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2. Council Minutes - Special Meeting June 28, 2004A SPECIAL MEETING OF THE KALISPELL CITY COUNCIL WAS HELD AT 7:00 P.M. MONDAY, JUNE 28, 2004, IN THE COUNCIL CHAMBERS AT CITY HALL IN KALISPELL, MONTANA. MAYOR PAMELA B. KENNEDY PRESIDED. COUNCIL MEMBERS KARI GABRIEL, BOB HAFFERMAN, BOB HERRON, RANDY KENYON, DUANE LARSON, HANK OLSON AND JAYSON PETERS WERE PRESENT. COUNCIL MEMBER JIM ATKINSON WAS ABSENT. Also present: City Manager Chris Kukulski, City Attorney Charles Harball, City Clerk Theresa White, Finance Director Amy Robertson, Parks and Recreation Director Mike Baker, Personnel Specialist Marti Rishoff, Police Chief Frank Garner, Public Works Director Jim Hansz, Tri-City Director Tom Jentz and Tri-City Senior Planner Narda Wilson. Mayor Kennedy called the meeting to order and led the Pledge of Allegiance. A. AGENDA APPROVAL Peters moved approval of the Agenda. The motion was seconded. There was no discussion. The motion carried unanimously upon vote. B. HEAR THE PUBLIC Rose Behrens, 541 W. Colorado Street, commented the Council knew there was going to be a large health insurance rate hike, so why did they give the City Manager a 12% raise. Barrons said City retirees will not only be paying all of their own insurance, but as taxpayers will also have to help pay for insurance for current City employees. Audrey Madsen, 704 Lost Creek Drive, said the bottom line with the city's insurance is that the single employee is actually saving the City money by not having a spouse or dependants on the plan, yet the Council is asking that the single employee subsidize the cost. Craig Kerzman, 695 Scenic Drive, stated he believes the Council should approve the plan that has the employee making zero contribution. Norman Beach, Nolan Holdings, invited the Council to an open house at The Greenery Wednesday evening starting at 5:00 p.m. C. REPORTS/RECOMMENDATIONS AND SUBSEQUENT COUNCIL ACTION C/L HEALTH INSURANCE Mayor Kennedy explained that in the Council packets members received three Plans: A, B and C. She said an additional option, Plan D, was presented this evening which is a 50150 option with the single employee making no contribution. (Plans A, B, C and D are attached and by this reference are made a part of the official record) Kalispell City Council Special Meeting Minutes June 28, 2004 Page 1 Gabriel moved Council adopt Plan D and authorize the City Manager to sign a contract with Blue Cross/Blue Shield. The motion was seconded. Gabriel said Plan D was actually brought forward by Hafferman at one of the Council's first work sessions on the health insurance. She said Hafferman's original suggestion had the single employee paying $52.00, which has been eliminated. Gabriel commented she would prefer to see the City paying no more than $464.00 per employee, but that would be a pretty aggressive move to make at this point and she doesn't think it would pass. She said at least with Plan D the costs are shared so that the taxpayer isn't burdened with the entire increase. Larson spoke against Plan D, stating he is in favor of Plan C. He said the City is striving to keep employees at a par level with other cities and by not subsidizing insurance "we are making it harder and harder to compete in the wage arena". Kenyon agreed with Larson adding he will vote against Plan D and vote instead for Plan C. Hafferman commented various proposals have been discussed at several work sessions which should have sent a "signal to the employees that we are all having a looming disaster coming down the pipe in the future". He stated he doesn't believe a 50150 split is fair to the taxpayers or the employees, but it appears to be the fairest over all with the only winner being Blue Cross/Blue Shield. Hafferman recommended the Council adopt the 50150 split as brought forth at the June 21 st work session where everybody splits 50150 with singles paying $52.00, two party contributing $165.00 and $217.00 for a family. Peters said last year the Council made a significant decision to support the "single" employee and he supports Plan D. Hafferman moved Plan D be amended so that the single employee pay $25.00, which is a compromise between 0 and $50.00. The motion was seconded. The amendment failed upon vote with Hafferman, Herron and Peters voting in favor, and Gabriel, Kenyon, Larson, Olson and Mayor Kennedy voting against. Olson stated he voted against the amendment because each individual employee should receive insurance as part of their benefits package, which makes it a level playing field. Peters said he didn't expect the amendment to pass, but wanted to emphasize that if the City faces another huge increase next year there's a real possibility that the single employees are going to have to start participating in the program. Hafferman remarked he will support Plan D simply because the other proposals are not acceptable either. Mayor Kennedy stated insurance has been a difficult issue for many years and hopefully there will be some reform in the future to bring things back into line. She said she appreciates everyone's comments and will support Plan D. Larson commented that Plan D, compared to Plan C, increases the employee's contribution by $65.00. He said there have been comments about the total package and paying employees fairly, so think about how much of a pay increase it's going to take to make up for that $65.00. Kalispell City Council Special Meeting Minutes June 2S, 2004 Page 2 The motion carried upon roll call vote with Gabriel, Hafferman, Herron, Olson, Peters and Mayor Kennedy voting in favor, and Kenyon and Larson voting against. D. MAYOR/COUNCIL CITY MANAGER REPORTS (No Action) Herron commented it's easy to blame Blue Cross/Blue Shield as the villain, but we have a health care system that is broken nationally and he feels the City is fortunate that Blue Cross/Blue Shield is willing to take us as a small group. Hafferman asked if a service agreement with Cottonwood Estates will be ready for the July 6th meeting. Kukulski said a draft agreement is being developed. Hafferman said he was informed that the ad for a City Manager that has already been published didn't contain any details on salary or qualifications. He said he was then given a copy of a notice of qualifications, despite the fact that the Council hasn't met and approved the qualifications. Mayor Kennedy explained the salary range was not included in the advertisement and the job description received was for discussion purposes only. Herron said he had similar questions and would like to see an exact copy of the advertisement. E. ADJOURN The meeting was adjourned at 7:48 p.m. ATTEST: Theresa White City Clerk Pamela B. Kennedy Mayor Kalispell City Council Special Meeting Minutes June 28,2004 Page 3 PLAN A HEALTH COMMITTEE - recommended rate structure Fealty Funded Blue Choice 70130 plan 06/21/04 plus $125,000 run out FYI 2004 rates RATE CITY EMP RATE CITY EMP $ 464.00 $ 414.00 $ 50.00 single $ 364.00 $ 364.00 $ - $ 770.00 $ 695.00 $ 75.00 emplchildren 5 915.00 5 815.00 $ 100.00 2-party $ 720.00 $ 656.50 $ 6350 $ 1,053.00 $ 903.00 $ 150.00 family $ 834.00 $ 73L50 $ 102.50 Retirees -medicare 100% Retirees -medicare 100% $ 285.87 $ - 5 285,87 $ 196.00 $ $ 196.00 5 57L74 5 - $ 57L74 $ 375.00 $ $ 375.00 PLAN i3 Fully Funded Blue Choice 70.130 plan plus $125,000 run out FYI 2004 rates RATE CITY EMP RATE CITY EMP $ 464,00 $ 439.0€1 $ 25,00 *single $ 364,00 $ 364.00 $ - $ 770.00 5 695.00 $ 75,00 emptchildren $ 915.00 $ 815.00 $ IWOO 2-party $ 720.00 $ 656.50 $ 63,50 $ 1,053.00 $ 903.00 $ 150.00 family S 834,00 $ 731.50 11 102.50 Retirees -medicare 100% Retirees -medicare 100% $ 285,117 S - S 285,117 $ 196.00 $ - $ 196.00 $ 57I,74 $ $ 571 '4 $ 375.00 $ $ 375.00 *Additional east i® the Ca for the airove as $10,80lu PLAN C Fully Funded Blue Choice 70130 plan plus $125,000 run out FYI 2004 rates RATE CITY EMP RATE CITY Ee,9P $ 464.00 $ 464.00 $ - *single $ 364.00 $ 364.00 $ - $ 770.00 $ 695,00 $ 75.00 emp/children 5 915A0 S 81&00 $ 100.00 2-party $ 720.00 $ 656.50 $ 63.50 i $ 1,053.00 $ 903.00 $ 150.00 family $ 834.00 $ 731.50 $ 102.50 Retirees -medicare 100% Retirees -medicare 100% $ 285.87 $ - 5 28&87 $ 196,00 $ - $ 196.00 $ 57L74 $ - $ 571.74 $ 375.00 $ - $ 375.00 *Additaoual snst to @he Cl ffor tha above ae $21,600. PLAN 13 Suggested rate splitting increase 50150 council employee Fully Funded Blue Choice 70130 plan plus $125,000 ran out FYI 2004 rates `I'E CITY EMP RATE CITY EMP $ 464.00 S 464A0 S - *single $ 364.00 $ 364.00 S - $ 770A0 S 657A0 S 113.00 emplchildren 5 913.00 $ 754,50 $ 160.50 2-party $ 720.00 $ 65650 $ 63.50 $ 1,05100 $ 841.00 $ 212.00 family $ 834.00 $ 731.50 $ 102.50 Retirees -medicare bill% Retirees -medicare 100% S USX $ $ 285.87 $ 195.00 $ $ 196,00 $ 571,74 $ $ 573.74 $ 375.00 $ $ 375.00