City Council Minutes 12-09-2013 SpecialMINUTES
SPECIAL MEETING — MONTICELLO CITY COUNCIL
Monday, December 9, 2013 — 6:15 p.m.
Mississippi Room, Monticello Community Center
Present: Clint Herbst, Lloyd Hilgart, Tom Perrault, Glen Posusta,
Absent: Brian Stumpf
Others: Tracy Ergen, Wayne Oberg, Jeff O'Neill
1. Call to Order
Mayor Herbst called the special meeting to order at 6:24 p.m.
2. Purpose of Meeting: Discussion of 2014 benefit options for health insurance and
salary adjustments
Tracy Ergen explained this is a continuation of discussion from the previous meeting and
staff has provided some alternatives for council to consider including a new 4th option.
3. Consideration of approving 2014 benefit options
Tracy Ergen mentioned that staff recommends Option 3 which would have the city pick
up the 15% health insurance increase for 2014. Staff also notes that employees have been
made aware that they will be expected to pick up a large share or all of any increase in
2015, under this option.
Lloyd Hilgart commented that, after reviewing the various options, option 3 would be his
preferred alternative for the coming year. He agrees if the city pays for the entire
increase in health insurance, there would be no COLA increase for 2014.
Clint Herbst stated that some of the discussion in the Personnel Committee centered on
which option would be better for recruiting new employees. Generally, applicants look
more at the pay scale rather than the health insurance benefits. He feels that option 4,
which is a blended benefit of I% COLA and the city covering 1/3 of the health insurance
increase, would be more desirable looking to the future. Clint Herbst added that he
thought that employees would have selected to add a step to the pay scale when the
survey was completed, with the employees absorbing the health insurance increase. Clint
Herbst feels that pay between public and private is much more competitive now.
Glen Posusta suggested that it would be better to go with Option 4, as he thinks it will be
a drastic change in 2015 when employees have to cover the entire health insurance
increase.
Tony Velishek of Apollo Agency stated that there is likely to be some increase for 2015
but that would be dependent on the type of claims during 2014. He doesn't think it
would be as high as the original 29% that the city was facing this year.
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Tracy Ergen explained that, under Option 3, the city could look at leveling out the
employees' share of health insurance with the market and also increasing the pay scale to
be more in line with the market.
Tom Perrault would go with either option 3 or 4. He would like to get the salaries more
in line with other communities but also realizes the health insurance needs to be adjusted.
Clint Herbst asked if any employees had any comments. Al Gapinski noted that a
number of surrounding communities are increasing salaries by 2 to 2 1/2%. If the city
only increases COLA by I% he feels that would be hard to keep up with the other cities.
Wayne Oberg mentioned that employees that move up a step would actually receive
4.75% increase with the COLA and step amount.
Ron Hackenmueller commented that even though the private sector does not offer step
increases, they have other programs to reward their employees such as profit - sharing and
bonuses.
Clint Herbst summarized by saying that it could go either way with the city absorbing the
entire increase on the health insurance this year and paying the entire health insurance
increase in 2015. Or employees could pay a portion of the health insurance increase now
and share future increases with the city instead of absorbing the entire amount in 2015.
GLEN POSUSTA MOVED TO APPROVE OPTION 4 WITH FULL STEP
INCREASES, 1% COLA INCREASE, AND CITY ABSORBS ONE -THIRD OF THE
HEALTH INSURANCE INCREASE WITH EMPLOYEES ABSORBING TWO -
THIRDS. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED 3 -1
WITH LLOYD HILGART VOTING IN OPPOSITION.
Wayne Oberg mentioned that he has incorporated the council's action into the budget
resolution and wanted to confirm that was acceptable. He will fill in the figures that were
approved.
4. Adjournment
TOM PERRAULT MOVED TO ADJOURN THE SPECIAL MEETING AT 6:54 P.M.
LLOYD HILGART SECONDED THE MOTION. MOTION CARRIED 4 -0.
Recorder: Catherine M. Shuman JPW
Approved: January 13, 2014
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