11/13/1995 Council Minutes - Laserfiche WebLink

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COUNCIL MEETING NOVEMBER 13, 1995 CONSIDERATION OF RESOLUTION NO. 95 -156 AMENDING THE CITY'S FLEXIBLE HEALTH CARE DEPENDENT DAY CARE PLAN, DAN TESCH Mr. Tesch explained that the City adopted a Flexible Health Care and Dependent Day Care Plan November 13, 1990 with January 1, 1991 as the effective date. The Plan allows employees to pre-tax health insurance and day care costs. Since 1991, Family Medical Leave and Military Leave acts have been voted upon. The City's Plan does not include these new laws. As it costs $390.00 to update the plan, there is another section to add to include those employees who opt out of health care coverage that the City provides. The City can add the option to pay the employee who opts out of the health coverage, cash payment of a City contribution to I.C.M.A. The cash option contribution would be equal to the higher insurance single premium less Social Security, Medicare and P.E.R.A. The deferred compensation contribution would be equal to thehigherinsurance single premium. An employee on family coverage could save the City $2,000.00 per year by opting out of the City's insurance plan. Proof of insurance is needed to be eligible for this option. There is no additional cost to the City and the City may see a slight saving on this benefit. It is also possible to see a rate reduction. Mr. Tesch explained that the Finance Director conducted a survey of City employees and it appears that at least five (5) employees are interested in this plan. The City could see a $10,000.00 saving if the plan is implemented. Council Member Kuether moved to adopt Resolution No. 95 - 156 Amending the Flexible Health Care and Dependent Day Care Plan to include Family Medical Leave and Military Leave and also amend the Plan to include a section allowing for cash or deferred compensation City contributions. Council Member Bergeson seconded the motion. Motion carried unanimously. Resolution No. 95 - 156 can be found at the end of these minutes. FIRST READING, ORDINANCE NO. 22 - 95 AMENDING CHAPTER 207, PERSONNEL POLICY, DAN TESCH Mr. Tesch explained that Chapter 207, Personal Policy, of the Lino Lakes City Code has not been updated in a number of years. The City has adopted state and federal mandates such as Family Medical Leave and Parental Leave, but these new policies have not been codified. In addition, several advances in benefits have been afforded to union employees, but not to non-union employees. The state Pay Equity statute mandates that benefits need to be similar among employee groups. Page 6