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Regular City Council Minutes - 8118/03 Page 27 employees and retirees; current provider and anticipated rate increase in 2004; industry trends; vendor tier offerings (i.e., HealthPartners; Medica; Blue Cross Blue Shield; and Preferred One); and policy and financial implications. Substantial detail was defined from the staff report dated August 18, 2003 and clarified for Councilmember discussion. Ms. Bacon reviewed various options in consideration of a uniform city contribution for a full cafeteria plan and overviews of various scenarios with tier changes for active staff (i.e., no change in tiers, but move to uniform city contribution; change to three tiers and move to uniform city contribution; change to four tiers and move to uniform city contribution; and change to four tiers without any family terminology and move to uniform city contributions). Kysylyczyn moved, Kough seconded, offering a full cafeteria plan, with three tiers, including a family tier (i.e., single, single plus one, and family). Ms. Bacon opined that given the current business market climate, the City may wish to reconsider their tier offerings; and advised that the City's benefit consultants were in the audience to assist in responding to Council questions. Further discussion ensued, including fairness to employees under the various scenarios; Councilmember Maschka expressed support for athree- tier system. City Manager Beets recorrunended, given a twelve percent anticipated increase in 2004 and his recommended COLA wage increase for employees in 2004, that Councilmembers give careful consideration to this decision, and opined that moving from atwo-tier to a three-tier plan for the first year would seem advisable;