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The HRA is considered "'funded" for purposes of GASB 34 to the extent deposited funds offset the fature liability of the City. Once deposited, the funds must he used for the sole purpose of providing benefits and may not revert to the City. In an effort to provide employees with this option to help with these post employment health related expenses the City is looping to the vendor through a request for proposal process to help in creating a plan design and investment vehicle that will be most suitable to our population. There are a total of 165 eligible possible participants within 5 employee groups. Of those employees, 73 are represented within one of the 3 bargaining groups. A request for proposal has been prepared and included for your reference. Financial: The financial impact to the City will be determined by the design of the plan. The impact can range from mainly minor expenses of administering the plan to cost incurred through any City co 'butions or payments of fees associated with the plan. There are also some financial advantages through tax savings for the City. Staff Remmmendation Staff recommends that a legal be pasted and the request for proposals be sent out to possible vendors and that the Council authorize a contract and plan be prepared for their review and approval prior to implementation. Council Action Requested Motion authorizing the staff to send out requests for proposals, select an appropriate vendor and prepare plan documents for Council approval for the provision of a post employment health care spending plan to go into effect as a City benefit 1/ 1 /04.