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2 0 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 City Council Regular Meeting Minutes October 24, 2006 Page 9 Motion by Councilmember Horst, seconded by Councilmember Thuesen, to approve the second reading of Manufactured Home Park Ordinance 2006 -005. Motion Passed unanimously. Mayor Faust stated the third and final reading would be held at the November 14, 2006 Council meeting. C. Resolution 06 -080, Approving the Health Savings Account Plan City Manager Morrison summarized a resolution authorizing the adoption of ICMA Retirement Corporation's Managed Health Care savings plan for eligible City employees. He explained this is a plan that allows employees to participate in a health savings plan that would defer post employment health related expenses using pretax dollars. He stated this is not a flex benefit plan, which allows employees to defer pretax dollars to pay for current medical and childcare expenses. He explained it could not be used until the employee no longer works for the City. City Manager Morrison stated this is a 100 percent cost to the employee. He explained this is a win -win for the employee and the City. He stated it is currently for the non -union group of employees, Fire and Police. He stated the only group not included is Public Works but it should be considered. Councilmember Stille asked City Manager Morrison if this is only for public employees. City Manager Morrison stated he was not sure, because he could not speak for the private sector. He mentioned the State of Minnesota has this plan just for public employees. Councilmember Stille asked City Manager Morrison asked if they are doing the right thing regarding the implementation of the plan and the issue of 100 percent participation. City Manager Morrison replied there are two plans; the State plan administered by the State of Minnesota requires 100 percent participation. He mentioned the Fire and Police union currently have the plan. He stated Fire union employees have 100 percent participation in the plan, but the Police currently do not have 100 percent participation. He stated Assistant City Manager Moore - Sykes researched and found the International City Managers Pension Association QCMA) are putting together a Federal plan because there are many public agencies as part of the plan. There is an IRS ruling that mandatory participation is not required; once you opt in you cannot opt out. Mayor Faust stated this is a win -win for the individual and for the City. Motion by Councilmember Gray, seconded by Councilmember Stille, to approve Resolution 06- 080 authorizing participation in the VANTAGECARE Retirement Health Care Savings Plan. Motion carried unanimously.