Agenda Packets - 2002/02/25 - Laserfiche WebLink

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Mounds View City Council January 28, 2002 Regular Meeting Page 6 Mr. Pittman commented that, if insurance rates change, the dollar amount will change and that is why 80% is a good deal for employees. He then commented that he feels there was a lack of communication because he was unaware of it until tonight’s meeting. Mayor Sonterre noted that, without a department head in public works, some things may have fallen through the cracks. City Administrator Miller explained there would not be an immediate change in coverage and explained that the City needed to set a fixed dollar amount that it was willing to pay because the costs of insurance are staggering and continuing to climb. She then noted that almost all other cities are moving away from a percentage formula for insurance. Mr. Pittman commented that he was in the acting directors position for a while and had been attending Staff meetings but was never made aware of the proposed change to insurance. He then commented that 80% was a nice benefit to employees and the City is taking something away. Tim Fredberg from the street department indicated that there are a lot of issues within the City that are affecting employee morale. He then commented that the City has lost a lot of experienced people and is poised to lose more valuable experience if it keeps treating its employees in such a manner. He further commented that Council needed to keep in mind that the employees run the City. Council Member Thomas indicated that the City was aware when it started discussing this change it would not be the popular opinion. She then asked those employees in attendance to turn around and explain to the residents in attendance at the meeting why, with revenue dropping and taxes rising, the employees feel it is fair to ask residents to pay 80% of health insurance rates that continue to climb. She further explained that the City is not doing anything different than the rest of the business world when it comes to health insurance. She concluded her comments by saying that insurance rates are rising at such a high rate that the City is not able to budget for it. Mr. Pittman stated that the public works group is a group of guys that bend backwards to save the City money and, in return, they are questioned on everything and are constantly criticized. Council Member Thomas indicated that she, as well as the rest of the City, appreciates the efforts of the public works Staff. David Jahnke of 8428 Eastwood Road indicated he sympathized with the employees but explained he used to work for Sysco that employs over 800 people and the company started taking health insurance out of employees’ checks. He then commented that nobody wants to lose a benefit but it is happening in all positions in all companies. He further commented that insurance rates are ridiculously high.