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ARDEN HILLS CITY COUNCIL WORKSESSION MINUTES <br /> October 17, 2005 5 <br /> plan is that employees would be responsible for 20% (not to exceed the out of pocket <br /> maximums) of the costs associated with inpatient or outpatient services. The recommended <br /> change in policy would result in a 10%increase in health care premiums for the City in 2006. <br /> The projected changes to the employee benefit package could be implemented immediately for <br /> non-union employees, but would require a Memorandum of Understanding between the City and <br /> the Local 49ers in order for the changes to be implemented by the Operations and Maintenance <br /> Department. <br /> City Administrator Wolfe stated that staff's goal was to eliminate the overlap in coverage <br /> between the existing short term and long term disability policies, and use of the savings to <br /> increase the short term disability benefit level. <br /> Councilmember Larson agrees with the proposal that benefit levels should be increased for City <br /> staff. <br /> City Administrator Wolfe said that the City currently has a very good health care plan at this <br /> time. Unfortunately,the cost for this plan has increased by 20% from last year. In the future, the <br /> City may have to consider a cafeteria plan or health savings account plan. <br /> Ms. Shari Woodarck noted that the City is limited in the number of health care plans that it can <br /> participate in due to its small number of employees in its health care pool. <br /> Councilmember Holden asked what the projected costs for short term disability insurance will be <br /> in two years. <br /> City Administrator Wolfe said that the short term disability and long term disability insurance <br /> polices are market driven. It varies on a year to year basis. <br /> Councilmember Grant mentioned that the City Council will have to manage health care costs for <br /> the City in the future. <br /> City Administrator Wolfe said that the City could consider a health care plan with increased <br /> deductibles before the City explores the other HSA and VEBA options that are available at this <br /> time. <br /> Councilmember Larson suggested that the City Council consider increasing the life insurance <br /> benefit for staff members. <br /> Shari Woodarck stated that the City attempted to review the insurance rates for $20,000 of life <br /> insurance for each employee. The goal was to keep the rates similar and still increase the <br /> insurance benefit to staff. <br /> City Council recommended that City staff bring forth the recommended changes to the employee <br /> benefits to a future City Council meeting for further consideration. <br /> 5 <br />