The special meeting was called to order by Mayor Cheryl A. Young at 7:30 p.m. Mayor Young led the flag salute.

Mayor Cheryl A. Young

Councilor Marian Calnon

Councilor Bill Guy

Councilor Gary Hudson

Councilor Bob Schmor

COUNCIL MEMBERS ABSENT:

None

ALSO PRESENT:

Micah Olson, Public Works Superintendent

Leahnette Rivers, City Administrator/Recorder

ATTORNEY PRESENT:

None

A quorum was present and due notice had been published.

MOVED (GUY), SECONDED (HUDSON) AND CARRIED UNANIMOUSLY TO ADOPT COUNCIL BILL NO. 04-321.

The Council reviewed a memo dated June 9, 2004 from Leahnette Rivers regarding a request from the developer of McBride Meadows Subdivision for a credit against the park SDCs as a result of a parkland donation. In the memo, Leahnette explained that the developer has placed a value on the parkland donation based upon the square foot purchase price of the entire subdivision. However, because this method includes the value of 41 buildable subdivision lots and the parkland area is steep and unbuildable, she and Harold Olsen, City Attorney, recommended the City require the developer to have the land appraised. In addition, they recommended the Council require that the appraisal meet the satisfaction of a review appraisal, which would be conducted by an appraiser hired by the City, and that the cost of the review appraisal be deducted from the developer's Park SDC credit. She said the review appraisal is expected to cost approximately $500.00.

After a lengthy discussion, MOVED (SCHMOR), SECONDED (CALNON) AND CARRIED UNANIMOUSLY TO REQUIRE AN APPRAISAL OF THE PARKLAND, AND THAT THE APPRAISAL BE SUBJECT TO A REVIEW APPRAISAL, AND THE COST OF THE REVIEW APPRAISAL BE DEDUCTED FROM THE SDC CREDIT.

The Council convened in Executive Session.

The Council reconvened in Open Session.

MOVED (HUDSON), SECONDED (GUY) AND CARRIED UNANIMOUSLY TO OFFER TO PURCHASE TAX LOT 5128-042-00900 FOR $700.00.

The Council reviewed costs associated with employee medical, dental and vision insurance, as well as current and alternative medical plan details. Leahnette noted that insurance costs have doubled in the last five years. She said she's been meeting with affected employees to come up with a recommendation for the Council for an alternative plan. She said if the Council agrees to change medical plans, the changes will take effect on August 1, 2004.

Leahnette recommended the Council move from Blue Cross Medical Plan V-A to V-E, w/PPP. She said the current plan V-A is a $100 deductible, and the recommended plan V-E is a $500 deductible with a preferred provider benefit. She said under the recommended plan, the employee's annual maximum out-of-pocket expense will go up from $600 per person to $2,000 per person (maximum of 2 family members). She said the V-E, w/PPP/$500 deductible monthly premiums are $302.63 (one party), $633.17 (two party) and $843.74 (family) versus V-A, $100 deductible premiums (effective August 1) of $392.70 (one party), $821.59 (two party) and $1,094.77 (family).

Leahnette recommended the Council share some of the cost savings with the employees and adjust affected employee salary ranges. Councilor Hudson suggested that instead of a salary adjustment, an insurance stipend be offered to the affected employees for a period of one year, giving the City an opportunity to thoroughly study benefit options. He suggested they receive the stipend on a quarterly basis, rather than monthly, in an effort to encourage them to use it for medical bills and not get accustomed to it being part of their regular pay check.

The Council discussed this matter at length with staff. It was the consensus of the Council that the stipend quarterly payment be made at the end of each quarter (October 31, 2004, January 31, 2005, April 30, 2005 and July 31, 2005) and terminating employees receive a pro-rata share upon termination.

Leahnette suggested the Council consider an amendment to the City's medical plan and Personnel Policies and Procedures Manual, which currently requires the City provide full health insurance benefits for employees working more than 24 hours per week. She suggested the Council consider increasing the number of hours an employee can work before they become eligible for insurance, and/or having part-time employees pay a pro-rata share of the health insurance costs once they qualify, because the hourly costs associated with full medical insurance benefits are very expensive for a part-time employee. The Council discussed this matter at length with staff. It was the consensus of the Council that the number of hours a part-time employee may work before becoming eligible for medical insurance be increased, and that this matter also be studied carefully during the next year.

MOVED (SCHMOR), SECONDED (HUDSON) AND CARRIED UNANIMOUSLY TO ELECT TO PROVIDE EMPLOYEES WITH PLAN V-E, $500 DEDUCTIBLE, WITH THE PREFERRED PROVIDER OPTION, BEGINNING AUGUST 1, AND DURING THE FIRST TRIAL PERIOD YEAR WE WILL STUDY OPTIONS FURTHER AND TEMPORARILY PROVIDE AFFECTED EMPLOYEES WITH A $1,750 ANNUAL INSURANCE STIPEND, TO BE PAID QUARTERLY AT THE END OF EACH QUARTER, AND TO AMEND THE PERSONNEL POLICY TO STATE THAT A PERSON WORKING IN EXCESS OF 32 HOURS PER WEEK QUALIFIES FOR GROUP MEDICAL, DENTAL AND VISION INSURANCE FOR THEMSELVES AND THEIR QUALIFYING DEPENDENTS, AND WE WILL STUDY THAT ISSUE FURTHER.

AGENDA ITEM 3 ADJOURNMENT: There being no further business to come before the Council, the meeting adjourned at 9:06 p.m.

Return to Columbia City home page