating in this program.  Although the Trust has not yet been finalized, these groups have elected to have $20.00 per payroll period withheld to fund this program, beginning with the April 25, 2003 paycheck.

A temporary bank account is needed to hold these deposits until the permanent Trust is established.

ANALYSIS

The BCEFCU has agreed to establish a temporary bank account to hold these employee deposits.  The name of the bank account will be:  City of Burbank Employees� Retiree Medical Trust Account.   The money deposited into this account each payroll period will be invested in the Tiered Advantage Share Savings account, earning a nominal amount of interest each month.  The City Treasurer and the Financial Services Director shall have the authority to direct the BCEFCU to honor all wires or checks for the payment or deposit of money from and into this account.

Once the permanent Trust is established, the money in this BCEFCU account will be transferred to the permanent Trust account.

FISCAL IMPACT

There will be no fiscal impact.

RECOMMENDATION

Staff recommends that City Council approve the Resolution entitled:  A Resolution of the Council of the City of Burbank Authorizing the City Treasurer to Establish an Account at the Burbank City Employees� Federal Credit Union for the City of Burbank Employees� Retiree Medical Trust.

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