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Councilmember Backous felt offering an opt out could endanger the City's ability to get group <br />rates and philosophically he found it wrong to pay people for not taking a voluntary benefit. He <br />noted if it saves the City money, those funds can be better used elsewhere. <br />City Administrator Ulrich noted another option is to not offer a cash benefit but a contribution to <br />the HSA or different coverage such as deferred compensation. <br />Councilmember Backous stated another option is to offer more life insurance. <br />City Administrator Ulrich stated the City needs to be careful if LOGIS changes and an employee <br />is penalized if they opt out. <br />Chairperson Tossey asked how the employee would have an HRA if not accepting the benefits. <br />He stated he does not want to jeopardize the City's future coverage or impact the employee's <br />coverage, but he would support an opt out if it is cheaper for the City in the long run. <br />Motion by Councilmember Backous, seconded by Councilmember Kuzma, to recommend that <br />the City Council adopt the Resolution to increase the non -union wage scale by one percent. <br />Motion carried. Voting Yes: Chairperson Tossey, Councilmembers Backous and Kuzma. <br />Voting No: None. <br />Motion by Councilmember Backous, seconded by Chairperson Tossey, to recommend that the <br />City Council adopt Resolution #13- 01 -XXX to approve the non -union City's health insurance <br />contributions as detailed in the staff report. <br />Further discussion: Councilmember Backous pointed out that the City's health insurance plan is <br />a "very rich plan" and a good benefit to employees. It is not a typical type of plan and he would <br />like employees to be aware of that fact. Human Resources Manager Lasher stated her <br />understanding that this rate structure, among municipalities, is common and that the private <br />sector is completely different. Councilmember Backous stated he supports the plan since the <br />City needs to compete for municipal employees. <br />Motion carried. Voting Yes: Chairperson Tossey, Councilmembers Backous and Kuzma. <br />Voting No: None. <br />Chairperson Tossey asked the Committee to next discuss the option to waive health insurance in <br />exchange for a cash benefit (opt out). He asked if this needs to be decided tonight. <br />Human Resources Manager Lasher explained it does not need to be acted on tonight but in order <br />to make this change, it would be a mid -year election /policy change. She stated she has consulted <br />with the City's benefit broker in case employees want to make this qualified status change. <br />Human Resources Manager Lasher noted that many employees have spouses with benefit years <br />renewing February 1 so their spouses are now in open enrollment, which would be the best time <br />to allow them to take advantage. Otherwise, employees cannot take advantage until 2014 unless <br />there is a status change. <br />Personnel Committee / January 22, 2013 <br />Page 5 of 11 <br />