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HomeMy WebLinkAbout11-05-18-SWS It, ,,-A DEN HILLS Request for Special City Council Work Session A special meeting may be called by the Mayor or by any two Councilmembers. Reason for meeting: 1. Compensation Study Discussion 2. TCAAP/Rice Creek Commons Public Forum Dipussion Requested Date: 11/05/18 Requested time: 5:30 pm Open meeting X Closed meeting Signature of person(s)making request: �ci J_ L" 11A IF Mayor or Council Member Date Council Member Date -This section to be completed by City staff- Date received: L'a-11 V Date meeting to be held: 11/05/18 Time of meeting: 5:30 pm Location: City Hall All necessary posti g and notices have been completed. nj I I / --�- / ) Si ature of City Clerk Date City of Arden Hills•1245 West Highway 96•Arden Hills Minnesota 55112 Phone 651.792.7800•Fax 651.634.5137 •www.cityofardenhills.ore '!Tt --A"ENILLS Approved: CITY OF ARDEN HILLS, MINNESOTA SPECIAL CITY COUNCIL WORK SESSION NOVEMBER 5, 2018 5:30 P.M. - ARDEN HILLS CITY COUNCIL CHAMBERS CALL TO ORDER/ROLL CALL Pursuant to due call and notice thereof, Mayor Grant called to order the Special City Council Work Session at 5:30 p.m. Present: Mayor David Grant, Councilmembers Brenda Holden, Dave McClung, Fran Holmes and Steve Scott Also present: City Administrator Dave Perrault, Finance Director Gayle Bauman, and Communications Coordinator Dawn Skelly 1. AGENDA ITEMS A. Compensation Study Discussion Finance Director Gayle Bauman noted that a compensation study was completed and the Financial Planning and Analysis Committee (FPAC) was directed to take the lead on the project. The main areas that were reported on were Pay Plans, Paid Time Off, Life, Disability and Retirement, and Health and Dental. The City does have a step system in place and it was determined that pay is competitive in the market and no major changes are needed in the pay levels. There were recommendations with the step structure. Currently there is a flat percentage increase in the step structure and the recommendation is taking the minimum to maximum range, dividing it by the number of steps and give an even amount for each step. The other suggestion is to shorten the timeline of the non-union pay schedule. It currently takes seven years to go from minimum to maximum, as compared to three years for union employees. Public Works maintenance wages have some room for wage growth but any adjustments considered should be accompanied by a harmonization with the City non-union step structure. No changes are being recommended by the FPAC at this time. Finance Director Bauman said The PTO program is competitive at middle market and no changes are being recommended at this time. For life insurance, the City paid coverage is $20,000. This is a little on the low side but within the $10,000 to $50,000 range. The City does pay for short and long term disability for employees. Employees are taxed on these amounts so ARDEN HILLS SPECIAL CITY COUNCIL WORK SESSION—NOVEMBER 5, 2018 2 benefits received are non-taxable. The City does offer a deferred compensation plan but this is all employee funded, no City contribution is made. No changes are recommended in those areas. Finance Director Bauman stated that Health and Dental was discussed the most by the FPAC. The information was received from the benefits consultant in early November and they committee has met twice since that time. The study noted that single healthcare insurance premiums are paid entirely by the cities surveyed. Larger jurisdictions used a flat dollar amount for many years for benefits and that amount can be used like a cafeteria plan to cover the premium for whatever the employee chooses. Arden Hills has been paying 100% of single, a portion of family and a contribution to the HSA plans. Cities with HSA's usually contribute a portion of that dollar amount to the HSA with the rest going to premium. Single coverage is normally provided at no cost to the employee. Family coverage is where the limits or target come into play. In the survey a range of$1,075 to $1,205 is what cities that were surveyed paid in 2018. NFP brought options to change to Blue Cross Blue Shield, Medica, Preferred One and PEIP. The committee narrowed it down to our current plan and PEIP. The PEIP program offers three different plans: Advantage, Value and HSA plans. The Advantage and Value plan premiums are a bit more expensive but have different benefits and lower out of pocket maximums. There is a significant price difference in the PEIP HSA plan versus the current plan but it is more limited in care options, higher deductibles and higher max out of pocket. Finance Director Bauman discussed the premium breakdown charts provided. She stated that the committee would like to get away from the percentage based premium payments and go to a flat based amount. The union contract states that the employer will contribute the same contribution as approved for non-union employees. Councilmember Brenda Holden noted that several surrounding counties and cities are in the PEIP plan, and having that large of a group minimizes the premium fluctuations. Finance Director Bauman said the City could look at just the HSA plan. If an employee wanted to take the Value or Advantage plan the employee would pay the difference in cost. After picking the plan the employee would choose the network, either HealthPartners, Blue Cross Blue Shield or Preferred One, and then choose a primary clinic. Primary care clinics are listed at different levels, 1-4. One is the least expensive, four is the most expensive. The chart provided was based on level 2. After discussion, the Council was in agreement with the FPAC recommendation to change to the PEIP insurance plan. Finance Director Bauman questioned how the city contribution would be handled for union employees since they City was going to a flat amount. She recommended raising the contribution to include the HSA contribution. After discussion, the Council decided to raise the union employee's contribution to $1,025 and discuss further at the next union negotiations. ARDEN HILLS SPECIAL CITY COUNCIL WORK SESSION—NOVEMBER 5, 2018 3 B. TCAAP/Rice Creek Commons Public Forum Discussion City Administrator Dave Perrault asked for questions and comments on the slides prepared for the upcoming public forum. The Council reviewed the slides and made changes to them, the wording of the presentation, and the feedback form. 2. COUNCIL/STAFF COMMENTS None ADJOURN Mayor Grant adjourned the City Council Work Session at 7:49 p.m. Jol e Trauba David Grant Deputy Clerk Mayor