04-09-08 Council Agenda - Laserfiche WebLink

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MAYOR 13111 13lesener COUNCIL Rick Montour Barbara Allan John Kris Michael McGraw 515 Little Canada Road, Little Canada, MN 55117-1600 ADMINISTRATOR (651) 766 -4029 / FAX: (651) 766-4048 Joel R. Hanson www.ci.little-canada.mn.us MEMORANDUM TO: Little Canada City Council FROM: Bill Blesener, Mayor DATE: April 2, 2008 RE: Amendment to City Administrator's Employment Agreement At the time that the City Administrator was hired, the City of Little Canada agreed to pay 100% of the cost of health insurance for the Administrator and his family. In 2007, the Administrator opted out of the City's health insurance plan, obtaining health insurance coverage through his spouse's plan. At that time an opt out reimbursement was established for the Administrator equal to 80% of what health insurance costs would have been if he continued on the City's plan. From an equity standpoint, it is my feeling that given the original Employment Agreement called for the City to pay 100% of the Administrator and his family's health insurance cost, that benefit should not be reduced to 80 %. Given that employees with family coverage have opted to stay with the traditional HMO plan that the City has offered for many years rather than the high - deductible plan, it is my proposal that we reimburse the City Administrator at the 100% cost equivalent of that plan. That amount would be $963.60 per month for April 1, 2008 through March 31, 2009. The 80% equivalent of that number is $770.88. Therefore, I am recommending the following amendment to the Administrator's employment contract language: 7. INSURANCE. The City will pay the cost of hospital and medical insurance for Hanson and dependents. Hanson has the option to have family health insurance coverage provided by the City's employee health insurance plan, or he may opt out of the City's employee health insurance plan and obtain health coverage through his spouse's health insurance plan. If Hanson elects this option, reimbursement will be based on an equivalent of 100% of the cost of Hanson's family health insurance based on the City's traditional HMO plan. the City will pay - tea -Hanson-an- amount equal to 80% of the 1