HomeMy WebLinkAbout2007-12-19 Council Minutes - Work SessionCouncil present: R. Ross, R. Molloy, H. Smalley, B. Eldridge, P. Porter, L. Swarner
and M. Boyle
Staff present: C. Freas, R. Koch, C. Graves and L. Semmens
City Manager Koch explained the city received a new quote for health care coverage in
November, 2007 with an 18.04% increase for the same coverage which would amount
to almost $200,000 more annually. Administration's recommendation was an eight
percent (8%) increase with a modified plan which was included in the council meeting
packet for council review and consideration at the meeting following the work session.
Koch noted the following:
• Subsequent to the information prepared and included in the packet, a
different political subdivision plan was found through AML/JIA (Aetna).
• The AML/JIA coverage and rates through this policy were very good with
little difference in coverage of what the city currently had. Koch/Semmens reviewed
the coverage information.
• The AML/JIA coverage cost would be far less than the current plan as
well as the 18.04% increase quote received.
• If council determines to change to the AML/JIA coverage and funding is
left, it was suggested council be requested to return 50% of the balance to employees
(approximately $400 each) and 50% be kept b_y the city.
Discussion followed with comments including:
• Health care plan should be reviewed at the same time as the budget by
seeing the total compensation at budget time for approximate costs and when COLA
increases are being considered.
• With the cost savings, it was hoped to review the entire employee
compensation package and consider a five to six percent COLA.
• Request to hold a special meeting prior to December 31.
• Present program to employees to inform them of the changes.
• Concern of council policy to use local businesses was expressed and it
was noted, the city's broker would still be paid.
• Special meeting was scheduled for Wednesday, December 26, 2007,
beginning at 5:00 p.m.
• Request for sources and the budget showing where the city is competitive
and not competitive when filling positions.
• Request to look forward to what a health plan would be in ten years and
how council would address the problem.
• Discussion during budget work sessions will include city contribution to
401K, Tier IV, and whether the city would be able to re -enroll in social security.
KENAI CITY COUNCIL WORK SESSION
DECEMBER 19, 2007
PAGE 2 of 2
The work session ended at approximately 6:40 p.m.
Notes Prepared by:
Carol L. Freas, City Clerk