Stockton council approves 2025 health-plan changes amid union objections; vote 5–1

The Stockton City Council voted Sept. 10, 2024, to adopt new 2025 health-plan rates for city employees after extended public comment from labor representatives and a staff presentation explaining options and timing.

Labor and employee leaders urged the council to pull agenda item 12.3 and negotiate before adopting the rates. Almarosa Vargas, president of the City of Stockton’s B and C Employee Association, asked the council to "respectfully request the immediate removal of agenda item 12.3 from tonight's meeting," saying the increases would have "a profound and deeply concerning effect on the financial well-being of the majority of our city's dedicated employees." Jenny Hernandez, identified as president of the Stockton City Employees Association, told the council the proposed changes "will increase by at least 49% per person," and urged additional discussion.

Human-resources staff (identified in the meeting as Director Rosemary) told the council the city had shopped plans, negotiated with vendors and sought mitigations; staff said two additional DHMO options from Kaiser and Sutter were offered to reduce premium increases for some plans. Staff also said a legal and operational timeline constrained action: "We are required by law to provide employees with a 30 day period to have open enrollment," Rosemary told the council, explaining the city needs to finalize plan changes and send enrollment materials so employees have coverage on Jan. 1.

Council members pressed staff on alternatives. Vice Mayor Walmsley and others said they would seek ways to "bridge that gap between 01/01/2025 to 07/01/2025" for employees if possible; City Manager and budget staff referenced one-time payments previously approved as partial mitigation.

Vice Mayor Walmsley moved to approve the item (including a directive for the city manager to explore incentives to offset the January–July coverage gap); Councilmember Lens seconded. The motion passed 5–1, with Councilmember Padilla voting no and Councilmember Wright absent.

Council directed staff to meet with union representatives in an informational session scheduled after the council action and to return with options to mitigate short-term impacts while pursuing longer-term procurement or pooling strategies for 2026.

The vote concludes this year's rate-setting schedule for city plans; staff said they will implement open-enrollment steps and continue negotiating coverage options and pool membership possibilities for future years.