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<br />City of Centerville <br />October 23, 2002 <br />Council Meeting Minutes <br /> <br />Staff had not said that it would be impossible to renegotiate the benefits but that it would <br />be difficult. <br /> <br />Council Member Capra asked if the City could change its mind after adopting Resolution <br />02-045. Council Member Nelson said she did not think that would be fair to employees. <br /> <br />Council Member Capra said the only question is the cash benefit in return. Council <br />Member Nelson said she does not like the idea that the City has to add that cash back. <br /> <br />Council Member Broussard Vickers asked why Council was questioning the Finance <br />Director's interpretation of the IRS rules. <br /> <br />Mayor Swedberg asked if the sign up had been scheduled. Ms. Paulseth indicated that <br />sign up had been scheduled for November 12, 2002 and that is the last date for <br />enrollment to begin January I, 2003. <br /> <br />Mayor Swedberg asked whether the City has to provide the same level of benefits to the <br />union and nonunion employees. City Attorney Hoeft indicated the City did not have to <br />provide the same level of benefit to the nonunion employees. <br /> <br />Mayor Swedberg commented that the City must have the cash back option with the <br />deferred compensation plan. <br /> <br />Council Member Travis indicated there is also a concern with the gender equity issue. <br /> <br />Mayor Swedberg said it was thought that the City might be in noncompliance with the <br />pay equity requirements. He then said that even though he agreed in principal to this the <br />other night he has reservations about it because he does not like the cash back and the <br />only way to do that is not to provide deferred compensation to nonunion employees. <br /> <br />Council Member Nelson indicated that she was not comfortable with the situation and <br />would like legal advice on the matter. City Attorney Hoeft indicated he would provide <br />whatever services the City needed but then clarified that the City had a system set up that <br />was determined to be illegal because it was not pursuant to a cafeteria plan and the City <br />was attempting to set up the cafeteria plan to be able to continue what it was doing <br />legally. <br /> <br />Council Member Nelson said she does not like the cash kick back kind of thing. <br /> <br />Council Member Broussard Vickers said she understood that Council did not like the idea <br />but stated that it is an IRS requirement. <br /> <br />Council Member Nelson indicated that this amounts to a lot of money in benefits paid to <br />employees and she would like more advice. <br /> <br />Page 9 of 15 <br />