Laserfiche WebLink
Item No: 7D <br />Meeting Date: November 28, 2011 <br />Type of Business: Council Business <br />Administrator Review: ____ <br /> <br />City of Mounds View Staff Report <br />To: Honorable Mayor and City Council <br /> <br />From: Desaree Crane, Assistant City Administrator <br /> <br />Item Title/Subject: Resolution 7859, Approving Cost of Living <br />Adjustment/Insurance Adjustment Contribution for Non- <br />Union Employees and Approving the Health Insurance Opt- <br />Out Program <br /> <br />Background: <br /> <br />The City Council has traditionally awarded the same Cost of Living Adjustment (COLA) <br />and insurance contribution to all employee groups in order to maintain internal equity. <br /> <br />At the November 7, 2011, closed Executive Session, Staff and the City Council <br />discussed a Health Insurance Opt-Out Program. Essentially the program would pay a <br />City employee to NOT be on the City’s health care plan as long as the employee <br />provides proof of health insurance through other means. During the Executive Session, <br />it was the consensus of the City Council to approve a $200 per month stipend to <br />employees who wish to opt-out of the City’s health insurance. <br /> <br />Discussion: <br /> <br />Based upon direction of the City Council, Staff recommends a COLA increase of 1.5% <br />and a monthly insurance contribution of $917.33 for all non-union employees, effective <br />January 1, 2012. This is the same contribution currently being negotiated to all <br />bargaining groups. <br /> <br />Also based upon the direction of the City Council, Staff recommends adding the <br />following language below to Section 3.15 of the City’s Personnel Manual in regard to the <br />Health Insurance Opt-Out Program: <br /> <br />Health Insurance “Opt-Out” Program <br /> <br />Employees who are eligible to participate in the City’s health insurance program <br />may, with proof of other comprehensive health coverage, elect not to participate <br />in the City’s health insurance plan. Opting out of the City’s health insurance plan <br />may be done by completing a Health Insurance “Opt-Out” Program Waiver <br />Application, and by providing the City with proof of health insurance from another <br />provider. Proof of other health insurance includes an insurance card, or <br />enrollment verification that indicates coverage is, or will be, in effect on or before <br />the termination date from the City’s health insurance. Employees who opt out <br />will be compensated on a monthly basis as approved by Resolution by the City <br />Council.