91-2037 � � �-� ��� ./
� , ,�, , � ,� r�. �-�- r ;�oun��� File � /- 03
�t� � .���! �'�L � �`c�� �. . ;� � `�
� r� Green Sheet # /1��
RESOLUTION
CITY OF SAINT AUL, MINNESOTA
[ r r `��
�resented By
Referred To � �/1 S �vvt�e f R Committee: Date j /�� ^��
1 WHEREAS, the last time a City Council took action to set comprehensive policy direction for
2 employee health insurance was on July 27, 1976 when action was taken to approve rules and
3 regulations for all City and Independent School District 625 employees, retirees, early retirees,
4 survivors, and dependents to be eligible to participate in the City's Health and Welfare Insurance
5 Program and for transferring Ramsey County employees (Council File 267621); and
6
7 WHEREAS, on December 12, 1978 Council File 272259 extended full insurance benef' o
8 surviving spouses and children of early retirees; and on September 2, 1980 Council F' 275572
9 defined acceptance of lump sum pension settlements as a qualifying starting date egin to receive
10 health insurance payments frorn the City on an ongoing basis; and
11
12 WHEREAS, those past resolutions granted employer paid health insuran ene�its to both active
13 City employees and retired City employees and their dependents and s 'vors, regardless of the
14 employee's years of employment with the City, at a time when insur ce costs where relatively
15 inexpensive; and
16
17 WHEREAS, City paid medical insurance premiums for em yees, early retirees, retirees, and �
18 surviving dependents have been increasing an average o .94% a year for the last five years, which
19 is at a rate of more than three times the general infl ' n rate; and
20
21 WHEREAS, medical insurance premiums for th ext decade are projected to continue to increase
22 at a rate which will continue to be two to thr times the general inflation rate; and
23
24 WHEREAS, people have generally been tiring earlier, and living longer, thus place heavy burdens
25 on taxpayers to �nance future medical ' surance premiums; and
26
27 WHEREAS, the City of Saint Pa no longer administers a medical insurance program for
28 Independent School District 62 , as the district has hired their own benefits administrator; and
29
30 WHEREAS recent actio y the Minnesota Legislature to reduce the City of Saint Paul's Local
31 Government Aid have sulted in the need for the City to reduce General Fund spending, increase
32 property tax levies, the authorized workforce, reorganize functions and reduce some City
33 services; and
34
35 WHEREAS, t Governmental Accounting Standard Board's Statement No. 10 (GASB 10) will
36 require the ity to take action to begin to reduce the unfunded long-term liabilities, especially the
37� expensiv bligations for health insurance for individuals who have never worked for the City; and
38
39 WH EAS, it is recognized that insurance bene�ts are a term and condition of employment which
40 m t be collectively bargained, and that resulting contract language supersedes past City resolutions
41 and ordinances; and that there is a need to have some uniform and common insurance provisions
42 within the various labor contracts in order to keep costs down for both the employee paid premiums
43 and the City's contributions for insurance; and
44
����w��` �9���03�
� 1 WHEREAS, the there is a need to for the City to develop a comprehensive employee wellness
2 program to compliment efforts to reduce long term medical insurance costs; now therefore,
3
4 BE IT RESOLVED, that this City Council requests that the Risk Management Division of the
5 Department of Finance and Management Services, the Labor Relations Office, and the Budget
6 Office jointly prepare a recommended health and welfare insurance policy framework for
7 consideration by the Mayor and City Council within thirty days of the passage of this resolution.
8 The Council adopted policy framework would be used as a guide by the City's negotiating team
9 during contract negotiations. This Council believes that the following items should be conside
10 when drafting updated policy direction:
11
12 1) Rescind past Council Files related to medical insurance which are not istent with
13 current practice, industry trends, sound risk management procedures d the City's
14 ability to pay.
15
16 2) The City's medical insurance contribution for retirees be b d on a requirement that
17 the retired City employee must have worked for the Ci "minimum number of years"
18 before the City would make any contributions towar edical insurance premiums for
19 the City's designated providers.
20
21 3) Standardization of insurance eligibility requi ents.
22
23 4) Maximize the ability for current emplo s to take advantage of IRS tax-free dollars
24 for insurance .
25
26 5) Ensure that employer contributi s for insurance coverage are not to increase future
27. obligations to pension funds; d
28
29 6) All aspects of the policy mework should be consistent with the goal to reduce the
30 City's long-term unfun d insurance liabilities; and
31
32 7) Insurance benefits r City employees who have already retired and are currently
33 receiving benefi should not be reduced; and
34
35 BE IT AL,SO RESOL , that this City Council requests that the Risk Management Division
36 prepare recommendat' s for a comprehensive employee wellness program for consideration by the
37 Mayor and City Co cil in time to be considered as part of the 1992 budget deliberations.
38
Yeas Navs Absent Requested by Department of:
imon
Goswitz
on __
acc ee
�-e�an
W son By�
Form Approved by City Attorney
Adopted by Council: Date
Adoption Certified by Council Secretary gy:
BY� Approved by Mayor for Submission to
Council
Approved by Mayor: Date
By. � By:
. � �, ��/��7
. . . ,
DE ARTMENT/OFFICE/COUNCIL DATE INITIATED N� ��j O� �
cit councii io-2s-9i GREEN SHEET
CONTACT PER30N&PHONE INITIAVDATE INITIAUOATE
�DEPARTMENT DIRECTOR �CITY COUNCIL
W i 11 i am W l�.S OIl 4 6 4 6 Ag$��N �CITY ATTORNEY �CITY CLERK
MUST BE ON COUNCIL AGENDA BY(DATE) NUMBER FOR ❑BUDGET DIRECTOR �FIN.8 MGT.SEHVICES DIR.
ROUTING
1 1�5�9 1 ORDER �MAYOR(OR ASSISTANT) �
TOTAL#OF SIGNATURE PAGES 2 (CLIP ALL LOCATIONS FOR SIGNATURE)
ACTION REQUESTED:
Approval of a resolution directing the Risk Management Division, the Labor
Relations Office and the Budget Office to prepare a health and insurance
policy framework for Council consideration, including certain identified issu s.
RECOMMENDATIONS:Approve(A)or Reject(R) PERSONAL SERVICE CONTRACTS MUST ANSWER THE FOLLOWING�UESTIONS:
_ PLANNING COMMISSION _CIVIL SERVICE COMMISSION 1. Has this person/firm ever worked under e contraCt for this department?
_CIB COMMITTEE _ YES NO
2. Has this person/firm ever been a city employee?
_STAFF — YES NO
_DISTRICT COURT _ 3. Does this person/firm possess a skill not normaly possessed by any current city employee?
SUPPORTS WHICH COUNCIL OBJECTIVE? YES NO
Explain all yes answers on separate sheet and attach to green sheet
INITIATINO PROBLEM,ISSUE,OPPORTUNITY(Who,What,When,Where,Why):
Insurance costs, particularly medical insurance premiums, continue to rise
far in excess of the inflation rate and, as a result, the city needs to
make every effort to contain these costs. Because this is a matter for the
collective bargaining process the city needs to establish consistent policy
and guidelines based on current information, practice and trends.
ADVANTAOES IF APPROVED:
The City Council will have up-to-date information on policies and guidelines
for the provision of insurance benefits for further consideration and
possible adoption of future policies.
DISADVANTAGES IF APPROVED:
None. Such matters are ultimately determined through the collective
bargaining process.
DISADVANTA(iES IF NOT APPROVED:
The city may have inconsistent policies and guidelines that are not current
with trends and practices.
RECEIVED
OCT 2 91991
ClTY L��K
TOTAL AMOUNT OF TRANSACTION S —� COST/REVENUE BUDGETEp(CIRCLE ONE) YES NO
FUNDING 80URCE ACTIVITY NUMBER
FINANCIAL INFORMATION:(EXPLAIN) ��
' • .
� . .
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 authorized budget exists) COUNCIL RESOIUTION (Amend Budgets/Accept. Grants)
1. Outsfde 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. Ciry Attomey
3. Department Director 3. Mayor Assistant
4. Budget Dlrector 4. City Council
5. City Clerk
6. Chief Axountant, Finance and Management Services
ADMINISTRATIVE ORDERS(all others)
1. Department Director
2. City Attorney
3. Finance and Management Services Director
4. Ciry Clerk
TOTAL NUMBER OF SIGNATURE PAGES
Indicate the#of pages on which signatures are required and paperclip or flaq
sech of thsse pages.
ACTION REQUESTED
Describe what the project/request seeks to accomplish in either chronologi-
cal order or order of importance,whichever is most appropriate for the
issue. Do not wrlte complete sentences. Begin each item in your list with
a verb.
RECOMMENDATIONS
Complete if the issue in question has been presented before any body,public
or private.
SUPPORTS WHICH COUNCIL OBJECTIVE?
indicate whlch Council objective(s)your projecUrequest supports by listing
the key word(s)(HOUSING, RECREATION, NEIGHBORHOODS, ECONOMIC DEVELOPMENT,
BUDGET, SEWER SEPARATION). (SEE COMPLETE LIST IN INSTRUCTIONAL 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 rules.
INITIATINC� PROBLEM, ISSUE, OPPORTUNITY
Explain the situation or conditions that created a need for your project
or request.
ADVANTAGES IF APPROVED
Indicate whether this is simply an annual budget procedure required by law/
charter or whether there are specific ways in which the City of Saint Paul
and its citizens wiil 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?
DISADVANTAQES IF NOT APPROVED
What will be the negative consequences if the promised 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?
�
. � � C� �� -�� -�
. .
Committee Report .
Finance, Management, and Personnel Committee
May 7, 1992
Res. 90-2224 - Transfer 35,150 from gen. fund. Chair recommends withdrawal .
AEO D-11351 - Payment of dues - Partners for livable Places.
Discussed in Committee on 3/18/91.
Res. 91-346 - Amend the 1991 City Council Budget. Chair recommends withdrawal
Res. 91-345 - Changing rate of pay for medical records administrator.
Withdrawn in Committee on 3/19/92.
Res. 91-852 - Civil Service Rules - Grievance Procedures. Withdrawn in
Committee on 3/19/92.
Res. 91-979 - Transfer $88,000 to City Attorney Judgment and Compromise Fund.
Chair recommends withdrawal
Res. 91-511 - Refinancing of Police and Fire Relief Assoc. and benefit insurance
for retirees. Referred to Committee 3/21 approved with amendments 4/15, sent
back to Committee 5/28.
Res. 91-1219 - Changing rate of pay for Equipment Services Manager. Laid over
in Committee 9/16/91 �
Res. 91-996 - Transfer $50,000 for IGR Salaries and Interns. Withdrawn in
Committee 9j16/91 .
Res. 91-1341 - Establishing advisory committee on computers. On 4/21 Council
a�enda
Res. 91-1431 - Transferring funds for Oliver White's contract. Withdrawn in .
Committee 9/16/91
Res. 91-1430 - Rate of pay for Marina Manager. Laid over in Committee 1/30/92
Res. 91-1476 - $8,084 to Frances Powell for relocation expenses.
Withdrawn in Committee 9/16/91 and sent to HRA Committee
Res. 91-1508 - Uniformed Fire Dept. personnel to be eligible for early
retirement incentive. Withdrawn in Committee 3/5/92
� Ord. 91-1789 and 91-1790 - Administrative Offense Office. Laid over in
Committee 12/16/91 . �
Res. 91-1857 - Rate of pay for Video Production Technician. � Ap�roved in�
Committee 3/5/92.
prepare health and insurance policy framework. Laid over in
�•
Committee recommended approval of the above consent items as noted.
. 2:
� ' �� pQ � �� g- 93�_.. f
• /����"° �� v 5 Council File # � ��
` � . n .y:u ��.`�`p� � �---��
�/"` Green Sheet #` /7��
RESOLUTION
CITY OF SAINT AUL, MINNESOTA
� ,. ;
esented By
Referred To T-� ll S �'�r1� �R Committee: Date j � �j �
/.. —
r
1 WHEREAS, the last time a City Council took action to set comprehensive policy direction for
2 employee health insurance was on July 27, 1976 when action was taken to approve rules and
3 regulations for a11 City and Independent School District 625 employees, retirees, early retirees,
4 survivors, and dependents to be eligible to participate in the City's Health and Welfare Insurance
5 Program and for transferring Ramsey County employees (Council File 267621); and
6
7 WHEREAS, on December 12, 1978 Council File 272259 extended full insurance benefits to
8 surviving spouses and children of early retirees; and on September 2, 1980 Council File 275572
9 defined acceptance of lump sum pension settlements as a qualifying starting date to begin to receive
10 health insurance payments from the City on an ongoing basis; and
11
12 WHEREAS, those past resolutions granted employer paid health insurance benefits to both active
13 City employees and retired City employees and their dependents and survivors, regardless of the
14 employee's years of employment with the City, at a time when insurance costs where relatively
15 inexpensive; and
16
17 WHEREAS, City paid medical insurance premiums for employees, early retirees, retirees, and
18 surviving dependents have been increasing an average of 13.94% a year for the last five years, which
19 is at a rate of more than three times the general inflation rate; and
20
21 WHEREAS, medical insurance premiums for the next decade are projected to continue to increase
22 at a rate which will continue to be two to three times the general inflation rate; and
23
24 WHEREAS, people have generally been retiring earlier, and living longer, thus place heavy burdens
25 on taxpayers to finance future medical insurance premiums; and
26
27 WHEREAS, the City of Saint Paul no longer administers a medical insurance program for
28 Independent School District 625, as the district has hired their own benefits administrator; and
29
30 WHEREAS recent actions by the Minnesota Legislature to reduce the City of Saint Paul's Local
31 Government Aid have resulted in the need for the City to reduce General Fund spending, increase
32 property tax levies, cut the authorized workforce, reorganize functions and reduce some City
33 services; and
34
35 WHEREAS, the Governmental Accounting Standard Board's Statement No. 10 (GASB 10) will
36 require the City to take action to begin to reduce the unfunded long-term liabilities, especially the
37� expensive obligations for health insurance for individuals who have never worked for the City; and
38
39 WHEREAS, it is recognized that insurance bene�ts are a term and condition of employment which
40 must be collectively bargained, and that resulting contract language supersedes past City resolutions
41 and ordinances; and that there is a need to have some uniform and common insurance provisions
42 within the various labor contracts in order to keep costs down for both the employee paid premiums
43 and the City's contributions for insurance; and
44
��IC,�I�1�►l �q���o���
1 . WHEREAS, the there is a need to for the City to develop a comprehensive employee wellness
2 �program to compliment efforts to reduce long term medical insurance costs; now therefore,
3
4 BE IT RESOLVED, that this City Council requests that the Risk Management Division of the
5 Department of Finance and Management Services, the Labor Relations Office, and the Budget
6 Office jointly prepare a recommended health and welfare insurance policy framework for
7 consideration by the Mayor and City Council within thirty days of the passage of this resolution.
8 The Council adopted policy framework would be used as a guide by the City's negotiating team
9 during contract negotiations. This Council believes that the following items should be considered
10 when drafting updated policy direction:
11
12 1) Rescind past Council Files related to medical insurance which are not consistent with
13 current practice, industry trends, sound risk management procedures, and the City's
14 ability to pay.
15
16 2) The City's medical insurance contribution for retirees be based on a requirement that
17 the retired City employee must have worked for the City a "minimum number of years"
18 before the City would make any contributions towards medical insurance premiums for
19 the City's designated providers.
20
21 3) Standardization of insurance eligibility requirements.
22
23 4) Maximize the ability for current employees to take advantage of IRS tax-free dollars
24 for insurance .
25
26 5) Ensure that employer contributions for insurance coverage are not to increase future
27 obligations to pension funds; and
28
29 6) All aspects of the policy framework should be consistent with the goal to reduce the
30 City's long-term unfunded insurance liabilities; and
31
32 7) Insurance benefits for City employees who have already retired and are currently
33 receiving benefits should not be reduced; and
34
35 BE IT ALSO RESOLVED, that this City Council requests that the Risk Management Division
36 prepare recommendations for a comprehensive employee wellness program for consideration by the
37 Mayor and City Council in time to be considered as part of the 1992 budget deliberations.
38
Yeas Navs Absent Requested by Department of:
s.mon
oswitz
on
acca ee
ettman
une
s son By�
Form Approved by City Attorney
Adopted by Council: Date
Adoption Certified by Council Secretary By:
By� Approved by Mayor for Submission to
Council
Approved by Mayor: Date
By: By�
� � ��/���
� DE?9�fiTMENT/OFFICE/COUNCIL DATE INITIATED N.O 1?10 2
cit councii lo-2s-9i GREEN SHEET
CONTACT PERSON&PHONE INITIAL/DATE INITIAUDATE
�DEPAHTMENT DIRECTOR �CITY COUNCIL
Wi 11 i am Wi 1 s on 4 6 4 6 ASSIGN �CITY ATfORNEY �CITY CLERK
MUST BE ON COUNCIL AGENDA BY(DATE) NUMBER FOR ❑BUDGET DIRECTOR �FIN.&MGT.SERVICES DIR.
HOUTING
1 1—S—9 1 ORDER �MAYOR(OR ASSISTAN� �
TOTAL#OF SIGNATURE PAGES 2 (CLIP ALL LOCATIONS FOR SIGNATURE)
ACTION RE�UESTED:
Approval of a resolution directing the Risk Management Division, the Labor
Relations Office and the Budget Office to prepare a health and insurance
policy framework for Council consideration, including certain identified issu ;
RECOMMENDATIONS:Approve(A)or Reject(R) PERSONAL SERVICE CONTRACTS MUST ANSWER THE FOLLOWING�UESTIONS:
_ PLANNING COMMISSION _CIVIL SERVICE COMMISSION 1• Has this person/firm ever worked under a contract for this department?
_CIB COMMITTEE _ YES NO
_ S7AFF 2. Has this person/firm ever been a city empioyee?
— YES NO
_ DISTRICT COUR7 _ 3. Does this person/firm possess a skili not normally possessed by any current city employee?
SUPPORTS WHICH COUNCIL OBJECTIVE? YES NO
Explain all yes answers on separate sheet and attach to green sheet
INITIATING PROBLEM,ISSUE,OPPORTUNITY(Who,What,When,Where,Why):
Insurance costs, particularly medical insurance premiums, continue to rise
far in excess of the inflation rate and, as a result, the city needs to
make every effort to contain these costs. Because this is a matter for the
collective bargaining process the city needs to establish consistent policy
and guidelines based on current information, practice and trends.
ADVANTAOES IF APPROVED:
The City Council will have up-to-date information on policies and guidelines
for the provision of insurance benefits for further consideration and
possible adoption of future policies.
DISADVANTAGES�F APPROVED:
None. Such matters are ultimately determined through the collective
bargaining process.
DISADVANTAGES IF NOT APPROVED:
The city may have inconsistent policies and guidelines that are not current
with trends and practices.
RECEIVEC�
OCT 2 91991
��7Y CLEKK
TOTAL AMOUNT OF TRANSACTION $ —� COST/REVENUE BUDGETED(CIRCLE ONE) YES NO
FUNDING SOURCE ACTIVITY NUMBER
FINANCIAL INFORMATION:(EXPLAIN) ��
w
•
Committee Report
Finance, Management, and Personnel Committee
May 7, 1992
Res. 90-2224 - Transfer $5,150 from gen. fund. Chair recommends withdrawal .
AEO D-11351 - Payment of dues - Partners for Livable Places.
Discussed in Committee on 3/18/91.
Res. 91-346 - Amend the 1991 City Council Budget. Chair recommends withdrawal
Res. 91-345 - Changing rate of pay for medical records administrator.
Withdrawn in Committee on 3/19/92.
Res. 91-852 - Civil Service Rules - Grievance Procedures. Withdrawn in
Committee on 3/19/92.
Res. 91-979 - Transfer $88,000 to City Attorney Judgment and Compromise Fund.
Chair recommends withdrawal
Res. 91-511 - Refinancing of Police and Fire Relief Assoc. and benefit insurance
for retirees. Referred to Committee 3/21 aanroved with amendments 4/15, sent
back to Committee 5/28.
Res. 91-1219 - Changing rate of pay for Equipment Services Manager. Laid over
in Committee 9/16/91
Res. 91-996 - Transfer $50,000 for IGR Salaries and Interns. Withdrawn in
Committee 9/16/91 .
Res. 91-1341 - Establishing advisory committee on computers. On 4/21 Council
a_genda
Res. 91-1431 - Transferring funds for Oliver White's contract. Withdrawn in •
Committee 9/16/91
Res. 91-1430 - Rate of pay for Marina Manager. laid over in Committee 1/30/92
Res. 91-1476 - $8,084 to Frances Powell for relocation expenses.
Withdrawn in Committee 9/16/91 and sent to HRA Committee
Res. 91-1508 - Uniformed Fire Dept. personnel to be eligible for early
. retirement incentive. Withdrawn in Committee 3/5J92
� Ord. 91-1789 and 91-1790 - Administrative Offense Office. Laid over in
Committee 12/16/91.
Res. 91-1857 - Rate of pay for Video Production Technician. � Aaproved in
Committee 3/5/92.
Res. 91-2037 - To prepare health and insurance policy framework. Laid over in
Committee 4/2/92.
Committee recommended approval of the above consent items as noted.
2