04-24-2000 CC MIN - Laserfiche WebLink

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City Council Minutes Page 3 April 24, 2000 question and answer period. All department heads were present during the presentation. The City Council recessed at 8:10. The council moved into the training room to meet and discuss the issue of employee benefits with the Benefits Committee. The council reconvened at 8:20 p.m. 5.4. Benefits Committee Update Lori Johnson introduced the members of the Benefits Committee. Those present included Cheryll Edinger, Marc Nevinski, Joan Frick, Bob Mahutga, Lauren Wipper, Lori Johnson and Steve Tillmann. Lori Johnson gave a recap of the committee's progress to date. She stated that the committee identified two main reasons they felt the council had formed a committee to suggest changes to the city's benefit package: 1) The high monthly cost employees pay for family health insurance and the high health insurance premium, in general. 2) Recent employee recruiting and retention issues related to the city's insurance benefits. Lori indicated that if the council is just interested in decreasing the employee cost for family coverage, the council could simply increase its contribution. However, if the council wants to make changes that also address employee retention and recruitment issues, the committee's proposed options to accomplish that goal will be presented. The Council expressed interest in doing more than just increasing the contribution to family coverage. Lori continued stating that the committee also agrees that all employees would like more flexibility in their benefits. She reviewed the possible council action options identified by the committee. The options include the following: · Do nothing · increase city contribution to family coverage · Unilaterally decrease health insurance benefits · Change the way benefits are provided (cafeteria plan) The pros and cons of the options were discussed. Lori stated that the committee's criteria for reviewing the plans included cost, feasibility, and the choices it offered employees. Lori indicated that the committee is looking for council direction before continuing. Council discussion took place regarding the importance in reducing the burden on those paying for family coverage. It was suggested that an incentive be offered to employees who waive coverage such as extra vacation days. It was the consensus of the council to consider a cafeteria plan with different contribution levels depending upon the type of coverage selected. The council would like the family contribution increased and would consider a plan that offers some after insurance dollars to employees with single coverage. The council agreed that it will be impossible to develop a plan that everyone considers fair. The council requested that the committee present details and costs for a cafeteria plan as discussed at a meeting in June or July.