Agenda - Council - 12/15/2020 - Special

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CC Special Session Meeting Date: 12/15/2020 By: Colleen Lasher, Administrative Services Title: Adopt Resolution #20-317 to Authorize the City's 2021 Non -Union City Health and Dental Insurance Contributions and Non -Union Cost of Living Adjustments Purpose/Background: The purpose of this case is for City Council consideration of non -union employee City health and dental insurance contributions and cost of living adjustments (COLA). It should be noted that the recommendations in this non -union case are the same as the other proposed 2021 union contracts. All union employees received the same wage and benefit adjustments as are being proposed for non -union. Health Insurance The City continues to be a member of LOGIS (Local Government Information Systems) which is a consortium of Minnesota local government units. This consortium has many benefits including coverage by the group's health plan. Employees may choose a health plan that best meets their needs by selecting one of four tiers and choosing between two networks; or they may choose to waive the City's health insurance. If approved, the City's total monthly contribution to health insurance, including contributions to the health reimbursement account or the health savings account will be as follows: Employee only (single) from: $949.00 to $1,034.50; Employee and Children $1,246.00; Employee and Spouse $1,300.30; and Family $1,603.80. Employees that elect to waive health insurance in 2021 will receive credit in lieu of coverage in the amount of $370.00 per month and must agree to specific terms and conditions. Note: See attachment for additional health plan details. Employees are responsible for paying the difference between the premium and the City's contribution. Life Insurance If approved, the City will continue to purchase $20,000 of basic life and AD&D insurance for full-time regular employees working 30 hours per week and employees participating in the PERA's phased retirement program. The cost of basic life insurance is $1.00 per month per employee. Single Dental Insurance If approved, the City's monthly contribution to single dental insurance will be $33.45 per month. The City will not offer credit in lieu of coverage for dental insurance. Wages If approved, the City's COLA will be 2.75%, effective January 1, 2021. Annual cost of living adjustments are carefully researched, budgeted for, and are necessary for recruitment and retention of employees. Non -union Wage History 2020 3% 2019 2.75% COLA 2018 2.5% COLA 1-1-18 through 06-30-18 plus .50% COLA beginning 07-01-18 2014 through 2017 2% COLA 2013 1% COLA 2012 2% for all employee groups, with the exception of Department Heads at 1% 2010&2011 Zero%