08-24-05 Council Workshop Minutes

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MINUTES CITY COUNCIL AUGUST 24, 2005 required to participate under a plan designed determined by the City. It was noted that there is no risk to the City in providing this benefit. The Council was supportive of implementation of the Post Employment Heath Care Savings Plan, and recommended that staff bring back a detailed recommendation for Council action. It was noted that employee input would be obtained for developing the plan parameters. Next reviewed was the issue of unused sick leave balances and whether or not to provide for a sick leave pay out at the time of severance or retirement. The City Administrator pointed out that this issue has been discussed by the Council in the past with the Council's position to not provide the pay-out/severance pay benefit. However, in comparing the benefits that Little Canada provides its employees with those of other cities, the vasC majority of cities do provide a sick leave payout/severance pay benefit. The Administrator noted that some cities tie this payout to a Post Employment Health Care Savings Plan. Keis noted the accounting issue with unused sick leave and the fact that the carrying costs increase as employee's rates of pay increase. The City Administrator reported that unused sick leave is accounted for as a liability in the City's financial statements. Blesener felt that the issue should be reviewed to some extent. As parC of that review, consideration should be given to the issue of vacation/sick leave versus paid time off. Blesener noted that the Post Employment Health Care Savings Plan may be consideration as parC of the overall review of the severance pay issue. Blesener stated that given the financial impact of this issue, it will take some analysis. He suggested that a committee with representatives of the Council and Staff be formed to study the issue in detail and come back with a recommendation to the full Council. The issue of sick leave usage and employer oversight of such usage was discussed. It was noted that conversion to a PTO plan takes the employer out of the job of monitoring sick leave usage. There was also discussion of private sector versus public sector employment. Keis mentioned that consideration should be given to employees' total compensation package of wages plus benefits. The City Administrator indicated that this is done as part of the budget process. He briefly described the methodology used for determining annual wage increases. The Parks & Rec Director noted that the methodology has a one year lag time in that we compare with 2005 wages paid by other cities. The City Administrator described the transition from the time there were no formal wage scales in place to the current system. He agreed it may be time to eliminate the one year lag 2