Adopt Resolution #16-12-247 to Approve the City's 2017 Non-Union Health Insurance Contributions and Non-Union Cost of Living Adjustments

The purpose of this case is to ask the City Council to approve the non-union employee City health insurance contributions and cost of living adjustments (COLA) as accounted for in the 2017 City budget.   The non-union health insurance contributions and COLA are the same amounts as discussed with the City Council for all other employee groups, including AFSCME, LELS-Patrol and LELS-Sergeants. This approach has proven to be an effective way to maintain internal equity, minimize the complexity of the budget and keep the payroll process streamlined. 

Health Insurance
The City is 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 three networks; or they may choose to waive the City’s health insurance. The City's monthly contribution to health insurance in 2017 is as follows:   Employee-only coverage ranges from $700 to $723.50, Employee and Children coverage is $871.60, Employee and Spouse coverage is $907.30, and Family coverage is $1116.90.

Employees that elect to waive health insurance in 2017 will receive credit in lieu of coverage in the amount of $370.00 and must agree to providing proof of other coverage; as well as agree to come back on the City's health plan if the City requires them to do so. 
   
Note:  See attachment for additional health plan details, including premiums.  Employees are responsible for paying the difference between the premium and the City’s contribution.
  
The City will continue to purchase $20,000 of basic life insurance for full-time regular employees working 30 hours per week or more.

Wages
As is the case for all other city of Ramsey employees, staff recommends a 2% COLA be authorized for non-union employees.   Annual cost of living adjustments are carefully researched and compared to other similar-sized cities and are necessary for recruitment and retention purposes.   
 
Non-union Wage History
2016 2% COLA
2015 2% COLA
2014 2% COLA
2013 1% COLA
2012 2% for all employee groups, with the exception of Department Heads at 1%
2011 Zero %
2010 Zero %
2003 to 2009 3% 

Attachments:
1) Resolution
2) Health Plan Chart

Observations/Alternatives:
Staff recommends moving forward with the City non-union health insurance contributions as listed and a two percent (2%) non-union COLA.   This action is important in order to effectively maintain internal equity, minimize the complexity of the budget, keep the payroll process streamlined, mirror other city's business practices, compete in external hiring processes, and to retain the City's talent.   Staff does not recommend an alternative action. 



 

The funding required for this action is included in the 2017 City budget. 

Staff recommends authorizing the non-union City health insurance contributions as listed above and the non-union cost of living adjustment of two percent (2%).

Motion to adopt resolution # 16-12-247 to do the following:
1) Authorize the following non-union City health insurance contributions:   Employee-only coverage from $700 to $723.50, Employee and Children coverage at $871.60, Employee and Spouse coverage at $907.30 and Family coverage at $1116.90; or to receive credit in lieu of coverage at $370.00; and   2) Authorize increasing the non-union wage scale by two percent (2%) for a cost of living adjustment.