90-1576 0�� G I N�A L Council File � �c� � ��(,�
.
Green Sheet #
RESOLUTION
CITY OF SAINT PAUL, MINNESOTA I�
Pr sented By ��'yZ-�
Referred To �/.�C. �/ Committee: Date �—y -��
1 A RESOLUTION CONCERNING
2 CITY OF SAINT PAUL
3 �` RETIREE HEALTH BENEFTTS
4
5 �
6 ' .
7 WHEREAS, th City a� Saint Paul provides certain health bene�its to retired employee,s'�
8 through variou bargaim'� unit agreements and/or Council Resolutions Number 267 1,
9 272259 and 27 72; and ��
10 /
11 WHEREAS, th cost to the in providing such benefits is over $3,000,0 per year
12 and continues t increase at a d ble digit inflation rate; and
13
14 WHEREAS, th City's unfunded lia ' ity for the provision of such enefits is in excess
15 of $100,000,000 and
16
17 WHEREAS, th City is unique among gov ental and r�n-governmental entities in
18 providing empl yer paid health insurance for etirees, tl�.� retiree's spouse, and the .
19 retiree's depen ents; and ��
20 ,� ;
21 WHEREAS, th City Council Resolutions gover�i such benefits were adopted 25
22 years ago when single wage eamer families we�e still revalent; and
23
24 WHEREAS, th City Council desires to p�ovide such he th and welfare programs to its
25 employees and etirees while recognizing changing societa ork patterns, the increasing
26 costs of health are, and changing governmental accounting andards for unfunded
27 liability; and,
28
29 WHEREAS, th Mayor has reeently established an Executive La r Management
30 Steering Co ttee and a I,.abor Management Committee on Insu nce to cooperatively
31 resolve labor agemen�r�issues; and,
32
33 NOW, THERE OR , BE IT RESOLVED, the City Council requests t Mayor to
34 direct his newl fo ed La.bor Management Committee on Insurance to r view the
35 City's current r 'ree health insurance policies in light of the policy issues i entified
36 herein and m recommendations to the Mayor and City Council on the pr vision of
37 health and elf re benefits to City retirees, and
38 �
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� QRI,GII��L. 9J �.��-��
1 � ,�� ,BE IT FUR R RESOLVED, the Labor Management Insurance Committee s report
2 s�ould include, but npt be limited to, a comparison to other governmental and non-
3 governmental e tities�variance in bargaining unit contracts, the impact of the new
4 reporting stand ds est�lished by the Governmental Accounting Standards Board,:and
5 cost projectio for at le�st �ve years, and
6 r-,.
7 BE TT FIN Y RESOLVED, that the City Council endorses the ' ' , cooperative
8 Labor Manage ent Committee process established by the Mayo d specifically
9 supports the ne ly formed E�cecutive Labor Management St�ring Committee and the
10 Labor Manage ent Committee on Insurance.
11
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Adopted by Council: Date Form Approved by City Attorney
Adoption Certified Council Secretary g
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By� Approved by Mayor for Submission to
Approved by Mayor: Date Council
By: By�
TO CITY COUNCIL COMMITTEE:
�FINANCE,MANAGEMENT 8�PERSONNEL
❑ HOUSING&ECONOMIC DEVELOPMENT
❑ HOUSING 8�REDEVELOPMENT AUTHORITY
❑ HUMAN SERVICES,REGULATED INDUSTRIES,
AND RULES AND POLICY
❑ INTERGOVERNMENTALRELATIONS
❑ NEIGHBORHOOD SERVICES
❑ PUBLIC WORKS, UTILITIES&TRANSPORTATION
❑ ACTION
❑ OTHER
DA E
FROM
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:
�EC�tyro��o n°�'�� �1���� GREEN SHEET N° _10931
�°'���i`�3"1�l�er Bob Long x4473 � INITIAUDATE � INITIAUDATE
DEPARTMENT DIRECTOR CITY COUNCIL
ASSIGN �CITY ATTORNEY �CITY CLERK
MUST BE ON COUNCIL AOENDA BY(DATE) NUMBER FOR ❑BUDGET DIRECTOR �FIN.8 MGT.SERVICES DIR.
ROUTINO
ORDER �MAYOR(OR ASSISTANn �
TOTAL#OF SIGINATURE PAGES (CLIP ALL LOCATIONS FOR SIGNATURE)
ACTION REQUESTED:
The City Council equests the Mayor to direct the Labor Management
Committee on Insu ance to review the City's current retiree health
insurance policie and make recommendations to the Mayor and Council.
RECOMMENDATION3:Approve(A)or Reject(R) PERSONAL SERVICE CONTRACTS MUST ANSWER THE FOLLOWING�UESTIONS:
_ PLANNINO COMMI3SION _ CIVIL ERVICE COMMIS310N 1• Hes this person/firm ever worked under a cOntract for this department?
_CIB COMMITTEE _ YES NO
_STAFF _ 2• Has this pereon/firm ever been a city employee?
YES NO
_ DIS7RIC7 COUR7 _ 3. Does this person/firm possess a skill not normall
y possessed by any current city employee?
SUPPORTS WHICH COUNCIL OBJECTIVET YES NO
Explein all yes answera on separete shsat and attach to gre•n sheet
INIT�I�iP�1�18�1160iLP�1Nl�i' wn�t�yvn����pxng health benefits is over 3,000,000 per
year and continues to increase at a large rate, and the City is the only
one which provides full health insurance for its retirees. The Executive
Labor Management C mmittee will be able to review the City's current
retiree policies a d make recommendations to the Mayor and Council.
ADVT�esCi�yEof St. Pa 1's policy regarding health insurance for retirees does
r.ot require a mini um number of years for services, and the policy covers
all employees and heir spouses, many of whom have never worked for the
City. The Executi e Labor Management Committee can review these policies
and the City can s ve money and become more responsive to changing
demographics of it employees.
DISADVANTAdES IF APPROVED:
None
Council Research Center
AUG 241��(l
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DI3ADVANTAGE3 IF NOT APPROVED:
The City will conti ue to be one of the only cities that provides total
health insurance b efits to its retirees and spouses, which could, with
the increasing cos of health insurance be prohibitive to the City. The
City will not be ab e to determine the effects of the new standards
established by the overnmental Accounting Standards Board.
TOTAL AMOUNT OF TRANSACTION $ COST/REVENUE BUDGETEp(CIRCLE ONE) YES NO
FUNDING SOURCE ACTIVITY NUMBER
FINANCIAL INFORMATION:(EXPLAIN) r,1 /�C n f y • /',iA f
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NOTE: COMPLETE DIRECTIONS ARE INCLUDED IN THE GREEN SHEET INSTRUCTIONAL �
MANUAL AVAILABLE IN THE PURCHASING OFFICE(PHONE NO.298-4225).
ROUTING ORDER:
Below are correct routings for the five most frequent types of documents:
CONTRACTS(assumes suthorized budget exists) COUNCIL RESOLUTION(Amend Budgets/Accept. Grants)
1. Outside Agency 1. Department Director
2. Department Director 2. City Attorney
3. City Attorney 3. Budget Director
4. Mayor(for contracts over$15,000) 4. Mayor/Assistant
5. Human Rights(for contracts over$50,000) 5. City Council
6. Finance and Management Services Director 6. Chief Accountant, Finance and Management Services
7. Finance Accounting
ADMINISTRATIVE ORDERS(Budget Revision) COUNCIL RESOLUTION (all others,and Ordinances)
1. Activity Manager 1. Department Director
2. Department Accountant 2. City Attorney
3. Department Director 3. Mayor Assistant.
4. Budget Director 4. City Council
5. Ciry Clerk '
6. Chief Accountant, Finance and Management Services
ADMINISTRATIVE ORDERS(all others) �
1. Department Director
2. City Attorney
3. Finance and Management Services Director
4. City Clerk
TOTAL NUMBER OF SIGNATURE PAGES
Indicate the#of pages on which signatures are required and paperclip or flag
each of these pages.
ACTION REQUESTED
Describe what the projecUrequest seeks to accomplish in either chronologi-
cal order or order of importance,whichever is most appropriate for the
issue. Do not write complete sentences. Begin each item in your list with
a verb.
RECOMMENDATIONS
Compiete if the issue in question has been presented before any body, public
or private.
SUPPORTS WHICH COUNCIL OBJECTIVE?
Indicate which Council objective(s)your projecUrequest supports by listing
the key word(s) (HOUSING, RECREATION, NEIGHBORHOODS, ECONOMIC DEVELOPMENT,
BUDGET, SEWER SEPARATION). (SEE COMPLETE LIST IN INSTRUCTIONAI MANUAL.)
PERSONAL SERVICE CONTRACTS:
This information will be used to determine the city's liability for workers compensation claims,taxes and proper civil service hiring rutes.
INITIATING PROBLEM, ISSUE,OPPORTUNITY, '
Explain the situation.or conditions-thafcreated a ne�d for your project
or request.
ADVANTAGES IF APPROVED
Indicate whether this is simply an annual budget procedure required by Iaw/
charter or whether there are specific ways in which the City of Saint Paul
and its citizens will benefit from this projecUaction.
DISADVANTAGES IF APPROVED
What negative effects or major changes to existing or past processes might
this projecUrequest produce if it is passed(e.g.,traffic delays, noise,
tax increases or assessments)?To Whom?When? For how long?
DISADVANTAGES IF NOT APPROVED
What will be the negative consequences if the promfsed action is not
approved?Inability to deliver service?Continued high traffic, noise,
accident rate?Loss of revenue?
FINANCIAL IMPACT
Although you must tailor the information you provide here to the issue you
are addressing, in general you must answer two questions: How much is it
going to cost?Who is going to pay?
� �y�o.����
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;��; CITY OF SAINT PgUL
i9ii`f[:`:�;
OFFICE OF THE CITY COUNCIL
JANICE RETTMAN Members: JOE COLLINS
Councilperson Janice Rettman, Chair LegislativeAssistant
Karl Neid KATHY ZIEMAN
David Thune LegislativeAssistant
COMMITTEE REPORT
FINANC , MANAGEMENT, AND PERSONNEL COMMiTTEE
MAY 7, 1992
1. Call to order; i troduction of inembers, staff, guests; announcement of sign-up
sheet; approval f minutes of April 16, 1992, meeting.
Minutes were approve , 3-0.
2. CONSENT AGENDA
The City Clerk h requested the status of the following items which were
referred to the inance Committee. (See attached letter dated 3/19/92)
Ordinance 90-52 - Providing for the collection of costs for the operation and
maintenance of th pedestrian skyway system. Chair recommends withdrawal .
AEO D-10912 - Pay ent for membership with partners for livable places. No
Committee discuss'on was held.
Ord. 90-682 - Ame ding Leg. Code, Street Obstructions; Permits. Chair
recommends withdr wal .
Res. 90-1456 - Tr uble Call Pay. Chair recommends withdrawal .
� Res. 90-1575 - St dy employee health benefits. Chair recommends withdrawal . .
-Res. 90-1576 - St dy retiree health benefits. Chair recommends withdrawal .
Committee recommended approval of the above consent items as noted.
CITY HALL ROOM NO. 718 SAINT PAUL, ivIINNESOTA 55102 612/298-5289
5�.46
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