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City Council Regular Meeting Minutes October 24, 2006 Page 9 2 Motion by Councilmember Horst, seconded by Councilmember Thuesen, to approve the second 3 reading of Manufactured Home Park Ordinance 2006-005. 4 Motion passed unanimously. 5 6 Mayor Faust stated the third and final reading would be held at the November 14, 2006 Council 7 meeting. 8 9 C. Resolution 06-080; Approving the Health Savings Account Plan 10 11 City Manager Morrison summarized a resolution authorizing the adoption of ICMA Retirement 12 Corporation's Managed Health Care savings plan for eligible City employees. He explained this 13 is a plan that allows employees toparticipate in a health savings plan that would defer post 14 employment health related expenses using pretax dollars. He stated this is not a flex benefit 15 plan, which allows employees to defer pretax dollars to pay for current medical and childcare 16 expenses. He explained it could not be used until the employee no longer works for the City. 17 City Manager Morrison stated this is a 100 percent cost to the employee. He explained this is a 18 win-win for the employee and the City. He stated it is currently for the non-union group of 19 employees, Fire and Police. He stated the only group not included is Public works but it should 20 be considered. 21 22 Councilmember Stille asked City Manager Mornson if this is only for public employees. 23 24 City Manager Mornson stated he was not sure, because he could not speak for the private sector. 25 He mentioned the State of Minnesota has this plan just for public employees. 26 27 Councilmember Stille asked City Manager Mornson asked if they are doing the right thing 28 regarding the implementation of the plan and the issue of 100 percent participation. 29 30 City Manager Mornson replied there are two plans; the State plan administered by the State of 31 Minnesota requires 100 percent participation. He mentioned the Fire and Police union currently 32 have the plan. He stated Fire union employees have 100 percent participation in the plan, but the 33 Police currently do not have 100 percent participation. He stated Assistant City Manager Moore - 34 Sykes researched and found the International City Managers Pension Association (ICMA) are 35 putting together a Federal plan because there are many public agencies as part of the plan. There 36 is an IRS ruling that mandatory participation is not required; once you opt in you cannot opt out. 37 38 Mayor Faust stated this is a win-win for the individual and for the City. 39 40 Motion by Councilmember Gray, seconded by Councilmember Stille, to approve Resolution 06- 41 080 authorizing participation in the VANTAGECARE Retirement Health Care Savings Plan. 42 Al3 Motion carried unanimous . 44 45 46